Gantry Secures $8.5 Million of Financing for Acquisition of Arizona Student Housing Complex

The Zone Apartments Near University of Arizona in Tucson Acquired as Upleg of Reverse 1031 Exchange; Fixed Rate Bank Loan Features Interest Only Component

Tucson, Ariz. (November 23, 2022) – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured $8.5 million of financing for the acquisition of The Zone Apartments, a 26-unit complex that is master leased to a student housing operator called Tripalink. Each unit consists of 4-bedrooms, 4.5-baths and common areas including kitchen and living area. Tripalink rents the property by the bedroom totaling 104 tenants at full occupancy in a co-living format.

Gantry’s Adam Parker, Principal, and Chad Metzger, Senior Associate, with the firm’s Phoenix production office secured the loan on behalf of the borrower, a private real estate investor. The loan was provided by a regional bank with a 5-year fixed rate inclusive of the first two years of interest only payments.

According to Gantry’s Adam Parker, “This transaction required navigating several complicated challenges, including a master lease with a student housing provider for the entirety of the complex, a Reverse 1031 Exchange component, and rising interest rates. We were able to work through these issues as the lender took the time to understand the asset’s unique position in the marketplace. The subject property is very well located near the University of Arizona, and the master lease is currently at a below market rental rate. The Sponsor understands the immediate submarket intimately as they own an adjacent multifamily asset.”

This transaction closed October 28, 2022.

Tierra Alegre Apartments in Tucson Sells for $8.5 Million

TUCSON, ARIZONA, Nov. 22,2022 — Equilibrium Cordova Village LLC, an affiliate of Equilibrium Funding Managers of Tucson, purchased Tierra Alegre Apartments, at 3355 E. Fort Lowell Rd., in Tucson. The 72-unit apartment property was purchased from Ryder Family Real Estate LLC of Los Alamitos, CA for $8.5 million ($118,055 per unit).

The transaction closed on November 15, 2022.

The 37,684-square-foot investment property, built in 1982, with four 2- story buildings, has a unit mix of studio/1BA (400sf), 1BR/1BA (475sf), 2BR/1Ba (700sf) and amenities include laundry, pool and spa.

Allan Mendelsberg, Principal, and Joey Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction.

For more information, Mendelsberg can be contacted at 520.546.2721 and Martinez should be reached at 520.546.2730.

To learn more, see RED Comp #10310.

Institutional Property Advisors Negotiates Tucson Multifamily Sale

TUCSON, Ariz., Nov. 18, 2022 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced the sale of Elevate, a 144-unit apartment property in Tucson, Arizona. The asset traded for $21.8 million, or $151,389 per unit.

Clint Wadlund, Hamid Panahi, Steve Gebing, Cliff David and Lane Schwartz of Marcus & Millichap (Tucson) represented the seller, Sheiner Group/Living Well Homes, and procured the buyer.

“Previous ownership enhanced all the common area amenities and implemented a two-tiered interior renovation program,” said Clint Wadlund, IPA senior director. “A multifamily asset like Elevate will continue to attract prospective residents with its attractive amenities and convenient location in East Tucson,” added Hamid Panahi, IPA senior vice president.

The property is close to Tucson’s historic Old Spanish Trail, which gives residents easy access to the Broadway Boulevard corridor and Tucson’s Eastside. Notable nearby employers include Afni, the Davis-Monthan Air Force Base, Agero, Alorica, and the University of Arizona Tech Park at Rita Road. There are approximately 44,400 jobs within a five-mile radius.

Constructed in 1985 on four acres, Elevate is a three-story, six-building property with a business center, swimming pool, and fitness center. Apartments have private balconies or patios, oversized/walk-in closets and all-electric kitchens. The average unit size is 817 square feet.

To learn more, see RED Comp #10300.