Transwestern has arranged the sale of a key development site at 1815 E. Speedway Blvd. in Tucson, Arizona, located at the gateway to the University of Arizona campus. The 2.5-acre parcel is currently occupied by the Palm Shadows apartment complex, which will be demolished as part of a broader plan to deliver a large new on-campus housing option.
Jim and Jack Fijan of Transwestern represented the seller, identified as the owners of the Palm Shadows apartments, in the transaction. The property traded for $25 million and was acquired by Mortensen Development, which is acting as the buyer for the site.
Following the acquisition, Mortensen intends to sell the property to the Collegiate Housing Foundation. The foundation will work in collaboration with the University of Arizona to develop a new, state-of-the-art 19-story student dormitory on the site, replacing the existing apartments. The planned project is expected to significantly expand on-campus housing capacity adjacent to the university.
The new residence hall is planned as a $250 million development and is designed to house more than 1,200 students. In addition to student rooms, the building will feature a dining hall and other amenities intended to support the student housing experience. These program elements are part of a single, integrated project on the current Palm Shadows site.
Project partners anticipate completing the dormitory in time for a fall 2028 move-in. Once delivered, it will become the first new dormitory constructed on the University of Arizona campus since 2019, marking a notable expansion of on-campus student housing inventory after several years without new dorm deliveries.
The new facility is also intended to advance the university’s stated objective of housing all freshmen on campus. By adding capacity for over 1,200 students directly at the campus gateway, the project aims to help the institution meet that goal while replacing an existing apartment complex with a purpose-built student housing asset.
