HSL Bringing First Luxury Apartment Community to Vail Submarket in Tucson

Encantada Riverside Crossing in Tucson

TUCSON, Arizona – The Vail Voice reported recently that Vail Arizona, a submarket of eastside Tucson, is getting its first luxury apartment complex. HSL Properties (HSL) is constructing a 312-unit luxury apartment complex in Rita Ranch at 9410 E Valencia Road, at the southeast corner of the Valencia and Nexus, adjoining the Walgreens.

The development will be called Encantada at Rita Ranch.

HSL purchased the approximately 17-acres in 2017 for $3,775,000 and has announced ground breaking to take place this month with first units available to rent for June 2020, and an anticipated completion in 18-20 months.

HSL Properties specializes in hotel and luxury complex development throughout Arizona. HSL is especially known for building quality multi-family housing in the Southwest, with headquarters in Tucson. As HSL Chairman Humberto S. Lopez, noted, “Apartments is our forte.” HSL is the single largest apartment owner in Southern Arizona.

The project will consist of 16 buildings, each 2- or 3-stories high. All apartments will be 1- to 3-bedrooms and will include covered parking and have balconies and/or patios.

The Encantada at Rita Ranch, like other Encantada luxury apartments, will include a clubhouse with a fully equipped fitness room, rental room for parties or special gatherings, a movie theater room, and a swimming pool.

For more information regarding this development and other HSL Encantada properties in Metro Tucson and Phoenix, visit https://hslproperties.com/

Former Tucson FedEx Ground Distribution Building Sells for $4.305 Million

777 E MacArthur Circle, Tucson, AZ

TUCSON, Arizona – The former FedEx Distribution building at 777 E MacArthur Circle sold for $4.305 million ($37.79 PSF). The 113,920-square-foot building (build in 1985) on 5.96 acres was purchased for investment by MacArthur Investments, LLC (Robert Assenmacher, member).

Brandon Rodgers, SIOR, CCIM with Cushman & Wakefield | Picor represented the buyer and has the leasing contract for the building.

Rodgers says there is a single tenant looking to lease the building, but if not, then the buyer is prepared to divide it into smaller spaces to lease. Zoned heavy industrial, the property has 27 docks and 6 drive-in doors. Two 480V services, one with 900 amps and the other with 1,300 amps for power.   

The seller was US Bank Association that sold the property at Auction.

The property has been vacant since 2015 when FedEx Ground left to build a new 210,440-square-foot facility to accommodate the increased daily package volume and further enhance the speed and service capabilities of the FedEx Ground network. See Real Estate Daily News for full story here FedEx Ground Building 210,440 SF Logistics Center in Tucson

For more information, Rodgers should be contacted at 520.546.2714.

To learn more, see RED Comp #6735.

Micro-Hospital Coming to La Estancia MPC in Tucson

TUCSON, ARIZONA – Sunbelt Holdings, the developer of La Estancia MPC, the latest master planned community in Tucson, is gaining a Micro-Hospital at its award-winning community. Tucson Micro-Hospital, LLC, an affiliate of Tenet Healthcare Corporation, bought 3.96 acres of raw land for $690,600 ($4 PSF) to construct a 25-bed micro-hospital. Ground breaking is expected to be within weeks.

The micro-hospital will be located at the Wilmot Road entrance of La Estancia and focus on providing emergency and lower acuity inpatient procedures, with an around the clock emergency center staffed by board-certified emergency physicians. Additional services include inpatient surgery, diagnostic imaging, laboratory and pharmacy.

A fairly new concept in Arizona, similar micro-hospitals built by Tenet in Phoenix and Marana have a footprint and design within a 32,500-square-foot building. See also Real Estate Daily News article Micro-Hospital Site sells in Marana at Cortaro Ranch

Tenet Healthcare Corporation is a diversified healthcare services company with 115,000 employees. Through its subsidiaries, partnerships and joint ventures, including United Surgical Partners International it recently acquired, the Company operates general acute care and specialty hospitals, ambulatory surgery centers, urgent care centers and other outpatient facilities in the United States and the United Kingdom.

La Estancia is a 565-acre community, located along the I-10 corridor between Wilmot Road and Kolb Road, and offers residents access to the nearby Julian Wash trail system. The community is within close proximity to the University of Arizona Tech Center, Amazon fulfillment Center, the David-Monthan Air Force Base, Tucson International Airport and in the highly-ranked Vail School District.

