TUCSON, Arizona — The Multifamily team of Allan Mendelsberg and Daniel Leibsohn, with Cushman & Wakefield | PICOR of Tucson, is expecting to close 40 multifamily transactions this year, and are well on their way to achieving this goal.
Demand is high and volume is strong for multifamily, with the value of transactions year-to-date exceeding 2016’s annual volume and on pace to exceed all years since 2006. Average cap rates are below 7%, again for the first time since 2006, according to Picor’s market trend report.
Mendelsberg remarked, “Properties priced correctly trade within one to two weeks in the Tucson market where demand is surpassing supply.” The following 170-units sold in eight transactions this month by the Mendelsberg and Leibsohn Multifamily Team and total about $8 million:
840 N. Alvernon Way, LLC purchased Peachtree Apartments, a 42-unit multifamily complex located at 840 N. Alvernon Way in Tucson. The investment property was purchased from Ridgeway and Starr Family Trust for $1.725 million ($41,071 per unit). The 31,220-sqaure-foot complex was built in 1962 on .83 acres with a unit mix of 71% one-bedrooms, 19% two-bedrooms and 10% studios. It was 95% occupied at time of sale. This property had six offers on it within 5-days of being on the market. See RED Comp #5163 to learn more.
ML Investments, LLC of Oregon purchased the Villa del Ray Apartments, a 24-unit multifamily complex at 4302 E Fairmount St. in Tucson for $1.555 million ($64,792 per unit) from Fiesta Properties, LLC. The 25,860-square-foot property was built in 1979 on 1.72 acres. The unit mix is 75% two-bedroom and 25% one-bedrooms. To learn more, see RED Comp #5201.
Wildflower Apartments, LLC of Nogales, Arizona sold the Wildflower Apartments at 2850 N Alvernon Way in Tucson for $1.25 million ($44,643 per units). The 16,224-square-foot multifamily complex was built in 1977 on .87 acres with a total of 28-units. The unit mix is 71% one-bedrooms and 29% two-bedroom units.
The Block on H, LLC purchased Las Colinas Apartments, a 16-unit multifamily complex located at 1488 E. Hedrick Dr. in Tucson. The value-add investment property was purchased from Las Colinas Apartments, LLC for $1.21 million ($75,625 per unit). The 14,480-square-foot property was built in 1997 on .84 acres, with all two-bedroom units. It was off-market when it sold 100% occupied. The complex is to be rebranded to The Block on H. See RED Comp #5155 to learn more.
Rincon Flower Properties, LLC bought a 12-unit apartment complex at 3525 E Flower Street in Tucson from CD Gemini Investments, LLC for $707,000 ($58,917 per unit). The 8,640-square-foot property was built in 1986 on .83 acres with all two-bedroom units. The complex was 100% occupied at time of sale. To learn more, see RED Comp #5140.
Fairview Investments, LLC purchased the 18-unit Fairview Village Apartments located at 3700 N. Fairview Ave. in Tucson, from Fairview Enterprises AZ, LLC for $600,000 ($33,33 per unit). The 8,544-square-foot property on .5 acre was built in 1980, and sold with two vacancies. The buyer is a management company and will continue to manage the property as a Second Chance property. To learn more, see RED Comp #5165.
Euclid 35, LLC purchased a 15-unit multifamily complex at 51-64 N Euclid in Tucson for $585,000 ($39,000 per unit) from Andrew Pongratz of Tucson. The property units are all studios with 100% occupancy at time of sale. The 6,693-square-foot building on .42 acres was built in 1950 and was purchased to be completely renovated by the buyer. See RED Comp #5200
Carney Development & Investment purchased a 15-unit apartment complex at 1 East Navajo Rd., in Tucson from Eddie Watters of Tucson for $310,000 ($20,667 per unit). The 8,727-square-foot building was built in 1980 on .53 acres. See RED Comp #5191.
Mendelsberg should be reached at 520.546.2721 and Leibsohn can be contacted at 520.546.2740.