Summit Expands Portfolio by 272-Units for $11.5 Million in Tucson

Desert Pines Properties, an affiliate of HSL Properties of Tucson (Omar Mireles) sold the Brookwood Apartment Homes at 201 S Kolb Rd in Tucson for $11.5 million ($42,300 per unit) to Summit Brookwood I, LLC and Pacific Brookwood, LLC, affiliates of Summit Equity Investments (Michael Thom) of Los Angeles, CA.

The 272-unit Class B apartment complex is in the East Tucson submarket with a unit mix of 65% one-bedrooms and 35% two-bedroom units. Built in 1973, the two-story garden-style complex is an aggregate of 201,274-square-feet located on just under 10 acres. The community amenities include a clubhouse, billiards table, heated swimming pool, spa, three laundry facilities and volleyball court.

Summit Equity Investments. is a real estate firm actively involved in the acquisition of prime multi-family real estate in California, Arizona and throughout the United States. Summit was formed in 2009 by Ryan Lynch, Joseph Rosen and Michael Thom, an experienced team with a successful history of multi-family investments.
Summit specializes in the acquisition and rehabilitation of under-managed or distressed “Class B” multifamily assets throughout the US. Founded in 2009, Summit has acquired and successfully executed a turnaround strategy at seven properties with over 2500 units. We intend to continue to strategically pursue value-add acquisition opportunities in strong secondary markets.

In addition to Brookwood, Summit also bought two other multi-family communities in Tucson, Raintree Apartments at 6450 E Golf Links Rd, with 364-units, was purchased in March 2013 and Palomino Crossing at 750 E Irvington, with 240-units, was purchased in December 2012.

Art Wadlund of Hendricks-Berkadia in Tucson handled the transaction for seller and investor.

For more information visit www.summitei.com. Summit can be reached at (310) 598-7070. Wadlund should be called at (520) 299-7200.

[mepr-show rules=”58038″]Sale date: 1/21/2014. Down Payment was $3,244,000. APN: 134-19-044A. Income reported is annulaized from Oct 2012 – Dec. 2013: GPI $1,999,680, Rental loss: ($164.020) Total Income: $1,507,175 and total miscellaneous income of $164,020 equals total collected income of $1,671,195. Total Operating expenses: $802,568 plus $300 per unit reserves is $884,168 total expenses. Property sold with an NOI of $787,027 or a 6.84% cap rate. Unit mix is (96) 1 Bed / 1 bath @ 566 SF at market rent of $525; (80) 1 bed/ 1 bath @ 738 SF at market rent of $575; (64) 2 bed/ 1-1/3 bath @ 973 SF at market rent of $725; (32) 2 bed / 2 bath @ 973 SF at market rent of $745. [/mepr-show]