Tucson showing strong signs of market recovery
Phoenix, AZ — Colliers International in Greater Phoenix has negotiated the sale of a portfolio containing five apartment communities in Tucson. The properties were the first Arizona acquisition for a Colorado-based investment group and commanded a sale price of $47.5 million ($47,311 per unit) in a bulk portfolio sale.
Hamilton Zanze of San Francisco (Mark Hamilton, CEO) sold the portfolio to Monarch Investment & Management Group, LLC of Franktown, CO (Andy Newell, CEO). Cindy Cooke and Brad Cooke of Colliers International in Greater Phoenix served as the exclusive sales agents for the portfolio.
“This portfolio was a great investment due to the strong cash flow and overall condition of the properties,” says Cindy Cooke, senior executive vice president with Colliers International in Greater Phoenix. “The economic recovery in Tucson follows the Phoenix economy. Phoenix has realized incredible appreciation in the recent years, so Tucson investors are well positioned to benefit from similar trends.”
Greater Tucson added approximately 13,000 jobs in the last 12 months and more than 240 businesses have opened in Downtown Tucson since 2008. Mid-year 2016 statistics report Tucson’s multifamily market with a 6.8% vacancy. Rental rates have increased 5% overall in the past 12 months in Tucson. However certain properties have seen recent rent increases of 11-13%, and rates are expected to continue to climb and reach the peak rents of 2008 and higher.
The Tucson portfolio included:
- Hampton Park, a 160-unit community located at 8600 E. Old Spanish Trail in Tucson
- San Mateo, a 254-unit community at 2800 S. Mission Rd. in Tucson
- Solano Springs, a 152-unit community at 6340 S. Santa Clara Ave. in Tucson
- Lakeside Apartments, a 310-unit community at 8250 E. Golf Links Rd. in Tucson
- Highland Apartments, a 128-unit community at 555 N. 7th St. in Sierra Vista
Each of these properties was constructed between 1973 and 1985. The communities contain 1,004 units totaling 686,314 square feet. The portfolio averaged 94% occupancy at the time of sale.