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(To read more on the multifamily market, click here.)

TUCSON-Pacific Coast Capital Partners LLC has joined forces with Foster City, CA-based Landco to acquire the 428-unit Tanque Verde Apartment Village. Based on area comps, the deal most likely brought $40,000 to $50,000 per unit.

The JV’s entry to the market is a 92%-leased development at 7671 E. Tanque Verde Rd. “We felt that the Tucson market is ready for some rent growth and felt that this asset, with some renovation, would be able to capture its fair share of that growth,” Hal Pohl, vice president for the San Francisco-based Pacific Coast, tells GlobeSt.com.

All Pohl will say about the seller is that it’s a joint venture made up of many US investors. Jeff Eliason, senior vice president with Buchanan Street Partners in San Francisco, negotiated the transaction for both parties.

Planned renovations will include a clubhouse makeover, exterior painting, landscaping and new signs. The partnership also plans to bring up rents to the current market rate of $626 per month. The existing rent averages $600 per month for the mix of studios and one- and two-bedroom apartments.

Though the class B purchase is the joint venture’s first, Pohl says the companies previously had been in discussions for other acquisitions, with everything finally coming together to acquire Tanque Verde. “We’re talking with them about other transactions in the area,” he adds. “There’s nothing planned right now, but there might be possible Tucson purchases.”

Pohl estimates the hold will be four to five years. The reality is Tucson’s growth, he explains, is likely to have a strong impact on the value of the 14.6-acre property.

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