CLARION PARTNERS ACQUIRES THE RETREAT AT TUCSON for $61.9 Million

The Retreat at Tucson, 1000 E 22nd Street

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Clarion Partners, LLC, a leading real estate investment manager from Los Angeles, has acquired the Retreat at Tucson, a newly-constructed, 183-unit / 774-bed student housing community located at 1000 East 22nd Street in Tucson, in close proximity to the University of Arizona’s main campus. The acquisition was made on behalf of one of Clarion’s separate account clients for[mepr-show rules=”58038″] $61.9 million ($79,974 per bed) from the Retreat at Tucson, LLC of Athens, GA.

U of A, with more than 40,000 students at all levels has designs to continue its enrollment growth in the near term. The university is undersupplied in terms of on-campus housing, with only 17% of the total student population living in residence halls; the school has no current plans to construct additional on-campus housing. Approximately 30% of its undergraduates are from out of state, indicating an affluent student population.

Retreat at Tucson is a “cottage-style” community, a configuration that is very appealing to students and their families; it is currently the only cottage-style community at the University of Arizona. Importantly, all bedrooms are single occupancy with queen sized beds and feature private bathrooms. Community amenities include a resort-style pool, a clubhouse, a fitness center, a computer lab, study rooms and a golf simulator. The property’s location, 1.5 miles south of the U of A’s main campus, will be served by a shuttle bus that will transport residents to and from campus. In addition, two bike paths to campus are accessible from the site. The 774-bed project was completed in August, 2013 and is currently 99.6% leased.

“Nearly 80% of the U of A’s students live in off-campus housing,” observed Dean Rostovsky, a Director at Clarion Partners. “Retreat at Tucson experienced strong demand during its initial lease-up and was fully pre-leased by January, 2013, a time at which the broader market was only half leased. Retreat at Tucson represents an attractive value proposition to students and their families as evidenced by its strong current occupancy and renewal leasing momentum for next school year.”

Peter Katz with Institutional Property Advisors of Phoenix handled the transaction for the seller and can be reached at (602) 687-6700.[/mepr-show]

[ismember]Sale date: 10/25/2013. All cash transaction. Public records showed $8,622,254 in personal property in the form of furniture, equipment and intangible leases assets transferred in the transaction. [/ismember]