Volk Closes 3 Office Deals in 7 Days – Tucson Office Sales up 17.79% Y-O-Y

2020 E Broadway Blvd, Tucson

TUCSON, ARIZONA – Office and medical office sales volume surpassed the $22 million mark in metro Tucson in Q1, up 17.79% over one year ago. The average sale price was $588,315 and median price $356,750, all trending in a positive direction.

The highest sale price was $3.25 million for 6950 E Golf Links Road, the 13,989-square-foot El Rio Santa Cruz Neighborhood Health Center South Campus purchased by the tenant to be owner occupied. Rounding up the top three sales, there was Northwest Allied Physicians Medical Office, 7,805-square-feet at 7890 N Cortaro Road in Marana for a $2.875 million investment and 16,830-square-feet at 6420 E Broadway Blvd. in Tucson for a $2.5 million investment.

Market fundamentals have significantly improved from a year ago, and momentum appears to be continuing into Q2 as expected.

Kevin Volk with Volk Company in Tucson reported Monday marked three successful closings of owner/user sales for office properties over the course of the past week:

  • 1247 & 1249 E 22nd Street (office/industrial) sold for $437,000. “A great freestanding building in a location near downtown that will only get better,” said Volk.  John Ash of CBRE represented seller, Robert Williams of Texas while Kevin Volk represented the buyer, TRC Properties. Closed 5/8/18.
  • 6802 E Broadway Blvd. (office) sold for $755,000 ($160 PSF), a very strong number for the East Side office market.  Bruce Suppes of CBRE represented buyer, Tucson Broadway Property and Volk represented the seller, Prince Lane Properties (Tracy Cole). Closed 5/11/18.
  • 2020 E Broadway Blvd. (office) sold for $238,000.  Sales price of $238,000.  This is a great location, but Broadway has been subject to serious condemnation blight, so I’m very happy to get this sold.  Danny Roth of Keller Williams represented buyer, Miguel Fuentevilla, et al and Volk represented the seller, Guihua and Gina Hua Zhang. Closed 5/15/18.

For additional information, Volk should be reached at 520.326.3200.

To learn more, see RED Comp #5664, #5519 and #5630.




Northwest Emergency at Marana Center Ground Lease Sells for $2.8 Million

MARANA, ARIZONA — 6350 Marana, LLC, an affiliate of Miravest, Inc. of Marana (Michael Rabstoff, manager) sold the newly constructed Northwest Emergency Center ground lease at 6350 W Marana Center Blvd. in Marana for $2.775 million ($29 PSF). The 2.2-acre site with an 11,500-square-foot Emergency Center was built-to suit and is one of three lots on the across from Tucson Premium Outlets.

Miravest purchased 6-acres here from Vintage Partners, the developer of the Tucson Premium Outlets across the street in 2015, planning to use half for development of a hotel and the other half for other speculative retail use.

Miravest and HSL Properties have since partnered together in the construction of a four-story Hampton Inn & Suites hotel on approximately 3-acres of the project, at 6300 W Marana Center, that will consist of 101 guest rooms with amenities such as a fitness center, breakfast area, pool and meeting space. The hotel is expected to be delivered this Fall, with an anticipated September opening, according to Rabstoff.

Development of the remaining lot is yet to be determined, Rabstoff told us.  It would make a great coffee shop or other fast food use that needs a drive-thru. Across from the 90 store outlet center and near new residential development on all sides, the property also has I-10 visibility.

Jamie Medress with Marcus & Millichap in Phoenix represented the seller in the ground lease sale. Brian Parnareck and Josh Hergott with Marcus & Millichap In Chicago represented the investor, a family trust from Los Altos, California.

For additional information, Medress can be reached at 602.687.6770. Rabstoff is marketing the remaining retail pad himself and should be contacted at 520.395.1086 for more details.

To learn more, see RED Comp #5731.




