Strength of Tucson multifamily market attracts investors
Phoenix, March 1, 2017 – Colliers International in Greater Phoenix sold a portfolio of four multifamily communities in Tucson to a New York-based DASMEN Residential, LLC, signaling more strength for the area’s investment market. Cindy Cooke and Brad Cooke of Colliers handled the sale of the portfolio for Omninet Capital of Beverly Hills, Calif.
The properties, which were built between 1974 and 1980, provide the buyer great cash flow, with an opportunity to renovate the properties as the Tucson market continues to trend upward.
“Our goal is to bring these four apartment communities to the next level in terms of interior upgrades, as well as commons area improvements,” said Michael Katz, CEO of Dasmen Residential, LLC. “Historically, we purchase assets of similar vintage and upgrade them with high end finishes that rival any new construction deal such as quartz countertops and stainless steel appliances. With numerous development projects in the works across the city, along with job growth showing very positive signs, DASMEN feels that Tucson is on the rise. We feel that its economy is growing at a very strong and healthy pace. With its hands-on management approach, DASMEN will look to offer the residents of all four communities impeccable service and to do our part in ensuring that Tucson continues to become a great and successful city.”
“The timing for Tucson market is highly opportunistic for investors,” said Cooke. “It is experiencing strong job growth and looks to be headed toward even stronger economic performance in coming years. With new businesses and development projects, the job market is seeing a rise in the high-wage job sectors, with nationally recognizable businesses bidding for entry to the market. Healthy population growth will continue to support tenant demand for apartment properties.”
The four communities consist of 1,166 apartment units. totaling 571,928 square feet. Sedona Springs at 373 N. Wilmot Road was built in 1974, and consists of 408 units. Sienna Ridge at 5353 E. 22nd Street was built in 1976, and consists of 305 units. Summit Ridge at 1252 Craycroft Road was built in 1974, and consists of 360 units. Verrano Park at 6850 E. Golf Links Road was built in 1980, and consists of 93 units.
The properties are located on or near major thoroughfares in Tucson, providing access to major employment, Tucson International Airport, University of Arizona and Davis-Monthan Air Force Base. The properties averaged 95 percent occupancy at the time of the sale.
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