Art Wadlund with Hendricks & Partners' Tucson office says the buyer, Tim White, "wanted to get out of apartments in Washington State and decided to invest in Arizona." Wadlund represented the seller, Murray, UT-based Bridge Partners, the five-year owner of the Tierra Bonita at 175 W. Valencia Rd. Tim Ufkes of the Seattle office of Hendricks & Partners also participated in the transaction.
Wadlund tells GlobeSt.com that White purchased Tierra Bonita through a 1031 Exchange. The complex, ticketed for minor cosmetic improvements, is White's first acquisition in Arizona. "He wants to invest more in this area," he says.
Tierra Bonita, built in 1984, offers 237 one-bedroom apartments and 173 two-bedroom units that rent for an average of $450 per month. The complex boasts occupancy rates in the low 90% range, Wadlund says.
Located in the south central sector, Tierra Bonita is close to a lot of large employers, Wadlund says. "It's a good rental asset that attracts blue-collar residents," he adds.
Tierra Bonita sold for roughly $28,780 per unit in comparison to the average price of $25,830 per unit, according to industry experts. The asset traded at a 7.25% cap rate.
Tierra Bonita was on the market nearly six months, according to Wadlund. He says another investor tied up the asset in escrow, but then could not close the deal. "We had more than 10 offers," he says.
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