Alpha Wave Investors Acquires Tucson Asset
Orange Tree Village, a 110-unit property in the Casas Adobes neighborhood, was acquired in an off-market transaction for $10.5 million.
By D.C. Stribling, Contributing Editor
Alpha Wave Investors has acquired Orange Tree Village, a 110-unit multifamily property in the Casas Adobes neighborhood of Tucson, Arizona. The property, which is currently 85 percent occupied, was acquired in an off-market transaction for $10.5 million from a Texas-based private investor.
Developed in 1981, Orange Tree Village offers townhouses in one-, two- and three-bedroom units. The property is located at 645 W. Orange Grove Road.
The buyer says it plans to invest more than $2 million in capital upgrades at the property. These will include new paint and roofing, an upgraded pool and clubhouse, a new fitness center and children’s playground, interior unit renovations and a dog park.
A Growth Market
“The property meets our investment criteria at all levels,” says Jordan Fisher, a founding partner of Alpha Wave Investors, who also characterized the purchase price as a significant discount to replacement cost. “The asset has been under-managed in recent years, resulting in a strong opportunity to create value through strategic renovations.”
Fisher also said that in the Tucson apartment market, demand is outpacing supply. “The Tucson market has lagged many others in the current recovery cycle, providing an opportunity for experienced investors,” he explains. “While many primary and secondary U.S. markets are facing potential oversupply of multifamily units, Tucson has very few multifamily projects under construction.”
ABI Multifamily represented both buyer and seller in the deal, with senior managing partner Alon Shnitzer as the lead broker for the buyer. Jon Ibrahim, vice president with ABI, was lead broker for the seller. David Walkin of Meridian Capital Group arranged acquisition financing for SoCal-based Alpha Wave Investors, with the loan provided by Los Angeles-based Thorofare Capital.