Tucson student housing complex sells for more than $1M per apartment

A student housing tower near the University of Arizona has sold to investors for more than $1 million per apartment unit.

Located at 947 N. Park Ave., The Parker was built on the site of a former Chase Bank branch, just south of Speedway.

It has 484 beds for rent in 130 units, ranging in size from studios to six-bedroom, six-bathroom models.

The sale price was $132.5 million, records from the Pima County Recorder’s Office show.

Oak Brook, Ill.-based Inland Real Estate Acquisitions facilitated the purchase of the asset on behalf of an Inland affiliate from the seller, Houston-based The Dinerstein Companies and Chicago-based Harrison Street Real Estate.

CBRE National Student Housing’s Jaclyn Fitts, William Vonderfecht and Casey Schaefer represented the seller in partnership with CBRE’s Tucson broker Jeff Casper.

Mark Cosenza, senior vice president of Inland Real Estate Acquisitions LLC, with assistance from Brett Smith, vice president and associate counsel of The Inland Real Estate Group LLC law department, represented the Inland affiliate.

“The asset’s irreplaceable location, impressive amenities coupled with UArizona’s enrollment growth and robust market fundamentals created a perfect opportunity for buyers,” said Fitts, executive vice president at CBRE.

With a pause in building during the pandemic, demand for student housing is competitive, and analysts predict rents for these units will continue to rise in the coming semesters.

This fall, the University of Arizona welcomed its largest incoming class with more than 9,300 students. Roughly half are from out of state or international students, university records show.

Units at The Parker rent from $2,100 for a single, private studio up to $1,900 for a bedroom in a six-bedroom, six-bathroom model.

All leases are for 12 months, and The Parker was almost fully leased at the time of sale.

The eight-story building is across the street from the Fox School of Music and a short walk to Main Gate Square.

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The amenities include a fitness center, community kitchen and rooftop pool and lounge with panoramic views.

A Chase Bank branch is also located inside the complex.

The only other student housing project that has been announced is one by Capstone Communities, which is planning to develop the southeast corner of Speedway and Euclid Avenue.

Scott Soelter and Jayme Fabe, with NAI Horizon, handled the sale of the parcels to Capstone for $8.3 million.

The proposed project will be a 150-unit student complex with 450 bedrooms for rent. Heights will be up to six stories tall, and all units will be furnished and include a washer and dryer.

The grounds will have grilling stations, lounging areas and a fitness center.

It is expected to come online for the 2026-27 school year.

Student housing was originally built away from campus because of city zoning restrictions.

Complexes provided shuttle service to and from campus and weekend "party buses" to downtown and Fourth Avenue bars and restaurants as a perk.

In 2012, the city of Tucson approved a zoning overlay district to create density along the streetcar line, which permitted developments of up to 14 stories. Previously, the limit was four stories.

Once that change was approved, developers began buying up lots around campus. Today, there are thousands of rooms for rent in towers along Speedway and Park Avenue.

The appeal of being close to campus resulted in some students relocating from student housing projects on the city's west or north sides and a handful of those have since been retrofitted into traditional apartment complexes.

Those flips, analysts say, is likely to lead to more demand for student housing within walking distance of campus.