Phoenix, Arizona — ABI Multifamily, the Western US’s leading multifamily brokerage and advisory services firm, is pleased to announce the $19,500,000 / $62,500 Per Unit sale of the Rio Santa Fe Apartments located in Yuma, Arizona.  Rio Santa Fe Apartments is a 312-unit garden-style apartment community located in Yuma, AZ.  The property is of 1990 vintage, built of wood frame and stucco.  The unit mix consists of 64 one-bedroom / one-bath units, 108 two-bedroom / two-bath units, and 140 three-bedroom / two bath units, with a weighted average size of 898 square feet.  Each unit is individually metered for electricity and equipped with full-size kitchen appliances including a dishwasher, garbage disposal, and range / oven, as well as spacious walk-in closets, large picture windows, 10-foot ceilings, ceiling fans, and air conditioning.  Select units offer full-size washer / dryer connections, balcony / patio, breakfast bar, and /or storage space. The community also provides its residents with two laundry facilities, two swimming pools, a clubhouse with full kitchen, and multi-use sport court.

“Rio Santa Fe Apartments is located near I-8/SR-95 interchange, which connects the area to San Diego and Phoenix,” states Alon Shnitzer, Senior Managing Partner at ABI, who along with Rue Bax and Eddie Chang were the lead brokers for this transaction.  “The property is the 2nd largest, by number of units, in the city of Yuma and was well maintained and operated by the selling entity for the duration of their 20+ year hold.”

“Yuma is most assuredly changing,” states Eddie Chang, Partner at ABI, “Although everyone points to Bill Gates’ related entity purchase of property in Phoenix’s West Valley for the development of a ‘smart city,’ Yuma announced its own Smart City Plan in November 2017.  Essentially, Yuma allowed technology company, anyComm and Siemens Industry, to begin the installation of nodes to be installed on the top of every streetlight in the city to create community wide high-speed broadband connectivity.  The data received is then funneled and used for Internet of Things (IoT) type applications.  This has the potential to be a major game-changer, not only for the city by way of added technology/development jobs but also nationally.”

The Buyer is a private multifamily investor based in Arizona.

The Seller, a partnership formed by Paul Ash Management Company, based in Tucson, AZ, is a private multifamily investor, developer and property manager based in Arizona.

The multifamily brokerage team of Eddie Chang, Alon Shnitzer, Rue Bax, John Kobierowski and Doug Lazovick represented both the Buyer and Seller in this transation.

ABI Multifamily, Arizona’s largest locally operated dedicated multifamily brokerage and advisory services firm, is pleased to announce the $8.65 million ($47,011 per unit) sale of the Green Leaf at Broadway Apartment Homes, a 184-unit apartment community located at 8880 E Broadway Blvd. in Tucson, Arizona.

Green Leaf is an all two-story apartment community built in 1980 and renovated in 2015.  The property consists of an attractive mix of 60% (110) 1-bedroom and 40% (74) 2-bedroom unit types with an average size of 676 square feet.  Approximately 35% of the units have undergone renovations.  The property is individually metered for electricity and was constructed of wood frame/stucco.  Green Leaf has 10 total building structures, a dedicated leasing center and clubhouse.  Additional property features include: swimming pool, spa, basketball court, fitness center, two on-site laundry facilities, ample parking, and BBQ grill areas.  The property was approximately 95% occupied at close of escrow.

Located in the Southeast Tucson Submarket, Green Leaf is approximately a mile from Park Place Shopping Center, one of the most popular shopping malls in the Tucson Metro. Significant employers in proximity to the property include University of Arizona, Raytheon, Davis-Monthan Air Force Base, and Tucson Medical Center. “The Seller purchased Green Leaf as a distressed property in late 2013 and immediately implemented an overall rehab and repositioning plan, which included extensive exterior/common area and select interior apartment unit upgrades,” states Alon Shnitzer, Senior Managing Partner at ABI, who was the lead broker representing the Buyer and Seller in the transaction. “The buyer and seller are very experienced apartment owners and were a pleasure to work with.  In addition, on-site management was retained which helped make this an extremely smooth transaction.”

