TUCSON, ARIZONA – Art and Clint Wadlund of Berkadia Tucson successfully negotiated three separate transactions recently the sale of Encantada Riverside Crossing and Casas Lindas for HSL Properties of Tucson, sold for an aggregate of $125 million ($279,000 per unit); Tierra Ridge Apartments was sold for Element Property Company of Los Angeles, and sold for $25 million ($108,000 per unit).

All are class-A communities that sold with strong occupancy.

Encantada at River Crossing Apartments at 1925 West River Road in Tucson was built in 2011 by HSL Properties with 304 units and a unit mix of one- two- and three-bedroom units in fourteen two-story buildings.  Amenities include a clubhouse, storage building, barbecues, cabanas, dog park, playground, pool and spa.

The buyer was an affiliate of Cortland Partners of Atlanta, GA that also purchased Casas Lindas Apartments at 699 West Magee Road in Tucson. Both are northwest submarket communities.

Casas Lindas Apartments was built in 1987 and consists of 22 two-story buildings with 144 one- and two-bedroom apartment homes and town houses. Amenities include private entrances, vaulted ceilings, wood burning fireplaces, private balconies and lofts. Clubhouse, basketball court, pool, spa, fitness center, picnic area and is pet friendly are some of the amenities.

The third community, Tierra Ridge Apartments at 3350 West Valencia and 6420 S Camino De La Tierra in Tucson west submarket, was sold to Salt Lake City investors in a 1031 exchange.  It was built in 1991 with 232-units in eleven two-story building and a one- and two-bedroom unit mix. Amenities include pool, spa, clubhouse, fitness center and laundry facilities.

“We are excited to have had the opportunity to market and sell these properties for HSL Properties and Element Property Company,” said Clint Wadlund. “We have been focused on selling multifamily communities for many years and Tucson is one of the strongest multifamily markets in the country right now. The Tucson multifamily market recorded healthy performance during the second quarter with a rapid pace of absorption putting significant upward pressure on rents.”

For more information, Art Wadlund can be reached at 520.299.7200 and Clint Wadlund should be contacted at 520.615.1100.

To learn more, see RED Comps #9087, #9111 and #9156.

PHOTO: Casas Lindas Apartments

Town West Realty, HSL Properties and Iridius Capital are Committed to Providing a World-Class Retail Experience to Their Community

TUCSON, ARIZONA — Town West Realty, HSL Properties and Iridius Capital are pleased to announce the purchase of La Encantada. La Encantada is Southern Arizona’s premier lifestyle center, featuring AJ’s Fine Foods, a variety of luxury retailers, and several upscale restaurants in a beautiful outdoor setting at the base of the Santa Catalina Mountain Range. La Encantada was developed in the early 2000s and has been the premier gathering place of the Catalina Foothills ever since.

Public records show the asset sold for $172 million on September 17.

All three investors are well known in the community. Town West’s portfolio includes approximately two million square feet of commercial real estate, including premier Arizona lifestyle assets like Oro Valley Market Place and Shoppes at Chandler Crossings. Town West recently celebrated its 40th year of serving Arizona.

Over the past 46 years, HSL has acquired, owned, operated, and developed properties throughout the southwestern United States. HSL Properties currently owns and operates 37 apartment communities and eleven hotels in Arizona, including El Conquistador, a Hilton Resort and the Ritz-Carlton, Dove Mountain.

Founded in 2011, Iridius Capital is a real estate company that partners with industry leaders to acquire and develop best-in-class real estate assets. Current real estate assets include Wilmot Plaza, Oracle Crossing, Campbell Plaza, and One South Church.

“The best lifestyle centers are more than a shopping destination,” said G.S Jaggi, Chief Investment Officer at Iridius Capital. “For consumers, they’re a central hub of daily life. For tenants, they’re an opportunity to build meaningful customer relationships that increase sales both online and in-store.”

“Our vision is an updated and vibrant La Encantada that provides consumers with experiences and events that can’t be replicated online,” said HSL Properties Chairman, Humberto Lopez.

Town West Realty will serve as La Encantada’s Managing Partner and is already working to bring several new-to-Tucson retailers to the center, including Warby Parker and LoveSac. Expect to see additional tenant announcements soon.

“La Encantada is a one-of-a-kind retail and lifestyle center,” said Town West Realty Chairman and Founder Jim Horvath. “We are excited about the opportunity to be part of a project that will bring people together from all over Tucson for years to come.”

The buyers were represented by Hinderaker, Rauh & Weisman PLLC, Thrasher Law Offices PLLC and Town West’s in-house general council Martin Jones.

TUCSON, ARIZONA – NorthMarq’s investment sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered the sale of the 332-unit Apple Apartments in Tucson, Arizona to Hannapat Management, LLC, a Florida-based investor.

Catalina Investments, LLC a California seller sold the asset for $32.8 million ($98,795 per unit).

Built in 1988, the property features a resort-style swimming pool and spa, fitness center, on-site laundry facility and business center. Given its strategic location, the property places residences within proximity to some of Tucson’s largest employers, including Davis-Monthan Air Force Base, which currently employs over 5,900 personnel (1,950 reserves, 3,700 civilian employees and 2,200 members of the Department of Defense. The University of Arizona is also less than a 12-minute drive, and currently enrolls over 46,000 students.

“Our out-of-state investors have now expanded their target markets in the southwest to include Tucson. The prices and the value-add opportunities, plus an expanding job market and highly-qualified potential employees from the University of Arizona, all play a pivotal role for Tucson,” said senior vice president, Jesse Hudson. The employment market in Tucson is adding back workers at an active pace. Year over year through the second quarter, employment growth has expanded by 2.4 percent with the addition of nearly 9,000 jobs. Employers are on pace to add approximately 12,000 jobs in the Tucson area by the end of this year. This would mark an annual increase to payrolls of 3.2 percent.

The sale of The Apple was bolstered by the strong market fundamentals noted in NorthMarq’s recently released Q2 Greater Tucson Multifamily Report. The report explained that The Tucson multifamily market recorded healthy performance during the second quarter with a rapid pace of absorption putting significant upward pressure on rents. Demand is forecast to remain elevated in the coming quarters, while new units will be delivered to boost the inventory of available units. The number of property sales slowed during the second quarter, following more than a year of steady activity. Despite the recent dip in transactions, prices are on the rise, and cap rates have compressed to just 5.1 percent.

For more information, Koskovich can be reached at 602.952.4040, Hahn is at 602.952.4041, Hudson should be reached at 602.952.4042 and Boyle is at 602.952.4050.

To learn more, see RED Comp #9055