Berkadia announced today the completion of two multifamily brokerage and financing assignments for properties in Oro Valley and Tucson, Arizona. Senior Managing Director Art Wadlund and Associate Clint Wadlund, both based in the Tucson office, negotiated the sales. Berkadia Managing Director Louis Weisman, based in Seattle, secured the 10-year fixed-rate acquisition financing for both properties through Freddie Mac’s CME program. Prime Residential of San Francisco sold both properties to FW Group.
Overlook at Pusch Ridge, located at 8851 N. Oracle Rd. in Oro Valley, sold for $29.25 million on January 29. The buyer saw this as an investment opportunity due to the area’s affluent community and location in a supply-constrained submarket. It is the first major apartment sale in Oro Valley since early 2014.
“Overlook is one of fewer than 10 properties with over 100 units in Oro Valley, so there was significant competition for the property,” Art Wadlund said. “There is pent-up demand from both renters and investors in the area due to the lack of apartment properties, so we were glad to be able to provide attractive terms and complete the sale.” The property features 424 units with one- and two-bedroom floor plans. Built in 1985, it offers unit amenities including fully equipped kitchens, balconies or patios, full-size washers and dryers and wood-burning fireplaces in select units. Residents can enjoy community perks such as a fitness center, clubhouse, five swimming pools, spa, barbecue grills, business center and dog park.
Oro Valley Country Club is just two miles from the property, while Foothills Mall is a short four mile drive. The area’s top employers include Honeywell Aerospace, Ventana Medical Systems Inc., Hilton and Wal-Mart.
The Berkadia team also completed the $30.8 million sale and financing of Harrison Park, a multifamily property located at 350 N. Harrison Rd. in Tucson. The buyer plans to reposition the property through renovations in order to meet renter demand.
“Harrison Park is located in a flourishing area that is attractive to investors,” Weisman said. “Berkadia’s integrated service offering was particularly appealing to both the buyers and sellers of these assets. The execution was fast, streamlined and very efficient for all parties involved.”
Built in two phases, in 1984 and 1996, Harrison Park’s 360 units feature fully equipped kitchens, full-size washers and dryers as well as fireplaces and private balconies or patios in select units. The property offers one-, two- and three-bedroom floor plans, and residents have access to community amenities such as a fitness center, clubhouse, two swimming pools and spas a business center and two dog parks. The area’s top employers are Agero, Afni Inc., Wal-Mart and Target Corporation.
In December 2015, Tucson area vacancy improved 30 basis points to 7.9 percent, while asking rents ascended 2.3 percent to $676 per month.