Tanque Verde Apartments in Tucson Sell for $26.5 Million for 428-Units

Tanque Verde Apartments, 7671 E Tanqe Verde Rd., Tucson, AZ

TUCSON, Arizona — CBRE has completed the sale of the Tanque Verde Apartment complex, 428-unit multifamily community located at 7671 E. Tanque Verde Road in Tucson, Ariz. The multifamily asset sold for $26.5 million ($61,916 per unit). The property was 96 percent leased at time of sale.

Michael Sandahl with CBRE’s Tucson office, along with Tyler Anderson and Sean Cunningham with CBRE’s Phoenix office, represented the seller, North Salt Lake, Utah-based Chartwell Capital Partners, LLC. The buyer was a California investor from Marina Del Rey, CA that purchased it under the name of Tanque Verde-Tucson Apartments, LLC.

“The seller purchased the property in 2014 for $21.3 million after it had undergone significant capital improvements worth more than $5 million, including a complete re-roofing, master heating and cooling system replacements, and solar systems and water conversation measures designed to make the property as energy efficient as possible,” said CBRE’s Sandahl. “What’s more, a portion of the units have been upgraded with premium finishes. The property offers an exceptional value-add opportunity to increase revenue by continuing the existing and proven interior upgrade program.”

The Tanque Verde apartment complex was developed in two phases, in 1979 and 1981. Units have been upgraded with new appliances, new cabinets, resurfaced countertops, upgraded fixtures, flooring, mirrored closet doors, microwave oven/hoods, and other improvements. Situated in northeast Tucson, the community benefits from the surrounding strong employment base, class A developments and premier housing options offering residents first-class amenities in a highly desirable location.

Tanque Verde also enjoys proximity to numerous amenities, including grocery, banks, restaurants, and other retail services. Morris K. Udall Park, one of the largest and most popular municipal parks in Tucson, is located across the road from Tanque Verde Apartments, and bike trails and abundant recreation are nearby, including Sabino Canyon and the Mt. Lemmon Recreation Area.

To learn more Sandahl should be reached at 520.323.5100. Anderson and Cunningham can be contacted through the Phoenix office at 602.735.5555.

To learn more, see RED Comp #5647.




Avilla Sabino I & II Sells for $42.3 Million, Hits Highest Price Per Unit for Tucson

Avilla Sabino II, 3500 N Sabino Canyon Rd., Tucson, AZ

Highest per unit price recorded for non-student housing with 40+ units in the Tucson

TUCSON, ARIZONA – Alta Vista Communities of Tucson, an affiliate of Aerie Development (Roger Karber, manager) sold Avilla I & Avilla II luxury communities on the southeast and southwest corners of River and Sabino Canyon Roads in Tucson for $42.3 million ($231,169 per unit) for the aggregate 183-units. The transaction represents the highest per unit price hit by non-student housing with 40+ units in the Tucson metro area.

Avilla Sabino I (built in 2016) at 3515 N Sabino Canyon Road has 53 two- and three-bedroom unit mix and sold for $11.764 million ($234,925 per unit). Avilla Sabino II (built 2017) at 3500 N Sabino Canyon Road has 130 three-bedroom / two-baths units and sold for $30.54 million ($221,957 per unit). Across the street from each other,
both exclusive gated rental communities are in the heart of breathtaking Sabino Canyon. The homes feature luxury finishes you would expect to find in a custom home: private backyard, 10 feet prime ceilings, granite countertops, stainless steel appliances, dramatic clerestory windows that bring the beauty of natural light and Sabino Canyon inside. Avilla Sabino I & II combines luxury living within minutes of the Catalina Mountains, Mount Lemmon and infinite hiking, biking and recreational opportunities.

The property was running at 95% occupancy when it sold.

Avilla Sabino I, 3515 N Sabino Canyon Rd., Tucson, AZ

The seller, Alta Vista Communities is a joint venture of Karber Holdings (Roger Karber) and Brav Holding Company (Garry Brav) an affiliate of BFL Construction, the contractor for the communities.

Senior managing director, Art Wadlund and associate Clint Wadlund of the Tucson Berkadia office negotiated the transactions for the seller.

