FOR SALE Santa Rosa Apartments - LoopNet · 2019. 2. 5. · Apartments, while Wright Elementary and...

Santa Rosa Apartments 1623-1641 N Santa Rosa Ave Tucson, AZ 85712

FOR SALE

Independently Owned and Operated / A Member of the Cushman & Wakefield Alliance Cushman & Wakefield Copyright 2018. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Property Highlights

• Four 3-bedroom/2-bathroom and four 2-bedroom/2-bathroom layouts

• Large 3-bedroom units (1,500 SF)

• Private backyards for all units

• New HVAC in 2014

• Attractive location across the street from medical center, near Sprouts and Trader Joes, and close to various restaurants such as Oregano’s, Panera Bread, and Outback Steakhouse

• Individually metered for electricity

• VALUE-ADD OPPORTUNITY

Property Features Sale Price $600,000

Price Per Unit $75,000

Number of Units 8

Rentable Square Feet 9,152

Land 0.64 Acres

Cap Rate 6.57%

MULTI-FAMILY

Allan Mendelsberg, Principal Multifamily & Investment Sales +1 520 546 2721 [email protected]

Logan Nagel, Assistant Multifamily & Investment Sales +1 520 546 2740 [email protected]

PICOR Commercial Real Estate Services 5151 E. Broadway Blvd, Suite 115 Tucson, Arizona 85711 phone: +1 520 748 7100 picor.com

Zach Stone, Assistant Multifamily & Investment Sales +1 520 546 2730 [email protected]


FOR SALE

Property Description

Santa Rosa Apartments is an attractive apartment complex built in 1967/1968 located on Santa Rosa Avenue, just south of Pima St. It features 4 three-bedroom units that measure approximately 1500 square feet and 4 two-bedroom units that are approximately 788 square feet each.

The complex features spacious units with large private backyards and storage space for each unit. They also have covered carports for each unit. Units feature large, upgraded interiors with ACs, and all electric kitchens. Each unit is individually metered for electricity, gas and cold water.

Allan Mendelsberg, Principal Multifamily & Investment Sales +1 520 546 2721 [email protected] Logan Nagel, Assistant Multifamily & Investment Sales +1 520 546 2740 [email protected] Zach Stone, Assistant Multifamily & Investment Sales +1 520 546 2730 [email protected] PICOR Commercial Real Estate Services 5151 E. Broadway Blvd, Suite 115 Tucson, Arizona 85711 phone: +1 520 748 7100 picor.com


FOR SALE


FOR SALE


Location Overview

Santa Rosa Apartments is located along Santa Rosa Avenue, near the intersection of Pima Street and Rosemont Boulevard. It is across the street from Santa Rosa Care Center, an upscale senior living facility, and walking distance from Sprouts Farmers Market and Trader Joes. This central location gives Santa Rosa Apartments a wide range of retail and service opportunities in close proximity. Roadhouse Cinemas and Chuze Fitness are each less than a mile away, providing residents various recreational opportunities. Nearby restaurants include Oregano’s, Panera Bread, IHOP, and Outback Steakhouse.

Desert Sky Community School and Desert Valley Christian School are each walking distance from Santa Rosa Apartments, while Wright Elementary and University High School are just over a mile from the property. At 4.2 miles from the University of Arizona, Santa Rosa Apartments boasts easy access to world-class higher education and cultural opportunities. Nearby Pinecrest Park offers access to a playground, baseball field and dog park.

