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Pima Professional Plaza at 5700 E Pima Street, at Craycroft and Pima in Tucson, sold in a receivership sale for[mepr-show rules=”58038″]$1.9 million ($95 PSF) with some seller concessions. The investor is a local investment group put together by Eddy Chernecki of Tucson. Eileen Lewis of Cushman & Wakefield / Picor was  receiver for the seller, Hamilton-East Pima, LLC of California and the lender in the transaction.

The 20,041 sq. ft. medical complex (built 1978) on 2.23 acres was 50% occupied by four high quality medical groups with upside potential in new leasing when it sold. The center offers convenient medical space near Tucson Medical Center and other Eastside hospitals as well as financial district.

The highly visible property features easy access from Pima Street and ample parking for clients and patients. Many of the suites had recently undergone extensive interior renovations.

Healthcare practitioners readily anticipate the significant increase in demand for medical services expected over the next decade. Shifting demographics and new heath care legislation are expected to expand the patient base. As a result, job creation in the healthcare field is expected to mirror the increased demand in the industry. In response to this growth, the Urban Land Institute estimates the demand for medical office buildings (MOBs) will increase 19% by 2019. The recent spike in demand for quality medical space in the region is indicative of that trend.

We continue to see a flight to quality within the medical office market as practices seek to upgrade facilities and increase efficiency. The healthcare industry is working to meet the demand of a rapidly changing environment and companies are getting creative and more resourceful.

Andrew Sternberg, Specialist in Professional and Medical Office Services with Oxford Realty Advisors in Tucson represented the seller in the transaction. Rob Fischrup and Jon O’Shea, Principals, Specialized in Investment Sales and Acquisitions at Vast Real Estate Solutions in Tucson represented the investor.

For additional information, Fischrup and O’Shea should be contacted at (520) 624-9400. Sternberg can be reached at (520) 232-0200.[/mepr-show]

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[ismember]Sale date was 8/1/2013. Net sale price was $1,550,000 after $350,000 was held back in escrow to be paid by seller for deferred maintenance. Buyer paid $475,000 down and obtained new financing for the balance. Escrow time was reported to be 60 days. Property sold with an approximate NOI of $100,000, a 6.45% cap rate based on income at time of sale and property 50% vacant. Asking base lease rate was reported at $16/SF/ modified gross [/ismember]

Living Spaces, a home furnishing store chose Scottsdale for its first store outside of its home state to open a 130,000 sq. ft. store at 16275 N Scottsdale Road in the Promenade Shopping Center today.

This is store number ten for the company and the very first outside the state of California. Living Spaces is also under construction of a 125,000 sq. ft. store and 300,000 sq. ft. fulfillment center at the southeast corner of Interstate 10 and 67^th Avenue in Phoenix, expected to open sometime Q1 2014.

Living Spaces started in August 2003 with a commitment to making the shopping experience for home furnishings as easy and convenient as possible. With over 150 Living Rooms, 115 Dining Rooms, and 100 Bedrooms in the stores, it offers a huge selection of the best brands to meet any design style or budget with guaranteed low prices. Best of all, customers don’t have to wait for their new furniture with same day delivery.

Living Spaces will be creating 150 new jobs in the region, including those at the new fulfillment center. With 10 new stores planned before year end, we inquired about plans for Tucson, and were told Tucson wouldn’t be in the board until the Phoenix stores have all stabilized.

In spite of the recent economic downturn, or perhaps because of it, home decorating and DIY projects have continued to grow in popularity. Never before have so many people been willing to work on their own homes and use their creativity to make their living spaces comfortable. Some estimates have measured this segment of the market to be approximately $65.2 billion per year.

Scott Kaplan of CBRE in Newport Beach, CA represents Living Spaces nationally. Todd Folger of CBRE in Phoenix represents the company in Arizona.  Other brokers assisting with the lease transaction in Scottsdale were Mark Kol of CBRE in Oakland, CA, and John Rehling and Kevin Schuck of CBRE in Phoenix.

Brokers handling the Phoenix fulfillment center lease were Todd Folger, Scott Kaplan, Mark Kol and Greg White, also with CBRE in Phoenix.

For more information, contact Kaplan at (888) 200- 7754 or Folger at (602) 735-5555

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Mattress Firm opened its 12^th store this week. Five Guys Burgers & Fries will open Monday its 5^th location in town, while Chipotle’s Mexican Grill works anxiously to catch up keeping to plans of opening the first week in September. Where is all this new retail activity happening in Tucson?

It’s all going on at the southwest corner of 22^nd St and Harrison Road, 9484 E 22nd Street in Tucson. BP SWC 22^nd and Harrison, LLC (Don Bourn, manager) bought the 1.2 acres from Wells Fargo Bank in January to construct an 8,164 sq. ft. retail strip center. The property, now complete and fully leased, has been sold to a California private investment group, Parliament Properties, Inc. of Cardiff, CA (Alan J Wallock) for[mepr-show rules=”58038″]$3.6 million ($444 PSF) as investment sale.

Five Guys Burgers was named the fastest growing restaurant franchise in 2012 by Forbes. The owners in Tucson have grown to five stores since opening first in June 2010 at Campbell Plaza on Campbell and Glenn. Their 5th location at 22nd & Harrison will be followed soon by a 6th at the Tucson Spectrum, 5315 South Calle Santa Cruz in Tucson. Store hours of operation for Five Guys is 11:00 a.m. to 10:00 p.m., but doors open at 10:45 a.m. daily the owners told us.

Mattress Firm’s 12^th store is the most recent and farthest eastside location for the firm. Mattress Firm has 32 locations in the Phoenix area. Established in 1986, Mattress Firm started as a small idea of three childhood friends. Paul Stork, Steve Fendrich, and Harry Roberts began their careers believing that quality merchandise should be available at reasonable prices and sold by honest sales people who specialized in product knowledge and customer service. On July 4^th 1986 the founders opened the first store in Houston, Texas. Mattress Firm now has over a thousand locations nationwide that are deeply imprinted with the values the three founders agreed upon: trust, passion, and growth.

Mattress Firm has also placed value within the Tucson market through community volunteer programs such as Habitat for Humanity and the local Ronald McDonald House as well as contributing to funds for the TGen Cancer Pancreatic Cancer Research Lab in Phoenix.

When Chipotle’s Mexican Grill opens next month, it will be number nine for the chain in Tucson.

Barker Morrissey was General Contractor for the center.

Alan Tanner with Bourn Advisory Services of Tucson represented landlord on all the leases and also the tenant D&G Holdings for Five Guys Burgers.  Darren Pitts & Bonnie Arlia of Velocity Retail in Phoenix represented  Mattress Firm. Ben Craney of West Commercial Real Estate Advisors in Tucson represented Chipotle.

Tanner may be reached at (520) 318-6624. Pitts and Arlia are at (62) 682-8100. Craney should be contacted at (520) 264-5000.

Paul Schloss, formerly of CBRE in Tucson, handled the purchase of the property for the developer-seller and can be contacted at (520) 977-3800. [/mepr-show]

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[ismember] Sale price was $3,625,000 on 7/31/2013  Allan Wallock the buying entity managing member is a broker in CA and can be reached at (760) 327-1115  [/ismember]