“This is the second Avilla community that Aerie has sold to Farnam, following the sale of Avilla San Marcos in Chandler, Arizona in 2016,” said Wadlund.  “The buyer has been very happy with the performance of this single-story detached product and wanted to add Avilla Sabino to their portfolio.”

The buyer was Phoenix-based Farnam Companies (Charles Duff, manager) that purchased the Alta Vista community in Chandler, AZ several years ago for $45 million.

“Alta Vista recently sold three properties with an aggregate value of $135 million,” Karber told us. “The Avilla community on Orange Grove under construction, with 240-units has 100-units completed and leasing, that project should be finished before year end.”

For more information, Art Wadlund should be contacted at 520.299.7200 and Clint Wadlund is at 520.529.9206.

To learn more, see RED Comp #5762 and #5763.

 




Tucson Student Housing 4-Plex Fetches $2.85 Million for 32-Beds

50 N Mountain Ave., Tucson, AZ

TUCSON, ARIZONA – Student Housing at 50 N Mountain Ave. in Tucson sold for $2.85 million ($89,000 per bed) to investors from Glendora, California by a Family Trust in Los Osos, California.

The newer construction (built 2015) was built for student housing within 3 blocks of the University of Arizona. This property integrates metal roofing with block and stucco finishes for a modern look that the students love with a floorplan designed by and for students.

The property consists of a 4-units with 8 bedrooms / 3.5 baths per unit, or 32-beds. The large units have huge common areas, all tile floors throughout, hardwood cabinets, Corian counters, and upscale finishes and appliances.  A swimming pool, large parking lot with 14-spaces, basketball hoops, and a fully enclosed yard with barbeques and common area are just some of the amenities.

Property was fully leased through July 2018 at time of sale.

Jarrett Reidhead of Tucson Integrity Realty in Tucson handled the transaction for both buyer and seller.

“It’s been and still is a steady buyer’s market,” Reidhead said. “But with all the new inventory coming on the market, we can expect downward pressure on rents and a market cool down to follow.”

Reidhead managed the property for the seller and will continue to manage it for the new owners.

For more information Reidhead should be contacted at 520.331.8050.

To learn more, see RED Comp #5610.




Vail, AZ is New Hotspot for Residential Lot Sales in April

TUCSON, ARIZONA – Residential lot sales in Tucson metro area totaled $1.8 million for the month of April, with the most lots being sold in the Vail area, in the southeast submarket of Tucson.

KB Home Tucson purchased 42 lots at Mountain Vail Reserve from Civano Nursery of Tucson (Alex and Leslie Shipley, managers) for $1.008 million or $24,000 per lot. The lots were platted and engineered and the final takedown of an option agreement that began in April 2017 for 77-45’x90’ partially improved lots.

Ben and Adam Becker of CBRE in Tucson represented the seller and Aaron Mendenhall with KB Home Tucson handled the sale.

For more information, Ben Becker is at 520.323.5149 and Adam Becker can be reached at 520.323.5188. Mendenhall can be contacted at 520.622.2919.

To learn more, see RED Comp #5746.

RMG Vail, LLC of Chicago (Sheldon Mandell, manager) purchased 4.51 acres of vacant land known as block 40 at Rancho del Lago in Vail from Spectrum Capital Partners, LLC for investment. The purchase price was $350,000 ($77,605 per acre). The buyer plans to hold the property for future development.

Mike Chapman of NAI Horizon represented the seller and Randy Emerson of GRE Partners represented the investor.

For more information, Chapman can be reached at 520 591 5188 and Emerson should be contacted at 520.777.4949

To learn more, see RED Comp #5740.

Tucson Land, LLC of Chicago (Sheldon Mandell, manager) sold six lots at Santa Cruz Meadows in Sahuarita to DR Horton, Inc. for $306,000 ($51,000 per lot). The lots are part of a rolling option for 93 finished lots.

Dan Feig of Chapman Lindsey Commercial Real Estate represented the buyer and Randy Emerson of GRE Partners represented the seller.

