C&W Picor Negotiated $13.81 Million in Under 40-Units Tucson Multifamily Sales Last Month

TUCSON, ARIZONA — The Multifamily Team of Cushman & Wakefield | PICOR have had a busy month closing nine apartment deals with an aggregate of $13.81 million and 194 units ($71,186 per unit).

A three-property portfolio sale with 71-units and 34,070-square-feet of multifamily space. Executive Apartments, Jerrie Apartments and Eastgate Apartments were sold by different Tucson LLCs under management of Gary Love for $5,025,000 (average $71,000 per unit).

The portfolio had 41 offers in the short two weeks it was on the market and sold at a price per unit basis.

Executive Apartments – 11 Units at 5530 E Bellevue Street, Tucson, AZ 85712 sold for $700,000 to Winding Creek Apartments, LLC. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction. To learn more, see RED Comp #9057
Jerrie Street Apartments – 28 Units at 1031 N Jerrie Avenue, Tucson, AZ 85711 sold for $1,800,000 To learn more, see RED Comp #9058.
Eastgate Apartments – 32 Units at 1175 N Jefferson Avenue, Tucson, AZ 85712 sold for $2,525,000. To learn more, see RED Comp #9059.

Winding Creek Apartments, LLC of Los Angeles, CA was the investor. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction.

Casitas @ Thirteen Forty – 24 Units at 1340-1390 N Country Club Road, Tucson, AZ 85716 was purchased by Casitas On Country Club, LLC. Casitas @ Thirteen Forty was purchased from Thirteen Forty Holdings, LLC for $1,785,000 ($74,375 per unit). The property includes nine duplexes and one 6-unit apartment building with courtyard, laundry, and gated. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented the seller in the transaction. Nancy Moore, with Lifestyles Realty Phoenix, Inc., represented the buyer. To learn more, see RED Comp #9045

Vida Nueva Apartments – 24 Units at 3525 N Stone Avenue, Tucson, AZ 85705 sold for $1,250,000 ($52,083 per unit). Three two-story buildings with playground, pool, fenced and gated parking. Mendelsberg and Martinez represented both sides. To learn more, see RED Comp #9007.

Villas Sentinel Apartments – 21 Units at 1841 S San Jose Drive, Tucson, AZ 85713 sold for $1,840,000 ($87,619 per unit). Ten duplexes and one SFR are all 2-bedroom / 1 bath units (730 SF) with a playground. Seller was self-represented in the transaction and Mendelsberg and Martinez represented the buyer. To learn more, see RED Comp #9115.

Bordon’s Court – 20 Units at 2245 S 6th Avenue, Tucson, AZ 85713 sold for $1,190,000 ($59,500 per unit). Property consists of a triplex, one apartment building with 6-units, and a Motel with 11-units all Studios approx. 600SF. Pueblo Cielo, LLC purchased the 6,190-square-feet multifamily space from P.C. Terra Enterprises, LLC. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction. To learn more, see RED Comp #9078.

Multifamily – 11 units at 630 E Elm Street, Tucson, AZ 85705 sold for $1,650,000 ($150,000 per unit). The property consists of four duplexes, a triplex with off street parking. East Elm Managing, LLC purchased the 7,392-square-feet of multifamily space from Firstelm, LLC. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction. To learn more, see RED Comp #9091

BRinc on Geronimo – 12 Units at 3449-3471 N Geronimo, Tucson, AZ 85705 sold for $1,070,000 ($89,167 per unit). The property consists of twelve 487-square-foot. One-bedroom units with private yards & carports and burnt adobe construction on a corner lot. Recently remodeled, all units are individually metered for electric. Owner pays water, sewer, natural gas and trash collection. Allan Mendelsberg, Principal and Conrad Martinez, Multifamily Specialists and Conrad Martinez with Cushman & Wakefield | PICOR, represented both buyer and seller in this transaction. To learn more, see RED Comp #9140

For additional information, Mendelsberg should be reached at 520.546.2721 and Martinez is at 520.546.2730.

PHOTO: Casitas @ Thirteen Forty

Available Land Inventory Down 50%+ Since January – Small businesses Face Little to No Options

By: Max Fisher, BRD Realty

TUCSON, ARIZONA — Since the recession, industrial land has been sluggish as vacancy hovered between 7-12%. The market has since become so tight that now land is selling left and right. Vacant airport area land is now tough to find. Cranes are tilting walls for mid to large size distribution centers for users and speculative developers. Available industrial land is now drying up with the uptick in demand.

Available existing inventory is at an all time low with vacancy below 5% and lease rates quickly rising. The Northwest market has the highest lease rates and the least amount of vacancy. Lease rates in the Palo Verde, Ajo and Airport market are quickly catching up to Northwest rates.

The amount of available buildings for sale is at an all time low. It is definitely a seller’s market, even for functionally obsolescent buildings and buildings in need of repair. As the price per SF rises, spec buildings for sale are starting to be built. We can expect that spec buildings, mostly metal will be built as price per SF pushes towards $100 per SF.

