Gay Jarvis has joined Cassidy Turley’s Property Management Group. Jarvis will oversee the management of Tucson West, a 150,000 SF building at 333 E. Wetmore in Tucson as well as the newly renovated Plaza Palomino, a 100,000 SF property at Swan Rd. and Fort Lowell in Tucson.
“Gay is an accomplished and respected professional in the industry,” Cassidy said. “Her experience and connections with the Tucson real estate community will be a valuable asset to us and our client.”
Jarvis has more than 24 years experience in the real estate industry, the past 20 with Anthem Equity Group, Inc. She was an on-site manager for an eight-building, mixed-use property that included 40 executive suites, two restaurants and a large engineering firm. Ms. Jarvis was most recently the maintenance manager for the Anthem portfolio where she built integral relationships with a diverse group of tenants and vendors.
She holds a B.A. in Business with a minor in Computer Information Systems from National University, San Diego. She is the past president of the Building Owners and Managers Association of Greater Tucson. She was chosen as BOMA Tucson’s Principal Member of the Year in 2010.
Jarvis will report to Senior Vice President Karinna Cassidy, CPM, in Cassidy Turley’s Los Angeles office.
Jarvis can be reached at (520) 888-4375
Particulars and Players in Canada Safeway $5.8 Billion Deal
M&A activity has picked up recently in the Food Retail sector. Taking all things into account, it seems strategic buyers, management and private equity firms are willing to bet multi-billion-dollars on this sector. That kind of money always gets investors’ attention so we wanted to learn all the particulars we could on the recent Safeway sale of its 200 Canadian stores for $5.8 billion (CDN), or about $5.6 billion (US).
Last month, when Sobeys, a wholly owned subsidiary of Nova Scotia-based Empire Company Limited (Toronto: EMP.A), announced a definitive agreement to acquire substantially all of the assets of Canada Safeway Limited for a cash purchase price of $5.8 billion (CDN), they stipulated it would be subject to a working capital adjustment, plus the assumption of certain liabilities. That announcement disclosed Sobeys’ intent to partially finance the acquisition through a $990 million sale leaseback of 68 Safeway stores in western Canada to Crombie REIT, also of Nova Scotia. The Sale Leaseback Transaction announced this week concluded the negotiation process. Proceeds from this transaction will be used to assist in financing of the 200 Canada Safeway stores.
Empire also committed to purchase $150 million of Crombie Class B Limited Partnership shares.
Sobeys, as tenant, will enter into fully net leases for each of the properties. The aggregate annual basic rent under all the Sobeys leases is $57.1 million, a 5.8% cap rate based on income, increasing annually by 1.5% per year, with such increases phased in over time and applied to 20% of the properties in each year following the closing. Being fully net to the landlord, Sobeys shall be responsible for all taxes, insurance, maintenance and structural repairs during the term of the lease. Each lease will be based on an initial term of three years and thereafter alternate between successive terms of two years and three years until an outside date for each property is between 15 and 20 years with options of up to ten consecutive years and further options of five years each.
Crombie REIT has announced that in order to partially finance the Sale Leaseback it entered into an agreement to sell a syndicate of underwriters on a bought deal basis approximately $225 million of options convertible into Crombie REIT trust shares, and $75 million principal amount of extendible convertible debentures exchangeable into Crombie REIT trust shares.
Meanwhile, Empire announced that it has entered into an underwriting agreement to sell 21.1 million options, at a price of $76 per share, for aggregate gross proceeds of $1.6 billion, to a syndicate of underwriters, co-led by Scotiabank and BMO Capital Markets and including CIBC, National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Desjardins Securities Inc. and Barclays Capital Canada Inc. Empire has also granted the Underwriters an over-allotment option, exercisable in whole or in part at any time until 30 days following the closing of the Offering, to purchase up to an additional 3.2 million shares for additional gross proceeds of up to $240.54 million to cover over-allotments, if any, and for market stabilization purposes.
Empire also reached two separate agreements during this process to sell 46 movie theaters that it owns in Canada. Shares of Empire were up by 31.54% in the first half of the year, to close at $81.70 on August 2.
Sobeys owns or franchises more than 1,300 stores across Canada under several banners that include Sobeys, IGA, Foodland, FreshCo, and Thrifty Foods.
Since Safeway (NYSE: SWY) agreed to sell its Canadian operations for $5.8 billion Safeway’s stock rose by 27.67% in the first half of the year closing at $25.37 on Friday August 2.
Experts in the field such as Andrew Wolf, an analyst with BB&T Capital Markets remarked with full certainty on the sector, “Overall, things are getting ‘less worse’ for the industry with the economy improving.” Still to come is the potential sale of all or part of Tesco’s Fresh & Easychain in the Southwest.
TUCSON LEASE REPORT – JULY 29 – AUG. 2, 2013
RETAIL SPACE 6025 E BROADWAY BLVD, TUCSON Pacific Sales currently located at 4841 N Stone Ave. in Tucson, at the SW corner of Stone and River, will relocate and downsize from 30,000 sq. ft.to approximately 20,000 sq.ft. at 6025 E Broadway Blvd. in the Best Buy building. Best Buy is the parent company of Pacific Sales. The store will close its current space on October 11th and reopen in the new location on October 18th.
