Holualoa Companies has sold the recently redeveloped and repositioned 272-unit Sonoran Reserve multifamily community in Tucson for $61.6 million.
The property has a highly desirable location close to downtown, Pima Community College and the University of Arizona and features convenient access to Interstate 10. Holualoa acquired Gateway Apartments, a 552-bed (188 unit) student housing property in November 2018 via a lender auction.
Over the past few years, Holualoa Companies renovated the entire 12-acre community and converted the property to conventional apartments at a cost of nearly $10 million. The renovation consisted of splitting 83 four-bedroom units into one- and two-bedroom units and renovating and upgrading the resort-style pool, clubhouse, leasing office, and fitness center. Holualoa also upgraded the landscaping, repaved the parking lot, and painted the entire community. After completion of renovations, the property was rebranded as Sonoran Reserve.
The sale continues a trend of high-profile transactions that Holualoa Companies has executed in recent months despite the economic conditions created by the pandemic. In Tucson last year, Holualoa Companies sold the highly successful Herbert Residential and the adjacent Armory Park Villas in Tucson in a $20.4 million transaction.
“We are pleased to complete the sale of Sonoran Reserve and realize a strong return on investment,” said Lani Baker, CFO of Holualoa Companies. “This transaction shows the continued strength of Tucson’s multifamily market.”
The team from CBRE, led by Jeff Casper and Tyler Anderson, represented Holualoa Companies in the transaction.