TUCSON-A Los Angeles-based investment group today will hand over five more multifamily properties as it preps to exit the city. When today's over, the seller will have collected $73.6 million from sales to three buyers, all getting cap rates ranging from 5.5% to 6.5%.
To speed the disposition, Cardone Enterprises Group Inc. has struck a five-property deal with Paragon Management Co. LLC of La Jolla, CA. Trading today are the 120-unit Greentree Apartments at 5555 E. 14th St.; 249-unit Los Altos Villas at 2525 N. Los Altos Ave.; 112-unit Vista Montana at 734 E. Roger Rd.; 239-unit Westgate Park at 1700 W. Prince Rd.; and 161-unit Pueblo Villas at 520 W. Prince Rd.
In previous closings, Landco of Burlingame, CA acquired the 288-unit Arcadia Park at 250 N. Arcadia Ave. and Los Angeles-based FLM Enterprises grabbed the 336-unit Catalina Mission at 4880 E. 29th St. Landco inked its deal a week ago; FLM did its exchange yesterday.
Cardone spun off one asset, the 197-unit Wilmot Vista at 3225 S. Wilmot Rd., for a separate marketing. "Cardone had these properties for less than five years and he's trying to redeploy his assets," says Art Wadlund with Hendricks & Partners in Tucson, who negotiated the transactions. "He's exiting the Tucson multifamily market."
Wadlund tells GlobeSt.com that the portfolio of B and C complexes is 97% leased, all trading in good shape. He says the majority was built in the 1980s, each well located within respective submarkets with strong upside potential for rents.
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