So what is causing this rush of demand? A combination of migration from California and dense cities, the Ecommerce rush, Cannabis legalization, stimulus, and the booming demand of building materials.

When will supply catch up? Supply will begin to catch up with demand as lease rates continue to rise. Rising lease rates spur speculative development. Speculative developers have already proven that development makes sense in Tucson so now we are starting to see an increase in development activity, mostly in the distribution market. We can expect to see small bay developers start building as lease rates push north of $.80 NNN per SF. We can also expect to see large distribution centers enter the market as conventional retailers shift their models towards last mile distribution.

Are we expecting a slow down? We are not expecting a slow down as long as long as migration from California and dense cities continues and Ecommerce demand continues to grow. these are the two main demand drivers right now.

Recent small business transactions:

3238 E Columbia (3,972 SF) sold for $278,000 to 3238 E Columbia Street LLC. Max Fisher, BRD Realty represented the seller. Michael Coretz, Commercial Real Estate Group Tucson represented the buyer.
2310 N 9th Ave (4,000 SF) sold for $331,000 to Matthew McGinley. Max Fisher, BRD Realty represented the seller. Danny Roth, Keller Williams represented the buyer.
1013 S Euclid (1,780 SF) leased to Evolve Gym LLC. Max Fisher handled this transaction.
7941 E Lakeside Pkwy Suite 102 (1,000 SF) leased to Jose Roman DBA 98 Records. Max Fisher, BRD Realty handled this transaction.
227 E Valencia Yard 3 (8,000 SF) leased to DC roofing LLC. Max Fisher, BRD Realty handled this transaction.
3820 E 44th St Suite 402 (1,100 SF) leased to Robert Payne. Max Fisher, BRD Realty handled this transaction.
7941 E Lakeside Pkway Suite 103 (1,000 SF) leased to Richard Rivera. Max Fisher, BRD Realty handled this transaction.
2006 E 14th St (4,200 SF) leased to Motive Energy. Max Fisher handled this transaction.
2112 N Dragoon Suite 3 (1,000 SF) leased to Dent Busters LLC. Max Fisher, BRD Realty handled this transaction.
140 W Fort Lowell Suite 140 (2,380 SF) leased to Oasis Express LLC. Max Fisher, BRD Realty handled this transaction.

Max Fisher, Director of leasing and sales for BRD Realty, specializes in industrial and business park properties, including flex/research and development, warehouse and distribution, and manufacturing space. As a native Tucsonan, Max inherently understands what makes the community thrive. He has been active in the Tucson real estate market since 2012, and his strong community ties and industrial focus make him a standout in the commercial/industrial arena. He is known for his strong focus on relationships, tenacious work ethic, and his communication and negotiation skills. Max completed has consistently closed over 85+ transactions per year for the past 3 years. For more information, contact Max at 520.465.9989.

CBRE Negotiates Sale of Tucson, Ariz. Apartments for $33.75 Million to Tara Investment Group

This marks the first acquisition for Tara in the Tucson market

TUCSON, ARIZONA — CBRE arranged the sale of the 205-unit multifamily community The Ledges at West Campus at 2162 W Speedway Blvd. in Tucson. to Tara Investment Group LLC for $33.75 million ($165,000 per unit).

CBRE’s Jeff Casper, Asher Gunter, Matt Pesch, Tyler Anderson and Sean Cunningham represented the seller, Berger Investment Group.

Built in 1997, The Ledges at West Campus is located adjacent to Pima Community College near the base of the Tucson Mountains, the property is in the westerly submarket of Tucson. The community’s amenities include two resort-style pool and spa areas, fitness center, resident clubhouse and business center.

“The Ledges at West Campus was previously operated as a by-the-bed rental student housing,” said Casper. “The seller began the process of converting to by-unit leasing as a conventional property and the buyer plans to finalize the conversion.”

He added, “The community’s location provides residents with direct access to employment in downtown and along I-10 as well as Pima Community College and the University of Arizona. The Ledges at West Campus presented a unique investment opportunity in one of the strongest multifamily markets in the country.”

Tucson had the third-strongest multifamily rent growth of all U.S. metros in Q2 2021 with a 14.6 percent year-over-year increase, according to CBRE research. Multifamily occupancy increased 100 basis points year-over-year to 96.8 percent, the highest occupancy rate on record.

“Tucson has been one of our top targets for several years and we are excited to enter the market with The Ledges at West Campus,” said Elizabeth Meier, principal of Tara Investment Group. “We look forward to finish repositioning the community as conventional apartments and explore other investment opportunities in the region.”

Tara Investment Group was formed in a merger with Shefflin Investments of Santa Barbara. Shefflin Investments recently sold its long-held Colorado Springs multifamily portfolio of 355 units with equities exchanged into Tucson’s The Ledges at West Campus and several other properties in Colorado.

“The acquisition of The Ledges at West Campus nicely complements our existing Arizona apartment portfolio, and we are hoping to acquire additional assets in the Tucson marketplace,” said Joel Shefflin, principal of Tara Investments.

Berger Investment Group, Inc. has invested in fine Multifamily and Commercial Properties in Arizona for the last 30 years.