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(Read more on the multifamily market.)

TUCSON-Following a $1-million capital investment into upgrades, a California company has sold the 197-unit Portofino in the southwest submarket for $9.1 million to a first-time buyer in the Tucson area, Investors Capital Group of Seattle.

Art Wadlund, a partner for Hendricks & Partners’ Tucson office, says Mabry Management Co. Inc.’s original plan was to buy, stabilize and sell the class B-minus complex at 1702 W. 36th St., which it acquired in early 2005. When it came time to sell, the Torrance, CA-based owner was offering a 95%-occupied complex.

Wadlund tells GlobeSt.com that Investors Capital Group was one of the highest offers that went onto the table. “It seemed a good fit for them and we had confidence they’d close,” Wadlund says.

The value-add buyer plans to invest extra capital in landscaping and other upgrades to increase the rents. “That’s a submarket that does really well,” Wadlund continues. “There are a few more things they can do to make a splash there. Historically, it’s been the best rental area in the region.”

The 15-building Portofino, built in the mid-1980s, is situated on 7.5 acres. Its 500-sf, one-bedroom apartments rent for $465 per month while two-bedroom units, ranging from 775 sf to 815 sf, are bringing in $565 to $599 per month. The three-bedroom floor plan of 950 sf gets $695 per month in rent.

Wadlund says Investors Capital Group is searching for other deals in the market. “They’re a B and C buyer,” he adds. “They’d like to do more business here.”

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