Tucson Real Estate: Why apartment rents may rise this year + sales, leases
- Updated
Investors are snapping up existing apartment complexes - three just recently.
- Gabriela Rico
- Updated
With no new apartment complexes planned for the Tucson market until the end of 2018, rent and occupancy rates are likely to rise.
Investors have noticed and continue to buy local multifamily properties.
Brookwood Apartment Homes, 201 S. Kolb Road, recently sold for $13 million. The two-story, garden-style complex has 272 units.
“Brookwood offered the buyer a number of strategic advantages,” said Alon Shnitzer, senior managing partner with ABI Multifamily Apartment Brokerage and Advisory Firm, who along with partner Eddie Chang were the lead brokers for the sale.
“First, the buyer was seeking to expand their Arizona multifamily footprint,” Shnitzer said. “Second, the area surrounding Brookwood has witnessed a tremendous increase in population (and) the property itself had attributes that could be improved on, which would add value and the ability to enhance the community with further amenities for its residents.”
The buyer, Monument Opportunity Fund 3, is a private investment partnership group based in Miami. The seller, Summit Equity Investments Inc., is a family office investor and investment manager that acquires and manages multifamily in strong, secondary markets throughout the U.S.
The ABI Tucson forecast predicts investors will continue to buy rental units as local job growth fuels more tenants.
“Tucson has a very limited supply of new multifamily projects under construction,” the forecast says. “Tucson, looking forward, is now at a five-year low for new units coming online.
“In fact, our projections show no new ‘market rate’ units will be delivered (50+ unit properties in size) to the market until the end of 2018,” the forecast said. “As such, we’re anticipating both rent and occupancy rates to hit market highs of $806 and 94.5% respectively by the end of the year.”
- Gabriela Rico
- Updated
Flowing Wells Apartments LP bought Flowing Wells Apartments from Capital Fund II LLC for $310,000. The 14-unit complex is located at 3521 N. Flowing Wells Road. Allan Mendelsberg and Daniel Leibsohn, with Picor, represented both parties.
- Gabriela Rico
- Updated
Vasquez Construction Company Inc. bought a 5,440-square-foot office building at 1575 N. Swan Road from The Sumwalt Living Trust for $800,000. Tom Nieman, with Picor, represented the seller and Chris Tsighis, with Coldwell Banker Residential Brokerage, represented the buyer.
- Gabriela Rico
- Updated
Old Pueblo Vapor leased 1,200 square feet at Northwest Design Center, on the northwest corner of Orange Grove and Thornydale roads. Andy Seleznov and Melissa Lal represented the landlord, Larsen Baker, and Greg Boccardo, of Boccardo Realty, represented the tenant.
- Gabriela Rico
- Updated
James Younan and Fikri Rahana bought 34th Street Apartments from The Zydas Group LLC for $250,000. The 12-unit complex is at 125 E. 34th St. Allan Mendelsberg and Daniel Leibsohn, with with Picor, represented both parties.
- Gabriela Rico
- Updated
BLB Real Estate Holdings LLC bought a 9,080-square-foot office building at 2761 N. Country Club Road from Country Club Plaza LLC for $635,000. Ben Craney, of NAI Horizon, represented the buyer and Andrew D. Sternberg, of Oxford Realty Advisors, represented the seller.
- Gabriela Rico
- Updated
El Arado LLC bought a 0.89-acre retail pad in Las Plazas at Old Vail, on Houghton and Old Vail roads, to build a Mexican restaurant. El Arado owns and operates Rancho Rustico and was represented by Fred Wang in the $610,000 purchase. Nancy McClure and Michael Laatsch, with CBRE, represented the seller, OVP Development Company LLC.
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- Gabriela Rico
With no new apartment complexes planned for the Tucson market until the end of 2018, rent and occupancy rates are likely to rise.
Investors have noticed and continue to buy local multifamily properties.
Brookwood Apartment Homes, 201 S. Kolb Road, recently sold for $13 million. The two-story, garden-style complex has 272 units.
“Brookwood offered the buyer a number of strategic advantages,” said Alon Shnitzer, senior managing partner with ABI Multifamily Apartment Brokerage and Advisory Firm, who along with partner Eddie Chang were the lead brokers for the sale.
“First, the buyer was seeking to expand their Arizona multifamily footprint,” Shnitzer said. “Second, the area surrounding Brookwood has witnessed a tremendous increase in population (and) the property itself had attributes that could be improved on, which would add value and the ability to enhance the community with further amenities for its residents.”
The buyer, Monument Opportunity Fund 3, is a private investment partnership group based in Miami. The seller, Summit Equity Investments Inc., is a family office investor and investment manager that acquires and manages multifamily in strong, secondary markets throughout the U.S.
The ABI Tucson forecast predicts investors will continue to buy rental units as local job growth fuels more tenants.
“Tucson has a very limited supply of new multifamily projects under construction,” the forecast says. “Tucson, looking forward, is now at a five-year low for new units coming online.
“In fact, our projections show no new ‘market rate’ units will be delivered (50+ unit properties in size) to the market until the end of 2018,” the forecast said. “As such, we’re anticipating both rent and occupancy rates to hit market highs of $806 and 94.5% respectively by the end of the year.”
- Gabriela Rico
Flowing Wells Apartments LP bought Flowing Wells Apartments from Capital Fund II LLC for $310,000. The 14-unit complex is located at 3521 N. Flowing Wells Road. Allan Mendelsberg and Daniel Leibsohn, with Picor, represented both parties.
- Gabriela Rico
Vasquez Construction Company Inc. bought a 5,440-square-foot office building at 1575 N. Swan Road from The Sumwalt Living Trust for $800,000. Tom Nieman, with Picor, represented the seller and Chris Tsighis, with Coldwell Banker Residential Brokerage, represented the buyer.
- Gabriela Rico
Old Pueblo Vapor leased 1,200 square feet at Northwest Design Center, on the northwest corner of Orange Grove and Thornydale roads. Andy Seleznov and Melissa Lal represented the landlord, Larsen Baker, and Greg Boccardo, of Boccardo Realty, represented the tenant.
- Gabriela Rico
James Younan and Fikri Rahana bought 34th Street Apartments from The Zydas Group LLC for $250,000. The 12-unit complex is at 125 E. 34th St. Allan Mendelsberg and Daniel Leibsohn, with with Picor, represented both parties.
- Gabriela Rico
BLB Real Estate Holdings LLC bought a 9,080-square-foot office building at 2761 N. Country Club Road from Country Club Plaza LLC for $635,000. Ben Craney, of NAI Horizon, represented the buyer and Andrew D. Sternberg, of Oxford Realty Advisors, represented the seller.
- Gabriela Rico
El Arado LLC bought a 0.89-acre retail pad in Las Plazas at Old Vail, on Houghton and Old Vail roads, to build a Mexican restaurant. El Arado owns and operates Rancho Rustico and was represented by Fred Wang in the $610,000 purchase. Nancy McClure and Michael Laatsch, with CBRE, represented the seller, OVP Development Company LLC.
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