FOR SALE Oakwood Terrace Apartments...phone: +1 520 748 7100 picor.com Oakwood Terrace Apartments is a 58-unit complex located in the northwestern part of Tucson. The property includes

Oakwood Terrace Apartments2740 N Balboa Ave

Tucson, AZ 85705

FOR SALE

Independently Owned and Operated / A Member of the Cushman & Wakefield AllianceCushman & Wakefield Copyright 2018. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

Property Highlights

• Mix of studio, 1-bedroom units, and 2-bedroom

apartments

• Large courtyard with pool and ample on-site parking

• Gated Entrance

• Enclosed yards for some units

• Busy location between Oracle Rd and Stone Ave, in

close proximity to many retail and service

opportunities

• On site laundry

• Individually metered for electricity

• VALUE-ADD OPPORTUNITY

Property Features

Sale Price $2,550,000

Price Per Unit $43,966

Number of Units 58

Rentable Square Feet 27,432

Land 2.48 Acres

Cap Rate 6.71%

MULTI-FAMILY

Allan Mendelsberg, Principal

Multifamily & Investment Sales

+1 520 546 2721

[email protected]

Logan Nagel, Assistant


+1 520 546 2740

[email protected]

PICOR Commercial Real Estate Services

5151 E. Broadway Blvd, Suite 115

Tucson, Arizona 85711phone: +1 520 748 7100

picor.com

Zach Stone, Assistant


+1 520 546 2730

[email protected]


Tucson, AZ 85705

FOR SALE

Property Description



+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]

Zach Stone, Assistant


+1 520 546 2730

[email protected]

PICOR Commercial Real Estate Services5151 E. Broadway Blvd, Suite 115

Tucson, Arizona 85711

phone: +1 520 748 7100

picor.com

Oakwood Terrace Apartments is a 58-unit complex

located in the northwestern part of Tucson. The

property includes 12 studios, 44 1-bedroom units, and

two 2-bedroom units. Many of the units have gone

through various renovations over the past few years.

The property benefits from a number of on-site

amenities including a pool, large courtyard, laundry

facilities and ample parking. All units have air

conditioning. The whole complex is fenced in,

including a sensor gate at the entrance providing

security for the residents.


Tucson, AZ 85705

FOR SALE


Tucson, AZ 85705

FOR SALE


Tucson, AZ 85705

FOR SALE


Tucson, AZ 85705

FOR SALE


Location Overview

Oakwood Terrace Apartments is located along Balboa Avenue, between Glenn Street and Kelso Street. It is near

various retail and service opportunities including Grant-Stone Shopping Center three blocks to the south, McGary’s

Discount Groceries five blocks north, ARCO gas/ampm convenience store a block northwest, and restaurants such

as La Parrilla Suiza, Mariscos Baja mar, El Guero Canelo, Monterey Court, and Kings Restaurants. The property is

located 1.4 miles from the nearest I-10 freeway entrance, allowing convenient regional transit.

EC Nash Elementary School is two blocks from Oakwood Terrace, while Helen Keeling Elementary School is 1 mile

away and Amphitheater High School is 1.4 miles away. At 2.8 miles from the University of Arizona, Oakwood

Terrace boasts easy access to world-class higher education and cultural opportunities. Nearby Laguna Park offers

access to natural space, while Balboa Heights Park features a playground and splash pad.

MULTI-FAMILY

Glenn St

Kelso St

Balb

oa A

ve


Tucson, AZ 85705

FOR SALE


Pricing Analysis

Income StatementMarketing

Pro Forma

Pro Forma

Per UnitPro Forma PSF 2018 Actuals

RENTAL INCOME

Gross Market Rent $384,840 $6,635 $14.03

Vacancy Loss -$26,939 -7.0% ($0.98)

Gross Rent $357,901 $6,171 $13.05

Concessions & Bad Debt -$7,158 -2.00% ($0.26)

Net Rental Income $350,743 $6,047 $12.79

Other Income $17,280 $298 $0.63

TOTAL INCOME $368,023 $6,345 $13.42 $337,030

OPERATING EXPENSES

Payroll $28,000 $483 $1.02 $31,088

General & Admin $10,000 $172 $0.36 $13,376

Repairs/Maintenance/Sup

plies $33,000 $569 $1.20 $37,996

Contract Services $3,600 $62 $0.13 $582

Utilities $65,000 $1,121 $2.37 $63,948

TOTAL VARIABLE $139,600 $2,407 $5.09 $146,990

Property Taxes $14,454 $249 $0.53 $14,454

Property Insurance $10,000 $172 $0.36 $10,009

Management Fee $18,401 5% $0.67 $8,729

Reserves $14,500 $250 $0.53 $0

TOTAL EXPENSES $196,955 $3,396 $7.18 $180,182

NET OPERATING

INCOME $171,068 $2,949 $6.24 $156,848

Type # of Units Sq. Ft. Total S.F.

Rent

per S.F.

