Institutional Real Estate Advisors (IPA)a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Tucson V, a multi-family portfolio of five properties and 880 units in Tucson, Arizona. The assets traded for $130 million.
“As a new entrant to the Tucson market, the acquisition offers immediate scale to the buyer in one of the fastest growing commercial markets in the United States, complemented by the prospect of a value-added opportunity. on a blank canvas for the five assets,” said Hamid Panahi, senior vice president of the IPA. Panahi and IPA executive managing directors Steve Gebing and Cliff David represented the seller, Weidner Apartment Homes, and recruited the buyer, Western Wealth Capital. “The combination of the scarcity of developable land and local government policies provides a competitive shelter against future multi-family supply for these assets,” Gebing added. “Tucson may well lead the country in rent growth over the next three to five years. »
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The properties are:
• Aventura, 239 units built in 1985
• Las Brisas, 248 units built in 1983
• Alegria, 161 homes built in 1985
• L’Enclave, 120 homes built in 1974
• Vista Montana, 112 units built in 1984
Tucson has a population of 248,000 working professionals, 72 million square feet of office, industrial and flex space, and employers including Raytheon, Caterpillar, Geico, Banner Health and Amazon. Amazon, CIS Global, TuSimple and Nuvox Pharma have all announced expansions in the city. Downtown Tucson has 45,000 jobs and the larger campus of the University of Arizona and Banner University Medical Center has 15,500 jobs. Major malls include Park Place Mall, Tucson Mall, and Tucson Spectrum.
“Tucson is poised to experience additional population growth over the next five years, which should support recent all-time highs in subway rent and occupancy,” David concluded. “We expect multifamily investing to continue to be strong as capital continues the undeniably strong fundamentals of the Tucson market.”