TUCSON, Arizona – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Metro Tucson, a 232-unit multifamily property in Tucson, Arizona. The asset sold for $38.5 million, which represents $165,948 per unit.

Located at 3985 N Stone Avenue in Tucson, the property sits on the southwest corner of Stone and Roger Road in Midtown Tucson and closed on July 20, 2022.

“Metro Tucson apartments is poised to benefit from the continued surge in Pima County’s post-pandemic net in-migration and lack of new multifamily supply,” said Hamid Panahi, IPA senior vice president. “It is expected that from August 2021 through 2022, Pima County will grow by more than 10,000 residents.”

“Metro Tucson apartments is supported by more than 106,300 jobs and over 4,300 employers within a five-mile radius,” added Clint Wadlund, IPA senior director. “The buyer is in position to benefit from the city’s strong demographics and favorable multifamily fundamentals by continuing and expanding the property’s interior renovation program. At the time of the sale, 22 units, about 9% of the apartments, had received upgrades.” Panahi, Wadlund, and IPA’s Steve Gebing and Cliff David represented the seller, a private party, and procured the buyer, Vertical Street Ventures.

Constructed in 1984, Metro Tucson apartments is within a half-mile of Oracle Road, Tucson’s major north-south retail and employment corridor. The location gives residents easy access to Downtown Tucson, Oro Valley, Interstate 10, and North-Central Tucson. Among the notable employers in the area are Comcast, Target, Beacon Group, Securitas, and Banner University Medical Center.

Metro Tucson is a garden-style asset with nine residential buildings, a swimming pool, laundry facilities, and pet areas. Apartment amenities include wood-style vinyl plank flooring, dishwashers and private patios or balconies. Select units have been upgraded with stainless-steel appliances, carpeting in the living spaces and bedrooms, and kitchen cabinetry with brushed nickel hardware. The average unit size is 640 square feet.

Project Scheduled for Completion in First Quarter 2023

PHOENIX, ARIZONA – DPMG Galveston, LLC, a Phoenix-based company, has started construction on its Chandler Corporate Industrial Center II project in Chandler. The development is planned for completion in first quarter of 2023.

“The excellent location of this property in South Chandler offers great convenience to a large demographic of workers,” says Greg Hopley, executive vice president with Colliers in Arizona. “The property offers quick access to the 101 and 202 freeways and is likely to attract corporate tenants similar to those already in this geographic marketplace that include DaVita RX, Creative Leather, Garmin and Allstate.”

Chandler Corporate Industrial Center II is situated at the southwest corner of McClintock Drive and Galveston Street in Chandler. The building will contain 86,286 square feet of office/warehouse space available to a single tenant or divisible to suites ranging from 3,371 to 8,042 square feet. The building offers strong visibility from Galveston Street and abundant parking along that street frontage. The rear of the building features 24 loading doors total, four of which are dock-high.

According to Hopley, “The design of this building offers high-end office appeal in its front elevation, while a great deal of industrial functionality is provided on the back side of the suites. It truly provides the ideal balance of features for tenants seeking modern design in a flex product.”

Chandler Corporate Industrial Center II is being constructed by LGE. Greg Hopley and Dillon Hopley of Colliers in Arizona serve as exclusive leasing agents for the property.

Executive Summary

• U.S. commercial real estate investment volume rose by 10% year–over–year in Q2 2022 to $167 billion.
• Multifamily was the leading sector with $78 billion in Q2 volume, followed by industrial & logistics with $32 billion and office with $24 billion.
• On a trailing–four–quarter basis, New York was the top market with $67 billion in volume, followed by Los Angeles with $65 billion.
• Phoenix came in sixth for Industrial investments.
• Institutional investors were net buyers in Q2 2022, while private investors, REITs and cross–border investors were net sellers.
• Inbound cross–border investment increased by 16% year–over–year in Q2 but was down by 9% from Q1 due to the strengthening U.S. dollar.

Historical commercial real estate investment volume

• U.S. commercial real estate investment volume increased by 10% year–over–year in Q2 to $167 billion.
• Trailing four–quarter volume totaled a record $881 billion.
• Entity–level transaction volume fell by 17% year–over–year in Q2, largely due to higher borrowing costs.
• Portfolio transaction volume increased by 31% year–over–year.

Commercial real estate investment volume by sector, Q2 2022 vs. Q2 2021

• Multifamily remained the most preferred commercial real estate sector for investment in Q2, with a 32% year–over–year increase in volume to $78 billion.
• Industrial was the second most–preferred sector with $32 billion, down by 1% from a year ago.
• Office investment volume fell by 9% year–over–year in Q2 to $24 billion, followed by retail with a 41% increase to $21 billion.

Top 20 markets for total investment volume (trailing four quarters ending Q2 2022)

• New York was the top market for total investment volume over the past four quarters, reaching $67 billion.
• Los Angeles had the second highest total of $65 billion, followed by Dallas with $50 billion.
• Houston had the biggest year–over–year increase in trailing–four–quarter volume at 150%

FFor full report go to CBRE Commercial Real Estate Investment Study.