(Read more on the multifamily market.)

TUCSON-Paragon Management Co. LLC of La Jolla, CA, takes on a class B value-add as its next repositioning play in the region. The 224-unit Sienna Springs, listed for $8.7 million, will undergo $300,000 of interior and exterior upgrades.

Ricardo Jinich, Paragon’s co-founder, won’t discuss the purchase price of the 90%-leased complex at 2650 N. Oracle Rd. asset, but did say it was reasonably priced. The complex, bought from Bridge Investment Group LLC of Salt Lake City, sits in a pocket where comparable assets are selling for $40,000 to $43,000 per door. Sienna Springs’ seller was asking $38,839 per unit.

The purchase is Paragon Management’s sixth in the area, bringing its total number of units to more than 1,000. Jinich says the Tucson properties are doing very well, which is why Paragon Management is continuing its local buying. “We’ve been able to raise rents and occupancy and saw the opportunity to do the same thing here,” Jinich tells GlobeSt.com.

Built in 1978 and situated on 6.5 acres, Sienna Springs has one- and two-bedroom units in 11 one- and two-story buildings. The one-bedroom units, ranging from 418 sf to 604 sf, are bringing in rents of $444 to $535 per month. The two-bedroom apartments, each 868 sf, go for $675 per month.

Art Wadlund, principal with Hendricks & Partners’ Tucson office, brokered the transaction. The acquisition loan was obtained from Fannie Mae. Pinnacle Realty Management Co. of Seattle will lease and manage the complex.

Jinich tells GlobeSt.com that Paragon Management is targeting areas with large Hispanic populations and fundamentals like population and employment growth. The company owns complexes in California and Nevada as well as Tucson. Paragon Management is on the lookout for value-add opportunities in Phoenix and would like to enter Utah, Colorado and Washington.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.