MULTI-FAMILY


FOR SALE


Pricing Analysis

Income Statement Marketing Pro Forma

Pro Forma Per Unit Pro Forma PSF 2018

Actuals 2017

Actuals

RENTAL INCOME

Gross Market Rent $75,840 $9,480 $8.29 Vacancy Loss -$4,550 -6.0% -$0.50 Gross Rent $71,290 $8,911 $7.79 Concessions & Bad Debt -$1,069 -1.50% -$0.12 Net Rental Income $70,220 $8,778 $7.67 Other Income/RUBS $3,000 $375 $0.33 TOTAL INCOME $73,220 $9,153 $8.00 $71,082 $70,626 OPERATING EXPENSES General & Admin $500 $63 $0.05 $2,708 $3,313 Repairs/Maintenance/Supplies $4,000 $500 $0.44 $1,715 $5,602 Contract Services $600 $75 $0.07 $0 $0 Utilities $8,500 $1,063 $0.93 $8,489 $8,230 TOTAL VARIABLE $13,600 $1,700 $1.49 $12,912 $17,145 Property Taxes $8,457 $1,057 $0.92 $8,457 $9,213 Property Insurance $5,000 $625 $0.55 $4,992 $5,040 Management Fee $5,125 7% $0.56 $0 $0 Reserves $1,600 $200 $0.17 $0 $0 TOTAL EXPENSES $33,782 $4,223 $3.69 $26,361 $31,398 NET OPERATING INCOME $39,438 $4,930 $4.31 $44,721 $39,228

Type # of Units Sq. Ft. Total S.F. Rent

per S.F.

Total Monthly

Rent Stabilized Rent 2 BD/ 2 BA 4 788 3,152 $0.86 $2,720 $680 3 BD/ 2 BA 4 1500 6,000 $0.60 $3,600 $900 Total/Avg. 8 1,144 9,152 $0.69 $6,320 $790

MULTI-FAMILY

MARKET PRICING

Value $600,000 Per Unit $75,000 Per Square Foot $65.56

Cap Rate 2017 Actuals 6.54% 2018 Actuals 7.45% Marketing Pro Forma 6.57%

BUILDING DETAILS

Year Built 1967/1968 Classification C Style Garden Construction Block Roof Type Pitched


FOR SALE





S Santa Rosa Apartments 1623-1641 N Santa Rosa Ave Units 8 Year Built 1968 Sale Date TBD Average Unit Size 1,144 SF Price $600,000 Price per Unit $75,000 Price Per SF $65.56

Unit Type 2 Bed | 2 Bath 4 3 Bed | 2 Bath 4

Total 8

1 El Monterey Apartments 3627 E Lee St Units 15 Year Built 1960 Sale Date 12/21/2018 Average Unit Size 759 SF Price $1,010,000 Price Per Unit $67,333 Price Per SF $88.77

Unit Type 1 Bed | 1 Bath 9 2 Bed | 1 Bath 6

Total 15

2 Blacklidge Apartments 8-Plex 3637-3651 E Blacklidge Dr Units 8 Year Built 1974 Sale Date 10/31/2018 Average Unit Size 799 SF Price $745,000 Price Per Unit $93,125 Price Per SF $116.55

Unit Type 2 Bed | 1 Bath 8

Total 8


FOR SALE





Zach Stone, Assistant Multifamily & Investment Sales +1 520 546 2730 [email protected]

3 Fairmount Apartments 3736 E Fairmount St Units 12 Year Built 1963 Sale Date 1/7/2019 Average Unit Size 971 SF Price $944,000 Price per Unit $78,667 Price per SF $81.04


Total 12

Rosa Park Apartments 3423-3427 E Flower St Units 12 Year Built 1963 Sale Date 10/17/2018 Average Unit Size 746 SF Price $825,000 Price per Unit $68,750 Price per SF $92.15


4

Total 12

5 Palo Verde Apartments 716-730 N Palo Verde Units 6 Year Built 1949 Sale Date 12/14/2018 Average Unit Size 817 SF Price $467,000 Price per Unit $77,833 Price per SF $95.25


Total 6


FOR SALE

ECONOMIC OVERVIEW Population and Demographics

Tucson is the second-largest city in Arizona, with a population of 535,677 as of 2017. It is the largest city in Pima County, which totaled 1.02 million residents that year. Located 60 miles from the U.S.-Mexico border, the Tucson metropolitan area (which includes nearby suburbs like Marana and Oro Valley, as well as the significant portion of unincorporated Pima County that makes up what is de facto “north Tucson”) is expected to grow to 1.06 million residents by 2020. The 2016 Tucson median age was 33.2 years while Tucson MSA median household income was $46,764 that year.

