Element Residential Buys 1,020-Bed Student Housing Community in Tucson
- Jul 08, 2021
Element Residential Property Co. has purchased a 1,020-bed student housing community in Tucson, Ariz., from Peak Capital Partners. The Ranch at Star Pass, previously The Reserve at Star Pass, sold for $57.5 million.
NorthMarq’s Phoenix investment sales team brokered the deal, which represents the buyer’s 10th multifamily transaction. According to the firm, this amount signifies the top price per door in Tucson and the second highest price for a building in the metro this year so far.
The brokerage firm also financed the acquisition through a mezzanine lender. Vice President of the Phoenix debt and equity department Griffin Martin and Vice President & Managing Director James DuMars arranged the loan.
The Ranch at Star Pass
Located at 41 S. Shannon Road, the property comprises one-, two- and four-bedroom units in 25 one- and two-story buildings. Completed in 2000, the 21-acre community includes amenities such as a volleyball court, fitness center and swimming pool with tanning beds. Grade level covered parking is also available for the residents.
Students can use a shuttle to get to the nearby educational centers. The University of Arizona—with a steady enrollment over the last decade—is just 4.5 miles east from the property across Interstate 10, while Pima Community College stands approximately 6 miles south.
Dining and entertainment options are also close to community’s location. For instance, the Star Pass Golf Club is only half a mile from the asset.
NorthMarq’s investment sales brokerage team responsible for the transaction included President Trevor Koskovich, Executive Vice President Bill Hahn, Vice President Jesse Hudson and Senior Associate Ryan Boyle. The company was active in the nearby Phoenix market earlier this month, representing Tower 16 Capital Partners in a multifamily sale.
As the Tucson job market presents a significant post-pandemic growth—which attracts renters and increases rent prices—the metro becomes one of the leading multifamily submarkets in the Southwest. Even so, investors can benefit of a lower cost basis in the area compared to other metros, Bill Hahn said in prepared remarks.