Tucson Community Changes Hands
Next Wave Investors sold Orange Tree Village Apartment Homes for nearly $16 million, after implementing a capital improvement plan at the property.
A private investment partnership made up of BlueSky Equity, Vista Lagune Asset Management, Hamick Asset Management and Valley Oaks Capital has purchased Orange Tree Village Apartment Homes in Tucson, Ariz., for nearly $15.9 million. ABI Multifamily represented both the buyer and the seller, Next Wave Investors.
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Located at at 645 W. Orange Grove Road, the property comprises 110 units on a 9.1-acre property in Tucson’s Casas Adobes neighborhood. The community encompasses one- and two-story buildings with a mix of 20 one-bedroom, 66 two-bedroom and 24 three-bedroom apartments. Orange Tree Village Apartment Homes was 96.4 percent occupied, according to Yardi Matrix data, with a weighted average apartment space of 1,274 square feet.
ABI Multifamily’s team that brokered the deal included Alon Shnitzer, John Kobierowski, Rue Bax, Doug Lazovick, Eddie Chang and the Tucson office’s Ryan Kippes.
Next Wave Investors has a majority of their transactions in Arizona, Utah and Nevada and sold this property after buying it for $10.5 million in March 2018, according to Yardi Matrix data. The community was built in 1981 but underwent a major renovation after being bought by Next Wave. Amenities include a clubhouse, tennis court, basketball court, swimming pool, laundry facilities and covered parking spaces.
Shnitzer said Next Wave left the Tucson property in good position for growth, adding that the average rents and other charges went up nearly $200 after a year. Yardi Matrix data shows that the average monthly rental rates for Orange Tree Village grew from $1,085 in 2018 to $1,143 in 2019.
Impressive Start for Tuscon Multifamily Sector
Due to a number of deals, Tucson’s multifamily market is experiencing strong growth in its first quarter. In ABI Multifamily’s first quarter 2019 report on Tucson multifamily properties, the average price per unit more than doubled from 2018’s first quarter of $58,000 to 2019’s first quarter of $119,00.
Total sales volume also saw a 31 percent uptick quarter-over-quarter from $155 million with last year’s first quarter to $203 million from this year’s first quarter.