AZ Big Media Hilands breaks record for largest multi-family sale in Tucson history

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), today announced the sale of Hilands, an 826-unit multifamily asset in Tucson, Arizona. The sale price of $178 million, which represents $215,496 per unit, is the highest single-asset multifamily transaction in Tucson’s history.

“The largest multi-family asset in Pima County and the only one of 11 garden-style multi-family assets with over 100 units in the affluent Catalina Foothills submarket, Hilands offers our buyer a tremendous opportunity to add value through to a programmatic interior renovation program,” said Hamid. Panahi, senior vice president of the IPA. “Under previous ownership for over 25 years, the property is supported by the submarket’s 96.95% multifamily vacancy rate and median annual household income of $93,000.”

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“Rental demand is expected to remain strong in the submarket due to a lack of new single-family and multi-family offerings, a low rent-to-income ratio compared to other western metropolises, and a still large affordability delta between rent and mortgage payments like Tucson home values ​​continue to increase nearly 30% year over year,” added IPA Senior Director Clint Wadlund. IPA’s Clint Wadlund, Hamid Panahi, Art Wadlund, Steve Gebing and Cliff David represented the seller, Northland Investment Corporation, and recruited the buyer, Bridge Investment Group.

The property is located in the suburbs of North Tucson at the intersection of North Craycroft Road and River Road. The 35 km Rillito River Park Trail is directly accessible, the Tucson Medical Center is 3 km away and two schools are nearby. There are 3,000 businesses within a five-mile radius of Hilands, including employers such as Carondelet St. Joseph’s Hospital, Tucson Unified School District, Canyon Ranch, ADP, Loews Ventana Canyon Resort, Walmart, Texas Instruments and The Westin La Paloma Resort and Spa. The Tucson Country Club and Dorado Golf Course are a short drive away and shopping is nearby at the River Center, Synergy Plaza and Tucson Mall.

Built in two phases in 1985 and 1986, the 460,418 net rental square foot garden-style property features 41 residential buildings, a swimming pool and covered parking. Additional community amenities include a 24-hour fitness center, air-conditioned racquetball court, and two lighted tennis courts. The apartments have breakfast counters, French doors and additional storage space. Some units have stacked and full-size washers and dryers and private patios. The average unit size is 557 square feet.

Laura J. Boyer