Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Bellevue Tower, a 90-unit, garden-style, midrise apartment property in Tucson, Arizona. The asset traded for $14 million, which equates to $155,556 per unit.
“New ownership is poised to experience rental growth upside due in part to a submarket- leading average unit size of 1,062 square feet, as well as the opportunity to continue the existing renovation program across an additional 94 percent of the community,” said Hamid Panahi, IPA senior vice president. “The seller successfully proved out a robust common area renovation program and the initial implementation of a unit interior renovation program across 6 percent of the units within this durable Central Tucson submarket.”
“Former ownership is actively seeking to deploy proceeds from the sale across additional Arizona multifamily properties and continue to bring value to Arizona residents,” added Clint Wadlund, IPA senior director. Panahi, Wadlund, and IPA’s Steve Gebing and Cliff David represented the seller, a private party, and procured the buyer, GR Capital.
The property is located between Central Tucson’s Palo Verde and Miramonte neighborhoods, next to Tucson’s main retail corridor, Speedway Boulevard. There are over 35 restaurants, bars, and grocery stores within walking or biking distance. Nearby attractions include The Loft Cinema, Lucky Strike Bowling, the El Con Mall, Tucson Botanical Gardens, Reid Park Zoo, Rillito River Park, and Smiling Dog Ranch. There are over 2,300 businesses within a three-mile radius of the property, including employers such as Banner Health, Target, ADP, Sonora Quest Laboratories, Walmart, Whole Foods, and Home Depot.
Constructed in 1972, five-building Bellevue Tower has a unique mix of floor plans that includes midrise tower lofts, traditional garden apartments, and townhomes with private yards. Among the community amenities are three laundry facilities, a swimming pool, business center and covered parking.