ABI Brokers $2.4M Value-Add Acquisition in Tucson

The 26,800-square-foot community received extensive renovations in 2017, with the current ownership having opportunity to finish interior upgrades and increase market value.

Sycamore Cove, at 2458 N. Sycamore Blvd.
Sycamore Cove, at 2458 N. Sycamore Blvd.

ABI Multifamily has brokered the $2.4 million sale of a 67-unit community in Tucson, Ariz. Both the seller—an entity formed through Alpha Wave Investors LLC—and the buyer, a private investor, are based in California. Alon Shnitzer, senior managing partner, led the negotiations on behalf of the seller, while Jon Ibrahim, vice president, led the team representing the buyer.

Sycamore Cove is a garden-style community featuring one-bedroom units only, of 400 square feet each, offering a total of 26,800 square feet of net rentable space. Residents have access to a swimming pool, a picnic area, laundry facilities, a dog park and 101 parking spaces. Situated at 2458 N. Sycamore Blvd., the community is within walking distance of multiple shopping and dining options. East Grant Road is a major artery that links to central Tucson and the University of Arizona.

Added value

Next Wave Property Management acquired the property in 2016. The sale was subject to a $1.3 million permanent loan with Pacific Premier Bank, according to Yardi Matrix. The wood frame and stucco buildings, initially completed in 1979, received an extensive renovation last year, with replacements to railings, doors, windows, exterior lighting and landscaping. Yardi Matrix reports an occupancy of 100 percent, with monthly average rents at $495.

The buyer, a private California-based family partnership, has been seeking to diversify its Tucson real estate holdings and this purchase will mark the buyer’s first multifamily purchase in Tucson. The purchase of Sycamore allows them to purchase a substantially renovated project with upside should they finish the remaining interior unit renovations,” said Ibrahim in a prepared statement.

Image courtesy of ABI Multifamily