NorthMarq’s Phoenix investment sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson, and Ryan Boyle brokered the $57.5 million sale of Ranch at Star Pass. Griffin Martin and James DuMars of NorthMarq’s Pheonix Debt/Equity team financed the transaction through the company’s relationship with a bridge/mezzanine lender.
The 1,020-bed/336-unit student housing complex is located at 41 S. Shannon Road. This is the second highest price for a multifamily building in Tucson, but the highest price per door this year. The sale marks the tenth multifamily transaction for the California based, Element Residential Property Company.
Industry experts have been expecting the Tucson market to become one of the leading submarkets in the Southwest. The area has seen aggressive rental and job growth, even on the heels of a pandemic.
“What makes this market ideal for buyers is that it still offers multifamily investors opportunities to acquire properties at a lower cost basis compared to larger metropolitan areas throughout the US,” said NorthMarq’s Executive Vice President, Bill Hahn. “The property is located near the University of Arizona which has not seen a decline in enrollment in the last decade.”
Built in 2000, the property comprises more than 21 acres of land and features high-end amenities attractive to students including a volleyball court, fitness center, swimming pool and tanning beds. In additional to the amenities the asset also offers students a shuttle to and from both the University of Arizona and Pima Community College.
“We were pleased to help Element expand their footprint in the Tucson market with the acquisition of Ranch at Star Pass,” said senior vice president/managing director Griffin Martin. “We ran a competitive bid process and they chose a lender that offered excellent terms and provided confidence to close in a shortened timeframe.”