SPL Cos. Sells $42M Tucson Community
The property last traded in 2017 for less than a third of the current price.
Standard Raintree. Image courtesy of NorthMarq
Next Round Asset Management I LLC has acquired Standard Raintree, a 364-unit community in Tucson, Ariz., for $42 million from SPL Cos. The seller picked up the asset in 2017 for $12.5 million, according to Yardi Matrix. NorthMarq’s Debt & Equity team secured a $31.3 million LTV bridge loan to finance the acquisition.
The garden-style community was completed in 1983 and comprises 20 low-rise buildings with studio, one- and two-bedroom apartments, ranging from 400 to 920 square feet. Common-area amenities include a pool, gazebo, volleyball and racquetball courts and a dog park.
Located at 6450 E. Golf Links Road, next to Safeway Plaza, the property is close to various dining and retail options. Several green areas, including Chuck Ford Lakeside Park and Lincoln Regional Park, are within 3 miles of the community.
Due to strong fundamentals in Tucson, Next Round Asset Management has been focused on expanding its footprint in the market. Standard Raintree represented a good investment opportunity, according to prepared remarks from Jesse Hudson, senior vice president of investment sales at NorthMarq. At the end of 2021, the occupancy rate in Tucson was at 95.6 percent, and rent rates were up 4.5 percent over the last quarter of the year, Hudson added. Besides the latest acquisition, Next Round Asset Management owns 795 units in Phoenix and Tucson, Yardi Matrix data shows.
At the end of last month, Northmarq arranged the sale of another three Arizona communities totaling $122.5 million for Tides Equities.
