The $50.7 million that changed hands in four deals during the second quarter amounted to the largest single-quarter total reported by Reis for this market since the fourth quarter of 2008. The average selling price and mean cap rate for the latest quarter’s deals were $60,000 per unit and 5.1%. The 12-month rolling mean cap rate per quarter-end was 7.4%, down from 9.6% a year earlier. In the quarter’s largest deal, largest in a year, Nevins, Adams, Lewbel and Schell paid Eaton Vance Corporation $35.02 million ($112,244 per unit) for the 312-unit Legends at La Paloma market-rate property at 3750 E. Via Palomita, Tucson. The sale closed in June at a 3.2% cap rate. The Class B/C property, built in 1995 and renovated in 2004, was 9.6% vacant at date of sale.
“For existing properties, the volume of sales has spiked this year,” Inside Tucson Business reported in August. “And only three acquisitions were considered ‘distress sales.'” “Investor interest has picked up significantly since 2011 as Tucson is back on the radar screen,” an executive with PICOR Commercial Real Estate Services informed the source. “We are seeing out-of-state investors returning to the marketplace and with investors coming from the Phoenix area. The gap is narrowing between buyer and seller expectations, and the low cost of debt is making more transactions possible.”