CBRE represented the seller Holualoa Companies
TUCSON, ARIZONA – CBRE represented Holualoa Companies in the recent sale of the Sonoran Reserve apartment community to Milburn & Company that sold for $58.5 million ($215,074 per unit). The property is located at 2800 W. Broadway Blvd. in Tucson and is comprised of 272 units.
CBRE professionals involved in the transaction include First Vice President Jeff Casper, Vice Chairman Asher Gunter, Vice Chairman Tyler Anderson, Vice Chairman Sean Cunningham and Vice Chairman Matt Pesch.
"Sonoran Reserve is a well-built 2005-vintage community with recent transformational upgrades that elevated the community’s luxury appeal," said CBRE First Vice President Jeff Casper. "Tucson is one of the top-performing multifamily markets for rent growth in the country and Sonoran Reserve is positioned to take advantage of the region's strong fundamentals."
Sonoran Reserve was developed in 2005 as purpose-built student housing with best-in-class amenities and was transitioned into a high-quality conventional multifamily community. The seller invested $9.75 million to upgrade the common area amenities, update building exteriors, renovate unit interiors, and add 83 new units through a conversion of 4-bed/4-bath units to 1-bedroom and 2-bedroom floorplans.
“Sonoran Reserve provided a unique opportunity to execute transformational upgrades and convert the community to conventional luxury apartments,” said Holualoa Companies Chief Operating Officer Lani Baker. “Tucson is a high-growth market with exceptionally strong multifamily demand drivers and we look forward to exploring new opportunities in the region.”
According to CBRE’s Q4 2021 Multifamily Report, the U.S. multifamily market set a new annual absorption record of 617,500 units in 2021. Tucson was a top market for rent growth, posting double-digit year-over-year rent growth of 21.7% in the fourth quarter.
“Tucson is a top-performing multifamily market and we remain bullish on the metro’s long-term economic outlook,” said Milburn & Company Executive Vice President Jake Milburn. “Sonoran Reserve is a perfect fit for our investment criteria and the community is positioned for continued growth in a market with tremendous fundamentals.”