Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Hilands, a 826-unit multifamily asset in Tucson, Arizona. The $178 million sales price, which represents $215,496 per unit, is the highest single-asset multifamily transaction in Tucson history.
“The largest multifamily asset in Pima County and only one of 11 garden-style multifamily assets larger than 100 units in the affluent Catalina Foothills submarket, Hilands presents our buyer with a tremendous opportunity to add value through a programmatic interior renovation program,” said Hamid Panahi, IPA senior vice president. “Under previous ownership for over 25 years, the property is supported by the submarket’s 96.95% multifamily vacancy rate and median annual household income of $93,000.”
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“Rental demand is projected to remain strong within the submarket due to lack of new single-family and multifamily supply, a continued low rent-to-income ratio compared with other Western metros, and a consistently large affordability delta between rent and mortgage payments as Tucson’s home values continue to increase close to 30% year-over-year,” added Clint Wadlund, IPA senior director. IPA’s Clint Wadlund, Hamid Panahi, Art Wadlund, Steve Gebing and Cliff David represented the seller, Northland, and procured the buyer, Bridge Investment Group.
The property is located in suburban North Tucson at the intersection of North Craycroft Road and River Road. The 22-mile Rillito River Park Trail is directly accessible, the Tucson Medical Center is two miles away and two schools are nearby. There are 3,000 businesses within a five-mile radius of Hilands, including employers such as Carondelet St. Joseph’s Hospital, Tucson Unified School District, Canyon Ranch, ADP, Loews Ventana Canyon Resort, Walmart, Texas Instruments, and The Westin La Paloma Resort and Spa. The Tucson Country Club and Dorado Golf Course are within a short drive and shopping is nearby at River Center, Synergy Plaza and the Tucson Mall.
Built in two phases in 1985 and 1986 the garden-style, 460,418-net-rentable-square-foot property has 41 residential buildings, a swimming pool and covered parking. Additional community amenities include a 24-hour fitness center, an air-conditioned racquetball court and two lighted tennis courts. Apartments have breakfast bars, French doors and extra storage space. Select units have stacked and full-size washers and dryers and private patios. The average unit size is 557 square feet.
