Tucson Community Trades for $22M
The developer had owned the asset for more than 30 years. The buyer, Element Property Co., is pursuing a value-add strategy, indicative of the city's dominant multifamily investment trend.
Element Property Co. has acquired Mission Antigua, a 248-unit community in Tucson, Ariz. Centurion Management Co. sold the 1989-built asset for $21.8 million, on behalf of the developer, which had owned the property since its construction. According to Yardi Matrix, the sale was subject to an undisclosed loan held by Freddie Mac.
Mission Antigua is located at 5525 S. Mission Road, in Tucson’s southwestern submarket, on the edge of the San Xavier Indian Reservation. The garden-style community comprises 11 buildings and offers 80 one-bedroom, 120 two-bedroom and 48 three-bedroom units, ranging from 546 to 1,032 square feet. Common-area amenities include a fitness center, a clubhouse, a swimming pool, a spa, as well as laundry facilities and 500 parking spaces.
The asset is situated less than 3 miles from Interstate 19 and Route 86. Hiking trails and parks can be found nearby. A plethora of retailers, restaurants and bars are located around the intersection of Interstate 19 and Irvington Road, as well as along 12th Avenue.
Tucson Value-Add Focus
“Mission Antigua was an outstanding value for both parties in this transaction. Over 30 years of ownership, the seller really built a highly desirable property, which the buyer can nicely improve upon to realize a significant long-term benefit,” said Alon Shnitzer, senior managing partner at ABI Multifamily, in a prepared statement. Shnitzer, along with Vice President Ryan Kippes, Senior Managing Partners John Kobierowski, Rue Bax, and Partners Doug Lazovick and Eddie Chang, represented both parties in the sale of Mission Antigua. The team recently closed the $22 million sale of Cabana at the Pointe in Phoenix.
According to ABI Multifamily’s Year-End 2018 Tucson Multifamily report, rents in the city reached an average of $839. Population is expected to grow, while the unemployment rate continues to drop year-over-year. The market is also experiencing an increase in sales volume, which surpassed $890 million last year. Most multifamily transactions completed in 2018 consisted of properties built before the 90s, with investors seeking value-add opportunities, as most of the inventory is relatively old.