Fry’s Marketplace To Be Developed at 22nd Street & Houghton Road

Tucson, AZ– There has been some updated information received to our April 24, 2018 article on Smith’s Food & Drug Centers, Inc., dba Fry’s Food & Drug Stores, that acquired 16.3 acres of undeveloped land at the northeast corner of 22nd Street and Houghton Road, Tucson, AZ, from Twenty-Second Street Baptist Church of Tucson, Inc. for $2,844,469.00, all cash.

Fry’s Food & Drug Stores is planning to build a 96,000-square-foot Fry’s Marketplace with a 300-square-foot fuel station canopy and Brentwood Developments will develop a 6,500- square-foot restaurant building and a 12,000-square-foot retail shops building.

Fry’s Food and Drug is planning to relocate the existing Fry Food and Drug Store located at 9401 E. 22nd Street, Tucson, AZ, at the northwest corner of 22nd Street and Harrison Road to the new Fry’s Marketplace site once it is constructed. The new Fry’s Marketplace will employ approximately 160 people, which is approximately is 40 people more than a typical Fry’s Food & Drug Store. It will include an expanded selection of meats and organic produce, a sushi bar, an Asian bistro, a wine bar, and a Starbucks.

Craig Finfrock of Commercial Retail Advisors, LLC represented the Buyer, Smith’s Food & Drug Centers, Inc. and Brentwood Developments, and the seller was represented by Ian Stuart and Ben Becker of CBRE. Commercial Retail Advisors, founded in 2001, specializes in the leasing and sales of shopping centers and retailer tenant representation throughout southern Arizona. For more information, please contact Craig Finfrock of Commercial Retail Advisors at (520) 290-3200.

To learn more, see RED Comp #5615.




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.




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.




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.

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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.




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.




Southern Arizona CCIM Chapter Conversation Corner for April

TUCSON, Arizona — The following commercial real estate transactions totaling $7.96 million created a lot of conversation at the April meeting of the Southern Arizona CCIM Chapter, in case you missed it,  we’re publishing them here as part of our CCIM Conversation Corner.

Schotzsky’s Restaurant at 3270 E Valencia sold March 16th for $775,000 ($229 PSF) in an all cash deal. The 3,383-square-foot building on .88 acre was included in the sale price. The buyer also purchased the franchise, furniture and fixtures in a separate transaction to continue operations as a Schlotzsky’s.  John Hamner, CCIM, with Keller Williams represented the seller. Hamner has since moved over to Re/Max Excalibur in Tucson. Teale Bloom with Phoenix Commercial Retail Advisors represented the buyer, DWG Properties LLC (Gene Denison, manager). Bobbi Rayon at Title Security handled the escrow. To learn more, see RED Comp #5649.

Time Market owner, Peter Wilke, bought the 6,639-square-foot former Scordata’s at 4405 W Speedway Blvd in Tucson for $430,000 ($65 PSF). Tari Auletta, CCIM, of Keller Williams represented the seller and Kristy Kelley with Long Realty represented the buyer. Buyer plans to convert the 6,639-square-foot building on almost 2 acres to a Time Market. To learn more, see RED Comp #5655.

Derrick Sinclair, CCIM, with Terramar Properties sold 13 semi-custom SFR lots sold at Yolanda Oasis Estate in Catalina, at Golder Ranch and Twin Lakes Road for $700,000 or $53,846 per lot. Average lot size is 30,000-square-feet. Sinclair handled the transaction for the buyer, AF Sterling, and seller. Title Security handled the escrow. To learn more, see RED Comp #5617.

Gary Andros, CCIM, of Andros Properties sold the office building at 615 W Roller Coaster Road in Tucson for $670,000 ($140 PSF). Doug Marsh and Lori Casey with Oxford Realty Advisors represented the seller, Farmers Insurance Exchange and Andros represented the buyer. The 4,769-square-foot office building was built in 1981 on .81 acres. The financing was handled by the National Bank of Arizona, Justin Martinez. To learn more, see RED Comp #5651.

F&J Ruis Holdings, LLC purchased vacant land at 507 – 547 W. Lester, Tucson, AZ from Starnoff Investments, LLC for $249,000 ($4.89 PSF).  David Blanchette, CCIM, with NAI Horizon represented the owners and Ron Zimmerman with Cushman Wakefield/PICOR represented the buyer in this transaction. To learn more, see RED Comp #5724.

The White Ohana, LLC purchased a 32,391-square-foot building on 4.26-acres at 3951 E. Columbia St. in Tucson for $3.65 million ($113 PSF).  Rob Glaser, CCIM, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller and Ted Liles with Cresa Global, Inc., represented the buyer, Firsterra Corporation of Costa Mesa, CA. To learn more, see RED Comp #5669.

