TUCSON—Radium Investments I LLC of Phoenix purchased Posada del Rio, located at 7424 E. Speedway Boulevard, from Rio Properties LLC of Tucson. Art Wadlund and Clint Wadlund of Hendricks-Berkadia's Tucson office negotiated the transaction. Posada del Rio sold for $8.1 million. The sales price reflects a per-unit price of $50,625, or $82 per square foot. The property closed escrow at a cap rate of 6.95%.
Built in 1980, the 160-unit property features one- and two-bedroom floor plans and is situated on approximately 4.4 acres of land. Additionally, the property amenities include a clubhouse with a kitchen and billiards table, recreation center, heated swimming pool, spa, fitness center and laundry facilities. Each unit offers air conditioning, fully equipped kitchens, private balconies or patios, walk-in closets, washer/dryer connections and cable-access. Select units include wood-burning fireplaces, ceiling fans and storage. Washers and dryers are also available for rent.
The asset is close to Interstate 10, providing residents access to the entire Tucson area. Posada del Rio is less than two miles from Dorado Country Club Golf Course and seven miles from University of Arizona. Top employers in the immediate area include Davis-Monthan Air Force Base, St. Joseph's Hospital, Afni and Health Net of Arizona.
“Posada del Rio is located in the East Central submarket,” Art Wadlund tells GlobeSt.com. “It's an infill submarket with predominately 1980s apartments, a lot of retail and service jobs, malls and big box stores. The buyer owed another property two miles away and has had a successful experience with that property. It is a clean, straightforward property.”
Wadlund says the buyer will make some modest upgrades to the apartments and will refurbish the leasing office, fitness center and clubhouse.
Vacancy in the Tucson metro was at 7.9% in the first quarter, while asking rents were $659 per month on average,
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