251-Unit Sister Complexes Draw Nearly $23M

TUCSON-A Santa Barbara, CA-based developer has parted with the Casa Dorinda and Mira Vista Apartments after more than a decade at the helm. The $22.5-million deal has rolled the 251-unit block to a San Francisco buyer.

Jeff Albee, vice president with Sperry Van Ness in Phoenix, says Casa Dorinda LP opted to dispose of both complexes so it can redeploy capital into less management-intensive product. The just-sold properties are the Casa Dorinda Apartments at 7576 N. Mona Lisa Rd. and Mira Vista Apartments at 7596 N. Mona Lisa Rd. While the seller is leaving the area with the transaction, the buyer, Prime Group, is digging in to expand its footprint in the metro.

Albee tells GlobeSt.com that Prime Group beat nine other offers for the property with its market knowledge and plans for economies of scale in managing and upgrading the pair. "These are good class B assets in a class A location," Albee says.

Albee adds that Prime Group can realize upside from the complexes due to the northwest submarket's sound fundamentals, including a continued increase in population and barriers to entry. "When you look at the population boom there, especially from boomers wanting to shift from the miserable weather north in the winters, that fuels areas like Vegas and Tucson," he says. Also adding to the population growth are the nearby University of Arizona and Davis-Monthan Air Force Base.

The complexes are situated on 15 acres, with a combined 95% occupancy. Casa Dorinda, built in 1995, has three one-story and 12 two-story buildings. Sister Mira Vista, completed in 1998, is comprised of two one-story and 10 two-story buildings. Both complexes have two- and three-bedroom units. The monthly rents range from $550 and $820.

Working with Albee on the transaction were Sperry Van Ness senior adviser John Buette and adviser Chris Itule. Neil Sherman, formerly with Sperry, and currently with Axxiom Partners LLC of Phoenix, represented Prime Group.