TUCSON, Ariz.– Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Oracle Canyon, a 36-unit apartment community located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Tucson office, the asset sold for $2,825,000.

Hamid Panahi and James Crawley, investment specialists in Marcus & Millichap’s Tucson office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. Panahi explained, “The seller had undergone a series of interior improvements and large asset preservation projects since acquisition. With a sample size of corresponding rent premiums as a result of interior enhancements, the asset provided a tremendous opportunity for a buyer to add value.”

Panahi and Crawley also procured the buyer, a limited liability company. “The buyer was an experienced owner/operator in Southern Arizona, but Oracle Canyon represented their first acquisition in Tucson,” Crawley stated. “The buyer had an extensive track-record of repositioning and rebranding assets. Oracle Canyon’s intrinsic value-add characteristics of condo-style quality construction, an entirely two-bedroom two-bathroom floor-plan, and weighted average unit size coupled with low-market rents and above market vacancy were what attracted the buyer to make their first purchase in Tucson.”

Oracle Canyon is located at 331 West Pastime Road just off Oracle Road in North Tucson, providing expedient access to a wealth of employment opportunities and a dense retail landscape. Completed in 1984, the property features superior quality frame and stucco construction with exclusively two-bedroom two-bathroom apartment homes. Interiors feature a well-equipped kitchen, walk-in closets, true master-bathrooms, ceiling fans, linen closets, private patio and balconies, wood-burning fireplaces, as well as individually-metered central heating and cooling. Select units feature washer and dryer units, vaulted ceilings, and ceramic tile flooring. Community amenities include a welcoming leasing office, a sparkling pool and spa, on-site laundry facility, electric gated parking entry, and serene outdoor space with lush landscaping including barbecue grills.

PHOENIX, ARIZONA – The Shops at 24th Street and Osborn recently sold for $1,700,000 to an individual investor based in the Bay Area. The strip center built in the 50’s but remodeled in 2007 was 100% occupied to a diverse group of internet-resistant tenants including Fitness, Food and a Wine Bar. Ari Spiro and Sean Stutzman of ORION Investment Real Estate handled the marketing effort while Michael Achtman and Jennifer Eggert of ORION brought the Buyer. “The Sellers originally purchased this center as a distressed asset a decade ago. Since then, they have stabilized the rent roll and taken advantage of rapidly improving 24th Street Corridor. With thousands of residential units recently constructed or coming on line, the area will continue to transform, offering the new owner an opportunity increase revenue over time,” explains Sean Stutzman of ORION.

The dearth of quality retail investment opportunities under $2 Million helped garner multiple offers for the asset. The Shops at 24th Street has terrific visibility with 25,000 vehicles per day passing its oversized monument sign. Located less than 2 miles from the Camelback Corridor, the infill property services the neighborhoods of Biltmore, Paradise Valley and Arcadia, as well as the 650,000-daytime population within 5 miles. This was an appealing investment opportunity since the in-place, average rental rate is just over $16/NNN in a submarket where retail rates soar as high as $30/NNN.

Buyer’s agent Michael Achtman stated, “This deal was an ideal fit for the buyer who was in an exchange and looking to make his first purchase in the AZ market from the Bay Area. With all the new residential units and remodels in the area and trendy restaurants and retail in the surrounding area this property was attractive to the buyer for its current success and future upside potential as well.”

Joint-venture team won for work on Tucson’s Ina Road Traffic Interchange

TUCSON, Ariz. – Sundt Construction, Inc. and its joint venture partner Kiewit were recently awarded the Associated General Contractors of America (AGC) Arizona Chapter’s Build Arizona award for its work on the Ina Road Traffic Interchange.

“Sundt is extremely grateful to receive such a prestigious award,” said Ryan Cannon, Sundt Project Manager. “Our partnership with ADOT was essential to the outcome of the project. It’s a true example of how planning, attention to safety and quality and a focus on partnering can result in a successful project.”

The construction manager at risk project included reconstruction of the interchange at Ina Road as a precast concrete bridge overpass to I-10. It also included several street improvements, channel construction, drainage, retaining walls, signals, lighting, and utility relocation.

The joint venture team began work in January 2017 to elevate the Ina Road interchange, widen I-10 and Ina Road, and replace the existing Santa Cruz River Bridge. The improved infrastructure helps reduce delays and increase safety for the nearly 25,000 drivers who use the interchange every day.

Of the various improvements made, the most notable is the bridge, which takes traffic over the Union Pacific Railroad tracks and reduce delays on a heavily used four-lane road. Railroad crossings were previously at street level, causing frequent backups for daily drivers. Now drivers have safer, faster access to and from the interstate.

The award was presented recently during AGC’s annual banquet held at the Heard Museum in Phoenix. The Build Arizona awards celebrate the construction achievements of Arizona AGC contractors recognizing excellent projects, partnerships and individuals that make the project successful.