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This downtown Tucson hotel is being converted into an apartment complex
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This downtown Tucson hotel is being converted into an apartment complex

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Hotel Tucson City Center will be converted into an apartment complex. The interior and exterior of the buildings will be modernized, and the pool area along with a dog park, fitness room and clubhouse are slated for upgrades.

Seizing on Tucson’s hot real estate market, a downtown hotel is being converted into an apartment complex.

Scottsdale-based investment firm, Sterling Real Estate Partners, has acquired Hotel Tucson City Center, 475 N. Granada Ave., and will flip the 278-unit hotel into a 210-unit apartment complex.

The firm plans on modernizing the interior and exterior of the property, originally built in the 1960s, with plans to make use of excess land for an additional 154 units at a later date, a news release said.

An existing four-story building on the property will also become a 96-room hotel, operated by Ledgestone Hospitality.

Downtown Tucson looking southeast, probably about 1967. The freeway off ramp at St. Mary's Road (picture bottom) is gone today. But the hotel is still there. It's Hotel Tucson City Center.

“We are really excited about the business plan and location of the property. It is a rare, underutilized 10-acre site next to the historic El Presidio neighborhood district,” said David Zeff, president of Sterling Real Estate Partners.

The apartments will consist of luxury studio and one-bedroom units ranging from 300 to 700 square feet. The pool area, fitness room, clubhouse, conference room, dog park and outdoor lounge are all slated for upgrades, the news release said.

Though rents will vary based on the type of unit, Sterling says it is aiming to “offer low gross rents with luxury interior finishes.”

Renderings of what the converted Hotel Tucson City Center apartments will look like are not yet available, but this photo shows a recent interior renovation done by Sterling Real Estate Partners.

Sterling had the property under contract since January 2021 while it underwent the rezoning process for residential use. The firm collaborated with neighbors throughout the process to receive zoning approval without opposition.

Converting the existing buildings is expected to take about 18 months with construction expected to start in the second quarter of this year.

Downtown Tucson has changed over the years with the construction of apartment buildings and hotels. Take a flight over the area. Drone video by: Mamta Popat, Arizona Daily Star

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