Greg Mohl, Vice President at Sunbelt, handles the Tucson portfolio and had this to say, “We found the sweet spot for La Estancia is its location.  There are currently 859 lots spoken for in the community with three builders: Meritage, Richmond and Lennar. We also have about the same number of lots on the southside of I-10 still to be developed.”

Will White and John Carroll of Land Advisors Organization in Tucson handled the land sale transaction and represents Sunbelt Holdings at La Estancia.

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

To learn more, see RED Comp #6771.

Medical Office Portfolio in Tucson sells for $13 Million

TUCSON, ARIZONA – Healthcare Realty Trust of Nashville, TN sold a medical office portfolio totaling 67,745-square-feet across four buildings in Tucson, Arizona for $13 million ($192 PSF) to a joint venture between Texas-based Pisula Development Company and Harrison Street of Chicago.

Pisula Development Company (PDC) and its affiliates form a full service, commercial real estate group located in The Woodlands, Texas.  Together they provide property, asset and facilities management services for just over 2.3 million square feet of commercial real estate.  PDC has broken ground on or acquired over 64 projects over the past 16 years.

Harrison Street is a leading alternative investment management firm focused on the Education, Healthcare and Storage sectors.  The firm has created a series of differentiated investment strategies across multiple risk/return platforms.  Headquartered in Chicago, the firm employs a 140-person team with approximately $18.3 billion in assets under management.

The portfolio comprises Magee Medical Plaza at 551 W Magee Road, Riverstone Medical Plaza at 4892 N Stone Avenue, St. Mary’s Medical Plaza at 1704 W Anklam Road and Green Valley Medical Plaza at 1055 La Canada Drive.  All the properties are located in highly trafficked medical and retail corridors in the Tucson MSA.  Two of the properties are fully leased to Carondelet Health Network and are critical locations in their outpatient care delivery network.  Additionally, St. Mary’s Medical Plaza is situated on the campus of the award-winning 349-bed Carondelet St. Mary’s Hospital.  The portfolio is 95.5 percent leased overall and is anchored by Carondelet Health Network, one of Southern Arizona’s largest health systems.

The Holliday Fenoglio Fowler, L.P. (HFF) team represented the seller and procured the buyer.

The HFF investment advisory team representing the seller comprises members of HFF’s national medical office capital markets team, including managing director Evan Kovac, directors Andrew Milne and Anthony Frogameni, senior associate Trent Jemmett, and senior director Ben Appel and associate Matt DiCesare.  Senior director John Chun, also a part of the national medical office capital markets team, provided debt advisory for the transaction.

Director Ben Geelan provided local market expertise in conjunction with the larger team.

For more information, Geelan should be reached at 602.648.8700.

To learn more, see RED Comps #6716, #6717, #6718 and #6719 .

Office Building at Camp Lowell Corporate Sells for $2.37 Million

4544 East Camp Lowell, Tucson, AZ

TUCSON, ARION — Labrador Capital, LLC (Robert Assenmacher, manager) purchased a 10,120-square-foot office building located in Camp Lowell Corporate Center, 4544 E. Camp Lowell Dr. (Building. K) in Tucson, from RLP Building, LLC (Rick Gregson, member) for $2.37 million ($234 PSF).

The two-story Class “A” office building is the signature property at Camp Lowell Corporate Center as it is situated at the entryway into the development. The property is situated in the robust East Central Office Sub-Market area which is considered one of the most desired office and/or medical locations in Tucson. This corporate headquarters styled building was fully leased with the main tenant occupying over 90% of the building since it was first built specifically for them in 2004.

The other tenant has been in the building for many years and is on a short-term lease should the anchor tenant need space to grow. This arrangement has been in place for many years.

The building was recently painted, carpeted and had all of the HVAC units replaced. It has been well maintained by the tenants. All of these recent upgrades were paid by the tenants in late 2018.

The investment sale occurred April 26, 2019

Brandon Rodgers, SIOR, CCIM, Principal and Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction.  Mark Irvin, SIOR, CCIM with Mark Irvin Commercial Real Estate Services, LLC, represented the seller.

For more information Rodgers can be reached at 520.546.2714 and Irvin should be contacted at 520.620.1833.

To learn more, see RED Comp #6749.

Parker Fasteners Expands in West Valley with $3.6 Million Purchase

26815 W. Baseline Road in Buckeye, AZ

Phoenix Manufacturing Is Back… and High Paying Jobs with it!

BUCKEYE, ARIZONA — Parker Fasteners, LLC purchased a 45,909-square-foot, previous Golden Eagle Distributors cold storage industrial building, located at 26815 W. Baseline Road in Buckeye, AZ, from VLC Properties, LLC for $3.6 million ($78. PSF) for manufacturing expansion.

