Tucson, Arizona – CBRE arranged the sale of a combined total of 486-units in apartment properties in Tucson, The Springs at Continental Ranch and Silverbell Springs sold for an aggregate amount of $87.5 million.
The sale of the 290-unit multifamily community Silverbell Springs sold for $50.25 million ($173,000 per unit). CBRE worked on behalf of the sellers, a joint venture between The Bascom Group and funds managed by Oaktree Capital Management, L.P. the property was acquired by an investor client of The ConAm Group. ConAm arranged the acquisition and will continue to manage the investment on their client’s behalf.
Located at 7759 N. Silverbell Road in Marana, a northwest submarket of Tucson, Silverbell Springs features two resort-style pools and spas with poolside entertainment ramadas including a bar, dining area, and flat screen TV; resident clubhouse featuring a café, business center, and game room with shuffleboard table and kitchen; state-of-the-art fitness center; stainless steel gas barbeque grills and picnic areas; and covered children’s playground with adjacent dining ramada and charcoal grills.
“Silverbell Springs is located in the upscale master planned community of Continental Ranch, which is the central hub for Marana and Northwest Tucson, and one of the fastest growing population centers in the market,” said CBRE’s Casper. “The area’s strong multifamily fundamentals combined with the quality design of Silverbell Springs created significant buyer interest.”
According to CBRE Research, the population of Marana increased 36 percent from 2010 to 2019 and is projected to increase 14 percent through 2024.
“Silverbell Springs was an excellent fit for our client’s investment objectives and will complement their multifamily investment portfolio,” said ConAm Group CEO Rob Singh. “We look forward to adding value to the community for residents and for our client.”
The ConAm Group is a multi-disciplined real estate investment and services firm based in San Diego, California. Established in 1975, ConAm currently operates a nationwide portfolio of over 54,000 apartment units in more than 26 key metropolitan areas.
In the second transaction, CBRE arranged the sale of the 196-unit multifamily community The Springs at Continental Ranch on behalf of a joint venture between The Bascom Group and funds managed by Oaktree Capital Management, L.P. to a private investor for $37.25 million ($190,000 per unit).
Located at 7901 N. Cortaro Road in the Northwest submarket of Tucson, The Springs at Continental Ranch features a resort-style pool and spa with fire pit, stainless steel gas barbeque grills and private cabana; resident clubhouse with vaulted ceilings, designer accents, café, business center and media room; state-of-the-art fitness center; and covered children’s playground. Individual residences feature 9- and 12-foot ceilings, granite countertops with undermount kitchen sink, stainless steel appliances, wood-style plank flooring, and full-size washer/dryer.
“Strong multifamily fundamentals in Tucson continue to attract investors to the market,” said Casper. “The region’s expanding employment base and affordable quality of life are creating robust demand for multifamily housing.”
According to CBRE Research, year-over-year multifamily rent growth in Tucson increased 6.9 percent in Q3 2019, the third strongest growth of all metros in the United States.