Hawkins Investment Solutions, LLC purchased a 20,000-square-foot industrial building at 3260 E. 36th St. in Tucson, from Glazer’s Real Estate, LLC for $900,000 ($45 PSF).  Brandon Rodgers, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer; Stephen D. Cohen and Russell W. Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | PICOR, represented the seller. To learn more, see RED Comp #5695.

The Connie Rae Simonds Trust purchased a 5,272-square-foot multitenant office building located at 3808-3818 E. 5th St. in Tucson, from Wildcat Equities II, LLC for $582,503 ($110 PSF) as investment.  Built in 1966, the masonry building sits on a .40-acre lot. Brandon Rodgers, CCIM, Principal with Cushman & Wakefield | PICOR, represented the seller; Jim Briggs with Cornerstone Realty & Investments, LLC, represented the buyer. To learn more, see RED Comp #5699.

For more information on SOAZ CCIM Chapter and its upcoming monthly luncheon on May 8th click here.

 




New Dove Mountain Senior Living Facility Site Sells for $1.7 Million

MARANA, ARIZONA –  Rita Land Corporation, a subsidiary of Cottonwood Properties (Bill Hallinan, vice-president) sold 5.9 acres for construction of an assisted living facility at 5250 W Dove Centre Road in Marana, at the Dove Mountain Centre II, located northeast of Tangerine and Dove Mountain Blvd, for $1.683 million ($6.57 PSF).

AZ Land Holdings LLC, a subsidiary of CR Builders, of Billings, MT (Marsha Urmanski, manager) was the buyer. The operator of the new facility has yet to be determined and will most likely be an independent operator we were told. The plan is to build 57,655-square-feet in three buildings with a total of 142-units, including 44 independent living units, 75 assisted living units and 23 memory care units, according to plans submitted pre-approval to Marana Development Services.

Jerry Robinson with JWRA Architects of Salt Lake City, Utah is handling the project.

There are more than 4,000 homes in Dove Mountain today, and the capacity and planning for thousands more. Cottonwood has set aside several parcels within Dove Mountain for commercial and mixed-use development. In 2008 Cottonwood built Dove Mountain Centre at the entrance to the community on the Northeast corner of Dove Mountain Boulevard and Tangerine Road. Several parcels surrounding the Dove Mountain Centre are available for purchase or build to suit.

“A Senior Living Facility will be a welcomed addition at the Dove Mountain Centre to join the successful Marana Health Center, Veterinary Clinic and retail shops,” said Bill Hallinan, vice-president of Cottonwood Properties.

Aaron LaPrise with Cushman & Wakefield | Picor is marketing the remaining lots at Dove Mountain Center for Cottonwood Properties.

For more information LaPrise should be reached at 520.546.2770.

To learn more, login and see RED Comp #5638.

 




Fry’s Progressing at Houghton & 22nd Street Tucson

TUCSON, ARIZONA – Smith’s Food & Drug Centers closed on 16.3 undeveloped acres at the northeast corner of Houghton Road and 22nd Street in Tucson for $2.84 million ($4 PSF) all cash deal.  The seller was Twenty-Second Street Baptist Church of Tucson.

Brentwood Developments plans a 96,000-square-foot Fry’s Marketplace with 300-square-foot fuel station canopy. The site will also feature 6,500-square-feet and 12,000-square-feet of retail buildings to be used by other retail tenants, such as restaurants, hair salons, dry cleaners and other stores.

The plan is for the existing Fry’s Food and Drug store location as 22nd Street and Harrison to be closed and sold. The new operation is being touted as the first of its kind in the Tucson area and will offer amenities such as a sushi bar, an expanded selection of meats and organic produce, an Asian bistro, Starbuck’s and a wine bar. When fully operational, the new location will employ approximately 160 people, roughly 40 more than at a typical Fry’s Food and Drug.

The controversial building design calling for a height of 26-feet with a four-foot parapet was approved in March 2016.  The developer received the amendment to the Houghton East Neighborhood Plan, that would allow for the building to be 26 feet tall, instead of the current 20-feet limit. Standards for non-residential development have changed significantly since the Houghton East Neighborhood Plan was adopted in 1985 and had to be addressed.

Concerns voiced by nearby neighbors were all addressed by the developer:

  • Elevation showing the six-foot increase would be a minor change to any view obstruction,
  • Using City’s own definition, roof height is determined from the flat of roof height, and not parapet height.
  • The Fry’s store at 22nd & Harrison that will be relocated will have a $3 million budget to repurpose as needed.
  • The necessity for the additional 6 feet lies in the fact that Fry’s needs a mezzanine for offices. To minimize the height elevation, the developer proposed a declining elevation from 26 feet to 22 feet in construction.

