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Tucson-based, Internet service provider DakotaCom.Net (Bill Bosmeny, manager) through an affiliate, AZ Central Point East, LLC, purchased the building at 4003 E Speedway Blvd in Tucson for[mepr-show rules=”58038″]$1.55 million ($108 PSF). The 14,400 sq. ft. building was built in 1986 on 1.2 acres where DakotaCom.Net occupied a portion along with two other tenants for several years.

DakotaCom.Net was founded in 1995 and merged in 2005 with ultraSW.com. Bosmeny has since owned and managed the union of the two companies. Bosmeny, a Tucson resident since 1983, founded ultraSW.com as a local Internet provider in 1999, to provide quality Internet solutions at reasonable prices. The acquisition of DakotaPro.biz in 1995 furthered Bill’s passion to reshape the Internet business here in Southern Arizona. Bosmeny says, “We need to delight our customers every day with the speed and quality of our service, all while never losing our human touch.”

The Bank of Tucson and the Small Business Administration financed the purchase. Michael Sandahl, Senior Vice President of Investment Properties at CBRE in Tucson, represented Atrium Center #1, LP an affiliate of Anthem Equity Group, (Rodger Ford, manager) the seller.

The Anthem Equity Group can be reached at (520) 886-1226. Bosmeny at DakotaCom.net is at (520) 745-3900. Sandahl with CBRE should be contacted at (520) 323-5115.[/mepr-show]

A recent report from Cushman & Wakefield indicates a stong correlation is found between U.S. retail sales and U.S. industrial leasing activity.

We know retail sales measure economic activity in the economy and thus serve as an important indicator of economic health.  But, only those retail categories subject to the state’s transaction privilege (general sales) tax are included in the retail sales data produced by the Arizona Department of Revenue. For example, sales of food items at grocery stores that are not taxed by the state are not included.

The state Department of Revenue reports consumer spending is up to prerecession levels based on April sale tax receipts, covering March spending in Arizona, in fact up by a large 8.2% increase from the same period a year earlier, with taxable sales of $4.78 billion in March 2013. Monthly data for Arizona becomes available approximately two months after the sales were made to allow time for adjustments, as retailers sometimes report late and multi-establishment retailers sometimes misreport sales by county.

The Cushman & Wakefield research shown in the above graph indicates that industrial leasing activity in markets where they track have followed the U.S. retail sales closely year over year since 2000.  Industrial leases exceeded retail sales from 2000 – 2007, and as retail sales dropped in 2008 – 2009 industrial leases trended in the same direction.

According to the the Tucson Cushman & Wakefield / Picor industrial report for Q1 2013, “for the first time in two full years, the Tucson market had consecutive quarters of significant positive absorption… with lease activity fairly broad based”.  To view the full Q1 2013 Tucson Industrial report click here.

Economists with the Arizona Department of Revenue have stated April collections are typically high, with spring training and winter visitors still around. But it should also be noted that this spending increase is still on top of the record set last April for March sales. It seems to all be trending in the right direction and something to keep an eye on.

For the full Cushman & Wakefield “US Retail Sales vs. Industrial Industrial Leasing Activity” report  click here.

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El Molinito of Tucson (Wayne & Margaret Hallquist) purchased the former Chicago-style pizza parlor at 10180 N Oracle Road in Oro Valley for $1.25 million ($171 PSF). This will be its fourth restaurant location in the area. The 7,295 sq. ft. restaurant (built 2001) on 1.38 acres sold fully fixturized in an REO sale from Silver Point Capital’s affiliate SPCP Group IV, LLC.

The restaurant was most recently a Uno Chicago Grill franchise (2007) and later re-branded to the Loop Taste of Chicago. In 2007, the property was sold for[mepr-show rules=”58038″]$3.2 million.

El Molinito has been serving the Tucson Area for over 35 years and features a menu full of authentic Mexican dishes prepared fresh that is characteristic of their high standards and success.  The conversion from pizza to Mexican food is currently with an architect for review and opening date will depend on the extent of renovation and licensing process. Hallquist anticipates a grand opening to be towards the end of summer and will be hiring approximately 40 new employees for this spot.

As in their other locations, they serve breakfast, lunch and dinner with a big menu. They will have a full bar with indoor and outdoor seating that takes advantage of the views of Pusch View Ridge. The restaurant is also known for their catering and have banquet facilities that include delivery and setup for celebrations at home, or elsewhere. They current locations are open Sunday-Saturday, 10:00 A.M.- 10:00 P.M.

El Molinito’s three other locations are at 5380 E 22nd Street in Tucson, 2323 N Pantano Road, Tucson and at 3675 W Ina Road in Marana.

JP Morgan Chase Bank handled financing for the sale.

Greg Furrier, Rob Tomlinson and Aaron LaPrise, Retail Specialists with Cushman & Wakefield / Picor Commercial Real Estate Services of Tucson, handled the transaction.

We caught up with Hallquist at El Molinito on Ina Road (520) 744-1188. Silver Point Capital is at (203) 542-4200. Furrier, Tomlinson and LaPrise with C&W / Picor can be reached at (520) 748-7100.[/mepr-show]