IPA Brokers $20M Value-Add Sale in Tucson
The new owner will capitalize on the improvements made by the seller, which led to an 18.5 percent increase in the average monthly rent, compared to last year.
By Tudor Scolca
River Oaks, at 7730 East Broadway Blvd
Institutional Property Advisors has facilitated the sale of River Oaks Apartments, a 300-unit community in Tucson, Ariz. The $20.5 million transaction was a value-add investment made by Varia U.S. Properties through Stoneweg, its Switzerland-based asset-manager.
The seller, HSL Properties, was represented by Hamid Panahi, first vice president of investments, along with Steve Gebing and Cliff David, senior managing directors. The transaction was subject to a permanent $13.3 million Freddie Mac loan originated by Berkadia.
Repositioning strategy
The previous owner improved 20 units through a repositioning strategy which achieved higher monthly rent premiums, according to Panahi. Yardi Matrix data currently reports an average monthly rent of $728 per unit, an increase of 18.5 percent from last year.
“The success of these improvement programs facilitates the opportunity for new ownership to continue implementing select interior finish upgrades, capitalize on resident demand and maximize revenue,” said Panahi in a prepared statement.
River Oaks is located on the eastern bank of the Pantano Wash river, at 7730 E. Broaway Blvd. The Tucson community comprises 144 one-bedroom, 128 two-bedroom and 28 studio units, which range in size from 419 to 899 square feet. The 331,550-square-foot Broadway Plaza shopping center is across the street, while several restaurants and retailers are located nearby, on Broadway Boulevard. The Central Tucson Office Corridor is home to multinational and national employers such as IBM, ASARCO Mining, 3M Motor Vehicle Systems, among others.
Image courtesy of Yardi Matrix
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