An affiliate of Murray, Utah-based Bridge Investment Group Partners LLC has acquired a 360-unit apartment complex at 951 West Orange Grove in Tucson for $25.65 million. The seller, an affiliate of JI Kislak Inc. of Miami, had owned the property since 2000. The investor assumed an FHA loan and put $400,000 down in the purchase, according to the Real Estate Daily News.
Dubbed Mission Palms Apartments, the two-story 372,928 square-foot Class-B complex is located on a 28.7-acre lot and comprises 92 masonry buildings. Built in 1978, the community offers a mix of one- and two-bedroom units ranging in size from 754 sq. ft. to 1,309 sq. ft.
Formerly known as Rancho Nezhone, the property is believed to have housed such celebrities as Liberace, singer and actress Kate Smith, Gen. John Pershing and William Boyd (aka Hopalong Cassidy).
The deal marks the firm’s third multifamily investment in the area. Bridge also owns through affiliates the Mirabella Apartments at 1345 S Kolb Road and San Marin Apartments at 5650 S Park Avenue in Tucson.
Multi-housing activity has improved throughout the entire Tucson region. Unit absorption for the first quarter was 334 units, according to research data from C&W | PICOR Commercial Real Estate. Average vacancy at the end of Q113 for A properties was 7.7 percent while C properties finished at 13.0 percent. Submarkets dominated by C properties hovered above 10.0 percent vacancy with three submarkets above 10.0 percent vacancy (South Tucson/Airport, Flowing Wells and Pantano/Lakeside) while four submarkets (Oro Valley/Catalina, Northwest Tucson, Northeast Tucson and University) were all below 7.3 percent vacant.
Photo Credits: RentCafe
Chart courtesy of C&W | PICOR Commercial Real Estate