Tucson Real Estate: City expected to be leading multifamily market in 2021

Industry experts predict Tucson could become a leading multifamily market this year as occupancy and sales of apartment complexes continue to soar.

A 330-unit complex, Sundown Village at 8252 N. Northern Ave., just sold for $54.4 million — nearly $165,000 per unit.

The sale was brokered by Institutional Property Advisors, a division of Marcus & Millichap.

“In 2020, Tucson was one of the nation’s leaders in rent growth, and the city’s multifamily vacancy rate was at its lowest level in 20 years,” said Hamid Panahi, IPA first vice president. “As these trends continue and the national economy improves, we expect that Tucson will be one of the nation’s leading multifamily markets in 2021.”

Vacancy rates in the Tucson area dropped to about 3.5% this spring as rents climbed more than 7% over 2020.

The median monthly rent for a one-bedroom apartment in the Tucson area is $825 and $1,103 for a two-bedroom but there has been a big increase in luxury units coming online with monthly rents substantially higher.

Panahi, Steve Gebing and Cliff David, IPA executive managing directors, represented the seller, HSL Properties, and procured the buyer, APRA Capital.

Seated on nine acres, the complex was built and expanded between 1984 and 1994 and has three swimming pools, a hot tub spa and picnic areas.

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“Sundown Village is a unique investment opportunity in Oro Valley and a perfect addition to the APRA portfolio,” said Amit Patel, principal and co-founder of APRA Capital. “We see Tucson as a growth market with great potential and will continue to look for additional opportunities to expand our footprint throughout the metro.”

Other recent commercial transactions include:

Blue Sky Self Storage Overton LLC bought 3.67 acres of vacant land at 2925 W. Overton Road and 9270 N. Shiraz Place from O.S. West LLC and O.S. East LLC for $703,910. Dave Hammack and Stephen D. Cohen, with Picor, represented the buyer. Randy Emerson, with GRE Partners LLC, represented the seller.

Paul E. Monson and Jan S. Monson bought a 9,900-square-foot industrial building with yard at 3525 S. Palo Verde Road from Paul L. Greenberg and Joy A. Greenberg, Trustees of the Greenberg Living Trust, for $675,000. Ron Zimmerman, with Picor, represented the buyer and John Hamner, with RE/MAX Excalibur, represented the seller.

Roca Holdings LLC bought a 10,393-square-foot industrial building with yard at 2660 E. Ganley Road from Albatross Enterprises LLC for $615,000. Pattison Engineering will occupy the building. Stephen D. Cohen, with Picor, represented the seller.

4401S. Santa Rita LLC bought a 7,055-square-foot industrial building with yard at 4401 S. Santa Rita Ave. from Ruby Industrial Technologies LLC for $518,322. Picor’s Paul Hooker and William Honsaker, with Jones Lang LaSalle, represented the seller. Rob Tomlinson, with Picor, represented the buyer.

PetersenMoeller LLC bought 4,452 square feet of office space in Old Farm Executive Park, 6063 E. Grant Road, from 6063 E. Grant LLC for $546,900. Thomas J. Nieman, with Picor, represented both parties.

Venetian Investments Services LLLP bought a 10,295-square-foot industrial building at 2445 N. Huachuca Drive from Amelia O. Hernandez, as Trustee Under the First Restatement of the Survivors Trust in the Hernandez Family Trust, for $450,000. Ron Zimmerman, with Picor, represented the seller.