Romano Real Estate Sells Pavilions Shopping Center in Mesa for $15.3 Million

Pavilions Shopping Center, 1837-1955 W Guadalupe Road, Mesa, AZ

PHOENIX, ARIZONA – Romano Real Estate of Tucson announced this week the sale of the Pavilions Shopping Center in Mesa for $15.3 million ($123.07 PSF). The 129,601-square-foot mixed-use neighborhood retail center was built in 1986 on 10.41 acres of land located at 1837-1955 W Guadalupe Road in Mesa, Arizona, at the southeast corner of Dobson and Guadalupe Roads.

David Carroll and John Yarborough with Romano Real Estate Corporation represented the seller, Pavilions Shopping Center Limited Partnership, and David Jarand with Strategic Retail and West Valley Properties, Inc., dba West Valley Arizona represented the California investor, CP6PV, LLC.

The property sold 98% occupied with a variety of tenants that include five quality restaurants (including Native Grill & Wings, La Famiglia Pizza & Pasta, Barbeque House, and Pink Pepper Thai Cuisine), an event center, fitness & dance uses (including Anytime Fitness), furniture uses, both medical and office uses (including Banner Urgent Care), fashion boutiques, and several other complimentary uses.

The cap rate on 2018 scheduled income was 7.69%.

Romano Real Estate Corporation took over the leasing of the property in 2016 and leased nearly 37,000-square-feet in the Center bringing the occupancy level up to 98%. Many of the leases are still below market rents, allowing the investor a “Value Added” opportunity.

“The leasing effort lead to the sale of property,” said Carroll. “In 2016, when we took over the property, it was 75% occupied. We then leased approximately 32,000-square-feet at the center to ‘Amazon-proof’ type of tenants to bring it up to the stabilized 98% occupancy it sold at.”

Romano is active with other retail centers in the Phoenix and Tucson markets.

For more information, Carroll should be reached at 520.577.1000 ext. 7114 and Yarborough is at 520.577.1000 ext. 117.




TAR Announces Primary Candidates’ Endorsement for Marana and Oro Valley Town Councils

Herb Kai and Jack Neubeck for Marana Town Council

TUCSON, ARIZONA — In the August 28 Primary election, the Tucson Association of REALTORS® (TAR) have endorsed Herb Kai and Jack Neubeck for the Marana Town Council and Mayor Satish Hiremath and Councilmembers Lou Waters, Mary Snider and Joe Hornat for the Oro Valley Town Council.

“Councilmember Herb Kai brings years of experience and valuable knowledge to keep Marana moving forward. We are also proud to endorse Jack Nuebeck to join the Marana Town Council.  Jack will bring both energy and new ideas and will be a welcome addition to the Council,” said TAR Chief Executive Officer Randy Rogers.

“Marana is a community with a rich history and bright future.  The leadership of Herb and Jack will honor that history and continue to build that future,” Rogers continued. “We look forward to working together with Herb and Jack in the years to come.”

(l to r) Mayor Satish Hiremath, Councilmembers Lou Waters, Mary Snider and Joe Hornat

“Mayor Satish Hiremath, along with Councilmembers Lou Waters, Mary Snider and Joe Hornat, have earned our support for their results-oriented leadership in Oro Valley.”

“Oro Valley is a gem in Southern Arizona.  The leadership of Satish, Lou, Mary, and Joe have built a town with great job opportunities, well maintained streets, safe neighborhoods, vibrant arts, and beautiful park and recreational assets.”

“We look forward to working together with Satish, Lou, Mary and Joe to continue to shape the town that many of our association members are proud to call home,” Rogers added.




Foothills Mall Urban Renewal Plans Heading to Pima County P&Z for Approval

Rendering Foothills Mall after Redevelopment

TUCSON, ARIZONA — As we reported back in December 2016, when Tucson-based, Bourn Companies (Don Bourn, manager) and its affiliate, FHM Partners, LLC announced the acquisition of the Foothills Mall from Columbus-based Schottenstein Property Group, Inc. (SPG), the property was in need of a redesign to a more Lifestyle Center.

