CBRE arranged the sale of the 205-unit multifamily community The Ledges at West Campus in Tucson, Ariz. to Tara Investment Group LLC for $33.75 million.
CBRE’s Jeff Casper, Asher Gunter, Matt Pesch, Tyler Anderson and Sean Cunningham represented the seller, Berger Investment Group.
Built in 1997, The Ledges at West Campus is located adjacent to Pima Community College near the base of the Tucson Mountains. The community’s amenities include two resort-style pool and spa areas, fitness center, resident clubhouse and business center.
“The Ledges at West Campus was previously operated as a by-the-bed rental student housing,” said Casper. “The seller began the process of converting to by-unit leasing as a conventional property and the buyer plans to finalize the conversion.”
He added, “The community’s location provides residents with direct access to employment in downtown and along I-10 as well as Pima Community College and the University of Arizona. The property presented a unique investment opportunity in one of the strongest multifamily markets in the country.”
Tucson had the third-strongest multifamily rent growth of all U.S. metros in Q2 2021 with a 14.6 percent year-over-year increase, according to CBRE research. Multifamily occupancy increased 100 basis points year-over-year to 96.8 percent, the highest occupancy rate on record.
“Tucson has been one of our top targets for several years and we are excited to enter the market with The Ledges at West Campus,” said Elizabeth Meier, principal of Tara Investment Group. “We look forward to finish repositioning the community as conventional apartments and explore other investment opportunities in the region.”
Tara Investment Group was formed in a merger with Shefflin Investments of Santa Barbara. Shefflin Investments recently sold its long-held Colorado Springs multifamily portfolio of 355 units with equities exchanged into Tucson’s The Ledges at West Campus and several other properties in Colorado.
“The acquisition of The Ledges at West Campus nicely complements our existing Arizona apartment portfolio, and we are hoping to acquire additional assets in the Tucson marketplace,” said Joel Shefflin, principal of Tara Investments.
Berger Investment Group, Inc. has invested in fine Multifamily and Commercial Properties in Arizona for the last 30 years.