Parker Fasteners is an American cold heading fastener manufacturer that specializes in socket cap screws and specialty fasteners.  The company holds over 125 years of combined experience spanning two generations.

Parker Fasteners has been on a fast growth course since founded and completed a successful transition from AS9100 Rev. C to AS9100 Rev. D certification recently, two years of its original QMS certification, in March 2018. Pushing forward during the month of August 2018, Parker Fasteners also became ITAR registered. Five months later without skipping a beat or losing momentum; Parker Fasteners began the year passing recertification / surveillance of AS9100 Rev. D during the month of January 2019. All of this came on the heels of changing to a new registrar; converting to a new ERP software; and transferring to a new payroll service provider. Within those five months, Parker Fasteners maintained monthly plant meetings, employee of the month rewards, hired 6 employees, gave out 2 bonus checks, had a Dave & Busters Christmas Party, took an entire week off and managed a profit for the end of the year to cap it off.

Michael S. Hammond, CRE, SIOR, CEO with Cushman & Wakefield | PICOR of Tucson, and James Wilson with Cushman & Wakefield Arizona (Phoenix), represented the seller in this transaction.

Bob Crum with Ross Brown Partners, Inc., represented the buyer and was happy to tell us, “Manufacturing is back in Phoenix – creating high paying jobs that some thought we’d never see again. Manufacturing jobs are back and bringing high pay jobs with it.”

For additional information, Crum should be reached at 480.362.9521. Hammond can be contacted at 520.546.2700 and Wilson is at 602.229.5923.

United Flea Markets Acquires Tanque Verde Swap Meet in Tucson for $7 Million

The acquisition marks the company’s first property in Arizona as well as its first venue with nighttime hours

Denver, Colo. – Denver-based United Flea Markets, owner of the largest portfolio of flea markets in the country, has acquired the Tanque Verde Swap Meet at 4100 S Palo Verde in Tucson, Arizona for $7 million ($5.35 PSF)

United Flea Markets is the country’s foremost flea market ownership and management company with 12 properties in its rapidly expanding portfolio nationwide, bringing to each a valuable mix of small-company agility paired with finely tuned business acumen.  

Open year-round, the Tanque Verde Swap Meet offers selling space for approximately 750 vendors across 30 acres. Visitors find a large selection of goods and services including clothing, furniture, antiques, fresh produce, services, and other unexpected bargains. A variety of food and beverage choices including street tacos, burgers, fry bread and cotton candy, as well as rides for children, round out the offerings.

Unique to the United Flea Markets’ portfolio, Tanque Verde offers both daytime and evening swap meets, with live music and nostalgic Edison lights adding to the festive atmosphere until 11 p.m. on Fridays and Saturdays.

Rob Sieban, president, CEO and co-owner of United Flea Markets and former chairman and president of the National Flea Market Association, said he’s thrilled to expand into Arizona with the addition of Tanque Verde.

“Tanque Verde Swap Meet boasts longevity, a large and dedicated following, and a truly unique experience that appeals to multiple generations,” he said. “During the evening hours, guests stroll and shop while enjoying live music, great food and a fresh-squeezed margarita. Add in the live music and rides for kids and there really is something for everyone. It’s a great addition to our portfolio.”

Sieban said that the decision to acquire Tanque Verde was based as much on reputation and fit as it was the departing owners’ leadership. “Founders Richard and Monica Chapin have adeptly guided the swap meet since its founding in 1975. We’re looking forward to building upon their solid foundation and further positioning the swap meet for the next 50 years of operation.”

Richard Chapin noted that while the transition marks a significant change for his family, he’s confident in United Flea Markets’ vision for the future. “It was really important to my family that the new ownership team understand the swap meet’s past while looking to the future,” he said. “United Flea Markets’ business acumen paired with its love for the industry ensures that Tanque Verde is in good hands.”

In keeping with United Flea Market’s desire to provide continuity for sellers and guests alike, most Tanque Verde Swap Meet staff, including the general manager, will be staying on. The company plans to invest in capital improvements like enhanced technology, including Wi-Fi throughout the market, and building and grounds upgrades.

Tanque Verde Swap Meet hours are Friday, 3 pm to 11 pm; Saturday, 7 am to 11 pm; and Sunday, 7 am to 3 pm. Admission and parking are free.

Flea market owners interested in learning more about investments from United Flea Markets can visit http://www.unitedfleamarkets.com or call 720.592.0260.

To learn more, see RED Comp #6756.