Established in 1960, Pacific Sales is in California, Texas, Arizona and Nevada offering entry level to luxury, brand-name products for the home. For more than 50 years, its selection and superior product knowledge, and low, unbeatable prices, have made it a destination source for builders, contractors and designers–as well as a one-stop solution for consumers looking to save time and money. They carry an extensive selection of high-end home improvement products, with products in three main categories: Appliances, Kitchen & Bath Fixtures, and Home Theater.
INDUSTRIAL SPACE – 1991 E AJO WAY, TUCSON
1991 East Ajo, South Gate Business Park
BodyCentral Physical Therapy Ultimate Sports Asylum leased 9,600 square feet within South Gate Business Park at 1991 E. Ajo Way in Tucson from South Gate Partners II, LLC. The Sports Asylum is a new concept for the practice and the first of its kind in Tucson combining traditional physical therapy with an elite sports training facility designed to bring athletes back to full performance after an injury and beyond traditional physical therapy. The sports training facility will also be made available to the public.BodyCentral’s other two locations at 3124 North Swan Road in Tucson and 8327 N. Oracle Rd in Oro Valley are both 5,000 sq. ft. facilities with gyms and state of the art cardiovascular and weight training equipment. Each has 12 and 6 treatment rooms, respectively, and features community awareness seminars and wellness classes. There is also an orthotic fabrication center where custom hand splints and foot orthotics are made.
Aaron LaPrise, Retail Specialist with Cushman & Wakefield | PICOR in Tucson, represented the tenant in this transaction. Ron Zimmerman with Newmark Grubb Knight Frank in Tucson represented the Landlord.
MEDICAL OFFICE SPACE – 6296 E GRANT RD, TUCSON Oasis Cosmetic Clinic leased a 3,025 sq. ft. space at Wilmot Professional Plaza, 6296 E Grant Road, on the SW corner of Grant Rd and Wilmot Rd in Tucson. The premises will be used as a medical office specializing in cosmetic medical services. They are currently open for business. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker of Tucson, while Jeff Casper of CBRE in Tucson represented the Tenant.
MEDICAL RESEARCH SPACE – 6296 E GRANT RD, TUCSON Radiant Research leased a 2,085 sq.ft. space at Wilmot Professional Plaza, 6296 E Grant Road, on the SW corner of Grant Rd and Wilmot Rd. in Tucson. The premises will be used as an office specializing in medical research services. They are scheduled to open for business in August 2013. Andy Seleznov and Melissa Lal represented the Landlord, Larsen Baker, while Mike Gordon of Cresa represented the Tenant.
RETAIL SPACE- 3921 E PIMA ST, TUCSON Skin Xcellence Salon leased a 900 sq.ft. space at Frontier Village, located at 3921 E Pima Street, on the NE corner of Pima St. & Alvernon Way in Tucson. The premises will be used as an aesthetics office specializing in facials, and other skin related products and services. They are scheduled to open for business October 2013. Andy Seleznov and Melissa Lal, represented the Landlord.
RETAIL SPACE – 3682 W ORANGE GROVE, TUCSON
Massage Envy leased a newly constructed 3,200 sq. ft. freestanding building at Marana Marketplace, 3682 W Orange Grove, on the SE corner of Orange Grove Rd. and Thornydale Rd. in Marana, AZ. The premises will be used as a massage clinic and for the sale of related products and services. The Massage Envy Spa Franchise has over 800 spa franchises in 45 states. They are scheduled to open this fourth location in Tucson for business in November 2013.
Andy Seleznov and Melissa Lal, represented the Landlord, Larsen Baker. Gordon Wagner of Coldwell Banker Residential Brokerage represented the Tenant.
RETAIL SPACE – 5605 E RIVER RD, TUCSON Subway Restaurant leased a 1,102 sq. ft. retail space at River Center, 5605 E River Road, located on the NE corner of River Rd. and Craycroft Rd. in Tucson. The premises will be used as a restaurant selling sandwiches and salads for consumption on and off site. They are scheduled to open for business August 2013. Andy Seleznov and Melissa Lal, represented the landlord, Larsen Baker of Tucson.
RETAIL SPACE – 5350 E BROADWAY BLVD, TUCSON The Candle Factory leased 2,047 sq.ft. at The Plaza at Williams Centre, 5350 E Broadway Blvd., located on the SW corner of Broadway Blvd and Craycroft Rd. in Tucson. The premises will be used as a retail store selling and producing candles, fragrant oils, and related products and supplies. They are scheduled to open for business September 2013. Andy Seleznov and Melissa Lal represented the landlord, Larsen Baker of Tucson.
OFFICE SPACE – 177 N CHURCH AVE, STE 200, TUCSON Dibble Engineering leased a new office at 177 N Church Ave. in Tucson. Since 1962, Dibble Engineering, a Phoenix-based company, has provided complete civil engineering and construction administration services across eight specialized practices: Airport Infrastructure, Drainage and Flood Control, Water/Wastewater, Infrastructure Rehabilitation, Site Infrastructure, Survey/GIS, Transportation, and Land Development. The company’s other two offices are in Goodyear and Phoenix. They currently are open for business.
Projects in the Tucson area for the company include projects at Ryan Airfield, Tucson Airport, Avra Valley Transmission study and a main study for a site infrastructure project for the UofA.
