Tucson’s Tractor Supply on Valencia Sells for $5.075 Million
TUCSON, ARIZONA – Tucson South Development Group, LLC, an affiliate of Long Development Corporation (David Long, president) sold the Tractor Supply store at 1715 W Valencia to IS Corporation of Boca Raton, Fla. for $5.075 million ($234 PSF) in a net lease sale.
The 21,702-square-foot Tractor Supply store on 2.3 acres was a built-to-suit in 2017 and is the fourth Tractor Supply in metro Tucson with other locations in Catalina, Green Valley and Marana. The store includes a 15,000-square-foot fenced outdoor display area.
Located near the new 104,000-square-foot Fry’s Supermarket along Valencia Road, a major arterial road serving the southwest submarket of Tucson. Neighboring tenants include Walmart Supercenter, Lowe’s and several banks and restaurants.
Tractor Supply Company targets ranchers, homeowners, do-it-yourselfers, contractors and trade workers, with its inventory that includes tractor/trailer parts and accessories.
Long was self-represented in negotiations for the seller.
For more information on this transaction and the future development, Long should be contacted directly at 602.574.0731.
To learn more, see Red Comp #5273.
Dunlap Falls Apartments in Phoenix Sell for $22.6 Million
Dunlap Falls,3333 W. Dunlap Ave., Phoenix
Purchase is First Arizona Acquisition for California Investors
Phoenix, Arizona – Dunlap Falls apartments at 3333 W. Dunlap Ave. have been sold for $22.6 million ($78,472 per unit). The community was purchased by two California-based partnerships as their first acquisition in the Arizona market.
“This offered a great purchase opportunity because significant capital improvements were already addressed by the seller,” says Bill Hahn, executive vice president of Colliers International in Greater Phoenix. “More than $6 million was recently invested in property exterior improvements and specific interior modernization during the past two years, which provides the buyer ability to focus solely on completing interior upgrades,” adds Trevor Koskovich, executive vice president of Colliers International in Greater Phoenix
Dunlap Falls Partners, LLC, a Colorado limited liability company and 1031 Exchange Experts LLC as QI fbo WIP-Serendipity, LLC, a Colorado limited liability company purchased the apartment community from 3333 Dunlap Associates LLC, a Delaware limited liability company. The buyers’ LLCs are based in Colorado, but the investors are headquartered in San Francisco. Hahn, Trevor Koskovich, Jeff Sherman and Jesse Hudson of Colliers International in Greater Phoenix handled the transaction. Grandbridge Real Estate Capital LLC arranged financing of the purchase. The buyer intends to expand its portfolio with more properties in the Phoenix marketplace.
Dunlap Falls is a gated community located near MetroCenter. Built in 1973, the property features 29 buildings situated on 9.4 acres, offering a total of 288 units. The apartments consist of two- and three-bedroom floorplans ranging from 806 to 977 square feet. Apartments feature full-sized electric appliances, new tile/carpet flooring, balcony/deck/patio spaces, and some units offer wood style flooring and extra storage. Dunlap Falls provides its residents with covered parking and access to Cortez City Park, which is located across Dunlap Avenue. It also offers direct access through a private gate to the local high school and elementary school. The community features a sparkling pool, four laundry facilities, fitness center, club house and an on-site business center.
Centrally located near Interstate 17, Dunlap Falls provides convenient access to major employers along the Black Canyon Corridor, including USAA, Discover Card and American Express. Other employers in the area include Waste Management, CIGNA, Honeywell, Safeway and a regional office of the FBI. The MetroCenter submarket also provides outstanding retail amenities and rapid access to Sky Harbor International Airport. Grand Canyon University, ASU West and Thunderbird International are located within the submarket, as are Western International University, Ottawa University and Carrington College. This property will also benefit from the future expansion of the Light Rail system, which is scheduled to reach MetroCenter Mall by 2023.
CBRE’s MarketView Tucson Q3 2017
CBRE Research has released Q3 2017 MarketView Tucson reports on retail, industrial and office commercial real estate sectors:
Q3 2017 Retail Highlights
Q3 2017 ended with 50,272-square-feet of negative net absorption, adding to the 112,997-square-feet of negative net absorption from the previous quarter.
Negative net absorption in the third quarter is largely attributed to large move-outs in the Southwest and Central submarkets.
Vacancy in the Tucson retail market ticked up 35 basis points (bps) quarter-over-quarter to 7.2% in Q3 2017. On an annual basis, this represents a 130 bps increase.
Year-over-year, vacancy declined in only two of the six submarkets. Vacancy fell 150 bps in the Northeast submarket to 7.2%.
In Q3 2017, the marketwide average asking lease rate increased slightly quarter-over-quarter at $15.90 triple net (NNN) per sq. ft.
There were two new deliveries to the retail market in Q3 2017 totaling 34,500 sq. ft.
Two projects totaling 76,500-square-feet are currently underway. One of the new developments is Houghton Town Center in the Southeast submarket, which totals 21,500-square-feet. In the Southwest submarket, developers continue construction on Phase I of Fashion Park, located on Irvington Road west of I-19 which consists of 55,000-square-feet of retail.
In Q3 2017, Tucson’s marketwide vacancy rate decreased quarter-over-quarter to 8.2%. On a year-over-year basis, vacancy increased by 40 bps.
The average asking lease increased slightly from the previous quarter at $0.50 NNN per sq. ft. Year-over-year, average rent increased by 6.0%.
No new industrial developments came online in the third quarter of 2017. However, 749,928-square-feet is currently under construction. The Port of Tucson, a 238,734-square-foot rail-served warehouse, in the Southeast submarket is anticipated to deliver in Q4 2017. Additionally, Chamberlain broke ground on the 300,181-square-foot build-to-suit distribution facility in the Airport submarket.
In the third quarter of 2017, net absorption reached 184,040-square-feet. This was a notable improvement from the same time last year when net absorption totaled 175,284-square-feet.
Net absorption in Q3 2017 was bolstered by the East Central and Downtown submarkets, which accounted for 85,227-square-feet and 37,267-square-feet, respectively.
Strong demand in Q3 2017 pushed the marketwide vacancy rate down 190 bps quarter-over-quarter to 14.3%. On a year-over-year basis, vacancy decreased by 180 bps.
No new office product was delivered during the third quarter of 2017.
Several projects that include repositioning functionally obsolete office space to residential decreased the office base and should support fundamentals. For example, the 200,000-square-foot La Placita Village in downtown Tucson will be converted to mixed-use residential in the first half of 2018.
TUCSON, ARIZONA – Tucson South Development Group, LLC, an affiliate of Long Development Corporation (David Long, president) sold the Tractor Supply store at 1715 W Valencia to IS Corporation of Boca Raton, Fla. for $5.075 million ($234 PSF) in a net lease sale.
