The 1,020-bed/336-unit student housing complex Ranch at Star Pass in Tucson recently sold to California-based Element Residential Property Company for $57.5 million. This marks the second-highest price for a multifamily building in Tucson, but the highest price per door this year. The sale is the 10th multifamily transaction for Element.
NorthMarq’s Phoenix investment sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson and Ryan Boyle brokered the sale. Griffin Martin and James DuMars of NorthMarq’s Phoenix debt/equity team financed the transaction through the company’s relationship with a bridge/mezzanine lender.
The Ranch at Star Pass is located at 41 S. Shannon Rd. Industry experts have been expecting the Tucson market to become one of the leading submarkets in the Southwest, with aggressive rental and job growth, even on the heels of a pandemic.
“What makes this market ideal for buyers is that it still offers multifamily investors opportunities to acquire properties at a lower cost basis compared to larger metropolitan areas throughout the U.S.,” said Hahn. “The property is located near the University of Arizona which has not seen a decline in enrollment in the last decade.”
Built in 2000, the property comprises more than 21 acres and features amenities attractive to students including a volleyball court, fitness center and swimming pool. In addition, the asset also offers students a shuttle to and from both the University of Arizona and Pima Community College.
“We ran a competitive bid process and they chose a lender that offered excellent terms and provided confidence to close in a shortened timeframe,” says Martin.
Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM.
In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.