Element Residential Buys 1,020-Bed Student Housing Community in Tucson

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The ranch at the Star Pass. Image courtesy of NorthMarq

Element Residential Property Co. has acquired 1,020 bed student housing in Tucson, Arizona from Peak Capital Partners. The Ranch at Star Pass, formerly The Reserve at Star Pass, sold for $ 57.5 million.

NorthMarq’s Phoenix Investment Sales Team brokered the transaction, which is the buyer’s tenth multi-family transaction. According to the company, that figure represents the highest price per door in Tucson and the second highest price ever for a building on the metro this year.

The brokerage firm also financed the acquisition through a mezzanine lender. Phoenix Vice President, Debt and Equity, Griffin Martin, and Vice President & Managing Director James DuMars arranged the loan.

The ranch at the Star Pass

The property is located at 41 S. Shannon Road and comprises one, two and four bedroom units in 25 one and two story buildings. Completed in 2000, the 21 acre community includes amenities such as a volleyball court, fitness center and swimming pool with solarium. Roofed parking spaces at ground level are also available for residents.

Students can take a shuttle to the nearby educational centers. The University of Arizona – with a steady enrollment over the past decade – is just 4.5 miles east of the property on Interstate 10, while Pima Community College is about 6 miles south.

Dining and entertainment options are also located near the location of the community. For example, the Star Pass Golf Club is only half a mile from the complex.

NorthMarq’s investment sales brokerage team responsible for the transaction included President Trevor Koskovich, Executive Vice President Bill Hahn, Vice President Jesse Hudson and Senior Associate Ryan Boyle. The company was active in the nearby Phoenix market earlier this month, representing Tower 16 Capital Partners on an apartment building sale.

With Tucson’s labor market experiencing significant post-pandemic growth, attracting tenants and increasing rental rates, the subway is becoming one of the leading multi-family submarkets in the Southwest. Still, investors can benefit from a lower cost base in the region compared to other metros, said Bill Hahn in prepared remarks.

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