Sahuarita Mission apartments in Green Valley sell for $8.8M
Northmarq Phoenix’s Investment Sales team of Trevor Koskovich, Jesse Hudson, Ryan Boyle and Logan Baca brokered the $8.8 million ($169,231/unit) sale of Sahuarita Mission, a 52-unit, apartment community located at 1091 W. Beta Street in Green Valley, Arizona. Northmarq’s Investment Sales team brokered the transaction for the Phoenix-based seller, Sahuarita Mission Owner, LLC (FSO Capital Partners.)
Northmarq’s Debt and Equity team of Bryan Mummaw, Bryan Liu, Brandon Harrington, Christopher Gitibin, Brad Burns and Tyler Woodard provided financing for the buyer, WNC Apartment Ventures, LLC from Cypress, California, through its relationship with Freddie Mac securing a $5.93 million loan.
“The buyer saw the opportunity for future revenue growth with 90 percent of the units now able to be rented at market rate as the property recently completed it’s 3-year deregulation period,” said Hudson. Built as an affordable community in 2000, 47 of the units are now able to be leased at market rate rents, with five units reserved for state HOME units with 50 and 60 percent AMI restrictions through July 2030. “Given our strong relationship with Freddie Mac and more specifically, the Targeted Affordable Housing programs, we were able to deliver very competitive terms to the borrower and push leverage in a choppy lending environment,” said Mummaw.
Sahuarita Mission was built in 2000 as an affordable community with four buildings, two- and three-story, on 2.88-acres. The previous owners recently invested over $350,000 in capital expenditures for improvements to roofs, HVACs, and both interior and exterior improvements to the community. The fully leased property includes two- and three-bedroom units that range in size from 822 sq. ft. to 1,013 sq. ft. The property includes a community clubhouse, children’s playground, picnic area with grill, laundry facilities and on-site leasing office. The units feature walk-in closets, balcony or patio, plush carpet and automatic dishwashers.
“There is additional opportunity for the buyers to increase revenue by implementing an interior renovation program to the units as well as adding income producing features like in-unit washers and dryers,” explained Hudson.
Sahuarita Mission is located in Green Valley, Arizona, located in Pima County and approximately 25 miles south of Tucson. The overall vacancy rate in the Tucson multifamily market was 7.4 percent at yearend 2022. Click here to read the full fourth quarter 2022 Tucson Multifamily Market Insights report.