for sale alvernon apartments - loopnet · the apartments feature wide open floor plans with updated...

Alvernon Apartments2053 N Alvernon Way,

Tucson AZ 85712

FOR SALE

Independently Owned and Operated / A Member of the Cushman & Wakefield AllianceCushman & Wakefield Copyright 2018. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Property Highlights

• All one-bedroom 550 SF units

• Large bedrooms that include built-in desks and

large closets

• Tile throughout on almost all units

• Off-street parking

• On-site laundry facilities

• Ideal, central location on Alvernon. On bus line and

close to numerous stores and restaurants

• Individually metered for electricity

• Rents below market

• VALUE-ADD OPPORTUNITY

Allan Mendelsberg, Principal

Multifamily & Investment Sales

+1 520 546 2721

[email protected]

Logan Nagel, Assistant


+1 520 546 2740

[email protected]

PICOR Commercial Real Estate Services

5151 E. Broadway Blvd, Suite 115

Tucson, Arizona 85711phone: +1 520 748 7100

picor.com

Property Features

Sale Price $960,000

Price Per Unit $40,000

Number of Units 24

Rentable Square Feet 13,200

Land 0.65 Acres

Cap Rate 6.62%

MULTI-FAMILY

Zach Stone, Assistant


+1 520 546 2730

[email protected]


Tucson AZ 85712

FOR SALE

MULTI-FAMILY

Property Description

Alvernon Apartments is a centrally-located apartment

complex built in 1965 on Alvernon Way, just south of Grant

Road. It features 24 spacious one-bedroom units.

The apartments feature wide open floor plans with updated

kitchen amenities in many of the units. The complex

provides off-street parking, as well as on-site laundry

facilities. The property benefits from numerous on-site

trees, which provide shade and beauty.



+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]



+1 520 546 2730

[email protected]

PICOR Commercial Real Estate Services5151 E. Broadway Blvd, Suite 115

Tucson, Arizona 85711

phone: +1 520 748 7100

picor.com


Tucson AZ 85712

FOR SALE


Tucson AZ 85712

FOR SALE


Location Overview

Alvernon Apartments is located at the intersection of Alvernon Way and Seneca Street, between Pima Street and

Grant Road. It is about a half mile from both the Northgate and the Frontier Village shopping centers, providing easy

access to many shopping and grocery opportunities. It is also across the street from the Yume Japanese Gardens of

Tucson and the Tucson Botanical Gardens. While closely located to these retail and cultural opportunities, Alvernon

Apartments is immediately surrounded by numerous single family homes. Nearby restaurants include Frank’s &

Francisco’s Denoche, La Mesa Tortillas, Los Betos, Eegee’s, Church’s Chicken and more. The property is

considered very walkable with a Walk Score of 73.

Catalina High School is 0.4 miles from Alvernon Apartments, while Wright Elementary School is 0.6 miles and

Doolen Middle School is 1 mile from the property. At 3.3 miles from the University of Arizona, Alvernon Apartments

boasts easy access to world-class higher education and cultural opportunities. Beyond the Japanese and Botanical

Gardens, the property is 1.5 miles from Miramonte Park and 2.3 miles to Randolph Golf Course, providing more

recreational activities.

MULTI-FAMILY

E Seneca St


Tucson AZ 85712

FOR SALE


Pricing Analysis

Income StatementMarketing

Pro Forma

Pro Forma

Per UnitPro Forma PSF 2018 Actuals

RENTAL INCOME

Gross Market Rent $136,800 $5,700 $10.36

Vacancy Loss -$8,892 -6.5% ($0.67)

Gross Rent $127,908 $5,330 $9.69 $96,611

Concessions & Bad Debt -$1,919 -1.50% ($0.15) $0

Net Rental Income $125,989 $5,250 $9.54 $96,611Other Income (RUBS,

Laundry, Addtl income) $3,500 $146 $0.27 $2,756

TOTAL INCOME $129,489 $5,395 $9.81 $99,367

OPERATING EXPENSES

Payroll $5,700 $238 $0.43 $0

General & Admin $1,200 $50 $0.09 $4Repairs, Maintenance &

Supplies $12,000 $500 $0.91 $9,622

Contract Services $2,400 $100 $0.18 $1,170

Utilities $20,000 $833 $1.52 $15,400

TOTAL VARIABLE $41,300 $1,721 $3.13 $26,196

Property Taxes $10,321 $430 $0.78 $10,321

Property Insurance $3,000 $125 $0.23 $3,594

Management Fee $6,474 5% $0.49 $1,761

Reserves $4,800 $200 $0.36 $0

TOTAL EXPENSES $65,895 $2,746 $4.99 $41,872

NET OPERATING INCOME $63,594 $2,650 $4.82 $57,496

Type # of Units Sq. Ft. Total S.F.