The natural beauty of the Sonoran Desert makes Tucson a desirable location for residents and businesses alike. Downtown Tucson is a diverse submarket with a rich cultural heritage that contains a blend of Native American, Spanish, Mexican and Anglo-American influences. Tucson ranks high nationally in various categories including: #2 best American small city in 2017 (Resonance Consultancy), 2016 top 100 best places to live (U.S. News and World Report), #9 “city everyone wants to live in” in 2017 (Business Insider), #8 2018 best city for recreation (WalletHub), and one of America’s 2017 best cities for global trade (Global Trade). The University of Arizona is ranked #106 of all nationwide colleges, public or private (U.S. News and World Report).

The University is vital to Tucson and Southern Arizona, having garnered national and international attention. It has the largest optics program among U.S. institutions, and is second in overall research expenditures (University of Arizona). UA brings in more than $580 million in research investment each year. The university’s enrollment is 44,831, with numerous branch campuses and learning centers throughout Southern Arizona. Pima Community College is a two-year school serving Metro Tucson at six locations throughout the county. Tucson Unified School District is one of the largest in the state, encompassing 229.5 square miles. It serves approximately 47,000 students in grades pre-K through 12 at more than 80 schools.

Employment

Employers will find a diverse, educated and enthusiastic workforce in Tucson. The 2017 labor force participation rate was 60.9% (Census Bureau). As of 2017, the University of Arizona is the top employer with a work force of 11,251 followed by Raytheon Missile Systems, 9,600; the State of Arizona, 8,580; Davis-Monthan Air Force Base, 8,406 (both civilian and military personnel); Pima County, 7,060; Tucson Unified School District, 6,770; Banner University Healthcare, 6,272, Freeport-McMoRan Copper & Gold, 5,800; U.S. Customs and Border Patrol, 5,739; and Wal-Mart, 5,530, while the city’s unemployment rate was 4.9% that year (Tucson Comprehensive Financial Report). Tucson’s 2017 job growth rate was 1.5% (MAP for Southern Arizona). CONTINUED NEXT PAGE


FOR SALE

ECONOMIC OVERVIEW CONTINUED Davis-Monthan is home to the 355th Fighter Wing, part of the Air Combat Command. The base is best known as the location of the Air Force Materiel Command’s 309th Aerospace Maintenance and Regeneration Group, the aircraft boneyard for all excess military and government aircraft. In the world of healthcare, Banner Health and the University of Arizona Health Network merged to create a platform of academic medicine, research, instruction and patient care at three academic medical centers.

Economic Development

Innovation is at the forefront of the Tucson economic development agenda. Forbes has called it one of America’s Most Innovative Cities, and the city has the highest concentration of startups of any U.S. city its size. Furthermore, it was ranked as a Top Five City for Entrepreneurs by Entrepreneur Magazine in 2013. Metro Tucson is a hub for optics and science, while biotech and other science clusters flourish in the UA Tech Park, BioPark and Innovation Park. Tourism is a key economic driver as well. Tucson is known for its world-class health spas such as Canyon Ranch, more than 20 golf courses, and numerous natural attractions, museums, missions and cultural history.

Interstate 10, the major East-West highway in the Sun Belt, runs east from California, enters Arizona near Ehrenberg and continues through Phoenix and Tucson. It exits at the border with New Mexico. Interstate 19 travels from Nogales to Tucson, and ends at I-10. While the highway is short (63 miles), it is a key corridor, serving as a fast route from Tucson and Phoenix (via I-10) to the Mexican border. The highway is a portion of the U.S. section of the CANAMEX Corridor, a trade route that stretches north from Mexico across the U.S. to the Canadian province of Alberta.

The Port of Tucson is a full service inland port, railyard and intermodal facility southeast of the city and 70 miles north of the Mexico border at Nogales. The facility is located adjacent to the Union Pacific Railroad Mainline and I-10, linking California and Texas. In 2014, Tucson launched Sun Link, a fixed electric rail “Modern Streetcar” system that operates eight vehicles between Downtown Tucson and the UA campus. Each streetcar vehicle holds 150 passengers. There are 24 stops along the 3.9-mile route.

FOR SALE Santa Rosa Apartments - LoopNet · 2019. 2. 5. · Apartments, while Wright Elementary and...

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