TUCSON, Arizona — The Cushman & Wakefield | PICOR multi-family team of Allan Mendelsberg and Daniel Leibsohn have closed seven multifamily transactions recently representing an aggregate total of $9.99 million.
The Tucson Multifamily market remains strong and one of the more attractive investment locations due to the increase in quality jobs and higher cap rates. Development of infill properties around downtown Tucson and University of Arizona has also surged recently. Investors have been targeting well-positioned assets and fully renovating various properties.
Rents have doubled and even tripled at some of these locations with vacancy rate dipping to 6.52% at the start of second quarter 2017 that continues to see increased investor interest.
Montclair By Bakerson, LLC purchased Montclair Apartments from Louison Holdings, LLC for $2.4 million ($39,344 per unit). The 61-unit complex is located at 811 and 835 N. Alvernon Way in Tucson. The unit mix is comprised of: (37) studios; (2) one-bedroom/one-bath units; (18) two-bedroom/two-bath units; and (4) three-bedroom/two-bath units in 44,644-square-feet on 1.57 acres (built 1958).
7Four On Stone By Bakerson, LLC purchased Desert Tree Apartments, a 72-unit apartment complex located at 3450 N. Stone Ave. in Tucson, from Ann M. Boyce for $2 million ($27,777 per unit). The 47,560-square-feet of property (built in 1975) is on 2.1 acres.
Tucson GS Apts of California purchased the 33-unit Bel Aire Apartments at 435 E 18th Street in Tucson for $1.515 million ($45,909 per unit). Built in 1963, the 27,200-square-foot two-story buildings is a HUD modified rehab subsidized property in the historic Armory Park neighborhood. Unit mix consists of studios, one-bedrooms and one two-bedroom unit. This transaction closed Friday, June 16th.
JEMS Investments, LP purchased a 6-unit / 24-bed Student Housing complex at 638-642 E. Lester St. in Tucson, from Group Dwelling, LLC for $1.4 million ($233,333 per unit / $58,333 per bed). Jarrett Reidhead with Tucson Integrity Realty, LLC, represented the seller in this transaction and will continue to manage the property for the new owner.
Forgeus 10, LLC purchased Forgeus Apartments, a 12-unit investment property located at 1602-1628 N Forgeus Ave. and 2601 E Lee St. in Tucson, from Upwardly Mobile, LLC for $900,000 ($75,000 per unit). The property, located near the Arizona Inn, was 100% occupied at time of sale and buyer plans to reposition the property for medical student housing.
Donald R. Reeve, as Trustee of the Reeve Family Trust, purchased the 9-Bed Student Housing apartment located at 1304 E. 10th St. in Tucson, from My Best Home Ever, LLC for $825,000. Known as 10th Street Student Housing, the 9 bedroom with 4 bath property is located only 4 blocks from the University of Arizona. The 2,839-square-foor property (built in 2007) sits on a 7,500-square-foot lot.
Richard N. Mills Trust under Declaration of Trust dated May 22, 2017, purchased El Ranchito Sereno Apartments, an 18-unit investment property located at 3800 E. 4th St. in Tucson, from Wilson, Wilson & Wilson for $550,000 ($30,555 per unit). Community amenities include: swimming pool, high speed internet, heating, smoke-free, kitchen stove. The twelve units are in three buildings (built in 1948 and 1972) and a mixture of one- and two-bedrooms and a rental office.
Robert Odom purchased an 8-unit apartment complex located at 2665-2679 N. Alvernon Way in Tucson, from Walter Soulages and Cardith S. Soulages, Trustees of the Soulages Revocable Trust, for $400,000 ($50,000 per unit). Property was 100% occupied at time of sale. Built in 1979, the property is 5,996-square-feet on .56 acres. The multi-family team of Allan Mendelsberg and Daniel Leibsohn, with Cushman & Wakefield | PICOR, represented the seller in this transaction. Maria G. Kovrig with ESM Properties, LLC represented the buyer.
To see the full Cushman & Wakefield Q1 2017 Multifamily Report click here.
For additional information, Mendelsberg can be reached at 520.546.2721 and Leibsohn should be contacted at 520.546.2740.
To learn more, see RED Comp #4714, #4769, #4852, #4877, #4879, #4888, #4911 and #4924.