Gateway at Tucson

Gateway at Tucson
188-unit/552-bed, Class “A” Student Housing

RealINSIGHT Marketplace and Cushman & Wakefield are pleased to offer Gateway at Tucson Apartments (the “Property” or “Gateway”), a 188-unit/552-bed, Class “A”, student apartment community located in Tucson, Arizona, approximately 5 miles west of the University of Arizona, less than 1 mile to Pima Community College West Campus and approximately 4 miles west of Pima Community College Downtown Campus.  This location is within close proximity to major freeways, employment sources, shopping, dining, entertainment and recreational venues.  The Property is reportedly 90% pre-leased for the upcoming 2018-2019 school year.

INVESTMENT HIGHLIGHTS

• True Value Add Potential:  Built in 2005 by Fairfield Residential, this offering will provide a prospective investor with opportunity to acquire a Property at an attractive new basis and well below replacement cost.  While recent upgrades have been completed at the Property, there is a major “light value-add” opportunity for a prospective buyer to continue and expand the current upgrade program.  The result of these improvements (along with enhancements to the exterior of the property and upgrades to common area amenities) will be the potential to significantly increase market rental rates.
• Two Major Sources of Students:  While Gateway draws the majority of its residents from the University of Arizona and its over 43,000 student enrollment, Gateway also benefits from its close proximity to the west campus and downtown campus of Pima Community College (“PCC”).  PCC is one of the largest community colleges in the U.S. with a total enrollment of over 45,000 students.  Further, the PCC West Campus (1 mile from Gateway) is the largest of PCC’s six campuses – a tremendous demand driver for Gateway.  Reportedly 40% of residents at Gateway are enrolled with PCC and 60% are enrolled at University of Arizona.
• Highly Amenitized:  Each bedroom at Gateway features a private bathroom.  Units are rented fully furnished and include a full appliance package (electric oven/range with built-in microwave, dishwasher, garbage disposal and washer/dryer).  Community amenities include sparkling swimming pool, spa, basketball court, fitness center, business center, study rooms, tanning bed, and shuttle service to University of Arizona campus and PCC.
• First Class University: University of Arizona is a premier, public research university offering over 367 academic programs. Founded in 1885, University of Arizona currently ranks among the top universities in the nation in fields such as physical sciences, research and as a producer of Fulbright scholars. The Fall 2017 freshman class included nearly 10,000 students from all 50 states. This current class is University of Arizona’s most diverse and saw increases in test scores and academic quality.
• Open to New Financing:  Prospective purchasers can take advantage of today’s attractive debt market as the property will be delivered on a free and clear basis.
• Value Proposition:  Gateway represents a unique opportunity for an investor to acquire and reposition a student housing asset at a new basis in one of Tucson’s best submarkets.