M3 Multifamily has acquired the Bear Canyon Apartments, a 238-unit luxury community in Tucson, Ariz., for $35.6 million from HSL Properties, according to Yardi Matrix. Dougherty Mortgage provided $23.1 million in Fannie Mae acquisition financing. The loan bears a fixed, 4.45 percent interest rate over its 10-year term.
The Class A property last changed hands in March 2012, when Arbor Realty Trust sold the asset for $23.2 million.
Located at 9055 E. Catalina Highway, the community’s 17 buildings are positioned approximately 12 miles northeast of downtown Tucson. The asset is adjacent to two shopping centers in the Tanque Verde Road retail corridor, served by a public bus route linking the area directly with the city center.
Bear Canyon contains a mix of one-, two- and three-bedroom apartments, with floorplans between 762 and 1,222 square feet. Community amenities include a swimming pool, covered parking, a clubhouse and a fitness center. As of February, the property was 96.2 percent occupied, per data from Yardi Matrix.
M3 has been expanding its footprint in the area following its first Tucson acquisition in 2015. In late 2017, the company acquired two assets for more than $45 million from Aerie Development, which, combined with the purchase of Bear Canyon, brings the firm’s holdings to more than 700 units. Rents across the metro have accelerated, with a year-over-year growth rate of 6.8 percent in February, per Yardi Matrix.
Image via Google Street View