Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Tucson V, a five-property, 880-unit multifamily portfolio in Tucson, Arizona. The assets traded for $130 million.
“As a new entrant into the Tucson market, the acquisition provides immediate scale for the buyer in one of the strongest tertiary growth markets in the United States, complemented by the prospect of a blank-canvas value-add opportunity across all five assets,” said Hamid Panahi, IPA senior vice president. Panahi and IPA executive managing directors Steve Gebing and Cliff David represented the seller, Weidner Apartment Homes, and procured the buyer, Western Wealth Capital. “The combination of developable land scarcity and local government policies provide for a competitive shelter against future multifamily supply for these assets,” added Gebing. “Tucson may well lead the nation 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 units built in 1985
• The Enclave, 120 units 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 such as 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 University of Arizona and Banner University Medical Center’s greater campus hosts 15,500 positions. Major retail centers include Park Place Mall, Tucson Mall and Tucson Spectrum.
“Tucson is poised for additional demographic growth over the next five years, which should sustain the metro’s recent historical rent and occupancy highs,” concluded David. “We expect that multifamily investment will continue to be strong as capital chases Tucson’s undeniably strong market fundamentals.”
