By Amalia Otet, Associate Editor
Tucson’s multifamily market continues to show signs of improvement, driven by steady job growth and an increasing student population. Investor interest in apartment assets remains strong. Larger real estate companies are targeting luxury properties, especially developments close to the University of Arizona and major employment hubs.
Prompted by a lack of available units and a slowdown in construction, rents are projected to climb 3.7 percent to $696 per month and effective rents to jump 4.4 percent to $668 per month, according to data from Marcus & Millichap.
Amidst a series of multi-housing projects aimed at revitalizing the housing sector, La Frontera Arizona recently celebrated the grand opening of Sunnyside Pointe Villas, an affordable senior citizen housing community in Tucson’s south side. The new complex has already supported the creation of 120 new jobs and is expected to continue acting as a catalyst for new developments and attract new businesses to the area.
The project includes 90 energy-efficient homes and received LEED Platinum Certification by the U.S. Green Building Council (USGBC), according to a KVOA.com story.
In addition to displaying eco-friendly construction materials and efficient energy performance, the development was also an infill project built using existing infrastructure. The complex is close to several community resources and public transportation, allowing residents to enjoy an urban lifestyle that’s both sustainable and green.
The affordable apartment complex was designed and built for those age 62 or better, offering one- and two- bedroom rental homes with a variety of special features including a fully appointed kitchen, washer and dryer, decorative color schemes, individually controlled heating and cooling, attached garage, and a private backyard. Other amenities include a large multi-purpose community center, social events and activities and a resident lounge.
Charts courtesy of Marcus&Millichap.