(Read more on the multifamily market.)
TUCSON-The second time became the charm for a Chicago-based buyer, who bought the 200-unit Arcadia Gardens Apartments after another investor's contract fell out. The class B asset on the city's east side has sold for $12.9 million in an all-cash deal.
Jason Buxbaum, a broker with Amercon Realty Services Inc. in Scottsdale, says DRA Advisors LLC of New York City has sold its last asset in the area after seven years because a fund is closing. Buxbaum, who brokered the sale between DRA and Water Tower Development LLC, says the 97%-occupied complex at 7887 E. Uhl St. fell out of escrow after its first run on the market, which generated 11 offers.
"In this capital environment with Libor going up as it has, it wasn't surprising," says Buxbaum, who teamed with Amercon colleague Steven H. Goldstein for the transaction. "We didn't bring it back to market the second time, but went back to the top four bidders."
Buxbaum tells GlobeSt.com that Water Tower Development ended up with the deal because it had its own equity for the acquisition and didn't require a mezzanine loan. He says the buyer isn't planning to make any immediate upgrades to the 21-year-old asset. "He's a qualified, private investor who knows the market here," Buxbaum stresses.
Situated on 8.53 acres, Arcadia Gardens consists of 14 two-story buildings, leasing center and clubhouse. The complex has studio apartments and one-, two- and three-bedroom units ranging from 405 sf to 1,081 sf. The monthly rents go from $470 to $835. The buyer has an in-house management team.
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