TUCSON-Berwind Property Group has sold the 432-unit Vista De Sierras for $38.8 million to Prime Group of San Francisco in an all-cash transaction. The complex was the last piece of a 19-property portfolio bought two years ago for $300 million.
"This is the seller's last asset in the area and now it's focusing the majority of the resources up and down the East Coast," Peter Katz, vice president for Marcus & Millichap Real Estate Investment Brokerage Co.'s Phoenix office, tells GlobeSt.com. The Philadelphia-based Berwind turned over a 14-year-old complex on 22.7 acres at 9225 E. Tarque Verde Dr. in northeast Tucson.
Katz says the transaction is a value-add deal for Prime Group, which will retain the complex as a long-term hold rather than undertake a condominium conversion. "They already have close to 1,000 units in the market," he says, adding that the new owner plans to invest capital into the complex and increase rents.
Katz says the 90-day marketing period attracted close to 20 offers. Familiarity with the buyer's methods was one of the main reasons that it won the deal, he says. "The buyer is a total closer and we had faith he'd conclude the deal," adds Katz, who was assisted by investment associate Alon Shnitzer.
The 94%-occupied complex has one-, two- and three-bedroom units, ranging from 915 sf to 1,140 sf. The monthly rent goes from $796 to $959. The buyer obtained financing on a 70% loan-to-value ratio from the Irvine, CA office of Prudential Real Estate Affiliates, Inc.
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