TUCSON—Berkadia closed the sale of The Place at Tierra Rica, a multifamily property located at 3201 and 3225 W. Ina Rd. in Tucson. Senior managing director Art Wadlund and associate Clint Wadlund of the Tucson office facilitated the sale. The property sold for $14.3 million.The sale price reflects a per-unit price of $49,479, or approximately $69 per square foot.
The buyer was Aspen Square of West Springfield, MA. The seller was MC Companies of Scottsdale.
Clint Wadlund tells GlobeSt.com, “We're seeing a lot of interested parties looking to chase that yield in Tucson. Cap rates are low in other markets; the Tucson market is getting stronger—there is a healthy lure there with employment gains.”
“Investment activity in the Tucson area has been heating up," Art Wadlund adds. "Recent growth in the local job market over the first quarter of 2015 has driven rental demand, and we expect that to be an ongoing, key factor in investment activity."
Built in 1988, the property's 288 units offer one-, two-, and three-bedroom floor plan options. Unit amenities include ceiling fans, dishwashers and refrigerators. Select units offer full sized washers and dryers, breakfast bars, and built-in bookcases. Community amenities include a clubhouse, business center, fitness center, lighted tennis court, two spas, three swimming pools, laundry facilities, picnic areas and WiFi hot spots.
The Place at Tierra Rica is located near Interstate Highway 10 and is fewer than two miles from both the Foothills Mall and the Omni Tucson National Resort. Top area employers include Northwest Medical Center, Foothills Mall and Omni Tucson National Resort.
Metro-wide apartment vacancy in Tucson fell 50 basis points year-over-year to 8% at the end of the first quarter of 2015. Operators advanced rents by an average of 1.2% during the first quarter to $666 per month, as rental demand jumped.
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