Originally developed in 1981, Bourn has had past experience with the 620,000-square-foot mall, owning it back in 1994 when it was at 12% occupancy and then selling it in 1999 at 95% occupancy, after repositioning it into its current format of outlet and promotional retailers, restaurants and a theatre – the first Renaissance.

Foothills Mall faced difficulty in 2016 after nearly two decades of success with the outlet mall concept, after the opening of the Tucson Premium Outlets in nearby Marana. Within six months of the outdoor mall opening, major tenants such as Saks Fifth Avenue’s Off Fifth outlet, Old Navy’s Outlet, Hanes and Nike Factory Store closed or announced plans to close their existing Foothills Mall locations in favor of a store at Tucson Premium Outlets.

Renewal plans for the 68-acre Foothills Mall at the NWC of Ina Road and La Cholla Boulevard, in unincorporated Pima County, to undergo a massive renovation and restoration as a multi-modal live/work/play destination were submitted to Pima County’s Development Services Department last month. Among the planned uses are entertainment, housing, office, retail and hospitality.

According to the proposal, “Across the country, urban and suburban shopping malls are evolving to create new environments. Consumer interaction with bricks and mortar stores is changing with the increase in online sales activity over the last 5-10 years. This change in behavior and move away from outdated mall concepts provides an incredible opportunity to redevelop and reposition the FHM property to provide a unique, exciting, regional destination and living environment with existing infrastructure to support the multi-dimensional development.”

The current building space will undergo a complete redesign and modification. Portions will be demolished to provide enhanced connectivity between all the proposed uses.

To promote pedestrian/cycling activity, partially shaded walkways will be provided and included in the overall circulation plan. Pedestrian connections to the multifamily components are intended, as are linkages to the Pima County trail system.

The plan states in order to realize the consolidated, integrated mixed-use vision the owners have in mind, “an increase in density and intensity of development will be required. Moderately intense uses are already established on the Property and surround it on all sides: multi-family residential to the west, office and commercial uses to the north, and major arterial roadways with office and commercial uses to the south and east. To attain the vision, this Specific Plan permits residential, office and hospitality uses to be 120 feet or up to 10 stories.”

As part of the 15 to 20 year implementation, the developers are to review utility and related needs such as water, sewer and signage on an ongoing, as needed basis. Phasing over the plan’s lifecycle has not yet been established but will be implemented based on market need and demand. Individual development plans will be created and submitted for each component, according to the proposal.

Pima County Planning & Zoning Department will consider the plan at its Aug. 8th meeting.

Portions of this article come from AZ Builders Exchange.

Foothills Mall Aerial View (source: Bourn Cos)

 




Local Investor Converting Multifamily Portfolio to Retail

8250 E Broadway Blvd, Tucson, AZ

Tucson, Arizona – Local investors, Man Tran and Hao T. Nguyen, purchased the retail property located at 8250 East Broadway Boulevard in Tucson from Trinum Properties, LLC of Los-Angeles, California (Shawn Rita Abrahams, manager). The property commanded a sale price of $320,000 ($97 PSF).

The multi-tenant four-unit building consists of an approximately 3,306-square-foot building on approximately 7,500-square-feet of land.  It was fully leased at time of sale with two tenants, Retro Hair Studio and Mesquite Community Church, each occupying half of building.

Retro Hair Studio describes itself as a blue-collar salon that caters to the working class, offering quality work at a guilt free, affordable price.

The Nguyens have been converting their portfolio from multifamily to retail investments were attracted to the property for its tenants.

Frank Arrotta of Tucson Realty & Trust Co. represented both the seller and the investor in the transaction.

“Cap rates are higher on these smaller ‘mom & pop’ centers, running in the high 8% – 9% caps,” Arotta said. “The higher end net leased properties are getting around a 6% cap rate for investors. This property was on the market for awhile before we were able to match it with the right buyer.”

