NorthMarq closes and finances the Paseo Del Sol apartments in Tucson for $12.5 million

Paseo Del Sol Leasing Office, 6280 S Campbell Ave., Tucson, AZ

TUCSON, ARIZONA – The 152-unit Paseo Del Sol Apartments, located at 6280 South Campbell Avenue, in Tucson, Arizona, sold this month for $12.5 million ($82,237 per unit).

The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction. AndMark Paseo del Sol Apartments, LLC, of Los Angeles, California was the buyer.

“Paseo Del Sol was the buyer’s fourth Tucson acquisition this year,” says Koskovich, president-NorthMarq Multifamily. “The Tucson multifamily market continues to strengthen as rents and submarket occupancy increase, and renter demand is rising as the local economy improves.”

“We are happy we were able to add this property to our Fund IV portfolio,” said Mark Mosch, CEO of AndMark Management Company, LLC. “This property is unique in that half the units are very large four-bedroom units, which are no longer being built in today’s market. We plan to upgrade these units and position them as quality affordable alternatives to the single-family houses in the submarket.”

Financing for the acquisition included a $10 million loan from Freddie Mac, which was arranged by NorthMarq Capital’s James DuMars, managing director, and Griffin Martin, vice president. “The client had numerous options on the table but selected NorthMarq/Freddie Mac due to their certainty of execution, excellent loan terms and smooth process,” says DuMars.

Summit Paseo Del Sol, LLC, of Los Angeles, California, an entity of Summit Equity Investments, was the seller. This was the second of two multifamily assets that NorthMarq has sold for Summit Equity Investments this year.

The Paseo Del Sol apartment community, built in 1994, is situated on 11.33 acres with 50 percent three-bedroom units and 50 percent four-bedroom units. The property, located on the west side of Campbell Avenue, south of Bilby Road, is near downtown Tucson.

The outlook for the Tucson multifamily market has been improving in recent months as the local economy has been on an upswing fueled by growth among a handful of recognizable companies. In recent quarters, Amazon, Caterpillar, and GEICO have announced plans to add nearly 3,000 workers in the Tucson metro area. In addition, Raytheon Missile Systems, one of the largest employers in Tucson, is in the middle of a $550 million expansion of its Tucson facility, a move that will result in an additional 2,000 high-wage employees at the company in the coming years. During the past 12 months, employment in Tucson has surged by 2.4 percent with the addition of over 9,000 net new jobs.




IPA Sells Valley View Multifamily Asset in Tucson for $24.75 Million

Valley View Apartments, 5025 N 1st Ave, Tucson

TUCSON, Ariz. – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announces the sale of Valley View Apartments, a 304-unit multifamily asset in the Catalina Foothills area of northern Tucson, Arizona. The $24.75 million sales price equates to $81,414 per unit.

“Valley View represents an excellent opportunity to refresh and modernize a well-located apartment property within a prosperous community,” says Hamid Panahi, first vice president investments with Marcus & Millichap. “The acquisition is part of an investment strategy that allowed the buyer to create scalable growth at a robust pace by acquiring 831 units in 36 months.”

Panahi, Lane Schwartz and IPA senior managing directors Steve Gebing and Cliff David procured the buyer, a private investment entity based in Beverly Hills, California. The seller is Northland Investment Company.

Built in 1979 on more than 11 acres, Valley View Apartments is approximately five miles from central Tucson. The property is close to Rillito River Walk Park and near access to Arizona State Route 77, Interstate 10 and Interstate 19. The Catalina Foothills area is one of the most prestigious and affluent communities in Arizona and home to La Encantada, the largest upscale shopping center in the Tucson metropolitan area.

For more information, Panahi can be contacted at 520.719.6511.




Avilla Sabino I & II Sells for $42.3 Million, Hits Highest Price Per Unit for Tucson

Avilla Sabino II, 3500 N Sabino Canyon Rd., Tucson, AZ

Highest per unit price recorded for non-student housing with 40+ units in the Tucson

TUCSON, ARIZONA – Alta Vista Communities of Tucson, an affiliate of Aerie Development (Roger Karber, manager) sold Avilla I & Avilla II luxury communities on the southeast and southwest corners of River and Sabino Canyon Roads in Tucson for $42.3 million ($231,169 per unit) for the aggregate 183-units. The transaction represents the highest per unit price hit by non-student housing with 40+ units in the Tucson metro area.

Avilla Sabino I (built in 2016) at 3515 N Sabino Canyon Road has 53 two- and three-bedroom unit mix and sold for $11.764 million ($234,925 per unit). Avilla Sabino II (built 2017) at 3500 N Sabino Canyon Road has 130 three-bedroom / two-baths units and sold for $30.54 million ($221,957 per unit). Across the street from each other,
both exclusive gated rental communities are in the heart of breathtaking Sabino Canyon. The homes feature luxury finishes you would expect to find in a custom home: private backyard, 10 feet prime ceilings, granite countertops, stainless steel appliances, dramatic clerestory windows that bring the beauty of natural light and Sabino Canyon inside. Avilla Sabino I & II combines luxury living within minutes of the Catalina Mountains, Mount Lemmon and infinite hiking, biking and recreational opportunities.

The property was running at 95% occupancy when it sold.

Avilla Sabino I, 3515 N Sabino Canyon Rd., Tucson, AZ

The seller, Alta Vista Communities is a joint venture of Karber Holdings (Roger Karber) and Brav Holding Company (Garry Brav) an affiliate of BFL Construction, the contractor for the communities.

Senior managing director, Art Wadlund and associate Clint Wadlund of the Tucson Berkadia office negotiated the transactions for the seller.

“This is the second Avilla community that Aerie has sold to Farnam, following the sale of Avilla San Marcos in Chandler, Arizona in 2016,” said Wadlund.  “The buyer has been very happy with the performance of this single-story detached product and wanted to add Avilla Sabino to their portfolio.”

The buyer was Phoenix-based Farnam Companies (Charles Duff, manager) that purchased the Alta Vista community in Chandler, AZ several years ago for $45 million.

“Alta Vista recently sold three properties with an aggregate value of $135 million,” Karber told us. “The Avilla community on Orange Grove under construction, with 240-units has 100-units completed and leasing, that project should be finished before year end.”

For more information, Art Wadlund should be contacted at 520.299.7200 and Clint Wadlund is at 520.529.9206.

To learn more, see RED Comp #5762 and #5763.

[mepr-show rules=”58038″]Avilla West: Document #2018-1210480, sale price: $30,540,296 ($234,925 per unit). Sale date: 5/1/2018. Buyer: DJD Tucson West, LLC.

Avilla East: Document #2018-1210512, sale price: $11,763,704 ($221,957 per unit). Sale date: 5/1/2018. Buyer: DJD Tucson East, LLC.[/mepr-show]