For additional information, Feig can be reached at 520.747.4000 and Emerson is at 520.777.4949.

 

 




Healthcare Trust of America Inks Lease in NW Tucson

Gateway Medical Plaza, 6320 N La Cholla Blvd., Tucson, AZ

TUCSON, ARIZONA – Healthcare Trust of America, Inc. of Scottsdale (NYSE: HTA), the largest dedicated owner and operator of medical office buildings (“MOBs”) in the United States, based on gross leasable area (“GLA”),  renewed its leased office space to Tucson Orthopaedic Institute at La Cholla Medical.

The tenant, Tucson Orthopaedic Institute, leased 20,317-square-feet at 6320 N La Cholla Blvd. in Tucson with Northwest Tuscon Surgery Center on-site. Gateway Medical Plaza is a 60,160-square-foot, three-story medical office building on the Northwest Medcal Center Campus, at the southeast corner of Orange Grove and La Cholla.

Dean Cotlow of the Cotlow Company in Tucson handled the transaction valued at $2.5 million.

For more information, Cotlow can be reached at 520.881.8180 or visit it at http://www.cotlow.com/




Cummins Engine Leased Building Sells For $1.1 Million Investment in Tucson

1501 South Cherry Avenue, Tucson, AZ

TUCSON, ARIZONA – Dean Cotlow of the Cotlow Company sold the Industrial building at 1501 South Cherry Avenue in Tucson for $1.1 million ($171 PSF) in an all cash transaction.  The 6,440-square-feet investment property (built 1984) was leased to a Cummins Sales and Service.

Cummins Inc. is a global power leader, and a corporation of complementary business units that design, manufacture, distribute and service diesel and natural gas engines and related technologies, including fuel systems, controls, air handling, filtration, emission solutions and electrical power generation systems. Headquartered in Columbus, Indiana Cummins currently employs approximately 55,000 people worldwide and serves customers in approximately 190 countries and territories through a network of approximately 600 company-owned and independent distributor locations and approximately 7,200 dealer locations.

With over 190 service centers in North America, Cummins Sales and Service is committed to providing exceptional sales, service and parts support for all Cummins engines, generators, and related components. Staffed by Cummins trained and certified professionals, our facilities provide 24/7 emergency call-out service 365 days a year. In addition, mobile on-site service is also available through most of our service centers in North America.

“With vacancy running at about 6% in the Tucson Industrial market and little new construction, the smaller investment opportunities with major tenants such as this are extremely attractive,” stated Cotlow.

The investor was the Gonzalez Family Trust of Corona, California that was represented by Advisors Real Estate of Inland Empire.

Cotlow was self-represented in the transaction and should be contacted at 520.881.8180 for additional information.

To learn more, login and see RED Comp #5666.

 

 




Big O’Tires Coming to Las Plaza at Old Vail

TUCSON, ARIZONA — Las Plazas at Old Vail, a 17-acre retail development at the northwest corner of Houghton and Old Vail Roads in Southeast Tucson, has landed a Big O’Tires in this fast growth retail center. The center is located across from Houghton Town Center and adjacent to the Rita Ranch Vail Community in Tucson and the property address is 10061 East Old Vail Road in Tucson.

OVP Development Company, LLC of Tucson (Bob Davis and Bill Divito) sold lot 2 at Las Plazas at Old Vail commanded a price of $450,000 ($35.85 PSF) for the 12,554-square-foot pad by HH Houghton, LLC of Phoenix (Chris Hinkson, manager) for this build-to-suit Big O’Tires site.

The property sold ready-to-build with roads and all infrastructure in place. The buyer will join such tenants as Native Grill, Taco Bell, Freddy’s Steakburger and Arby’s at the center.

The seller was represented by Nancy McClure of CBRE in Tucson. For additional information, McClure should be contacted at 520.323.5100.

To learn more, see RED Comp #5637.