For more information, Arotta should be reached at 520.577.7000.

To learn more, see RED Comp #5963.




Berkadia Brokers $122 Million in Tucson Apartment Sales

TUCSON, ARIZONA – Berkadia’s Art and Clint Wadlund of Tucson represented Gleiberman Investments, Inc. of San Diego (Mark Gleiberman, president) in the sale of two Northwest Tucson apartment communities for $37.43 million and represented Holualoa Properties in an additional three communities totaling $64.5 million.

ComCapp Elevation, LLC a Texas REIT purchased the following Tucson Portfolio:

  • Stoneybrook Apartments at 4225 North First Ave. in Tucson, a 411-unit complex, sold for $27 million ($65,693 per unit);
  • La Jolla de Tucson at 444 West Orange Grove in Tucson, a 223-unit complex, sold for $15.9 million ($71,300 per unit); and
  • Quail Ridge Apartments at 4500 East Sunrise Dr., a 253-unit complex, sold for $21.6 million ($85,375 per unit).

HSL Properties of Tucson (Omar Mireles, president) purchased the following Tucson Portfolio:

  • Casa Lindas Apartments at 699 West Magee Road in Oro Valley, a 144-unit complex, sold for $17.65 million ($122,569 per unit); and
  • Springhill Apartments at 8030 E Lakeside Parkway in Tucson, a 224-unit complex, sold for $19.775 million ($88,281 per unit).

“We were pleased to be able to purchase the two northwest Tucson properties,” Omar Mireles said. “We had looked at them when the MG Properties and Gleiberman Investments had purchased them in a portfolio along with three other properties that they are also selling.”

All or the properties were at or around 95% occupancy at time of sale. All closings were complete the same day, on June 28th.

Art and Clint Wadlund with Berkadia in Tucson and Rick Holway and Mark Forrester of Berkadia in Phoenix brokered both portfolios for the sellers. The investors were self-represented.

For additional information, Wadlund should be reached at 520.299.7200.

To learn more, see RED Comps #5956, #5957, #5950, #5951 and #5952.

 




Tucson’s Village at Romero Apartments Sell for $1.95 Million

TUCSON, ARIZONA – Makouska, LLC (Lance Parsons, member) sold the Village at Romero apartments at 4213 North Romero Road in Tucson for $1.95 million ($54,166 per unit).

Village at Romero is a 36-unit, condo-mapped, garden-style apartment prominently situated on North Romero Road. Residents enjoy direct access to all areas of Tucson by way of Interstate-10 while being located across the street from award-winning, Homer Davis Elementary School.

Built in 1980, Village at Romero is two-stories and 30,000-square-feet in five buildings of wood frame construction with pitched roofs and individually metered for electricity.

The property consists of all two-bedroom / one-bath units and include electric stoves, dishwashers, garbage disposals, frost-free refrigerators, individual water heaters, two-tone paint, and tile floors in downstairs units and laminate flooring upstairs. The property was 100% occupied at time of sale.

Common amenities include laundry facilities, sparkling pool, outdoor seating and barbeque. There is a separate rental office located in the center of the property for easy accessibility to tenants. Village at Romero produces an aesthetically pleasing environment with newly painted buildings, exterior lighting, updated irrigation landscaping and recently resurfaced pool deck and parking lot.

In addition, the evaporative coolers and roofs have been replaced within the past five years.

Lance Parsons with ABI Multifamily was principal and acted as broker in the transaction. The buyer, MATCCH Holdings, LLC of Tucson (Deborah Mayfield, manager) was self-represented.

Son Management has been contracted by the buyer to manage and lease the property.

For additional information, Parsons should be reached at 520.265.1945.

To learn more, see RED Comp #5901.




Miravest Proposing New Retail Development at Oracle and Linda Vista

TUCSON, ARIZONA – Tucson-based Miravest Inc. (Michael Rabstoff, President) has a 10-acre site under contract to purchase for mixed use development at the northwest corner of Oracle and Linda Vista roads in Oro Valley.

