Tucson rental market remains hot with $33M sale of student-housing complex | Subscriber

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The ledges on the West Campus are being converted from student dormitories to conventional rental units.

Joey Ambrose, courtesy of CBRE

A student apartment complex at the base of the Tucson Mountains is transformed into a traditional rental community.

Tara Investment Group LLC purchased 205-unit The Ledges at West Campus for $ 33.75 million.

Built in 1997 at 2162 W. Speedway near Greasewood Road, the complex was operated as a student dormitory with bed rentals.

The seller, Berger Investment Group, had started converting to conventional leasing and the new owners plan to complete it.

“The ledges on West Campus offered a unique investment opportunity in one of the strongest multi-family markets in the country,” said Jeff Casper, who represented the seller along with Asher Gunter, Matt Pesch, Tyler Anderson and Sean Cunningham of CBRE.

He said Tucson saw the third-fastest apartment rental growth of any US metropolitan area in the second quarter of 2021, up 14.6% year-over-year to an average of $ 990 per month and the highest occupancy rate ever.

As the number of towers adjoining campus grows, remote complexes are turning to traditional rental housing due to this demand.

“The increased supply of state-of-the-art products with walk-in access to campus has shifted demand closer to campus and negatively impacted the shuttle-to-campus product that was built from the late 1990s to the early 2000s,” said Casper, first Vice President at CBRE in Tuscon. “While student demand for off-campus products has declined, many of these well-located communities with great amenities have been able to take advantage of the significant demand for conventional shared accommodation.”

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