TUCSON, ARIZONA, (October 25, 2024) — WAA Stone Canyon, LLC (April Worden, CEO) closed on +/-70 Acres of mixed-use residential/resort land in Stone Canyon for $5,450,000. The parcel is strategically located along Tortolita Mountain Circle Road in the center of the project. The land will be held for investment.

Brown Worden Properties is the largest family-owned, woman-led self-storage owner in the Tucson metro market under the A Family Storage brand. The company is also involved in several mixed-use commercial, industrial, and multi-family developments in multiple markets. This purchase is the most recent in a series of strategic land investments in Tucson by Brown Worden over the past 36 months.

The property is part of the private, 1,400-acre Stone Canyon MPC and is located within the Rancho Vistoso community northwest of Tucson. The project is home to world-class golf and fitness facilities complemented by an array of Tucson’s highest-end custom and semi-custom homes.

Will White and John Carroll of Land Advisors Organization in Tucson handled the transaction and will continue to manage the marketing assignment for the parcel.

White commented, “This is a fantastic property that fits the acquisition strategy very well. Properties like this are extremely rare in Tucson and Brown Worden is excellent at identifying them and executing/operating at a high level.”

For more information, White and Carroll should be reached at 520.514.7454.

Subscribers can learn more by referencing RED Comp #11532.

TUCSON (October 23, 2024) — Picor’s multifamily team, Allan Mendelsberg, and Joey Martinez report the outlook for the Tucson multifamily market remains neutral for the third quarter in Marketbeat Tucson Multifamily Q3 2024.

For current owners, maintaining effective management and retaining high-quality tenants is crucial for sustaining strong asset performance in the face of prevailing challenges. Key factors include the upcoming election, projected declines in interest rates, and limited supply from small to mid-sized complexes. Institutional investment is likely to gain traction in 2025 as existing debt matures.

As Q3 2024 concluded, Tucson’s economy demonstrated significant achievements. The median household income rose 4.7% year-over-year to $70,900, boosting local consumer spending. The nonfarm employment sector expanded modestly by 0.2% year-over-year, reaching 403,400 jobs. Notably, Tucson’s unemployment rate decreased to 3.3%, lower than the national rate of 4.2%, reflecting a tightening local labor market. At the same time, Tucson’s population growth outpaced the national average, growing at 1.3% year-over-year, compared to the U.S. rate of 0.5%. This trend underscores Tucson’s continued economic strength and resilience, signaling sustained growth and a stable employment environment.

Tucson’s apartment vacancy decreased to 8.42% in Q3 2024, down 0.70% from Q2 2024. Highlighting continuous improvements, six of Tucson’s 15 submarkets experienced improvements in vacancies.

Inventory increased by 1,431 units, which shows the strong demand for housing. Market activity remained steady for properties under 100 units, with most transactions receiving multiple offers. In Q3 2024, no transactions occurred for properties over 100 units, which was anticipated following a considerable slowdown in sales of larger properties over the past year, as many owners and investors continued to monitor interest rates, the outcome of the presidential election, and the overall state of the economy.

This time of year, Tucsn slows down with prospects searching for rentals. The units on the market need to have a strong marketing strategy and materials and show well when prospects tour. Every tour counts, and more products are typically available this time of year for prospects to be more selective. We have seen prospects looking for value and trying to keep their budget in line for housing due to the current economy.

Retention is key, as is keeping increases within the current market. However, there are still pockets of Tucson looking for renovated units at a premium value.

Read the full Marketbeat Tucson Report here.

Tucson, AZ (October 22, 2024) — El Rio Health, Meridian, and Tenet Healthcare have reached an agreement for El Rio Health to acquire the former Tucson Heart Hospital, 4888 N. Stone, Tucson, Arizona. The sale of the vacant 94,569-square-foot medical building located on a 9.27-acre parcel was recorded for $8,050,000  ($85 PSF). The former inpatient hospital, which has been vacant for 15 years, will be converted into a state-of-the-art health center, fully designed to meet El Rio Health’s service line needs.

