Hunt Provides $19M for Tucson Property
- Feb 19, 2018
Hunt Mortgage Group has provided a first mortgage bridge loan in the amount of $19.1 million for the acquisition of a student housing property in Tucson, Ariz. The borrower, Tempe Friends and Family LLC, is backed by sponsors Edward Robson, Gerald Porter and Howard Berger. Ledges at West Campus traded for $23 million in the deal brokered by Institutional Property Advisors.
Hunt provided a 24-month floating rate loan, with three 12-month options to extend the term. The 596-bed townhouse-style community is located at 2162 W. Speedway Blvd., near three colleges: The University of Arizona’s campus, and Pima Community College’s west and downtown campuses. The two institutions enroll approximately 43,625 and 36,805 students per year, respectively.
Growing student population
Students living at Ledges at West Campus can quickly reach University of Arizona, approximately four miles away, via Speedway Boulevard. Additionally, Pima Community College’s West campus is across the street from the property. The neighborhood offers amenities such as entertainment venues, pubs, restaurants and retailers, all accessible along Speedway Boulevard and across the Santa Cruz River.
The unit mix comprises 28 one-bedroom units, 70 two-bedroom apartments, and 107 four-bedroom units. Amenities include a leasing office/clubhouse, two heated swimming pools, spa/hot tub, barbecue grills and picnic area, a volleyball court, a fitness center and covered parking. The property was 95.6 percent occupied at the time of sale.
“Approximately 65 percent of the tenants at The Ledges at West Campus are students, and the property attracts students from both the University of Arizona and Pima Community College. The remaining units are leased at market rates and the property provides tenants both by-the-bed and by-the-unit leasing options. Public transportation is readily available to the local campuses with a bus stop directly outside the property,” said John Hurley, vice president at Hunt Mortgage Group, in a prepared statement.
Previous ownership of the Tucson apartment community spent approximately $4 million on a renovation program, which the new owner plans to continue.
Image courtesy of Yardi Matrix