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3/19/18
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Alpha Wave Investors has acquired Orange Tree Village, a 110-unit townhome-style multifamily property in the Casas Adobes neighborhood of Tucson, AZ. The property, which is currently 85% occupied, was acquired for $10.55 mil ($96k/unit) in an off-market transaction.
Constructed in 1981, Orange Tree Village is located at 645 W. Orange Grove Rd. The project offers spacious townhomes in one-, two-, and three-bedroom floor plans. Residents enjoy private patios and easy access to nearby retail, entertainment, and employment.
Alpha Wave will invest more than $2 mil in capital upgrades at the property, including new paint and roofing, an upgraded pool and clubhouse, a new fitness center and children’s playground, interior unit renovations, as well as a dog park.
“This property meets our investment criteria at all levels,” says Jordan Fisher, a Founding Partner of Alpha Wave Investors. “The asset has been under-managed in recent years, resulting in a strong opportunity to create value through strategic renovations.”
“The Tucson market has lagged many others in the current recovery cycle, providing a unique opportunity for experienced investors to generate strong yields,” Fisher explains. “Tucson has very few multifamily projects under construction, resulting in strong demand for existing, renovated product.”
Fisher also points to recent job growth in the region as a driver of rental demand in the market moving forward. Caterpillar recently announced a new headquarters location in Tucson that will bring approximately 600 jobs, while Geico plans to open a new corporate office that will bring more than 700 jobs to the region. Further, The Tucson Sentinel reported this week that a planned Amazon distribution center in Tucson could be as large as a million square feet.
Alon Shnitzer with ABI Multifamily was the lead broker for the buyer. Jon Ibrahim, also with ABI, was lead broker for the seller, a Texas-based private investor. David Walkin of Meridian Capital Group arranged acquisition financing for Alpha Wave Investors. The loan was provided by Los Angeles-based Thorofare Capital.
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