TUCSON, Arizona– Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced the sale of Midtown on 2nd, a 42-unit apartment property located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Tucson and Phoenix offices, the asset sold for $2.8 million ($66,666 per unit).
Hamid Panahi and James Crawley had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, an individual/personal trust, was also procured by Panahi and Crawley.
“Our team’s unique position of dedicated coverage in Phoenix and Tucson allowed us to effectively complete both parts of the 1031-exchange for the buyer, allowing him to defer capital gains and capitalizing on the cap rate arbitrage between the two markets,” said James Crawley, senior associate in Marcus & Millichap’s Tucson and Phoenix offices. “This flow of capital is part of a growing trend as we continue to see capital migration from major west coast markets into Tucson.”
Hamid Panahi, first vice president investments also in the firm’s Phoenix and Tucson office, added, “The seller had conducted an overhaul of interior and exterior enhancements, minimizing capital exposure for future ownership, while laying the groundwork for future upside with a proven out rental premium for substantially renovated interiors.”
Midtown on 2nd is located at 3601 East 2nd Street in Midtown Tucson’s historic Miramonte neighborhood. Completed in 1962, Midtown on 2nd is a 42-unit multifamily community featuring block construction with a mix of studio and one-bedroom apartments. Community amenities include a pool and pool-deck lounge, on-site laundry, water-softening service, dog park, and photovoltaic solar panels. Large capital improvement projects since ownership include new striped parking lot, air conditioner replacement, gas line replacement, and exterior paint.