The Tucson market has become a particularly attractive area to invest in multifamily including student housing, with a declining vacancy rate, increasing rental rates and significantly higher cap rates on properties than most areas.
The Reeve Family Trust of Los Osos, California (Don Reeve, manager) recently purchased four separate student housing projects with an aggregate of 90-beds and $6.5 million ($72,222 average price per bed) in a bulk purchase.
- four buildings with a 32-bed student housing facility (built 2015) located at 50 N. Mountain Ave. in Tucson, from 10th Street Rentals, LLC for $2.25 million ($70,313 per bed);
- four buildings with a 22-bed student housing facility (built 2015) located at 1533 E. 12th in Tucson, from 124 S. Cherry St., LLC for $1.5 million ($68,182 per bed);
- four buildings with a 20-bed student housing facility (built 2014) located at 720 E. Lester St. in Tucson, from 720 E. Lester St., LLC for $1.4 million ($70,000 per bed);
- two buildings with a 16-bed student housing facility (built 1953) located at 1730 N. 1st in Tucson, from 1730 N. First Ave., LLC for $1.35 million ($84,375 per bed).
The property at 1st Avenue had formerly been a private pre-school to grade 5 school, known as International School of Tucson, that seller purchased in 2013 for redevelopment.
The seller was various investment groups formed by Jarrett Reidhead, managing member, for all four properties.
Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | PICOR, represented the buyer and Jarrett Reidhead with Tucson Integrity Realty, LLC, represented the seller in these transactions.
For more information, Reidhead can be contacted at 520.331.8050 and Mendelsberg should be reached at 520.546.2721.
To learn more, see RED Comp # 4086, #4087, #4088 and #4089.