Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of three multifamily properties in Tucson, Arizona. The assets sold for $75.15 million. They are Hampton Park, a 160-unit property built in 1973, San Mateo, a 254-unit asset completed in 1987, and Solano Springs, a 152-unit apartment complex constructed in 1982.
“Hampton Park benefits from southeast Tucson’s highly diversified employment sector, access to the Broadway retail corridor, and 19.4% rent growth projections over the next 12 months,” explained Hamid Panahi, IPA first vice president. “San Mateo is situated near Interstate 10 access with proximity to Downtown Tucson’s burgeoning dining and cultural scene, and West Tucson, where rent growth is projected to be 17.2% over the next 12 months. Solano Springs’s upside is correlated to the Drexel Heights/Sahuarita submarket’s 18.5% projected increase in market rents over the next 12 months, direct Interstate 19 access for Tucson’s e-commerce boom, the reemerging southern commerce flow in and out of Mexico, and Spectrum Mall’s 1.1 million square feet of dining and retail options.”
Panahi and IPA’s Steve Gebing and Cliff David represented the seller, Monarch Investment and Management Group, and procured the buyer, Bridge Investment Group.
“Abundant capital investments from existing Tucson multifamily investors, as well as the addition of new market entrants, are projected to continue in the future,” Panahi continued. “This is due in large part to substantial rent growth supported by positive supply/demand metrics, net in-migration from coastal and midwestern cities, corporate expansion/relocations, and a rapidly growing, competitive and expensive single-family housing market.”