Value-Add Villa Pacifica Apartments in Tucson Sells for $5.48 Million
Villa Pacifica Apartment at 4650 E 29th Street in Tucson was purchased by AWI VP, LLC an affiliate of Sullens & Associates of Scottsdale, AZ (Jordan Fisher, manager) for $5.48 million ($31,136 per unit). Property sold as a value-add transaction.
Built in 1986, Villa Pacifica is 10 buildings on 4.46 acres, all two and three level apartments with a good mix of 176—units in one-, two- and three-bedroom units. The 112,749-square-feet construction is wood frame and stucco with balconies, Spanish tile pitched roofs and pleasant landscaping and courtyards. The property has seen improved operating fundamentals in 2015 after management began addressing deferred maintenance issues, cleaned up.
The seller, Villa Pacifica Apartments of Sherman Oaks, a private investor, had owned and operated the property for over 10 years and while being well maintained, the property has not been updated and will benefit from more aggressive management.
Common areas including the club room, leasing office, laundry room, pool area and workout room were clean but dated. Unit interiors also need some moderate upgrades to light fixtures, ceiling fans and other amenities. The efforts to update property will help to raise rents, improve occupancy and improve cash flow. Due in part to the owner addressing some deferred issues in the past six months, the property has seen improved occupancy and net operating income and sold with 85% occupancy.
Located at the intersection of 29th Street and Swan Road, Villa Pacifica is well located in the center of Tucson. Nearby employment centers include Park Place Mall, Car dealerships and retailers along 22nd street and Broadway, Davis Montham Air Force Base, The Williams Center office buildings and more. Nearby attractions include El Con Mall and Park Place Malls, Reid Park, Randolph Park Golf Course, Reid Park Zoo and University of Arizona Athletic events. Major shopping centers are located on 22nd Street one half mile north of the property and along Swan Road.
Bob Kaplan with Marcus & Millichap of Denver represented the seller in the transaction.
For more information, Kaplan should be reached at 520.271.2304.
To learn more, see RED Comp #4038.