background-Tucson V

Tucson V

Front view of buidling

Tucson V is a mortgage which will provide financing for the acquisition and renovation of a 5-asset portfolio, each property being a garden style apartment complex. The portfolio, constructed between 1974-1985, offers a significant value-add opportunity.

The Sponsor is an experienced operator with a focus on value-add, garden style multifamily. Strong rent growth is embedded in the deal, as the current, pre-renovated rents are below market at time of acquisition.

The properties benefit from Tucson’s positive in-migration and a diversified economy, supported by numerous higher-income and middle-income sectors.

The Tucson apartment market has historically outperformed the national apartment sector. Additionally, providing mortgage financing is an attractive value proposition and consistent with the REIT’s objective to provide durable income to investors.

— Richard Kimble, Portfolio Manager
Further Information:
Global city:

Tucson, Arizona is a rapidly growing metro benefiting from coastal-market based corporate relocations, expansions of existing key employment sectors driven by the city’s highly educated populace, as well as ancillary in-migration from mid-western markets seeking the active and unique outdoor lifestyle offered.

Tucson is set to experience continued demographic growth in the next 5 years which should sustain recent historical highs for rent and occupancy.

The city of Tucson offers an innovative setting weaving together the power of The University of Arizona, and a profile of high performing industries, including advanced/renewable energy, mission critical defense and security, bioscience, and mining technology. The reputation of Tucson’s business friendly climate has attracted new companies, headquarter relocations, and business expansions.

At time of acquisition, Tucson has the second lowest rent-to-income ratio among all western markets highlighting its affordability and room for rental growth.

These properties represent select holdings at the time of publication and are not meant to represent the entire portfolio. The opinions expressed are reflective of the manager's views at the time of acquisition.