Richard M. Kleiner, Principal, Commercial Properties, Cushman & Wakefield | PICOR, represented Meridian’s purchase and El Rio’s lease. Kleiner initiated collaboration between El Rio Health and Meridian, leading to negotiating a deal structure that provided El Rio Health with a flexible option to own the medical facility at a favorable purchase price and ensured a turnkey construction solution.

El Rio Health is a Federally Qualified Health Center (FQHC) that has provided comprehensive, accessible, and affordable healthcare to the Tucson community for 54 years. Meridian is a full-service real estate developer and owner of medical real estate.

Construction will begin later this month, with completion anticipated in early 2026. Building improvements will provide El Rio Health with a modern, functional, and patient-centric environment that enhances care delivery and operational efficiency. The interior will be completely demolished and rebuilt, allowing for an entirely new code-compliant, energy-efficient facility to maximize patient experience and throughput. The outdated central utility plant will be replaced with new systems tailored to El Rio Health’s needs. The building will also feature a new roof, heating, cooling, fire sprinkler systems, new water-efficient landscaping, and a new parking lot.

“El Rio Health was looking for a strategic solution to address the growing demand for primary healthcare services in Tucson,” said Sheila Schmidt-Turkington, Managing Director of Strategy and Development at Meridian. “We were thrilled to work with El Rio leadership and their broker, Rick Kleiner, Principal, Cushman & Wakefield | PICOR, to identify a location that was already entitled for medical use for speed to market. This location is strategically positioned to increase access to care for El Rio Health’s patient base.”

Schmidt-Turkington added, “Early collaboration with El Rio Health and Cushman & Wakefield | PICOR enabled Meridian to negotiate a favorable purchase price and ensure a turnkey construction solution. The deal structure provides a flexible option for El Rio Health to own the real estate, granting them financial flexibility customized to meet their needs. This approach mitigated capital constraints while positioning El Rio Health for further growth in Tucson. It’s truly an honor to help El Rio Health realize its ambulatory goals. El Rio provides care to 1 in 9 people in Tucson.”

“El Rio Health is a trusted healthcare provider in Tucson,” said Meridian CEO, Mike Conn. “They have served the community for over 50 years, currently operating 14 health centers and providing care for more than 128,000, approximately 10% of Tucson’s population. This new facility will enable El Rio Health to expand services and meet the increasing demand for timely healthcare access. We could not be more excited to work with a non-profit organization that aligns so perfectly with our own mission – to provide greater access to care at a more affordable cost.”

“We are thrilled with Meridian’s ability to deliver a facility that meets our current needs and future growth plans,” said Clinton Kuntz, DBH, CEO of El Rio Health. “This new location is ideally situated to serve patients from multiple Tucson areas while alleviating capacity stress at our current Prince Road health center. We intend to offer a full range of our service lines at this location, including primary medical, dental and behavioral health care, pharmacy, radiology, specialized care and support services. This partnership ensures we can continue to meet the growing needs for primary care, and we are eager to begin construction.”

Conn added, “This acquisition exemplifies Meridian’s ability to partner together on real estate challenges with creative solutions that address capital constraints and the urgent need for expanded access to healthcare. Our adaptive reuse approach fosters speed to market at a lower cost, while providing flexible ownership options.”

About the Sale & Lease:

The buyer is MP-TH Stone Tucson Owner, LLC. Cushman & Wakefield | PICOR, Richard M. Kleiner, Principal, Commercial Properties, represented buyer.

The seller is CHVI Tucson Holdings, LLC. Transwestern Real Estate Services, Kate Morris and Vince Femiano, represented seller.

The tenant will be El Rio Santa Cruz Neighborhood Health Center, Inc. Cushman & Wakefield | PICOR, agent Richard M. Kleiner, Principal, Commercial Properties, represented the tenant. The landlord is MP-TH Stone Tucson Owner, LLC.

PHOTO: Former Tucson Heart Hospital, 4888 N. Stone, Tucson, Arizona.