VAIL, Arizona – The newly constructed Arby’s Restaurant at 10115 East Old Vail Road in Tucson in Old Vail Plaza recently sold for $1.59 million ($749 PSF).

The brand new 20-year triple-net (NNN) sale-leaseback with zero landlord responsibilities was purchased by Lee & Lee Properties, LC (45% share) and (55% share) Lee Family Property Management, LLLP (David Lee managing member). The investors traded into the property from property sold to the City of Tucson recently.

Newly opened in April 2018, the 2,110-square-foot building on 4,056-square-foot pad has a drive-thru, communal tables, contemporary lighting and shared common area.

The restaurant is located in Old Vail Plaza next to Big O Tires that is under construction and Freddy’s Frozen Custard and Steakburgers. Old Vail Plaza is northwest of Houghton Road and Old Vail Road in the eastern submarket of Tucson (Vail) across from the successful Houghton Town Center and Northwest Medical Center.

Jonathan Eckerd with Marcus & Millichap in Phoenix represented the buyer, David Lee, also a licensed broker with David Lee Real Estate in Tucson. Gaurab Reja with Marcus & Millichap in New York represented the seller, Irish RB’s Properties, LLC (Arby’s).

For more information, Lee can be reached at 520.795.3199, Eckerd is at 602.687.6700 and Reja can be contacted at 646.805.1412.

To learn more, login and see RED Comp #6015.

[mepr-show rules=”58038″]Property sold at a 5.7% cap rate.   [/mepr-show]

1.1 million-square-foot, 40’ clear height distribution building takes shape in Phoenix

PHOENIX, Arizona – Graycor Construction Company has completed the first of three “Panel Lifts” at TEN Distribution Center 1, providing an initial glimpse at the size and scope of building one at Irwin G. Pasternack AIA + Associates PC’s planned $300 million, 3.6-million-square-foot industrial park in Phoenix, Arizona.

The first panel lift at TEN Distribution Center took place late June at the project site, located at 83^rd Avenue near the confluence of Interstate 10 and the Loop 101. In four days, Graycor lifted and secured 68 of the total 182 concrete panels that will make up the 1.1 million-square-foot phase I building. The second panel lift was completed yesterday.

“We’ve spent years evaluating the market, securing this site and planning out the features that will make this project a leader in the modern industrial sector,” said Irwin Pasternack, who is the property owner, architect and developer. “To see that vision take shape during our first panel lifts was very gratifying.”

All concrete tilt panels are prepared and cast on site. Graycor started roofing and fire sprinkler install sequencing this month and has completed the first portion of the roof structure along with the installation of a 1.5-mile water main. The final panel lift, completing the east side of the building, is scheduled for mid-August. Building one is expected to substantially complete in December.

“It is an impressive process to watch,” said Graycor Superintendent Terry Morrell. “Each of the concrete panels at TEN measures 50 feet high and is up to 10.5 inches thick, with an average weight of 218,000 pounds each. A great deal of pre-planning, including a written lift plan, was central to executing the work successfully and safely. This included daily lift meetings, defining a controlled access zone and having a dedicated crew to perform the lift. It takes a crew of 10, including a crane operator and oiler, to lift and secure a single panel in place.”

When finished, TEN Distribution Center 1 will offer ultra-modern, cross-dock industrial space, 40’ clear height ceilings and high-volume trailer storage. The construction process will employ approximately 400 Graycor and subcontractor employees, with 135 workers on site per day during the project’s busiest points.

The master plan for TEN Distribution Center totals more than 3.6-million-square-feet in six Class A industrial buildings ranging from 175,000- to 1.1-million-square-feet and 15 retail, restaurants and service tenants facing 83^rd Avenue. At build-out, it will be the largest freeway-fronting industrial development in the Valley.

JLL Managing Directors Anthony Lydon and Marc Hertzberg, and Vice President Riley Gilbert, serve as the project’s exclusive leasing brokers. Graycor serves as the general contractor.

TUCSON, ARIZONA — Ward 6 Tucson Councilman, Steve Kozachik is reporting significant progress has been made with the Benedictine Monastery development at 800 N Country Club. In concert with the public meetings, Ross Rulney and his team have reached an agreement with Kozachik. Preserving the monastery has been the prime goal of Kozachik and to minimize the height and massing on the property.

Rulney’s original plan featured two buildings north and south of the monastery with a height of 86 feet and a third building on the east with a height of 55 feet.

It was the 86-foot, seven-story building as first proposed by the developer that caused Kozochik concern because that is what the existing zoning allowed.  As an alternative, Kozachik proposed a 40-foot-tall student housing project with possible demolition of the monastery and no public voice in the discussion.

Shortly thereafter, Mayor & Council agreed to initiate a Historic Landmark designation on the monastery, so demolition would no longer be possible. The project started moving forward with that threat and indeed, the picture changed, according to Kozachik.

Rulney is now in the process of buying a vacant residential lot to the immediate north of the monastery to increase land area for the project.  This should allow the development to advance with a 55-foot housing project with market rate high end apartments – about 250-units and 375-beds.

Buildings around the Benedictine Monastery will be limited to 55-feet in height and the exterior of the monastery will be preserved and made into a public venue. And, the apartments will be market-rate, not student housing, Rulney said.

The project will still require amending the neighborhood and area plans and a resubmittal of the revised plans.

For more information, see Kozachik’s 7-30-2018 newsletter HERE.