Tucson, AZ 236 unit closed

[Serge S.]

Investment Info:

Large multi-family (5+ units) commercial investment investment in Tucson.

Purchase price: $19,000,000
Cash invested: $5,000,000

236 unit Tucson mid 1980s with 65% 2/2 unit mix. This was an off market, broker relationship deal. In place rents at time of purchase were $200+ below market and no material RUBS in place. $19M purchase price with $1M NOI in place, around a 5 cap at COE. Plan is to put around $1M in Capex, primarily on the exterior and bring rents to market. This will be a minimum $1.5M NOI property by end of year 2 and $1.75M NOI by end of year 3. NO substantial interior renovations planned or needed to achieve exit.

How did you find this deal and how did you negotiate it?

Off market marketing combined with broker relationship.

How did you finance this deal?

Local bank.