Investor interest in the Tucson area’s multifamily market continues on a hot streak.
A three-property, 812-unit apartment portfolio recently sold for more than $70 million.
“Multifamily property fundamentals in Southern Arizona have rebounded triumphantly due to stabilization in the single-family housing market and positive strides in the job market,” says Hamid Panahi, first vice president investments with Marcus & Millichap.
Panahi said the acquisition opportunities abound as prices remain below peak levels and capital markets remain attractive.
“Properties can be purchased at discounts to replacement cost and in most cases, on healthy in-place yields,” he said. “Given the long-term growth potential for Tucson, multifamily acquisitions effectuated during this current growth cycle should prove to be lucrative investments.”
Panahi, Steve Gebing, senior managing director, and Cliff David, senior managing director, represented the seller, a private investor, and buyer, Bascom Arizona Ventures.
The properties are: Summit Vista, with 288 units, Crescent Ridge, with 272 units, both in Tucson; and a Sierra Vista complex, Port Royale, with 252 units.
The two Tucson properties are located in the North Tucson submarket, close to Northwest Medical Center, Foothills Mall, and Arizona Pavilions shopping center. Port Royale is situated near Fort Huachuca, Cochise College, and the University of Arizona South Campus.
“Summit Vista and Crescent Ridge provide a rare combination of scale and upside in a dynamically expanding neighborhood, and stand out as premier investments for Bascom,” Panahi said.
Other recent commercial transactions include:
- Water Street Houses, a 9-unit complex at 2550 E. Water St., sold for $3.3 million. Hamid Panahi and James K. Crawley, with Marcus & Millichap, represented both parties.
- Catalina Vista, a 50-unit complex, sold for $2.9 million. Hamid Panahi and James K. Crawley, with Marcus & Millichap, represented the seller, and the buyer was represented by Sevak Keshishian and Shara Paresghian, with Marcus & Millichap’s Encino office.
- Marless Saguaro LLC bought a 5,215-square-foot restaurant at 4499 W. Ina Road for $680,000. David Lee, of David Lee Real Estate, represented himself as the buyer. Nancy McClure, with CBRE, represented the seller, Edwards Ina Lee Mar LLC.
- Ross Capital LLC bought 3,088 square feet of office space at 70-80 Franklin St. for $350,000. Jeff Casper and Buzz Isaacson, with CBRE, represented the seller, Eric Cahan.
- Orthomed LLC, leased 4,361 square feet at 7601 N. Oracle Road from National Bank of Arizona ZB NA. Michael Gross, with Tucson Realty & Trust Co., represented the landlord, and Jeff Casper, of CBRE, represented the tenant.
- Ignite Fitness LLC leased 2,800 square feet at 4613 E. Speedway from Brazo LLC for a personal training and group fitness center. Jeramy Price, of Volk Co., represented the tenant.
- Abbott Media Productions LLC leased 1,669 square feet of office space at 6303 E. Tanque Verde Road from 6303 Tanque Verde LLC. Michael Gross, of Tucson Realty & Trust Co., represented the landlord, and Isaac Figueroa with Picor, represented the tenant.