The four communities contain 1,166 apartment units totaling 571,928 square feet.
Sedona Springs at 373 N. Wilmot Road contains 408 units; Sienna Ridge at 5353 E. 22nd St. contains 305 units; Summit Ridge at 1252 Craycroft Road contains 360 units; and Verrano Park at 6850 E. Golf Links Road contains 93 units.
Colliers International brokered the transaction on behalf of the seller.
“They are all good, solid assets in good, solid locations for Tucson,” Brad Cooke, Colliers International’s senior vice president in Greater Phoenix, told MHN. “The occupancies were all in the mid 90s, but the rents for the portfolio overall were about $100 below where they were in the peak for that portfolio.”
The four properties were built between 1974 and 1980 and Dasmen Residential plans to renovate the properties as the Tucson market continues to trend upward.
“Our goal is to bring these four apartment communities to the next level in terms of interior upgrades, as well as commons area improvements,” Michael Katz, Dasmen Residential’s CEO, said. “Historically, we purchase assets of similar vintage and upgrade them with high-end finishes that rival any new construction deal such as quartz countertops and stainless steel appliances.”
The properties are all located on or near major thoroughfares in Tucson, providing access to major employment, Tucson International Airport, University of Arizona and Davis-Monthan Air Force Base.
According to Katz, Dasmen sees good things in the Tucson market.
“The economy is growing at a very strong and healthy pace,” he said. “With its hands-on management approach, Dasmen will look to offer the residents of all four communities impeccable service and to do our part in ensuring that Tucson continues to become a great and successful city.”
According to Colliers’ Tucson Metro Area Multifamily 4Q report, the Tucson multifamily market ended 2016 stronger than one year earlier. Vacancies have improved, rents have risen and the development pipeline is thinning. Meanwhile, further improvement is forecast for 2017.
“The timing for Tucson market is highly opportunistic for investors,” Cooke said. “It is experiencing strong job growth and looks to be headed toward even stronger economic performance in coming years. With new businesses and development projects, the job market is seeing a rise in the high-wage job sectors, nationally recognizable businesses bidding for entry to the market. Healthy population growth will continue to support tenant demand for apartment properties.”
The properties averaged 95 percent occupancy at the time of the sale.