Downtown Tucson Parking Lot Sells for $3.25 Million or $79 PSF

TUCSON, ARIZONA – The downtown parking lot at 79 East Alameda and 139 Scott Street in Tucson, at the southwest corner of Scott and Alameda, commanded a sale price of $3.25 million ($79 PSF) to an Austin based developer, TAZ Parking, LLC. The sale price represents the highest price per square foot for a parking lot in downtown Tucson since 2015 when 211 S Stone sold for $76 per square foot.

The Woodward Family (Leon Woodward, manager), the seller, had owned the parking lot since 2000 as an owner operator. Si Schorr, Sr. Partner at Lewis, Roca, Rothgerger, Christie, LLP represented the seller in the transaction.

Ben Riehle, who worked as a parking lot attendant there while attending the University of Arizona, and Jake Arnold of the APEX Team at Keller Williams of Southern Arizona represented the buyer in the transaction.

The investor plans to continue use of the OCR-3 zoned, 41,284-square-foot lot with 133-parking spaces for parking while holding for development. “With all the new development taking place downtown, a revenue producing open lot in the center of activity seemed a great investment opportunity for the buyer,” Arnold stated. “We have it back on the market already at $3.8 million, the appraised value.”

The buyer has up until now been investing in multi- and single-family investments in the Tucson area with Arnold and Riehle, and is also considering the property for redevelopment as condos and / or retail use.

For more information, Arnold can be reached at 520.505.1015.

Login to learn more.

 

 




Harsch Investment Properties expands AZ portfolio with acquisition of Oro Valley Commerce Center

10831 N Mavinee Dr., Oro Valley, AZ

TUCSON, Arizona – Harsch Investment Properties, a Portland-based real estate investment, development and management company, continued its aggressive growth in Tucson, Arizona with the purchase of Oro Valley Commerce Center for $5.625 million ($124 PSF). A 45,490-square-foot high-tech, R&D industrial property, the recent acquisition puts the company’s industrial portfolio at over 300,000-square-feet in the Tucson metropolitan area.

“We are very pleased to have completed another purchase in Tucson and are looking for more acquisition and development opportunities in the area,” said Jordan Schnitzer, President of Harsch Investment Properties.

Formerly known as Matrixx Business Center, Oro Valley Commerce Center occupies approximately 3.66-acres located at 10831 North Mavinee Drive, off Highway 77 in Oro Valley. Tenants include Roche, Icagen, Freeport McMoRan, Honeywell, NetMedia, and Merle’s Automotive Supply.  Shortly after closing, Arbico Organics finalized a lease for 12,039-square-feet here.

“We were attracted to Oro Valley because of the proximity to central Tucson, the growing housing supply and the proximity to some of the region’s best high tech and bio tech companies in the western United States,” said Harsch Investment Properties Senior Vice President and San Diego Regional Manager Bill Rodewald. “The very limited inventory of multi-tenant industrial and flex product was another factor in selecting this market for investment and growth.”

Robert Glaser of Cushman & Wakefield | PICOR Commercial Real Estate Services in Tucson represented the seller in the acquisition.

For more information, Glaser should be contacted at 520.546.2707.

To learn more, see RED Comp #5692.

 




Tucson Investment Sale of NextCare Urgent Care for $1.175 Million

NextCare Urgent Care, 6238 E Pima St., Tucson, AZ

TUCSON, ARIZONA — Lee & Associates Investment Principals Steve Gonzalez, Marcus Muirhead and Greg Guglielmino brokered the sale of 6238 E Pima Street in Tucson for $1.175 million ($291 PSF) for this single tenant triple-net (NNN) property.

Constructed in 1998 as a build-to-suit for this specific use, NextCare Urgent Care has leased the space for the last 20 years. Located along one of the busiest traffic corridors in Metropolitan Tucson, the property’s location benefits from high multifamily and single-family density as well as strong retail tenants from national and regional companies.

For more information on the properties, visit www.leearizona.com or contact Gonzalez at 602. 474.9588, Guglielmino at 602.474.9590 or Muirhead at 602.474.9589.

To learn more, see RED Comp #5665.