Rent

per S.F.

Total

Monthly

Rent Stabilized Rent

1 BD/ 1 BA 24 550 13,200 $0.86 $11,400 $475

Total/Avg. 24 550 13,200 $0.86 $11,400 $475

MULTI-FAMILY

MARKET PRICING

Value $960,000

Per Unit $40,000

Per Square Foot $72.73

Cap Rate

2018 Actuals 5.99%

Marketing Pro

Forma 6.62%

BUILDING DETAILS

Year Built 1965

Classification C

Style Garden

Construction Masonry

Roof Type Concrete


Tucson AZ 85712

FOR SALE

PHOTO PROPERTY NAME ADDRESS # OF UNITS AVERAGE

SFRENT RENT/SF OCCUPANCY

Alvernon

Apartments

2053 N

Alvernon Way

Tucson, AZ

85712

24 550 $475 $0.86 75%

Bellevue Garden

6101 E

Bellevue St.

Tucson, AZ

85712

48 617 $519 $0.84 95%

Desert Sage

3950 E

Blacklidge Dr.

Tucson, AZ

85712

16 520 $565 $1.09 95%

Riverstone

6161 E Grant

Rd. Tucson,

AZ 85712156 550 $521 $0.95 95%

Palo Verde Plaza

3475 E Water

St. Tucson,

AZ 85716

24 575 $540 $0.94 92%

Glenn Plaza

3631-3643 E

Glenn St.

Tucson, AZ

85716

24 550 $505 $0.92 100%

MULTI-FAMILY1-Bedroom Rent Comparables


Tucson AZ 85712

FOR SALE

PHOTO PROPERTY NAME ADDRESS # OF UNITS AVERAGE

SFRENT RENT/SF OCCUPANCY

Bellevue Manor

4302 E

Bellevue St.

Tucson, AZ

85712

26 525 $536 $1.02 85%

Alvernon Plaza

2625 N

Alvernon Way,

Tucson, AZ

85712

25 500 $507 $1.01 100%

Peachtree

840 N Alvernon

Way. Tucson

AZ, 8571130 490 $485 $0.99 100%

Total/Average 349 549 $520 $0.95 95%

MULTI-FAMILY1-Bedroom Rent Comparables


Tucson AZ 85712

FOR SALE


Alvernon Apartments

2053 N Alvernon Way

Units 24

Year Built 1965

Sale Date TBA

Average Unit Size 550 SF

Price $960,000


Price per SF $72.73

Unit Type

1 Bed | 1 Bath 24

S

Total 24

1

Georgetown Apartments

2510 N Winstel Blvd

Units 96

Year Built 1972

Sale Date 09/20/2017


Price $4,224,000


Price per SF $58.95

Unit Type

1 Bed | 1 Bath 29

2 Bed | 1 Bath 64

3 Bed | 1.5 Bath 3

Total 96

2

Bellevue Winstel

3737 E Bellevue St

Units 40

Year Built 1975



Price $2,110,000


Price per SF $78.67

Unit Type

1 Bed | 1 Bath 16

2 Bed | 1 Bath 24

Total 40



+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]




picor.com



+1 520 546 2730

[email protected]


Tucson AZ 85712

FOR SALE


Peachtree Apartments

840 N Alvernon Way

Units 42

Year Built 1962



Price $1,725,000


Price per SF $52.48

Unit Type

Studio 4

1 Bed | 1 Bath 30

2 Bed | 1 Bath 8

4

Total 42

5

Orange Blossom Apartments

737 N Alvernon Way

Units 40

Year Built 1961



Price $1,565,000


Price per SF $77.57

Unit Type

Studio 16

1 Bed | 1 Bath 24

Total 40

6

Wildflower Apartments

2850 N Alvernon Way

Units 28

Year Built 1977



Price $1,250,000


Price per SF $75.81

Unit Type

1 Bed | 1 Bath 20

2 Bed | 1 Bath 8

Total 28



+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]




picor.com



+1 520 546 2730

[email protected]


Tucson AZ 85712

FOR SALE

ECONOMIC OVERVIEW

Population and Demographics

Tucson is the second-largest city in Arizona, with a population of 535,677 as of 2017. It is the largest city in Pima County, which

totaled 1.02 million residents that year. Located 60 miles from the U.S.-Mexico border, the Tucson metropolitan area (which

includes nearby suburbs like Marana and Oro Valley, as well as the significant portion of unincorporated Pima County that makes

up what is de facto “north Tucson”) is expected to grow to 1.06 million residents by 2020. The 2016 Tucson median age was 33.2

years while Tucson MSA median household income was $46,764 that year.

