Multifamily Portfolio Sells for $46 Million

Updated: 3/1/2017
Tucson, Arizona — New York-based, Dasmen Residential (Michael I Katz, CEO) purchased a 1,166-unit portfolio in Tucson from Omninet Capital of California for $46 million ($39,451 per unit). The transaction marks the buyer’s entry into Tucson and its first acquisition west of the Mississippi.

“Our goal is to bring these four apartment communities to the next level in terms of interior upgrades, as well as commons area improvements,” says Michael Katz, CEO of Dasmen Residential, LLC. “Historically, we purchase assets of similar vintage and upgrade them with high end finishes that rival any new construction deal such as Quartz Countertops and Stainless Steel Appliances. With numerous development projects in the works across the city, along with job growth showing very positive signs, DASMEN feels that Tucson is on the rise. We feel that its economy is growing at a very strong and healthy pace. With its hands-on management approach, DASMEN will look to offer the residents of all four communities impeccable service and to do our part in ensuring that Tucson continues to become a great and successful city.”

Omninet Capital acquired the portfolio in August 2014 for $34.65 million ($29,717 per unit) and at that time it was the largest multifamily units and sale price sold in Tucson multifamily since 2010. This is no longer the situation in 2017.

Cindy and Brad Cooke with the Greater Phoenix office of Colliers International brokered both transactions on behalf of the sellers.

“The timing for Tucson market is highly opportunistic for investors,” said Brad Cooke, senior vice president of Colliers International in Greater Phoenix.   “It is experiencing strong job growth and looks to be headed toward even stronger economic performance in coming years. With new businesses and development projects, the job market is seeing a rise in the high-wage job sectors, nationally recognizable businesses bidding for entry to the market. Healthy population growth will continue to support tenant demand for apartment properties.”

“We’re pleased to see the multifamily market going so well in Tucson,” said senior executive president Cindy Cooke, “the job growth over the past year and projections for 2017 made this a good deal for both buyer and seller.”

All assets were built between 1973 and 1984. They include:

– Sedona Springs, 373 N. Wilmot Road (408-units)
– Sienna Ridge, 5353 E. 22nd St.(305-units)
– Summit Ridge, 1252 S. Craycroft Road (360-units)
– Verrano Park, 6850 E. Golf Links Road (93-units)

Dasmen Residential LLC, a privately held real estate investment firm that owns and operates multifamily properties in major cities throughout the United States, makes opportunistic investments in growth markets and employs a range of strategies to create value and sustain long term asset appreciation. The company seeks to continue exceeding its goal of providing outstanding risk adjusted returns to its partners while providing the best possible living experience in its communities.

The portfolio was over 95% occupied at time of sale. Properties were being managed by MEB Management Services by seller and will continue management for new owner. MEB can be contacted at 520.620.1640.

For more information, the Cooke Multifamily Investment Team and Cindy and Brad Cooke can be reached at 602.222.5000.

See RED Comps #1922, #1923, #1924 and #1925 for prior transactions and RED Comp #4571.

[mepr-show rules=”58038″]Portfolio closed 2/14/2017. Document # 2017-0450572. Prices were split evenly over the four properties totaling $46 million with $800, total down payment.[/mepr-show]

Largest Multifamily Portfolio Sale in Tucson Since 2010

Colliers International in Greater Phoenix recently completed the sale of four Class B multifamily value-add properties in Tucson for an aggregate of $34.65 million ($29,717 per unit) for the 1,166-unit portfolio in four properties.

Omninet Capital, LLC, of Beverly Hills, Calif., purchased the four properties from Gaines Investment Trust of La Jolla, Calif. The portfolio, Omninet’s first acquisition in Tucson, included:

* Sedona Springs, 373 N. Wilmot Road, Tucson 85711
* Sienna Ridge, 5353 E. 22^nd St., Tucson 85711
* Summit Ridge, 1252 S. Craycroft Road, Tucson 85711
* Verrano Park, 6850 E. Gold Links Road, Tucson 85730

Cindy Cooke, senior executive vice president and Brad Cooke, vice president of Colliers International, served as the brokers for the seller. The buyer was self-represented.

The apartments were constructed between 1973 and 1984.

“We received multiple offers on the portfolio but it was Omninet’s terms that won them the deal.  No other buyers were able to match how fast they could remove contingencies and close on the properties,” Brad Cooke said. 

This sale is the largest multifamily portfolio units sold in Tucson since 2010, according to Colliers International, when Cooke Multifamily Investments closed a 2,913-unit portfolio, splitting it between two buyers, setting the previous Tucson record.

The Cooke team’s detailed knowledge of the Tucson market combined with their national connections has been a winning combination for bringing new buyers to the Tucson market.

The Cooke team has maintained a strong track record of closing 97 percent of their listings over the last 30 years.

To learn more Cindy Cooke can be reached at (602) 222.5039 and Brad Cooke is at (602) 222.5088.