GR Capital has acquired Bellevue Tower, a 90-unit garden-style community in Tucson, Ariz., for $14 million, or $155,556 per unit. Institutional Property Advisors represented the seller, a private investor, and procured the buyer.

The property is situated at 3710 E. Bellevue St., between Central Tucson’s Palo Verde and Miramonte neighborhoods, near the city’s main retail corridor, Speedway Boulevard. Bellevue Tower is roughly 2 miles from The University of Arizona and within a 3-mile radius of around 2,300 businesses. Nearby employers include Banner Health, Sonora Quest Laboratories, and The Home Depot.

Built in 1972, the five-building community encompasses mid-rise tower lofts, traditional garden apartments, and townhomes with private yards. The seller recently renovated the property’s common area amenities and around 6% of the units. Some of the community amenities include laundry facilities, a swimming pool, a business center, and covered parking spaces.

Tucson Fundamentals Remain Strong

Following heightened investment activity in 2021, the pace of multifamily sales moderated in the first quarter this year, according to Northmarq research. Sales velocity decreased by around 27% compared to the same period last year. Nonetheless, despite fewer deals, the average price per unit in 2022 reached $125,000, up 10% compared to the median price recorded last year. The average cap rate in closed deals was 4.2 percent in the first quarter, up 70% over the previous quarter.

Although demand for multifamily units cooled off in Tucson during the first quarter of 2022, the metro’s expanding labor market will likely provide fuel for the local rental market. The metro added some 4,000 workers in the first quarter, while year-over-year, the region gained 15,200 employees, accounting for a 4.1% uptick. Northmarq forecasts that Tucson’s employment market will expand by 11,000 jobs this year, or a 2.9% increase.