TUCSON-HLS Properties’ aggressive stance won it the 246-unit Skyline Gateway Apartments, located in the high-end Santa Catalina Foothills. The local apartment property owner paid $18.4 million to seller Equity Residential for ownership rights to the 1980s complex.
“I’d probably classify this a class B property in an A-plus location,” says seller representative Art Wadlund, principal with Hendicks & Partners’ Tucson office. Because of the location, he continues, the asset at 4601 E. Skyline Dr. attracted more than 10 offers.
The property is across the street from Skyline Country Club, one of Tucson’s oldest and well-known golf courses. It’s also less than one mile from the Westin La Paloma Resort and Golf Course, less than three miles from the Loews Ventana Canyon Resort and less than two miles away from La Encantada, a high-end retail center.
Wadlund tells GlobeSt.com that HLS got the nod from Chicago-based Equity due to certainty of closing. “They did some things early on in the process that demonstrated it to the seller, and in this environment, it’s very important,” Wadlund says. To finance the acquisition, HLS took out a Freddie Mac loan through Deutsche Bank.
Situated on 7.8 acres, Skyline Gateway Apartments is a 14-building asset with a mix of one- and two-bedroom units measuring from 585 square feet to 880 square feet. Market rent is between $611 and $834 per month, while occupancy is in the low 90s. Wadlund says HLS will likely make some minor to moderate upgrades on the 1980s complex, but nothing major.
Equity Residential has one remaining asset in Tucson, the Legends at La Paloma at 3750 East Via Palomita. Wadlund says Equity has no plans to put the property on the market at this time.