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Colonia de Tucson Apartments at 1331-1335 West St. Mary’s Road in west Tucson sold for[mepr-show rules=”58038″]$2.38 million ($28,000 per unit). The seller was a private investment group out of Indiana.

Colonia de Tucson is a two-story apartment community built in 1983, comprising 84-units. The unit mix is approximately 52% one-bedroom and 48% two-bedroom units. Construction is of wood and painted stucco, with built-up roofs. Common amenities include a swimming pool, outdoor barbeques, two laundry facilities and 107 open parking spaces. Unit amenities include walk-in closets for the one-bedroom units. The property has a designated leasing office.

Colonia de Tucson is a combination of two adjacent properties, but are managed together and treated as one property. Recent exterior renovations were made to Colonia de Tucson Colonia de Tucson Apartments prior to sale. Colonia de Tucson is also convenient to public transportation, with bus service provided along St. Mary’s Road.

Several neighborhood shopping centers, parks, churches and public facilities are located within one mile of the property. The University of Arizona and Pima Community College West campus are all located within easy driving distance. St. Mary’s Hospital, a major source of employment, is one-half mile west of the property.

Natan Jacobs of the Vestis Group when asked ‘why here’ commented, “His buyer just wasn’t able to find what they wanted in the Phoenix inventory, so they moved on to Tucson and are looking for more investments in Southern Arizona.”

Bill Hahn, Trevor Koskovich and Jeffrey Sherman of Colliers International in Phoenix represented the seller. Natan Jacobs and partner, Les Litwin of the Vestis Group in Phoenix represented the buyer.

Hahn can be reached at (602) 222-5105, Koskovich is at (602) 222-5145, and Sherman at (602) 222-5109. Jacobs and Litwin should be contacted (602) 387-5330.[/mepr-show]

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[ismember]Sale date 7/10/2013. Recent renovations ATOS included: new playground, basketball court, trash cans, mailbox enclosures, fencing, paint, roofs, A/C’ s, signage, landscaping, slurry and striped parking lot, security cameras, ramadas, pool area with shading and furniture. Property sold at an 8.9% cap based on an NOI of $211,200 at time of sale, with 4-5 units vacant.   [/ismember]

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Dominium, a Minneapolis-based company, purchased Sahuarita Mission Apartments at 1091 Beta Street in Sahuarita, AZ, southwest of Tucson, for[mepr-show rules=”58038″]$2.08 million ($40,000 per unit). The seller, Sahuarita Ridge Apartments of Chandler, an affiliate of the Arizona Community Action Program, developed the affordable housing program project.

The program regulations are under Section 42 of the Internal Revenue Code that encourages developers to build affordable housing to meet the needs of the community in exchange for receiving Housing Tax Credits. Property owners must keep the units affordable for a specified number of years, with affordable rents defined and calculated based on Median Household Income figures published annually by the U.S. Department of Housing and Urban Development (HUD).

The 52-unit apartment complex offers large two- and three-bedroom floorplans, built in 2000, on 2.88 acres. Common amenities include a playground and picnic and BBQ area.

The new owner, Dominium is a developer and manager of multi-family properties nationwide, based in Minnesota. With more than 21,000 owned and/or managed units at 197 sites in 19 states. The company has received numerous awards from Affordable Housing Finance Magazine, awarded for its activity in the affordable housing industry as well as portfolio expansion.

Mark Laverty of Dominium said, “This is our first addition in the Tucson area to our portfolio, but we view it as a strong, recovering market that represents good value.” Dominium will handle the property management and leasing out of their regional office in Phoenix, and hire on-site managers and maintenance personnel. In Arizona, the company owns with this acquisition, 392-units at four properties located in Phoenix, Show Low and now Sahuarita, Arizona.

The community is close to shopping, schools and restaurants. Sahuarita Mission has a Walk Score of 52 out of 100 which means some amenities are within walking distance. The most walkable coffee shop is Starbucks. Restaurants nearby include Coach’s All American Bar & Grill, Domino’s Pizza, Dairy Queen Brazier, Arby’s, Manuel’s Restaurant, Burger King®, Papa Murphy’s Take ‘n’ Bake, and Jerry Bobs Restaurant. Nearby schools include Shepherd’s Fold Preschool and Day Care.

There were no brokers involved in the transaction, the seller and investor were self-represented in the transaction.

Laverty can be contacted at (763) 354-5632. The Community Action Program can be reached at (480) 963-4321. [/mepr-show]

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[ismember]Sale date was 7/8/2013. Buyer reported that property sold with unspecified deferred maintenance that was estimated at $100,000 to cure.  [/ismember]

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Realty Income Corporation, a California REIT, through an affiliate purchased the Family Dollar store at 6641 N Sandario Road in the Picture Rock area of Tucson for[mepr-show rules=”58038″]$1.62 million ($206 PSF). Built in 2012, the 7,880 sq. ft. Family Dollar is on a .97 acre lot by the seller. The Hutton Company of Chatanooga, TN.

As one of the largest discount retailers in the United States, Family Dollar continues to gain market share and appeal from net lease investors. Family Dollar holds investment grade credit ratings from S&P (BBB-) and Moody’s (Baa3) and operates under a landlord friendly net lease structure. As a result, free-standing Family Dollar retail stores provide an attractive combination of a long-term lease, investment grade credit, and a growing market concept that continues to capture value conscious shoppers, which boosts store productivity.

In 2011, Family Dollar started a multi-year initiative to re-energize the brand. The program included physical improvements to building facades, fixtures and signage, and expanding in-store offers. These improvements took place to existing stores, while the company also focused on market expansion and store relocations.
Realty Income Corporation (NYSE: O) is a real estate investment trust known as “The Monthly Dividend Company” (a registered trademark) for its practice of paying investor dividends on a monthly rather than quarterly basis. It is chartered in the state of Maryland and has its headquarters in Escondido, California. As of January 2013, the company owned over 3,500 commercial real estate properties in 49 states, with total assets of approximately $9.0 billion and net income of $115 million.

Founded in 1969 by William E. Clark and Evelyn J. Clark. Realty Income’s first acquisition was a Taco Bell restaurant in early 1970. By 1992 the company had formed 22 partnerships, which controlled 628 properties and involved 68,000 individual partners. In 1994, Realty Income Corporation merged its various partnerships into a publicly traded company, listed on the New York Stock Exchange with the single letter “O” as its symbol. In the first quarter of 2013 Realty Income saw its revenues rise more than 52% over the same quarter from the previous year.

The company primarily acquires properties that are freestanding, single-tenant locations, and that are leased to regional and national commercial enterprises under long-term net-lease agreements.

The Hutton Company can be reached at (423) 756-9267. Realty Income is at (877) 924-6266.

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[ismember]Sale date: 6/21/2013. Exact sale price was $1,620,648. The typical Family Dollar net lease is 10 years with successive option periods when the rent increases 10% every five years during the options. The Family Dollar net lease typically requires minimal responsibilities from the landlord, limited only to roof & structural maintenance while the tenant is responsible for insurance, taxes and all other maintenance and repairs. Recently, Family Dollar has offered sale-leasebacks with 15-year NNN leases which might be an indication that the build-to-suit programs will also start producing NNN opportunities. CAP Rate 2012 avg. 8.66% 2013 avg. 7.22% [/ismember]