Company Caps Successful Redevelopment With $20.4 million Transaction
TUCSON, Arizona – Holualoa Companies has sold the highly successful Herbert Residential and the adjacent Armory Park Villas in Tucson to Second Tucson Venture, LLC in a $20.4 million transaction ($133,333 per unit) for the 153 units. Both properties are located in the Armory Park neighborhood, an area that is enjoying a resurgence thanks to abundant downtown amenities and proximity to the Tucson streetcar line.
Holualoa and partner Peach Properties purchased the 144-unit, 8-story Herbert and the nine-unit Armory Park Villas located in downtown Tucson at 202 E. 12th Street in 2012. Herbert was originally constructed in 1974 for senior housing, but all HUD income restrictions were removed, and all residents relocated to a newly constructed building prior to Holualoa’s acquisition.
Upon acquiring the property, Holualoa completed an extensive renovation of the property including removing the dated façade and installing new floor-to-ceiling windows, replacing HVAC systems, renovating the interior units with new kitchens, bathrooms, and flooring, and renovating common area spaces with a new modern lobby, storage spaces and a fitness center.
The property has outperformed ever since thanks to its modern, welcoming design, its close proximity to nearby restaurants, nightlife and transportation, and superior property management by Scotia Group Management.
The sale continues a trend of high-profile transactions that Holualoa Companies has executed in recent months despite this year’s challenging economic conditions.
“We are very pleased with the results we saw from Herbert Residential since we redeveloped the property, and it is gratifying to be able to close our involvement with a beneficial transaction for both buyer and seller,” said Lani Baker, Chief Financial Officer of Holualoa Companies. “Herbert Residential has emerged as a true destination living environment for Tucson residents, and we’re confident the new ownership will continue to enjoy the benefits of such a high-profile project.”
Art Wadlund and Clint Wadlund of Berkadia Tucson brokered the transaction and also secured financing.
Holualoa Companies specializes in the purchase and renovation of unique commercial and residential properties in locations across the country. It is a driving force behind a number of award-winning redevelopment projects in the region. The Tucson-based company is celebrating its 35th anniversary this year.
For more information, the Wadlunds can be reached at 520.529.9206.
To learn more see RED Comp #8337.