Two apartment properties on Geronimo Avenue sold within one day of each other recently; they were located within two blocks of each other, but sold for dramatically different prices. The two sales when viewed side-by-side demonstrate the buyers’ individual preferences, only time will tell which was the better investment.

The first property, at 3022 N Geronimo Avenue, is a 10-unit building, built in 2005, that sold for $530,000 ($53,000 per unit) with 7,791 sq. ft. on a 30,492 sq. ft. lot. The seller, DCS 33, LLC of San Diego (David Canterman, principal) sold the property fully leased, with new roof, new stucco, and with no deferred maintenance. The buyer, SJK Geronimo, LLC (Sandra J Knight, trustee) was looking for an investment property without deferred maintenance and a cap rate around 8%.

Canterman says he did not want to sell the property, but was attracted to the idea of paying off the loans on all his other Tucson properties from the sale, after buyer’s agent, Allen Mendelsberg approached him with an offer. Mendelsberg of Cushman & Wakefield / Picor Commercial Real Estate in Tucson handled the transaction for both buyer and seller.

Canterman, a private lender, says he’s looking for more investment opportunities in Tucson.

Referring to his property manager, Jacklyn Malott of Keller Williams in Tucson, Canterman had this to say, “Jackie taught me not to be a ‘slumlord’ and to keep my tenants happy by maintaining the property; when the landlord does his part, the tenants do theirs and are much more likely to get their rent checks in on time.”

Malott has been retained for management services of the property by the new owner.

The second property, only two blocks away, at 3245-3261 N Geronimo Avenue is a 12-unit apartment that sold for $176,000 ($14,666 per unit) in an REO sale. The lender, City National Bank, sold the property to Mark A. Wilson of Saratoga Springs, UT in an all- cash deal. It was fenced off and boarded up at time of sale. The 8,485 sq. ft. in three buildings sits on 1.06 acres and was returned to the lender in March, 2011, and remained vacant for those two years.

Jeff Sherman of Colliers International in Phoenix represented the lender and investor in the transaction. According to Sherman, the property was sold for rehab and estimated the cost to cure as approximately $7-$9,000 per unit. The buyer has relatives in Tucson that will handle the rehab for him.

This concludes the tale of these two multi-family properties, different investment strategies for different folks, both found within blocks of one another on the same street in Tucson, AZ and selling just one day apart.

Canterman can be reached for more information at (858) 720-0229. Malott is at (520) 977-0145. Mendelsberg should be contacted at (520) 546-2721 and Sherman at (602) 222-5109.

Two Apt deals at year end sold for a combined total of $1.13 million. The Casa Verde Apartments and the Crestview Apartments in Tucson closed one day apart.

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The Casa Verde Apartments at 2602 N 14^th Avenue in Tucson sold for $600,000 ($26,000 per unit) to a Californian investment group, Maximum Management Corporation of Beverly Hills, CA (Rick Sparks).  The property is situated in Central Tucson on the northeast corner of Jacinto Street and 14th Avenue, just west of Oracle Road, a major thoroughfare in north Tucson.

The two-story apartment community built in 1963, comprises 23 rental units. The unit mix consists of all one-bedroom units at approximately 567 square feet each. All units are rented unfurnished. Construction is of block with pitched roofs. The property is individually-metered for electricity with the costs of heating and cooling falling under the responsibility of the residents. Cooling is provided by evaporative coolers in 11 units, and the rest are provided by individual air conditioning units.

Outdoor amenities are limited to open parking spaces for residents. There are approximately 40 parking spaces. There is also a laundry facility on-site and secured gated access to the property. Landscaping at Casa Verde Apartments is minimal, allowing for mitigated operating expenses for the ownership.

The building at Casa Verde Apartments is constructed on two sites comprising approximately 0.72 acres, at a density of 31.94 units per acre. The building provides 13,041 rentable square feet.

The property was 96% occupied at time of sale.

The seller Creative Commercial Investments of Glendale, AZ and the investor were represented by Trevor Koskovich, Bill Hahn and Jeff Sherman of Colliers International in Phoenix.

In a separate transaction one day later, Crestview Apartments at 4350 E Fairmount St. in Tucson sold to Gum Shree, LLC (Rosemary Koberlein) of Tucson for $530,000 ($40,800 per unit). The 13-unit apartment complex was constructed in 1963 and consists of 10,010-square-feet on a 36,000-square-foot lot.

The property is situated in Northeast Tucson on the southeast of the corner Columbus Blvd and Fairmount Street, just west of Swan Road.

Tony Reed of Long Realty in Tucson represented the seller, Fiesta Properties of Tucson and Roger Breckenridge also with Long Realty in Tucson represented the investor.

The Koskovich, Hahn and Sherman team can be reached at (602) 222-5000. Reed should be contacted at (520) 918-5189, Breckenridge can be called at (520) 918-5813.

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[mepr-show rules=”58038″] Sale date of Casa Verde Apartments: 12/26/2013. This was the buyers upleg in a 1031 exchange from a California property. The buyer paid $316,777 down. Market time was approximately 100 days. Property sold at an 8.5% cap rate. APN: 107-09-011A.

Sale date of Crestview Apartments: 12/27/2013. All cash transaction. Unit mix: 6 one bedrooms, 6 two bedrooms and one studio. Property sold at an 8% cap rate. APN 122-12-061.[/mepr-show]