Tucson Property Trades for $39M
The buyer intends to continue the renovation process.
Vertical Street Ventures has acquired Metro Tucson, a multifamily property in Tucson, Ariz., for $38.5 million, or $165,948 per unit. Marcus & Millichap‘s Institutional Property Advisors represented the seller, a private individual, and procured the buyer. The community last traded in 2021 for $19 million, according to Yardi Matrix data.
Located at 3985 N. Stone Ave., the 232-unit Metro Tucson was completed in 1984. The property encompasses nine garden-style buildings with one- and two-bedroom units averaging 640 square feet. Common-area amenities include a swimming pool, pet areas and laundry facilities. About 9 percent of units had undergone upgrades by the time of the sale, and the buyer intends to continue the renovation process. Units include dishwashers, patios or balconies and wood-style vinyl flooring.
The property is 3 miles from Interstate 10, and less than 5 miles north of downtown Tucson, also within 0.5 miles of Oracle Road, one of the city’s most important retail and employment corridors. Tucson Mall, as well as several other retail destinations, are located within a mile of the community. Major employers in the area include Comcast, Beacon Group, Securitas and Banner University Medical Center. The metro, which is recording positive fundamentals and has a growing population, continues to create rental demand.
Deals in a growing multifamily market
Tucson is expected to grow by more than 10,000 residents from August 2021 through 2022, said Hamid Panahi, IPA senior vice president, in prepared remarks.
Panahi, alongside IPA Senior Director Clint Wadlund and Executive Managing Directors Steve Gebing and Cliff David, represented the seller. Another IPA team closed on a significant transaction in the state, earlier this week. In that deal, Decron Properties bought a 216-unit multifamily community in Gilbert, Ariz., in metro Phoenix, for $91 million.