Colliers International in Greater Phoenix has negotiated the sale of two Tucson apartment complexes in transactions totaling $13+ million. The properties were purchased by private investors and are part of a trend moving investment money to Tucson where cap rates and property prices are more appealing than metro Phoenix.
“Multifamily buyers are beginning to move their money from the Phoenix market to Tucson, capitalizing on higher cap rates and lower per unit acquisition costs,” says Trevor Koskovich, executive vice president with Colliers International in Greater Phoenix.
Koskovich, Bill Hahn, Jeff Sherman and Jesse Hudson negotiated the two multifamily transactions in the Tucson marketplace.
Dale Scheck of Deerfield, IL purchased Sherwood Gardens Apartments from MF Blue Valley Apartments, LLC of West Palm Beach, FL. for $7.54 million. The community at 6534 E. Stella Rd. is the third Tucson property acquired by Scheck. Originally constructed in 1964, Sherwood Gardens consists of 24 single-level buildings totaling 180,395 square feet. The community is comprised of 199 units ranging from 745-square-foot 1BR/1BA to 1,045-square-foot 3BR/1BA apartments. The property is situated on 19.04 acres and includes 275 parking spaces. Sherwood Gardens was 95 percent occupied at the time of the sale.
Sunpointe Gardens Apartments at 2727 N. Oracle Rd. was sold for $5.5 million. George Lee and Michael Lee purchased the property from Ann Diaz of Tucson and Jack Tiano of Dana Point, CA. Sunpointe Garden Apartments features 165 units in eight buildings. The two-story structures were built in 1978 and the property was 93 percent leased at the time of sale. The property includes Studio, 1BR/1BA and 2BR/1BA units. Community amenities include gated parking with 277 spaces, pool/spa, laundry facilities and a picnic area.
“Both of these multifamily properties offer opportunities for modernization that will provide revenue improvement to the investment,” says Hudson. “They are well-built and well-leased communities and the strength of the Tucson marker rewards owners that improve older properties and reposition them.”