TUCSON, Arizona — Las Villas De Kino Apartments I & II, a 348-unit apartment community at 5515 S Forgeus Avenue in Tucson, AZ. The property is conveniently located close to I-10 and I-19, local schools, attractions, and entertainment and sold recently for $21 million ($60,345 per unit).

The buyer is a Chicago investor, LCA LVDK, LP, and the seller, Las Villas de Kino, LP of Tucson.

Las Villas De Kino was built and placed into service in 1998 & 1999, with 29 buildings totaling 267,375-square-feet on 17.95-acres, under the Section 42 Low-Income Housing Tax Credit (LIHTC) program and sold with an existing regulatory agreement in place which requires 322 units to be rented to income qualifying residents. The remaining units are to be rented at market rate. It was fully occupied when it sold.

The property offers one-, two-, and three-bedroom apartment homes featuring open floor plans with a full appliance package and private patio/balcony. The community amenities include a clubhouse, on-site laundry facilities, basketball court, picnic area with BBQ, swimming pool, fitness center, playground, business center, and courtesy patrol.

The Tucson region slated to lose 220 affordable housing units by 2018 and an additional 204 units by 2020 made the property even more appealing to the buyer.

The Low-Income Housing Tax Credit (LIHTC) program is currently the country’s most extensive affordable housing program. The program was added to Section 42 of the Internal Revenue Code in 1986 in order to provide private owners with an incentive to create and maintain affordable housing.

Investors buy income tax credits in qualified properties that have received state allocation, creating cash equity for owners that reduces project development debt burden. In exchange, the owner agrees to rent a specific number of units to qualified tenants at specified rents, usually below-market.

Jeff Irish with LIHTC Advisors of Boise, ID which specializes in Low-Income Housing Tax Credit investments represented the seller in cooperation with Hamid Panahi, Cliff David and Steve Gebing with Marcus & Millichap in Phoenix

For more information, Panahi, David and Gebing should be reached at 602.687.6700 and Irish can be contacted at 800.840.3021 ext. 2.

To learn more see RED Comp #5019 and check RED Listing Registry often for similar properties available.

Colorado Investor Expands Arizona Portfolio with Multifamily Property

Phoenix,  Arizona –  A Colorado investor has purchased the Raintree apartment community at 6450 E. Golf Links Rd. for $12.475 million ($34,272 per unit).  The company acquired the property as an expansion of its existing Arizona real estate portfolio.

“This property offers the abundance of on-site amenities that today’s tenants are seeking,” says Trevor Koskovich, senior vice president with Colliers International in Greater Phoenix.  “The quality of the property and its incredible location near Davis-Monthan Air Force Base position the asset for outstanding appreciation in value.”

Colorado-based SPL Real Estate and Management Company purchased the community from Summit Raintree, LLC, a Delaware limited liability company.  Koskovich, Bill Hahn and Jesse Hudson of Colliers International in Greater Phoenix handled the sale transaction.

Raintree was built in 1983 and was 96 percent occupied at the time of the sale.  Situated on 10.18 acres of land, the community features 20 two-story buildings of apartment homes.  The property contains 364 units ranging from 327-square-foot studios to 928-square-foot two-bedroom apartments.  Raintree offers a total of 145,456 square feet of space.

The gated community provides residents with a swimming pool and spa, fitness center, basketball court, sand volleyball, racquetball court, dog park, jogging track, television lounge and 24-hour laundry facility.    Apartment units feature walk-in closets, pantry, vaulted ceilings in upper units and dishwashers.

Raintree is located in a popular area of Tucson, just north of Davis-Monthan Air Force Base.  The area features a variety of shopping destinations and is surrounded by strong elementary schools and higher education institutions.  Comcast recently announced the future hiring of 1,175 employees for its call center, just 20 minutes from Raintree.

To learn more see RED Comp #5020.

TUCSON, Arizona — As we look back over the 782 commercial transactions to-date for Tucson in 2016, with the help of our RED Comps database, the ‘Deal of the Year’ stands out as being the highest retail sale of the “trophy asset” Wilmot Plaza. Purchased in September 2016, by DSW Wilmot Plaza LP, an Arizona-based investment group DESCO Southwest, managing director Michael Sarabia along with partner James Hardman believe strongly in the fundamentals of this recently redeveloped 139,000-square-foot multi-building neighborhood center.

The center has a long history of being a landmark retail center in the central-east corridor of Tucson. The substantial visibility from both Broadway and Wilmot roads, access to this major arterial intersection, and close proximity to Park Mall (General Growth Properties) and the St. Joseph’s Hospital and medical office complex all benefit the center.

Wilmot Plaza sold for $47.3 Million ($340 PSF) from BP Wilmot Plaza (Don Bourn, manager) a Bourn Companies’ destination retail re-development. Bourn had fully redeveloped the center with an all-star tenant line up including:  TJ Maxx, Dicks Sporting Goods, Nordstrom Rack, Payless Shoes and AT&T and sold fully leased.

Bourn had acquired the property in July 2013 for $6.2 million, seeing the potential when it was still 60-70% vacant. Renovations began in 2014, razing the north half of Wilmot Plaza, at the northeast corner, and completely remodeling the buildings that weren’t razed while tenants remained open. Through redevelopment efforts Bourn transformed the 10-acre property into a first-class shopping center.

Built in 1956, the property consists of relatively large buildings grouped along the northern and eastern edges of the site. The Tucson General Plan defines the area as a regional commercial activity center that includes Park Place Mall and several shopping centers along Broadway Blvd, a high-density office and residential node northwest of the intersection and the St. Joseph’s Hospital and medical office complex. The General Plan also encourages redevelopment and expansion of strip commercial development to improve traffic flow, pedestrian circulation and safety, and streetscape quality, providing primary access from arterial streets away from residential uses.

Toufic Abi-Aad (CFO Bourn Companies) handled the disposition for the seller, and Michael Sarabia and James Hardman (DESCO Southwest) represented DSW Wilmot Plaza LP. Tim Storey with Newmark Capital in Phoenix assisted with financing for the acquisition.

The acquisition reflects DESCO’s continued investment strategy in the Arizona marketplace where Michael Sarabia, managing member of DSW Wilmot Plaza LP and DESCO Southwest, has been an active participant for the past 16 years. Sarabia stated at time of sale, “When looking at submarkets we take into consideration several mitigating factors such as household income, growing population, quality of building, tenant mix, term of leases and strategic location of asset.  Don Bourn and his team have been able to source high profile sites and develop signature projects in irreplaceable locations, we are pleased to be able to work with them on this acquisition.”

The acquisition is part of DESCO’s continued investment strategy in the Arizona region, a market where they own/manage over 500,000-square-feet of retail and office.

Congratulations to DESCO Southwest and Bourn Companies!

For more information, Sarabia and Hardman should be reached at 520.297.8929 and Abi-Aad can be contacted at 520.323.1005. Storey can be called at 602.374.7854.

To learn more, see RED Comp #4163.