Thayer Manca Residential has acquired Palm Canyon Apartment Homes in Tucson, Ariz., for $40.3 million. A Berkadia team represented the seller, Domain Communities, in the transaction. Berkadia also secured $25.4 million in acquisition financing for Thayer Manca, through the Fannie Mae DUS program, obtaining a 10-year full term with fixed-rate interest-only loan payments.
Palm Canyon is a 368-unit garden-style community located at 2255 W. Orange Grove Road. Constructed in 1986, the property comprises 129 one-bedroom, 209 two-bedroom and 30 three-bedroom units, ranging from 633 to 1,043 square feet. Common-area amenities include a fitness center; business center; tennis, basketball and volleyball courts; a playground; two swimming pools and 2 spas.
The community is just a block away from Northwest Medical Center. The area offers a plethora of restaurants and shops, including the Foothills Mall, along La Cholla Boulevard. Interstate 10 is about 2 miles away, providing access to some of the area’s largest employers, including Raytheon, University of Arizona and Davis-Monthan Air Force Base.
Thayer Manca Residential specializes in value-add investments, and Palm Canyon is no exception. According to Berkadia Senior Managing Director Lou Weisman, the new owner plans to invest more than $13,500 per unit for interior and exterior renovations, along with a sustainability package of green improvements which are set to lower utility prices.