Even with the Neighborhood Plan amendment, Brentwood Developments had to go through the rezoning process.  In November 2017, Tucson City Council signed off on a rezoning from SR to PAD-32 that will allow for the new Fry’s Marketplace to go up.

Those in favor of the development outnumbered 2-to-1 those opposed at this rezoning meeting, with most of the concerns raised by nearby neighbors, environmentalists and concerned citizens opposed to big-box developments and were not from the Houghton East Neighborhood where the project is located.

Brentwood Development hired a third-party group, Westland Resources, to study any impact the development would have on native wildlife. Using a wildlife movement model developed in Arizona, the study found the grocery store and adjacent buildings would not disrupt wildlife. Westland’s study in fact did not anticipate any demonstrable adverse impacts on the wildlife in the area.

Traffic improvements have recently been made to Houghton Road and 22nd Street. Enhancements included in the project were upgrading the roadway to a six-lane divided desert parkway, dual left-turn lanes, exclusive right-turn lanes and upgraded traffic signals. Other improvements were made to bike lanes, sidewalks, multi-use paths and bus pullouts, in addition to upgrades in drainage and all-weather crossings.  Landscaping with native plants, water harvesting, public art and the new Sun Tran Park and Ride were also part of the improvements in the area.

Under the traffic impact study completed as part of the submittal’s preparations, the Fry’s site will have five access points, two on Houghton and three on 22nd.

Brentwood, the project developer, is being represented by The Planning Center.

To learn more, login and see RED Comp #5615.

 

 

 




Sun Mechanical HQ Sells for $3.65 Million in Tucson

3951 E Columbia, Tucson

TUCSON, Arizona — The White Ohana LLC. an affiliate of Finisterra Corporation of Costa Mesa, CA purchased the 32,391-square-foot building at 3951 E. Columbia St. in Tucson for $3.65 million ($113 PSF).

The property was built in 1994 in the Alvernon Rail Center on 4.26-acres, located southeast of Ajo and Alvernon Way off Contractors Way. Additional addresses include 4058-4151 S Contractors Way.

The property is a single tenant industrial building that sold fully occupied by Sun Mechanical, the largest mechanical contractor in Southern Arizona, as tenant. Established in 1977, Sun Mechanical Contracting, Inc. is an Arizona-based full service mechanical contracting and construction firm with offices/plant facilities in Tucson and Phoenix. Sun employs over 250 skilled tradesmen in the field, serving such clients as Texas Instruments, Motorola,  Intel,  Symantec, Sanofi Aventis, Tucson Medical Center, Northwest Medical Center, Miraval, Tucson Unified School District, Pima Community College, Pascua Yaqui Nation, Tohono O’odham Nation, Tucson Sector Border Patrol, and  Ft. Huachuca.

Rob Glaser, SIOR, CCIM Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller, John and Beverly Cadrian of Tucson while Ted Liles with Cresa Global, Inc. of Phoenix, represented the buyer.

For additional information, Glaser should be reached at 520.546.2707 and Liles can be contacted at 602.648.7344.

To learn more, login and see RED Comp #5669.

 

 




IBE Closes on New Location at 921 N Swan in Tucson

21 N. Swan Road, Tucson, AZ

TUCSON, Arizona – Local non-profit, The Institute for Better Education (IBE), purchased a 3,710-square-foot office building at 921 N. Swan Road in Tucson from Pyramid Credit Union for $440,000 ($118 PSF).  The buyer plans to relocate its operation from 911 S Craycroft Road after it completes some interior construction.

IBE (Kimberly J. Kirschner, CEO) is a 501(c)(3) nonprofit and nonpartisan organization, committed to removing any financial obstacles that stand in a family’s way of providing K-12 education for their children and their unique needs. IBE accomplishes this through the Arizona private school tax credit program. It believe parents are the best resource a child has when determining which school will be the perfect fit for their child. Parents have been able to turn to the Institute for Better Education since 1998 if the right school to fit their child’s needs is not within their financial reach. IBE is honored to play a part in making a real difference in the lives of Arizona children.

Since 1998 IBE has awarded over $91 million in scholarships. For the 2016-17 academic year it awarded $16.5 million in scholarships and works with 270 Arizona schools.

The seller, Pyramid Credit Union, was represented by Nancy McClure of CBRE in Tucson. The buyer was represented by Harvey Mordka Realty.

For more information, IBE can be contacted at 520.512.5438; McClure should be reached at 520.323.5117 and Mordka is at 520.298.8500.

To learn more, login and see RED Comp #5691.