ORO VALLEY, AZ-Relying on its reputation and familiarity with a broker, HSL Properties managed to beat out competition to acquire the 330-unit Sundown Valley Apartments from JIK Properties. The Tucson-based buyer paid $18.5 million for the class B multifamily property, which was built in two phases between 1984 and 1994.

"It was our understanding that, in discussing this deal with our counterparts, that they were disappointed not to win it," says Omar Mireles, HSL Properties' executive vice president, commenting on the acquisition of the property at 8215 N. Oracle Rd. He tells GlobeSt.com that putting forward HSL's record in buying and owning properties in the Tucson area helped give it the edge. Also, having done deals with the seller's broker, Art Wadlund with Hendricks & Partners, was also a great help. "Art knows us well; we've done a lot of deals with him during the past 15 years," Mireles comments. "He understands that, when we make an offer, we deliver as promised on the terms, and we hope that speaks for itself."

The multifamily asset itself is somewhat different from HSL's typical acquisitions, as it's somewhat older. However, Mireles says it's very well-located and there was a good opportunity to improve operations. HSL also plans to invest $2 million to upgrade the property by adding new windows, balconies and roofing, as well as providing an exterior face lift. "We'll also address the amenities, such as the gym and pool and upgrade some of the interiors as we go through it," Mireles says.