Trio of Homebuilders combine to purchase 836 acres for $111.7M within the Asante Planned Community in Surprise, Arizona

Scottsdale, Ariz. – Asante Development Partners, a venture between Lennar Homes, Pulte Homes and Taylor Morrison Homes, recently completed the purchase of a premier 836-acre land parcel in the city of Surprise, Arizona, for $111.7 million.

The land parcel is located within the Asante Planned Community in north Surprise and includes 752 acres of single-family residential land, (totaling +/-2,750 lots), as well as 56 acres of high-density residential land and 28 acres of commercial land. Asante, which was initially entitled in 2003, is generally located west of 163rd Avenue and north of Pat Tillman Blvd., and offers convenient access to the Loop 303 and the growing northwest Valley retail and employment corridors.

Land Advisors Organization’s advisors Mike Schwab, Greg Vogel, Bret Rinehart, Ryan Semro and Ben Heglie represented the seller, HE Capital Asante LLC, based in Dallas, Texas, which has owned the property since 2009.

“The Northwest Valley is one of the most active development areas in the Valley. This acquisition provides all three builders with the opportunity to continue their delivery of high-quality housing to the north Surprise market for the next 4 to 7 years,” said Mike Schwab, principal and designated broker with Land Advisors Organization. “By joining forces, these builders will provide future residents of the community with a range of diverse new home options, further adding to the area’s attractiveness.”



Tucson rents increase sharply over the past month

TUCSON, ARIZONA — Apartment Lists is reporting Tucson rents have increased 0.7% over the past month, and are up sharply by 20.5% in comparison to the same time last year. Currently, median rents in Tucson stand at $970 for a one-bedroom apartment and $1,276 for a two-bedroom. The city’s rents have been increasing for 24 straight months – the last time rents declined was in May 2020. Tucson’s year-over-year rent growth leads the state average of 19.3%, as well as the national average of 15.3%.

Rents rising across cities in Arizona

Throughout the past year, rent increases have been occurring not just in the city of Tucson, but across the entire state. Of the largest 10 cities that we have data for in Arizona, all of them have seen prices rise. The state as a whole logged rent growth of 19.3% over the past year. Here’s a look at how rents compare across some of the largest cities in the state.

  • Looking throughout the state, Surprise is the most expensive of all Arizona’s major cities, with a median two-bedroom rent of $1,857; of the 10 largest Arizona cities that we have data for, all have seen rents rise year-over-year, with Glendale experiencing the fastest growth (+22.5%).
  • Mesa, Phoenix, and Tucson have all experienced year-over-year growth above the state average (20.9%, 20.5%, and 20.5%, respectively).

Tucson rents still more affordable than many comparable cities nationwide

As rents have increased sharply in Tucson, a few other large cities nationwide have seen rents grow more modestly. Tucson is still more affordable than most similar cities across the country.

  • Tucson’s median two-bedroom rent of $1,276 is slightly below the national average of $1,320. Nationwide, rents have grown by 15.3% over the past year compared to the 20.5% rise in Tucson.
  • While Tucson’s rents rose sharply over the past year, many cities nationwide also saw increases, including New York City (+29.5%), Miami (+26.5%), and Dallas (+17.4%).
  • Renters will find more reasonable prices in Tucson than most other large cities. For example, San Francisco has a median 2BR rent of $2,592, which is more than twice the price in Tucson.



Institutional Property Advisors Facilitates $14 Million Central Tucson Multifamily Asset Sale

TUCSON, Ariz. – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced the sale of Bellevue Tower, a 90-unit, garden-style, midrise apartment property in Tucson, Arizona at 3710 E Bellevue Street. The asset traded for $14 million, which equates to $155,556 per unit.

“New ownership is poised to experience rental growth upside due in part to a submarket- leading average unit size of 1,062 square feet, as well as the opportunity to continue the existing renovation program across an additional 94% of the community,” said Hamid Panahi, IPA senior vice president. “The seller successfully proved out a robust common area renovation program and the initial implementation of a unit interior renovation program across 6% of the units within this durable Central Tucson submarket.”

“Former ownership is actively seeking to deploy proceeds from the sale across additional Arizona multifamily properties and continue to bring value to Arizona residents,” added Clint Wadlund, IPA senior director. Panahi, Wadlund, and IPA’s Steve Gebing and Cliff David represented the seller, a private party, and procured the buyer, GR Capital.

The property is located between Central Tucson’s Palo Verde and Miramonte neighborhoods, next to Tucson’s main retail corridor, Speedway Boulevard. There are over 35 restaurants, bars, and grocery stores within walking or biking distance. Nearby attractions include The Loft Cinema, Lucky Strike Bowling, the El Con Mall, Tucson Botanical Gardens, Reid Park Zoo, Rillito River Park, and Smiling Dog Ranch. There are over 2,300 businesses within a three-mile radius of the property, including employers such as Banner Health, Target, ADP, Sonora Quest Laboratories, Walmart, Whole Foods, and Home Depot.

Constructed in 1972, five-building Bellevue Tower has a unique mix of floor plans that includes midrise tower lofts, traditional garden apartments, and townhomes with private yards. Among the community amenities are three laundry facilities, a swimming pool, business center and covered parking.

To learn more, see RED Comp #9898.