Olympus Property Acquires Tucson Apartments for $38M
The asset is decades newer than most of its competition.
Olympus Property has acquired The Place at Arroyo Verde, a newly-built multifamily community located in the Casas Adobes submarket of Tucson, Ariz. Sold by MC Companies, the asset traded for $37.5 million, or approximately $240,385 per unit. Institutional Property Advisors, a division of Marcus & Millichap, brokered the sale and arranged the financing, representing the seller in the transaction and procured the buyer. IPA Capital Markets Executive Managing Director Brian Eisendrath and Senior Managing Director led the brokerage efforts.
The Place at Arroyo Verde’s garden-style design includes a mix of one-story casitas and two-story walk-up floor plans. Offering open-concept interiors, the 156 units average 956 square feet in size. Features and finishes include stainless steel appliance packages, interior storage, single French doors and walk-in showers with customer tile surrounds. Among the common-area amenities are a swimming pool, oversized sundeck, fitness center, grilling stations and covered parking.
Top of a tough market
Completed last year, The Place at Arroyo Vede is approximately 30 years younger than the average age of multifamily properties within a three-mile radius. Among the most affluent submarkets in the Tucson metro, Casas Adobes also has one of the highest barriers to entry. In the last quarter century, only 1,870 units have come online, reflecting high cost of land, prolonged permitting processes and other hurdles.
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Situated close to Interstate 10, The Place at Arroyo Verde offers residents access to more than 271,000 jobs. Major employment centers in the area include the University of Arizona, Banner Health, Raytheon, ADP, Texas Instruments, Carondelet, Amazon, Geico and Caterpillar. Retail, restaurants and entertainment can be found close by at the Desert Springs Shopping Center and Tucson Premium Outlets.
Two months ago, Institutional Property Advisors shepherded the $58.1 million sale to FAMH Group Ltd. of The BW, a 12-year-old, 78-unit multifamily property situated in Los Angeles’ Brentwood nook.