Three Value-Add Apartments Sales in Tucson Total $4.85 Million

Palo Verde Terrace

TUCSON, ARIZONA — Joseph Bernard Investment Real Estate with offices in Oregon, Washington and Arizonaclosed on three apartment buildings in Tucson for a combined total of $4.85 million for 96-units ($50,521 per unit).

Palo Verde Terrace Apartments at 3493 E Lind Rd., Tucson, AZ 85716 sold for $2.35 million ($45,192 per unit). The 52-units sold to 5330 Bellevue Investments, LLC of Scottsdale, Arizona (Spencer Quale, member). Joe Boyle with Joseph Bernard Investment Real Estate represented the seller, Palo Verde by Bakerson, LLC of Phoenix. Joseph Chaplik with Joseph Bernard Investment Real Estate represented the buyer. This transaction closed April 26, 2019.

Bellevue Apartments

Bellevue Apartments at 5330, 5342 & 5348 E Bellevue St., Tucson, AZ 85712 sold for $1.55 million ($64,583 per unit). 5330 Bellevue Investments sold the 24-units to Bellevue One LLC & Bellevue Two LLC of Beaverton, Oregon (Kenneth Schnerch, manager). Joseph Chaplik with Joseph Bernard Investment Real Estate represented both the buyer and the seller in this transaction that closed April 24, 2019.

Sherwood Terrace

Sherwood Terrace Apartments at 114 E Mohave Rd., Tucson, AZ 85705 sold for $950,000 ($47,500 per unit). The 20-units sold to Clark H. & Kathryn A. Reed of Portland, Oregon. Joseph Chaplik with Joseph Bernard Investment Real Estate represented the buyers. Joe Boyle with Joseph Bernard Investment Real Estate represented the seller, Sherwood Terrace Apartments, LLC of Chandler, Arizona (The Levenson Family Trust). The transaction closed on April 25, 2019.

For more information, contact Boyle and Chaplik at 480.305.5600.

To learn more, see RED Comp #6746, #6747 and #6748.

Pulte Home Buys Lazy K Bar Ranch in Marana

Lazy K Ranch rendering (photo courtesy of The Planning Center)

Marana, Arizona — Pulte Home Company, LLC purchased the 139-acre Lazy K Bar Ranch on April 29 from LKB Hotel, LLC. The property is comprised of 178 platted and engineered lots.

The $6,500,000 purchase is in two equal stages of 89 lots each. The property is located on Scenic Drive and Pima Farms Road in Marana. The lots vary in size from 7,000-square-feet up to 11,000-square-feet and most back up to open space and have sweeping city and mountain views.

The Lazy K Bar Ranch has a long and rich history as a southern Arizona dude ranch dating back to the 1930’s and its spectacular setting has provided the backdrop for several Hollywood films. Over the past few years the Lazy K has been the subject of a controversial rezoning in the town of Marana.

The seller was represented by Randy Emerson of GRE Partners.

For more information Emerson should be reached at 520.429.4967.

Tucson Circle K Trades Off Market for $2.15M and 7.6% Cap

Circle K, 655 W 22nd St., Tucson, AZ

TUCSON, Arizona – Situated directly off of Interstate-10 and 22nd Street in Tucson, the +/- 2,904 square foot Circle K building sold at a 7.6% cap rate, or for $2,150,000 ($740 PSF). The property has excellent street exposure, with immediate access to Interstate 10.

Situated in the South Tucson Retail submarket, the fully occupied Circle K is near several amenities, including the Tucson International Airport and downtown Tucson.

Nick Miner, CCIM of ORION Investment Real Estate exclusively represented the Seller, 655 West 22nd Street, LLC based out of California. Miner said, “There were multiple offers on this property even with it being an off-market transaction. This buyer was selected because of the shortened due diligence timeframes and a proven track record of closing on similar type properties.”

The Buyer in this off-market transaction was SGAS Holdings, LLC.

Rapid Recovery Center, Partially Completed, Sells for $14.04 Million in Tucson

TUCSON, Arizona — Mainstreet, one of the largest developers of post-acute properties in the United States, is having a rocky launch for its Rapid Recovery Center offering in Arizona and recently sold off the partially completed transitional care property at 5151 East Pima Street in Tucson for $14.04 million to an affiliate of the Aspen Group of Scottsdale.

The property sold in an REO transaction and a loan assumption.

A year ago, Mainstreet’s plan was to open 11 Rapid Recovery Centers over 18 months, in Arizona and Texas. Now, the Carmel, Indiana-based company has decided to pull out of the Arizona market entirely, laying off 70 workers. All of these jobs are in Arizona; Mainstreet has not made workforce changes to its other operations or offices in response to the situation in the Grand Canyon State, CEO Zeke Turner told Senior Housing News.

