Cushman & Wakefield | Picor Multifamily Market Snapshot Q1 is reporting positive absorption and growth in all the important statistical categories for the Tucson multifamily market. Tucson apartments vacancy rates (averaging 8.5%) and average rents ($10.56 PSF) continue to see positive gains, while Tucson continues to generate significant investor interest due to low interest rates and high cap rates averaging 8% and more. To see the full Q1 2015 multifamily report CLICK HERE.
In the first week of May, nine transactions with an aggregate of 220 units totaling $5.88 million have been transacted with many brokers reporting ‘multiple offers’ being received and ‘high interest’ repeatedly for ‘value-add’ properties.
The following sales took place from April 30 to May 7th scattered throughout most of the area submarkets.
Investors from Burbank, California (Erlinda & Ameline Laking,members) purchased the Monterey Gardens Apartments at 1039 N Alamo Avenue in Tucson for $2 million ($37,736 per unit / $47 PSF) The 53 unit apartment community built in 1970, is located in the Wilmot Desert Estates. Large floor plans (20) 675-square-foot 1-bedroom units, (24) 950-square-feet 2-bedroom units and (8) 3-bedrooms. Recent capital improvements include exterior paint, landscaping, roof, resurfaced parking lot and new plumbing and power transformer installed. The majority of the units were recently remodeled. Amenities include a pool. David Walsh of Realty Executives Tucson Elite handled the transaction and should be reached at 520.591.1736 to learn more. Also see RED Comp #2861 for additional information.
Victoria Arms Apartments at 1518 E Hedrick Drive in Tucson sold to investors from Castle Rock, Colorado for $1.025 million ($40,800 per unit / $53 PSF). The single story, 25-unit complex, built 1975, has (24) 2-bedroom and one 1-bedroom apartment units. Amenities include individually fenced yards, a rental office on-site and lush landscaping. Mick Cluck, CCIM, with Coldwell Banker of Tucson represented the seller, Deep Water Investments of Reno, NV and said there was “high interest in the property from multiple buyers”. Cluck can be reached at 520.349.3533 to learn more. Jo Roberts with Long Realty in Tucson represented the investors in this 1031 exchange and should be contacted at 520.886.7500. Tucson Realty & Trust will be managing the property. Also see RED Comp #2874 for additional information.
DLGS JAK Properties of Phoenix (Pat Stoiak, manager) bought the Palo Verde Terrace Apartments at 3493 E Lind Road in Tucson for $750,000 ($14,423 per unit / $27 PSF) from Mental Health Resources. The 52-unit apartment complex was vacant and sold vacant with deferred maintenance. It was not on the market when sold. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor handled the transaction and can be reached at 520.546.2721 to learn more. Also see RED Comp #2871 for additional information.
Local investor, Stak Properties (Kristi Verdugo) purchased the 14-unit multifamily complex at 2620 N Stone Avenue in Tucson for $317,500 ($22,607 per unit / $42 PSF). Built in 1948, the property has six 1-bedroom apartments, and 8 freestanding casitas and was fully leased when it sold. Chuck Corriere with Keller Williams in Tucson represented the sellers, Milton & Lorna Nunn of Washington, and can be reached at 520.400.9811 to learn more. Arthur Verdugo III with Tierra Antigua represented the investors and is at 520.544.2335. See also RED Comp #2857 for additional information.
With seven multiple offers, Wildcat Equities of Tucson (Brandon Matheson,member) purchased Mountain Shadows Apartments at 3053 W Anklam Road in Tucson for $325,000 ($32,500 per unit / $51 PSF). A 10 unit complex, (7) 1-bedroom and (3) 2-bedroom units had the majority of the units upgraded with new kitchens and tile floors. Amenities included a swimming pool and laundry on property and each unit has spacious backyards and desert landscaping. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor handled the transaction and can be reached at 520.546.2721 to learn more. See also RED Comp #2869 for additional information.
An affiliate of Equity Partners of Tucson bought the Monte Vista Apartments at 4001 & 4015 E Monte Vista Drive in Tucson for $650,000 ($20,313 per unit / $46 PSF). Built in 1978, the (32) Jr. 1-bedroom units have A/C, mature landscaping, pool, picnic area and laundry facilities on-site. The property sold 85% occupied. Tony Reed with Long Realty represented the seller, Jarbun Properties of Irvine, CA (Dean Rathburn, officer) and should be contacted at 520.918.5189 to learn more. Sofonias Astatke with Equalibrium Realty represented the buyers in this 1031 exchange. Astatke can be reached at 520.250.8977. See also RED Comp #2872 for additional information.
Tucson investors, Eric Layton and Eli Halif purchased Alernon Way Apartments at 2457 N Alvernon Way in Tucson for $157,500 ($17,500 per unit / $30 PSF) in an Estate Sale. The property consists of a 9 unit apartment complex near Alvernon Way & Grant Road, built in 1950. At time of sale 8 units were rented and one was vacant. Peter Canacakos of Long Realty in Tucson handled the transaction for seller, The Londer Trust of Tucson. Canacakos should be reached at 520.918.4831 to learn more. Also see RED Comp #2876 for additional information on this transaction.
Local investors (Gabriel Reina, member) purchased the Elvira Apartments at 320-326 E Elvira in Tucson for $230,000 ($17,692 per unit / $26 PSF) in a recent REO sale. The distressed property with thirteen units consisted mostly of two-bedrooms and sold with deferred maintenance. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor represented the seller and Eddie Watters with Realty Executives Tucson Elite represented the investors. Mendelsberg can be reached at 520.546.2721 to learn more and Watters is at 520.877.4940. For additional information see RED Comp #2889.
Green Valley investors, Apero Properties (Mark & Kimberly Schmidt) bought the 12-unit multifamily complex at 351 and 401 W Apero Drive in Green Valley for $420,000 ($35,000 per unit / $49 PSF). The property consists of 12 apartment units, in four buildings built in 1966 and 1979. The seller was also from Green Valley, The Heinemann Family Trust ( Kenneth Heinemann, trustee). For additional information see RED Comp #2826.