The company is currently seeking user interest for retail frontage pad sales and build-to-suits. A senior living and storage is also high on the list for this property with up to 80,000-square-feet potential. As a contingency of sale, the developer will be pursuing either a conditional-use or rezoning for the property in conjunction with Linda Morales of The Planning Center with the Town of Oro Valley.

Rabstoff told us interest has already been shown for the site by a car wash, a bank, a daycare and restaurants for the pads and a self-storage as shown on the current proposed site plan.

Miravest currently has under construction the Northwest Emergency Center at Marana Center, scheduled for completion and a May 2019 opening.  The center is located at Twin Peaks and Linda Vista Blvd. in Marana. Miravest and HSL Properties have also partnered in the construction of a four-story Hampton Inn & Suites hotel under construction at this same center, across from Marana Center Premium Outlet Center.

HSL and Miravest will own and operate the Hampton Inn & Suites once completed.

An additional area at Twin Peaks and Linda Vista is being held for future apartment units to be started as early as the next two years.

For additional information on these projects, Rabstoff should be contacted at 520.395.1086 for details.

 




Burger King Coming to Interstate Commerce Park

TUCSON, ARIZONA – A new Burger King is planned at Interstate Commerce Park in Tucson. Phoenix- based, Laird Real Estate, LLC (Michael Laird) an affiliate of Laird Management purchased a 47,916-square-foot pad, approximately 1.1 acres, north of the northeast corner of I-10 and Rita Road for a built-to-suit restaurant site.

The site pad commanded a sale price of $500,000, or $10.43 PSF.

Laird Management is an Arizona family owned company that manages and operates over 30 Burger King restaurants statewide. Laird Management’s founder, Mitchell C. Laird, is a practicing attorney for 40 years with 20 years’ experience as a Burger King franchisee. Michael Laird purchased the company from his father, Mitchell and is one of the largest Burger King franchisees in Arizona. Laird Management employs over 600 employees and boasts a management team with combined years of loyalty, service and experience in excess of 100 years.

Michael Laird also currently serves as president of the Southwest Franchisee Association and is a member of the board of directors of the Arizona Chamber of Commerce.

Brian Woods of Colliers International represented the buyer, Laird Real Estate. The seller was Tucson-based developer, Diamond Ventures, Inc., that was self-represented in the transaction.

The transaction closed on June 29, 2018.

For more information, Brian Woods, Senior Vice President | Retail Properties, can be reached at 602.222.5026.

To learn more, see RED Comp #5966.




COT Approves 100 Acre Bike Park and Other Consent Agenda Items

TUCSON, ARIZONA — There were some interesting real estate items on the consent agenda at Tuesday night’s Mayor and Council meeting.

The Tucson Mayor and Council voted to approve the 100-acre Wood Community Bicycle Park master plan that has been in the works since 2014, including trail plan and the general agreement with the Sonoran Desert Mountain Bicyclists (SDMB).  This agreement allows SDMB to raise funds for the park’s construction through donations and sponsorships, as well as to construct, operate and maintain the bicycle park.

McGann & Associates Landscape Architects and Planners prepared the (+/-) 100-Acre Wood Community Bicycle Park Master Plan in consultation with Tucson Parks and Recreation.  Banner University Medical Center, Carondelet Health Network, and Tucson Medical Center provided financial support for the master plan.

The park will sit on a large unused plot of land located near the north end of the Davis-Monthan runway, bordered by Alvernon to the west, Golf Links to the south and Swan to the east.  The 100-acre parcel was once part of Davis Monthan, but after the construction of Golf Links Road it became separated from the base and was deemed not necessary for the base’s mission.

Now the US Air Force at Davis Monthan will be leasing the land to the City of Tucson for $1.00 as full consideration in-kind to allow construction of the bicycle park. The plan also includes reconstruction of the Aviation Bike Path, part of Tucson’s larger Loop network. and two pedestrian/bicycle bridges. With one pedestrian / bicycle bridges on each end of the park, the first will connect users over a drainage area at the northwest corner of Swan and Golf Links and the second will take users across the levees that channel runoff.

