TUCSON-Holualoa Cos. has paid $17.2 million for 238 multifamily units at Sonterra at Williams Center, a fractured condominium project at 5400 E. Williams Blvd. The local investor plans to maintain the 238 condos as rental units.
Considered a “fractured” project because only a portion of the 344 original units sold, Sonterra at Williams Center was previously owned by Sonterra Property LLC, an Arizona limited liability company formed by a New York City-based fund. The fund acquired the property at a trustee sale last December.
Tyler Anderson and Sean Cunningham of CBRE’s Phoenix office, along with Mike Sandahl in the company’s Tucson office represented the seller. The property, which was built in 1995 as a rental community, was originally listed for $17.7 million, representing an 8.5% cap rate. The class A, gated community was converted to for-sale condos in 2005. Just over 30% of the 344 condos were sold.
Sonterra at Williams Center offers a mix of one, two and three-bedroom units ranging from 705 square feet to 1,390 square feet. Individual units feature nine-foot ceilings, fireplaces, recessed lighting, garden tubs and walk-in closets. Property amenities include: a resort-style swimming pool with a water feature and spa, fitness center, business centers and the community’s grand clubhouse.
The property is located in Tucson’s business district, which includes companies such as Texas Instruments, Merrill Lynch and the University of Phoenix. It also is close to Park Place and El Con malls, along with many restaurant and retail establishments along Broadway Road.
Sandahl says the property received multiple offers. “Investor interest in multifamily properties is strong as many see the market’s current revenue slump as a temporary situation and believe strong occupancy and rental growth is likely in the near future,” he contends.
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