Total Monthly

Rent Stabilized Rent

Studio 12 360 4,320 $1.25 $5,400 $450

1 BD/ 1 BA 18 460 8,280 $1.20 $9,900 $550

1 BD/ 1 BA 26 504 13,104 $1.18 $15,470 $595

2 BD/ 1 BA 2 864 1,728 $0.75 $1,300 $650

Total/Avg. 58 473 27,432 $1.17 $32,070 $553

MULTI-FAMILY

MARKET PRICING

Value $2,550,000

Per Unit $43,966

Per Square Foot $92.96

Cap Rate

2018 Actuals 6.15%

Marketing Pro

Forma 6.71%

BUILDING DETAILS

Year Built 1960s-1970s

Classification C

Style Garden

Construction Masonry

Roof Type Pitched


Tucson, AZ 85705

FOR SALE




+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]




picor.com

Oakwood Terrace Apartments

2740 N Balboa Ave, Tucson, AZ, 85705

Units 58

Year Built 1963

Sale Date TBA

Average Unit Size 473 SF

Price $2,550,000


Price per SF $92.96

Unit Type

Studio 12

1 Bed | 1 Bath 44

2 Bed | 1 Bath 2

Total 58

S

Canyon Grove Apartments

438 E Prince Rd, Tucson, AZ 85705

Units 72

Year Built 1982

Sale Date 8/30/2018


Price $3,480,000


Price per SF $77.96

Unit Type

Studio 40

1 Bed | 1 Bath 16

2 Bed | 1 Bath 14

3 Bed | 1 Bath 2

Total 72

1


Tucson, AZ 85705

FOR SALE




+1 520 546 2721

[email protected]



+1 520 546 2740

[email protected]




picor.com

Eucalyptus Gardens Apartments

414 E Prince Rd, Tucson, AZ 85705

Units 48

Year Built 1982

Sale Date 8/30/2018


Price $2,220,000


Price per SF $77.96

Unit Type

1 Bed | 1 Bath 36

2 Bed | 1 Bath 12

Total 48

2

Kelso Vista

450 W Kelso St, Tucson, AZ 85705

Units 40

Year Built 1984

Sale Date 4/4/2017


Price $1,700,000


Price per SF $71.18

Unit Type

1 Bed | 1 Bath 40

Total 40

3


Tucson, AZ 85705

FOR SALE

PROPERTY

NAMEADDRESS

# OF

UNITS SIZE (SF) RENT RENT/SF OCCUPANCY

Oakwood

Terrace

2740 N

Balboa Ave,

Tucson, AZ

85705

12 360 $450 $1.25 96%

Amphi

3516 N Stone

Ave, Tucson,

AZ, 85705

28 407 $420 $1.03 100%

Eucalyptus

3055 N

Tyndall Ave,

Tucson, AZ

85719

45 355 $475 $1.34 93%

Prince Plaza

120 W Prince

Rd, Tucson,

AZ 85705

24 440 $448 $1.02 100%

Sage Canyon

3802 N

Flowing Wells

Rd, Tucson,

AZ 85705

16 342 $445 $1.30 94%

Total/AverageTOTAL/

AVERAGE113 384 $451 $1.18 97%

MULTI-FAMILYStudio Rent Comparables


Tucson, AZ 85705

FOR SALE

PROPERTY

NAMEADDRESS # of UNITS SIZE (SF) RENT RENT/SF OCCUPANCY

Oakwood

Terrace

2740 N

Balboa Ave,

Tucson, AZ

85705

44 486 $550 $1.13 96%

Amphi

3516 N

Stone Ave,

Tucson, AZ,

85705

20 545 $550 $1.01 100%

Kelso Vista

450 W Kelso

St, Tucson,

AZ 85705

30 520 $550 $1.06 100%

Las Brisas

2525 N Los

Altos Ave,

Tucson, AZ,

85705

192 520 $560 $1.08 96%

Vista Hermosa

3066 N

Balboa Ave,

Tucson, AZ,

85705

54 550 $535 $0.97 74%

TOTAL/

AVERAGE296 527 $554 $1.05 93%

MULTI-FAMILY1-Bedroom Rent Comparables


Tucson, AZ 85705

FOR SALE

PROPERTY

NAMEADDRESS # of UNITS SIZE (SF) RENT RENT/SF OCCUPANCY

Oakwood

Terrace

2740 N

Balboa Ave,

Tucson, AZ

85705

2 864 $650 $0.75 96%

Kelso Vista

450 W Kelso

St, Tucson,

AZ 85705

8 726 $675 $0.93 100%

Vista Hermosa

3066 N

Balboa Ave,

Tucson, AZ,

85705

3 650 $678 $1.04 74%

TOTAL/

AVERAGE11 705 $676 $0.96 93%

MULTI-FAMILY2-Bedroom Rent Comparables


Tucson, AZ 85705

FOR SALE

ECONOMIC OVERVIEW

Population and Demographics

Tucson is the second-largest city in Arizona, with a metro area population of 1,010,025. Located 60 miles from the U.S.-Mexico

border, the Tucson metropolitan area (which includes nearby suburbs like Marana and Oro Valley, as well as the significant

portion of unincorporated Pima County that makes up what is de facto “north Tucson”) has been growing far more quickly than

much of the U.S. The population has grown 51% since 1990 and 20% since 2000, compared to the United States averages of just

28% and 13% respectively. The Tucson median age is 37.9 years while Tucson MSA median household income is $46,233.

