TUCSON, AZ (March 27, 2024) -- Allan Mendelsberg and Joey Martinez, Principals and Multifamily Specialists with Cushman & Wakefield | PICOR, represented the parties in multifamily transactions totaling $15 million.
Mendelsberg and Martinez wrote in their Marketbeat Report: “In 2024, Tucson's MSA is set to harden its status as a robust market, sustained by limited inventory and rising demand. The evolving lending landscape, characterized by progressively lower interest rates, is expected to provide increased activity, countering the slowdown experienced in 2023. We expect investors sidelined in 2023 to be “Pencils Up” this year and actively pursuing opportunities in the Tucson market. The institutional-sized properties are expected to remain slow on a volume basis as the market adapts to adjusted cap rates and valuations. Discussions surrounding the 2024 presidential election are expected to enter real estate conversations, introducing an additional layer of unknown to the market's evolving landscape.”
Those predictions appear to be coming to fruition, with Multifamily fundamentals doing great in Tucson!
As reported last month, The Wasko Modern Apartments sold for $6.07 million ($159,737 per unit) for 38 units, and the Riverside Suites with 33 units sold for $5.15 million ($156,064 per unit).
On March 14th, The Twenty Lofts on Tenth, LLC purchased the Alamo Apartments, a 11,189-square-foot investment property at 824 E. 10th St. in Tucson. The 20-unit property was purchased from Euclid 35 LLC for $2 million ($100,000 per unit).
The property is in the Central Tucson submarket, with studios and one-bedroom units near the UA Campus. Amenities include laundry facilities, laundry service, courtyard, grill, picnic area, and bicycle storage. Unit amenities are air conditioning, heating, ceiling fans, tub & shower, dishwasher, stainless steel appliances, vinyl flooring, and window coverings.
On March 6th, Mosaic LLC purchased Zona Apartments, an 18,733-square-foot investment property at 305-315 N. Highland Ave. in Tucson. The 7-unit apartment property was purchased from the 2017 Gutierrez Family Trust for $950,000 ($135,714 per unit). Built in 1949, the property is located in the Central Tucson submarket it is also student housing near the UA Campus in the Rincon Heights neighborhood.
Then, in a more recent transaction, on March 25th, Stone Casitas, with 7 units and a commercial warehouse at 10 West Rillito and 2201 N Stone Avenue, sold for $820,000 ($102,500 per unit). The property was a value-add opportunity with below-market rates and sold with ten offers during a 2-week marketing process.
For more information, Mendelsberg should be reached at 520.546.2721, and Martinez is at 520.546.2730.
To learn more, see RED Comps #11190 and #11176.