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.
“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.”
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.