Local developers who were the first to flip a student housing complex on Tucson’s west side into market-rate luxury apartments have sold the property for a handsome profit.
Holualoa Cos. bought Gateway at Tucson, a 188-unit complex at 2800 W. Broadway, near Anklam and Greasewood roads, in 2018 for $12.9 million and invested nearly $10 million in renovations.
They sold it for $61.6 million.
The 552 by-the-bed complex was renovated by splitting some of the four-bedroom units into one- and two-bedroom units.
Holualoa also upgraded the common areas and landscaping and rebranded it as Sonoran Reserve, which now has 272 units.
“We are pleased to complete the sale of Sonoran Reserve and realize a strong return on investment,” said Lani Baker, chief financial officer of Holualoa. “This transaction shows the continued strength of Tucson’s multifamily market.”
CBRE brokers Jeff Casper, Asher Gunter, Tyler Anderson, Sean Cunningham and Matt Pesch represented Holualoa Cos. in the sale.
The buyer, Millburn & Co., is a real estate investment company based in Salt Lake City.
“Tucson is a top-performing multifamily market and we remain bullish on the metro’s long-term economic outlook,” said Jake Millburn, the company’s executive vice president. “Sonoran Reserve is a perfect fit for our investment criteria and the community is positioned for continued growth in a market with tremendous fundamentals.”
Other recent real estate transactions include:
Stamback Investments LLC bought 5.59 acres of industrial land at 8402 E. Old Vail Road for $487,000. Gordon Wagner, with NAI Horizon, represented the seller and Juan Teran, with Realty Executives Arizona Territory, represented the buyer.
Cole Valley Partners bought Block 14 at Marana Main Street, on the southwest corner of Marana Road and Interstate 10 for $463,725 to build a Dutch Bros. Coffee shop. The seller was represented by Ben Craney and Scott Soelter, with NAI Horizon, and the buyer was represented by Greg Saltz, Marty Olejarczyk and Jesse Rozio, with GPS Retail Advisors.
Heart & Soul Kid’s Activity Center leased 3,700 square feet at Rita Ranch Plaza, 8290 S. Houghton Road. Andrew Sternberg and Gordon Wagner, with NAI Horizon, represented the landlord, KMC III LLC. Doug Marsh and Lori Casey, with Oxford Realty Advisors, represented the tenant.
Ding Tea leased 1,320 square feet at 910 W. Irvington Road in the Placita Del Rio shopping center for its second location. The Taiwan boba tea franchise’s first shop is open on Speedway, near Tucson Boulevard. Craig Finfrock, of Commercial Retail Advisors LLC, represented the tenant, Maile II LLC, and Scott Soelter, of NAI Horizon, represented the landlord, PDR Investors LLC.