The completed park is expected to cost around $2.5 million and will be completed in phases as the funds become available through donations to SDMB and other sources.  If you would like to view the 100 Acre Wood Community Bicycle Park master plan, you can locate that here: 100 Acre Woods Bike Park Master Plan.  For more information on SDMB, visit the website here http://www.sdmb.org/.

At the same meeting, Mayor and Council approved the sale of surplus City-owned property located at the NWC of Elm Street and 7th Avenue, consisting of approximately one acre of vacant R-2 zoned land for the sale price of $150,000.

The property consists of five (5) separate parcels.  One parcel was acquired in 1971 by a Superintendent of Streets deed for delinquent assessments (TDOT).  Four of the parcels were purchased in 1978 for use as a sanitation transfer site (General Fund).

The proposed sale was circulated to the appropriate departments for comment and there were no objections.  The property was marketed for 90 days through the RFP process.  Desert Peak Holdings, LLC was the only bidder and the proposed use is the development of the site with multi-family residential units.

The subject property was appraised at $136,000.  The current offer for the Subject Property is $150,000.  Proceeds from the sale will be distributed back to the General Fund ($120,000) and TDOT ($30,000).

Mayor and Council also granted authorization to proceed with the acquisition of a 4.9 acre (212,294 SF) parcel, which is required for the replacement of a failing Tucson Water potable production well located on the adjacent property.    The seller, Steven J. Hollingsworth has accepted the staff offer of $188,500 (the appraised value) for the property.

Tucson Water operates an isolated water system that serves the small community of Rancho del Sol Lindo, in northern Avra Valley.  Tucson Water’s hydrologists have determined that one of the potable wells (W-005) in this system is in an advanced state of failure, and must be re-drilled as soon as possible to continue meeting customer demands.  The Tucson Water-owned land containing the existing well and associated facilities isn’t large enough to accommodate drilling equipment and to provide a safe distance between the old and new wells.  Tucson Water staff have negotiated with a neighboring landowner to acquire a portion of adjacent land sufficient to drill the new well.

Approval of a Resolution expressing the Mayor and Council’s opposition to uranium mining in the Grand Canyon and transporting uranium ore through the City of Tucson was also passed as as part of the consent agenda.

 

 

 




A 3-Property Apartment Portfolio Sells in Southwest Tucson Submarket for $8.6 Million

TUCSON, Arizona – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of three apartment properties in Tucson, AZ:  River View Villas (80-units), Santa Cruz Vista (56-units), and Westlake Village (100-units), according to Ryan Sarbinoff, regional manager of the firm’s Phoenix/Tucson office. The portfolio, totaling 236-units, sold for $8.6 million ($36,441 per unit).

The 236-unit multifamily community, enjoys a commanding position on Ajo Way, also known as State Route 86. Completed in 1981, 1983 and 1984 the properties feature solid frame and stucco construction with a mix of studios, one-, two-, and three-bedroom apartment units, with a weighted average unit size of 597-square-feet.

Unit interiors feature a well-equipped kitchen, ceiling fans, and wood-vinyl flooring on the downstairs units. Select units include linen closets, additional outside storage, walk-in closets, and dishwashers. Community amenities include a pool at each community, a welcoming leasing office, gated access into the property from each entry along Ajo Way, three laundry facilities, and outdoor space with barbecue grills and shuffleboard courts. The current ownership has replaced the pools and roofs for all three properties, improving the presentation of the properties.

Hamid Panahi and James K. Crawley, investment specialists in Marcus & Millichap’s Tucson office, along with Peter R. Flis, an investment specialist in Marcus & Millichap’s Sacramento office, had the exclusive listing to market the property on behalf of the seller, a private investor.

“The West Tucson portfolio sale was successful due to collaborative efforts between Hamid, James and Peter which brought together relationships from Arizona and California to help our clients achieve their investment goals,” says Sarbinoff.

