$25.35M financing arranged for Arizona multi-housing community
JLL Capital Markets arranged the financing for the 196-unit Canyon Heights in Tucson, Arizona
PHOENIX, April 28, 2022 – JLL Capital Markets announced today that it has arranged the $25.35 million financing of Canyon Heights, a 196-unit, garden-style multi-housing community in Tucson, Arizona.
JLL worked on behalf of the borrower, Rincon Partners and LEM Capital, to secure the five-year, fixed-rate loan through an insurance company.
Built in 1982, Canyon Heights consists of 15 two-story buildings with an average unit size of 653 square feet. The one and two-bedroom units feature full kitchens, an electric oven and stove, laminate countertops, vinyl flooring and spacious closets. Community amenities include covered and surface parking, gas barbecue grills, 24-hour laundry facility, a pool and spa, a dog park, clubhouse with kitchen and a 24-hour fitness center.
Located at 550 N. Pantano Rd., the property is situated between Broadway and Speedway Boulevard in the Northeast submarket of Tucson. Canyon Heights benefits from nearby employment, entertainment and retail destinations along the Broadway Corridor, which boasts over four million square feet of retail, over 100 restaurants and more than 200 stores. Additionally, the community is within three miles of Park Place Mall, 7.7 miles of Davis-Montham Air Force Base, eight miles of University of Arizona and 14 miles of Tucson International Airport. Nearby recreational destinations include Saguaro National Park East, Canyon Ranch and Pima Air and Space Museum.
The JLL Capital Markets Debt and Equity Advisory team representing the borrower was led by Senior Managing Director Brad Miner and Senior Managing Director Ryan Ade.
“Canyon Heights represents a unique opportunity to acquire a well-located property in a transforming submarket,” said David Lazarus, a Managing Director at LEM. “The property has significant physical upside, and we believe that it should benefit greatly from the positive demographic trends in the submarket and the Tucson MSA.”
“Canyon Heights is our fourth acquisition in Tucson, and we plan to reposition the property through an extensive renovation program in order to capitalize on current market trends,” said Chris Cameron, Chief Financial Officer of Rincon Partners. “We look forward to partnering with LEM in the execution of our business plan and appreciate JLL’s efforts in sourcing attractive financing for the transaction.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Rincon Partners
Founded in 2015, Rincon Partners (www.rinconpartners.com) is a vertically-integrated, full-service real estate investment and management firm headquartered in Phoenix, Arizona. Rincon focuses on investments in multifamily properties in the Southwestern and Southeastern United States. Since its inception, Rincon has acquired 24 multifamily communities and completed two Class-A self-storage developments, with project values totaling over $600 million, located in the Phoenix, Tucson, San Antonio, Las Vegas, Atlanta, Charleston, and Charlotte MSAs.
About LEM Capital
LEM Capital is a real estate private equity firm with a 20-year track record focused on protecting investors’ downside and building portfolios to help deliver dependable current cash flow and equity upside through good and bad cycles.
The team consists of multifamily experts that seek to acquire well-located apartment properties where LEM can add value and increase rents through physical upgrades and implementation of better management practices. The firm’s approach combines the local, long-term market knowledge and day-to-day management of its network of local partners with LEM’s disciplined investment selection, rigorous due diligence process and intensive asset management oversight. LEM’s goal is to deliver attractive risk-adjusted returns to its investors while safeguarding capital.
Since 2002, LEM has raised over $1.6 billion in investor commitments1 and has acquired over 25,000 value-add apartment units since 2011.2
1 As of April 29, 2022 (closed or in closing)
2 As of April 26, 2022.