One of its Arizona Rapid Recovery Centers, in the Phoenix suburb of Surprise, is open but has only a few patients, the Indianapolis Business Journal first reported Thursday. The other three locations—in Phoenix, Tucson and Chandler—will not open. Mainstreet plans to close the Surprise facility and either sell all four properties or lease them to a different operator. Originally, they were to be managed by Mainstreet’s operating arm, Mainstreet Health, which was formed in 2014.

Start-up costs for the Arizona facilities ran higher than projections, and this was a major factor in the decision to pull out of the state, Mainstreet CEO Zeke Turner told Senior Housing News. A “challenging local reimbursement environment” and slower than expected real estate sales also caused unexpected difficulties, he said.

Turner declined to share specific cost figures for the developments. The Phoenix Business Journal previously reported that Mainstreet would invest more than $100 million to develop and staff the four properties.

The Rapid Recovery Center concept is to create buildings with a luxurious feel and to staff them with high-level clinicians, including having physicians on site daily. The goal is to be a post-acute provider of choice for managed care systems, by achieving better outcomes in a shorter time period for rehabilitation patients. Specifically, the centers are meant to help prevent readmissions while shortening length of stay—two major objectives for health systems that are eager to control costs and that face Medicare penalties tied to re-hospitalization rates.

Mainstreet is moving ahead with Rapid Recovery Centers in Texas, Turner said.

“We are committed to Rapid Recovery Center and believe in it,” he said. “We have three centers open in Texas right now and are scheduled to open five more over the next 12 months. This is already a huge undertaking and commitment, which did contribute to the Arizona decision.”

This is just the latest news highlighting challenges in the skilled nursing and post-acute sector.

We reported the Mainstreet land purchase in September 2016, see Real Estate Daily News, Transitional Care Center Coming to 5151 E Pima Street, Tucson.

For prior transaction, see RED 4169.

New Owner Occupant of Saguaro Ranch to Reset Luxury Northwest Community

TUCSON, ARIZONA – Saguaro Lot Development, Inc. (Scott Lundberg, President) and partners from the Seattle area purchased 825 acres in the Saguaro Ranch luxury community in the higher Tortolita Mountains for $7.2 million, bringing new life to this community in northwest Tucson.

“We are excited to bring energy and purpose into Saguaro Ranch with a vision for healthy living and fitness in a one of a kind Sonoran Desert setting,” said Lundberg who also lives in the community.  “We captured our longtime friend and past business partner, renowned southwest architect Ron Robinette, to help spearhead the establishment of a private homeowners clubhouse with special amenities and planned future home designs to make Saguaro Ranch an exclusive private community high up in the Tortolita Mountains of Tucson Arizona.”

“The journey began over a decade ago when Ron helped my wife Charleen and I design and build our own home in Saguaro Ranch. It continued when Ron Robinette helped my business partner Brian Peschel and I design and build the award-winning Legacy Apartments at Dove Mountain. The journey culminated when we volunteered to spearhead over a years-worth of due diligence, resolving countless technical purchase issues along the way, prior to closing on the remaining 825 acres of pristine Sonoran land.”

“We are beyond enthusiastic to begin building a community that will help the City of Tucson and Town of Marana shine bright,” Lundberg concluded.

Mike Conlin with Tierra Antigua Realty of Tucson handled the sale and will also be representing the developer in the marketing the future lots.

Currently, there are nine ready-to-build lots remaining of the original platted fifty 4+ acre lots in phase I, as well as a preliminary plat in what is being called Moonlight Canyon at Saguaro Ranch for (43) 1-2 acre lots platted by the buyer while still in escrow.

The original developer of Saguaro Ranch filed Chapter 11 in February 2009 and the property was returned to the largest secured creditor, Kennedy Funding of Englewood Cliffs, NJ, holding claim to $23.9 million in 2011. Kennedy’s intent was to find a buyer for the assets for resale.

Before being caught in the maelstrom that hit Arizona especially hard, Saguaro Ranch luxury community suffered setbacks in its plan to develop 180 single family homes tucked away on 1,035-acres in the Tortolita Mountains. Before filing bankruptcy some of the vacant lots there were selling for over $1 million each.

The principals involved in this new beginning for Saguaro Ranch recognize the existing market demands and have chosen an almost perfect time to successfully relaunch of this project, according to Conlin.

For additional information Conlin can be reached at 520.429.4773.

To learn more, see RED Comp #6694.