“The Southeast Tucson Submarket is absolutely exploding in population growth,” states Lance Parsons, CCIM, Vice President at ABI, who also represented the Buyer and Seller.  “From 2000, not only has the population increased 22% but median and per capita incomes have risen 33% and 32% respectively.  Given that most construction, in the Metro, has focused on the downtown and surrounding environs, the Buyer has an excellent opportunity to capitalize on completing the renovations started by the Seller and provide essentially newer product to a Submarket that most certainly is in demand of it.”

The Seller is a partnership formed through Bruce Ash, President/CEO of Paul Ash Management Company, LLC.  The firm is a privately held investment and property management partnership based in Tucson, Arizona.  Paul Ash Management Company, LLC operates multi-family, HOA, retail, industrial and public sector assets in eight different states across the country.

The Buyer is a private capital group based out of California.

The ABI Multifamily brokerage team of Alon Shnitzer, Lance Parsons, Ryan Kippes, John Kobierowski, Rue Bax, Doug Lazovick and Eddie Chang represented the Buyer and Seller in this transaction.

For more information, Shnitzer can be reached at 602.714.1283 in Phoenix and Parsons should be contacted at 520.265.1945 in the ABI Tucson office.

To learn more, see RED Comp #4122.

Tucson, AZ – Northwest Integrity Housing Company of Boise, Idaho (Thomas Mannschrek, principal) acquired two Section 8 subsidized housing projects in Tucson for an aggregate total of $8.7 million. Both are to undergo major rehab by new owner and were 90% occupied at time of sale.

The 140-unit Mayfair Manor Apartments at 5180 E. 22^nd Street in Tucson sold for $4,768,289 ($34,059 per unit) and the 100-unit Shadow Pines Apartments at 4011 North First Avenue in Tucson sold for $3,931,711 ($39,317 per unit).

Mayfair Manor is to be rebranded Miraflores Apartments and Shadow Pines renamed to Catalunya Apartments. The seller of both properties were affiliates of The BSE Trust of Tucson (Bill and Shirley Estes, Trustees).

Both transactions were brokered by Bob Kaplan, formerly of Cushman & Wakefield | PICOR, now with Marcus & Millichap Real Estate Investment Services.

The acquisition rehabilitation financing involved a 20 year extension of a Housing Assistance Payment Contract from the U.S. Department of Housing, and The City of Tucson also separately providing a $750,000 loan for each property through the HOME Program.

The low-income tax credit investments from Affordable Housing Partners, Inc., and a bridge loan from the Sterling Bank of St. Louis, Missouri for $503,069, and two tax-exempt bonds, $8,229,466 and $7,015487, issued by The Industrial Development Authority of the City of Tucson with the Lotzar Law Firm, P.C. served as Counsel to the Bond Issuer and Bond Counsel. The Bond was sold on a private-placement basis and was purchased by the Sterling Bank of St. Louis, Missouri.

Mannschrek, also President of Thomas Development Company in Boise said, “We were under contract since May 2013 due to all the offices of HUD that had to sign-off on it, from Tucson to Pheonix to Washington, it just took a long time. We greatly appreciated the support we received from HUD and the City of Tucson for these projects, especially City Council members Karen Uhlich and Richard Fimbres who were very supportive.” Mannschrek estimates the rehab cost to be about $38,000 per unit and also emphasized he believes in using local talent and expertise.

Kaplan said, “The properties are both 1971 construction and originally built as Section-8 housing. Both properties had been well-maintained, but are in need of upgrades such as new windows, a new chiller system, common area upgrades all very expensive rehab work.”

Tofel Construction, Inc. will handle the rehab of both communities slated to begin September 8^th, with Miraflores’ expected completion May 2015 and Catalunya scheduled for March 2015. Evan Elgin of Elgin/Cohen Architects will be the lead architect on the project and Paul Ash Management Company has been retained to continue with the property management.

Thomas Development Co. is looking for additional multifamily investments.

To learn more Kaplan should be contacted at (520) 202.2938.