Average home prices are just $197,300 providing plenty of affordable options for the growing population.

The natural beauty of the Sonoran Desert makes Tucson a desirable location for residents and businesses alike. Downtown

Tucson is a diverse submarket with a rich cultural heritage that contains a blend of Native American, Spanish, Mexican and Anglo-

American influences. Tucson ranks high nationally in various categories including: #2 best American small city in 2017

(Resonance Consultancy), 2016 top 100 best places to live (U.S. News and World Report), #9 “city everyone wants to live in” in

2017 (Business Insider), #8 2018 best city for recreation (WalletHub), and one of America’s 2017 best cities for global trade

(Global Trade). The University of Arizona is ranked #106 of all nationwide colleges, public or private (U.S. News and World

Report).

The University is vital to Tucson and Southern Arizona, having garnered national and international attention. It has the largest

optics program among U.S. institutions, and is second in overall research expenditures (University of Arizona). UA brings in more

than $580 million in research investment each year. The university’s enrollment is 44,831, with numerous branch campuses and

learning centers throughout Southern Arizona. Pima Community College is a two-year school serving Metro Tucson at six

locations throughout the county. Tucson Unified School District is one of the largest in the state, encompassing 229.5 square

miles. It serves approximately 47,000 students in grades pre-K through 12 at more than 80 schools.

Employment

Employers will find a diverse, educated and enthusiastic workforce in Tucson stemming from the U of A. As of 2019, the University

of Arizona is the top employer with a work force of 12,053 followed by Raytheon Missile Systems, 11,370; Davis-Monthan Air

Force Base, 10,869 (both civilian and military personnel); Pima County, 7,100; U.S. Customs and Border Patrol, 6,800; Tucson

Unified School District, 6,467; Banner University Healthcare, 6,462, Freeport-McMoRan Copper & Gold, 5,819; and Wal-Mart,

4,360, while the city’s unemployment rate is 3.8%. (Bureau of Labor Statistics). Tucson’s 2018 job growth rate was 3.1% (MAP for

Southern Arizona).CONTINUED NEXT PAGE


Tucson, AZ 85705

FOR SALE

ECONOMIC OVERVIEW CONTINUED

Davis-Monthan is home to the 355th Fighter Wing, part

of the Air Combat Command. The base is best known

as the location of the Air Force Materiel Command’s

309th Aerospace Maintenance and Regeneration

Group, the aircraft boneyard for all excess military and

government aircraft. In the world of healthcare, Banner

Health and the University of Arizona Health Network

merged to create a platform of academic medicine,

research, instruction and patient care at three academic

medical centers.

Economic Development

Innovation is at the forefront of the Tucson economic

development agenda. Forbes has called it one of

America’s Most Innovative Cities, and the city has the

highest concentration of startups of any U.S. city its

size. Furthermore, it was ranked as a Top Five City for

Entrepreneurs by Entrepreneur Magazine in 2013.

Metro Tucson is a hub for optics and science, while

biotech and other science clusters flourish in the UA

Tech Park, BioPark and Innovation Park. Tourism is a

key economic driver as well. Tucson is known for its

world-class health spas such as Canyon Ranch, more

than 20 golf courses, and numerous natural attractions,

museums, missions and cultural history.

Interstate 10, the major East-West highway in the Sun

Belt, runs east from California, enters Arizona near

Ehrenberg and continues through Phoenix and Tucson.

It exits at the border with New Mexico. Interstate 19

travels from Nogales to Tucson, and ends at I-10. While

the highway is short (63 miles), it is a key corridor,

serving as a fast route from Tucson and Phoenix (via I-

10) to the Mexican border. The highway is a portion of

the U.S. section of the CANAMEX Corridor, a trade

route that stretches north from Mexico across the U.S.

to the Canadian province of Alberta.

The Port of Tucson is a full service inland port, railyard

and intermodal facility southeast of the city and 70 miles

north of the Mexico border at Nogales. The facility is

located adjacent to the Union Pacific Railroad Mainline

and I-10, linking California and Texas. In 2014, Tucson

launched Sun Link, a fixed electric rail “Modern

Streetcar” system that operates eight vehicles between

Downtown Tucson and the UA campus. Each streetcar

vehicle holds 150 passengers. There are 24 stops along

the 3.9-mile route.

Documents

FOR SALE Oakwood Terrace Apartments...phone: +1 520 748 7100 picor.com Oakwood Terrace Apartments is a 58-unit complex located in the northwestern part of Tucson. The property includes