Chicago-based student-housing developers are rolling out a new concept at their third Tucson project.
Core Spaces, which developed the two Hub towers near Speedway and Park Avenue, are constructing the third Hub nearby with a smaller footprint and upgraded units.
The four-story complex will have 57 units with 183 beds for rent in one-, two-, and four-bedroom models on the south side of Speedway at Tyndall Avenue.
Some of the units will be four-bedroom, two-story town homes with high-end amenities such as Apple TVs, rain shower heads and balconies with outdoor patio furniture, said Melissa Flath, director of new business for Core Spaces.
“We are so excited because both Hubs got such positive feedback from city leaders and students,” she said.
“This is going to be our most upgraded Hub project we’ve done … the smallest and most exclusive.”
Rents have yet to be determined, but will be in line with area developments that have commanded up to $1,000 per bedroom.
Amenities will include a rooftop pool with personal cabanas, a 25-foot hot tub, fitness center, yoga room, study lounge and retail, likely fast-casual food or a grocery.
Called Hub Speedway, the complex is expected to open for the 2019 school year, along with two other developments, Aspire on Park Avenue, just south of Speedway, and The Mark, on Broadway and Park Avenue.
Core Spaces entered the Tucson market in 2013 and opened its first complex in 2014. The second Hub opened in 2016.
Flath said both sites have been at 100 percent occupancy with a waiting list and that inquiries about leasing in the new complex have already begun.
“That’s the reason we keep coming back to Tucson,” she said. “We’ve somehow struck gold in Tucson.”
Leasing will begin Aug. 1 at 733 N. Fourth Ave.
A recent report prepared for the Pima County Real Estate Research Council says student housing projects are all absorbing well.
“There appears to be high demand for student housing as all of the projects constructed over the past decade have experienced strong market acceptance,” said Craig Johnson of Valbridge Property Advisors, the report’s author.
He said rents in the newer projects were 2.5 times that of peripheral complexes and enjoy occupancy rates of about 92 percent.
More than 2,300 student housing beds will be delivered in 2019.
“The largest annual increase to date occurred in 2013 when 1,805 beds were delivered,” Johnson said.
“The new units were effectively fully leased at opening and older projects initially suffered vacancy in excess of 15 percent, but this subsequently declined to only 6 percent to 7 percent.”