The buyer, an individual/personal trust, was also secured and represented by Panahi, Crawley, and Flis.

“The three assets are an excellent addition to the buyer’s portfolio in Tucson, as it results in immediate scale in the southwest Tucson submarket,” says Crawley.

“Extensive capital improvements were recently completed at the property, but the buyer has further opportunity to add value through both exterior and interior enhancements,” added Panahi.

The seller purchased the portfolio in January 2017 as a value-add for $7.05 million.

For additional information, contact Panahi at 520.448.5045 and Crawley at 602.687.6807. Flis can be reached at 916.724.1286 in Sacramento.




Carl’s Jr. in Southwest Tucson Sells for $2.065 Million

Tucson, Arizona CBRE arranged the $2.065 million ($506 PSF) sale of a single-tenant retail property leased to Carl’s Jr., a 4,084-square-foot building located at 1070 E. Ajo Way in Tucson.

Nancy McClure with CBRE’s Tucson office and Andrew Fosberg with CBRE’s Phoenix office represented the seller, Cumming D. Carl’s, LLC, who had recently extended the Carl’s Jr. lease. The buyer, California-based JGNK Investments Arizona, acquired the property, which benefits from a long-term lease with an established franchisee who has operated the property for more than 33 years and is the daughter of the restaurant chain’s founder.

Situated in the Southwest Tucson retail and employment hub, the property has access to approximately 11,928 employees within a one-mile radius and over 198,000 employees within a five-mile radius. The property boasts immediate access to the I-10 freeway and is located one block south from the new Tucson Marketplace at the Bridges power center and in the near vicinity to the VA Hospital.

“This Carl’s Jr. offering garnered the attention of multiple buyers and offers from investors in search of long-term net leased properties with an established tenant and positive operating sales,” said CBRE’s McClure. “The property sold at a price higher than the listed price which was a plus for our client, the seller, and a testament to the quality investment.”

For more information, McClure should be reached at 520 323 5117 and Fosberg can be contacted at 602.735.1723.

 




PhoenixMart plagued with continued Lawsuits one month after FBI investigation ends

PhoenixMart rendering

CASA GRANDE, ARIZONA —   Harder Mechanical Contractors filed documents on June 14th in Pinal County Superior Court seeking $118,516 in unpaid labor and materials it provided for the PhoenixMart in Casa Grande.

The company filed a lien in January for the unpaid plumbing services it provided and proceeded to take legal action in court this month.

Hardrock Concrete Placement Co. filed a similar complaint in court earlier this year, seeking to be paid for over $900,000 in services it supplied to PhoenixMart.

A third company, Calportland, filed papers in court on June 8 demanding it be reimbursed $16,715 for services it has provided to PhoenixMart. The company filed a lien in December against PhoenixMart and Hardrock, since Calportland contracted with the latter company.

The project, that bills itself as a one-of-a-kind wholesale distribution center, has been in development for several years near Florence Boulevard and Signal Peak Road and plans to refurbish the old outlet center near Interstate 10 and Jimmie Kerr Boulevard.

After being subject to an FBI investigation in 2015, the company overseeing the PhoenixMart project announced last month it was no longer under investigation by the U.S. Department of Justice.

The developers were funding the project with money from foreign investors taking part in the government’s EB5 Visa program. Under EB5 guidelines, foreign nationals can invest $500-thousand in a program that creates a certain number of jobs in the US, in exchange for up to 10 “green cards.”

On May 11, 2018 the Company put out the following written statement – “Today, the Company was officially informed that PhoenixMart is not the target or subject of an investigation by the U.S. Department of Justice. This announcement will pave the way for the company to focus on securing the financing required to accelerate construction. Our resolve is stronger than ever, and we are committed to completing this groundbreaking project as soon as possible.The company thanks the City of Casa Grande, Pinal County, our vendors and subcontractors for their continued support and patience over the past 30 months.”

The future remains a mystery for PhoenixMart, with work halted and no more recent statements from the company.