The 152-unit Paseo Del Sol Apartments, located at 6280 South Campbell Avenue, in Tucson, Arizona, sold this month for $12,500,000.
The NorthMarq Multifamily team of Bill Hahn, Trevor Koskovich, and Jesse Hudson represented both the seller and the buyer in this transaction. AndMark Paseo del Sol Apartments, LLC, of Los Angeles, California was the buyer.
“Paseo Del Sol was the buyer’s fourth Tucson acquisition this year,” says Koskovich, president-NorthMarq Multifamily. “The Tucson multifamily market continues to strengthen as rents and submarket occupancy increase, and renter demand is rising as the local economy improves.”
“We are happy we were able to add this property to our Fund IV portfolio,” said Mark Mosch, CEO of AndMark Management Company, LLC. “This property is unique in that half the units are very large four-bedroom units, which are no longer being built in today’s market. We plan to upgrade these units and position them as quality affordable alternatives to the single-family houses in the submarket.”
Financing for the acquisition included a $10,000,000 loan from Freddie Mac, which was arranged by NorthMarq Capital’s James DuMars, managing director, and Griffin Martin, vice president. “The client had numerous options on the table but selected NorthMarq/Freddie Mac due to their certainty of execution, excellent loan terms and smooth process,” says DuMars.
Summit Paseo Del Sol, LLC, of Los Angeles, California, an entity of Summit Equity Investments, was the seller. This was the second of two multifamily assets that NorthMarq has sold for Summit Equity Investments this year.
The Paseo Del Sol apartment community, built in 1994, is situated on 11.33 acres with 50 percent three-bedroom units and 50 percent four-bedroom units. The property, located on the west side of Campbell Avenue, south of Bilby Road, is near downtown Tucson.
The outlook for the Tucson multifamily market has been improving in recent months as the local economy has been on an upswing fueled by growth among a handful of recognizable companies. In recent quarters, Amazon, Caterpillar, and GEICO have announced plans to add nearly 3,000 workers in the Tucson metro area. In addition, Raytheon Missile Systems, one of the largest employers in Tucson, is in the middle of a $550 million expansion of its Tucson facility, a move that will result in an additional 2,000 high-wage employees at the company in the coming years. During the past 12 months, employment in Tucson has surged by 2.4 percent with the addition of nearly 9,000 net new jobs.