The natural beauty of the Sonoran Desert makes Tucson a desirable location for residents and businesses alike. Downtown

Tucson is a diverse submarket with a rich cultural heritage that contains a blend of Native American, Spanish, Mexican and Anglo-

American influences. Tucson ranks high nationally in various categories including: #2 best American small city in 2017

(Resonance Consultancy), 2016 top 100 best places to live (U.S. News and World Report), #9 “city everyone wants to live in” in

2017 (Business Insider), #8 2018 best city for recreation (WalletHub), and one of America’s 2017 best cities for global trade

(Global Trade). The University of Arizona is ranked #106 of all nationwide colleges, public or private (U.S. News and World

Report).

The University is vital to Tucson and Southern Arizona, having garnered national and international attention. It has the largest

optics program among U.S. institutions, and is second in overall research expenditures (University of Arizona). UA brings in more

than $580 million in research investment each year. The university’s enrollment is 44,831, with numerous branch campuses and

learning centers throughout Southern Arizona. Pima Community College is a two-year school serving Metro Tucson at six

locations throughout the county. Tucson Unified School District is one of the largest in the state, encompassing 229.5 square

miles. It serves approximately 47,000 students in grades pre-K through 12 at more than 80 schools.

Employment

Employers will find a diverse, educated and enthusiastic workforce in Tucson. The 2017 labor force participation rate was 60.9%

(Census Bureau). As of 2017, the University of Arizona is the top employer with a work force of 11,251 followed by Raytheon

Missile Systems, 9,600; the State of Arizona, 8,580; Davis-Monthan Air Force Base, 8,406 (both civilian and military personnel);

Pima County, 7,060; Tucson Unified School District, 6,770; Banner University Healthcare, 6,272, Freeport-McMoRan Copper &

Gold, 5,800; U.S. Customs and Border Patrol, 5,739; and Wal-Mart, 5,530, while the city’s unemployment rate was 4.9% that year

(Tucson Comprehensive Financial Report). Tucson’s 2017 job growth rate was 1.5% (MAP for Southern Arizona). CONTINUED

NEXT PAGE


Tucson AZ 85712

FOR SALE

ECONOMIC OVERVIEW CONTINUED

Davis-Monthan is home to the 355th Fighter Wing, part

of the Air Combat Command. The base is best known

as the location of the Air Force Materiel Command’s

309th Aerospace Maintenance and Regeneration

Group, the aircraft boneyard for all excess military and

government aircraft. In the world of healthcare, Banner

Health and the University of Arizona Health Network

merged to create a platform of academic medicine,

research, instruction and patient care at three academic

medical centers.

Economic Development

Innovation is at the forefront of the Tucson economic

development agenda. Forbes has called it one of

America’s Most Innovative Cities, and the city has the

highest concentration of startups of any U.S. city its

size. Furthermore, it was ranked as a Top Five City for

Entrepreneurs by Entrepreneur Magazine in 2013.

Metro Tucson is a hub for optics and science, while

biotech and other science clusters flourish in the UA

Tech Park, BioPark and Innovation Park. Tourism is a

key economic driver as well. Tucson is known for its

world-class health spas such as Canyon Ranch, more

than 20 golf courses, and numerous natural attractions,

museums, missions and cultural history.

Interstate 10, the major East-West highway in the Sun

Belt, runs east from California, enters Arizona near

Ehrenberg and continues through Phoenix and Tucson.

It exits at the border with New Mexico. Interstate 19

travels from Nogales to Tucson, and ends at I-10. While

the highway is short (63 miles), it is a key corridor,

serving as a fast route from Tucson and Phoenix (via I-

10) to the Mexican border. The highway is a portion of

the U.S. section of the CANAMEX Corridor, a trade

route that stretches north from Mexico across the U.S.

to the Canadian province of Alberta.

The Port of Tucson is a full service inland port, railyard

and intermodal facility southeast of the city and 70 miles

north of the Mexico border at Nogales. The facility is

located adjacent to the Union Pacific Railroad Mainline

and I-10, linking California and Texas. In 2014, Tucson

launched Sun Link, a fixed electric rail “Modern

Streetcar” system that operates eight vehicles between

Downtown Tucson and the UA campus. Each streetcar

vehicle holds 150 passengers. There are 24 stops along

the 3.9-mile route.

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