2014 Highest Multifamily Sale Price To-Date for Region

Scottsdale-based MC Companies (Ken McElroy, principal) a real estate investment, management, development and construction company added 319-units to its portfolio with the purchase of Rock Ridge Apartments at 10333 N Oracle Road in Oro Valley.

The property commanded a sale price of $30.4 million ($95,298 per unit). This is the highest sale price for a multifamily property in the Tucson region this year. The seller was FRI Rock Ridge, LLC of Tempe (Charles B Duff, president).

MC Companies has more than 6500 units total throughout Arizona, Nevada, Oklahoma, Oregon and Texas. Rock Ridge is the sixth property in MC Companies’ Tucson portfolio with a seventh in Sierra Vista.

The acquisition provided MC Companies with a solid investment opportunity primarily due to three things: an outstanding location; management improvement opportunities, and physical improvements that will result in higher rents.

The property consists of one-, two- and three-bedroom units and was 91% occupied at time of sale. The 226,880-square-feet (built 1995) is in 26 buildings on 17.77 acres adjoining Oro Valley Country Club Golf Course.

Unit amenities include air conditioning, alarm, balconies, cable ready, ceiling fan(s), dishwasher, wood burning fireplace, intrusion alarm, microwave, oversized closets, mountain / golf course views, washer & dryer in unit, garbage disposal, and refrigerator.

Community amenities include business center, clubhouse, covered parking, a dog park, emergency maintenance, extra storage, fitness center, garage, green community, high speed internet access, hot tub, playground, public transportation, two swimming pools, trails (bike, hike & jog), corporate suites, pet friendly. Special features include disability access, furnished units available, short term available,

Jim Sellers, Senior Vice President of CBRE’s Debt and Equity office in Tucson handled the transaction and new financing.

To learn more MC Companies’ McElroy can be reached at 480.998.5400 and the Tucson office can be called at 520.790.8100. Sellers can be contacted at 602.735.1777.

TUCSON – CBRE Capital Markets Debt & Equity Finance Group announced Tuesday the successful refinancing of the Encantada at Riverside Crossing at 1925 W River Road, one of the highest-quality, state-of-the-art class A apartment communities in Tucson, Ariz. The $33,800,000 loan was funded through international insurance company AIG, Inc.

The financing of Encantada at Riverside Crossing was originated by Jim Sellers, Senior Vice President, Tim Prouty, First Vice President and Theresa Witz, Senior Analyst of CBRE’s Debt and Equity office in Tucson.

“Bert Lopez has grown HSL Properties into the major apartment owner/developer in Southern Arizona,” said Sellers. “He has given to the community in a variety of ways and this was an opportunity for CBRE to contribute to his successes by bringing insurance company capital to our area.”

The project is sponsored by HSL Properties, Inc., who developed the apartment community in 2011. Tucson-based HSL Properties is a real estate company that focuses on multifamily apartment properties, particularly in the southwestern United States. The company has also invested in office and retail buildings, shopping malls, a golf course and hotels. Founded in 1975 by Humberto Lopez and Glenn Toyoshima, over the past 35 years HSL has acquired, owned, operated and developed properties in Arizona, California, Colorado, Georgia, New Mexico, and Texas.

Encantada at Riverside Crossing is a 304-unit class A apartment community with a mix of one- , two- and three-bedroom floor plans. Amenities include a resort-style pool and swim up lounge with a double sided fireplace, state-of-the-art athletic center, private 27 seat THX movie theatre, indoor/outdoor clubhouse with wifi, flat screen TVs and complimentary coffee bar. All units are TEP-guaranteed for energy efficiency and include 9 and 10 foot ceilings, granite countertops, walk-in closets and full size washer and dryer.

The property is located along River Road, one of Tucson’s busiest east-west arterials, with convenient access to the I-10 freeway and the foothills of North Tucson. Northwest Medical Center is located less than one mile north and two regional malls are within 2 or 3 miles of the property. The 13.09-acre site is one of only five new multifamily properties built in the north Tucson submarket since 2009.

For more information on CBRE’s Capital Markets Debt & Equity Finance Group Services, Sellers should be reached at (520) 326-7378, Prouty is at (520) 323-5123 and Witz can be contacted at (520) 326-9947. For information on Encantada at Riverside Crossing, the office phone is (520) 888-0744.