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.




Blue Sky Equity Partners Acquires Red Lion Inn & Suites Tucson North Foothills

TUCSON, ARIZONA — Blue Sky Equity Partners  has added to its hotel portfolio by acquiring the Red Lion Inn & Suites Tucson North Foothills for $7 million ($44,872 per room) and plans to rename and reposition the hotel as a boutique hotel called 3 Palms Tucson North Foothills at 7411 N Oracle Road, Tucson.

Located near the foothills of the Santa Catalina Mountains in North Tucson, the 156-room hotel is the Tucson North hotel of choice for both business and leisure travelers, outdoor adventurers, family vacationers, and visitors to the University of Arizona. Financial terms of the transaction were not disclosed.

“We are excited to acquire this one-of-a-kind hotel in Tucson, and we’re looking forward to continuing to be the North Tucson hotel destination of choice under the 3 Palms brand,” said Logan Abbott, President of Blue Sky Equity Partners. “Our hotel division is focused on continued growth in the Pacific Southwest and this exciting acquisition allows us to expand our flagship 3 Palms brand to another great desert destination in the Tucson North Foothills,” added Ariel Abbott, the company’s Director of Revenue and Growth.

While this acquisition represents Blue Sky Equity’s first Tucson-based hotel, the company and the 3 Palms brand has long enjoyed a presence in the Arizona market with the 3 Palms Hotel Scottsdale.

Blue Sky Equity Partners is a family owned private equity investment firm with investments in real-estate, media and technology. The firm’s hotel division owns and operates multiple hotels in California and Arizona under various brands including the 3 Palms. The company manages every facet of redeveloping, remodeling, and repositioning portfolio hotels as well as building a world class team to operate them.

To learn more see RED Comp #6678.




Tucson Industrial Realty Handles Sale of Two Tucson Industrial Buildings

TUCSON, Arizona – Dave Gallaher, CCIM, of Tucson Industrial Realty has announced the closing of 4625 South 3dr Avenue in Tucson for $850,000 ($36.80 PSF) for the sellers, James and Patricia Novak to Howard Tran, the buyer.

Seller was motivated since having sold the business ACS International, formerly known as Arizona Cultured Stone, and building had been vacant since August 2018.  Gebrüder Dorfner GmbH & Co. Kaolin- und KristallquarzsandWerke KG, a successful family-owned company headquartered in Hirschau, Germany, aquired Tucson-based, ACS International, on August 8, 2017.

The 23,100-square-foot property, built 1972, includes three buildings, the main 14,700-square-foot building that buyer plans to occupy for a candle manufacturing business while leasing the 8,400-square-foot building and 1,200-square-foot RV storage building.

Carl Schroeder with Realty Exedutives Tucson Elite represented the buyer in the transaction.

For more information, Gallaher should be reached at 520.294.1610 and Schroeder can be contacted at 520.877.4940.

To learn more, see RED Comp #6701.




Mister Car Wash Acquires Tucson Marketplace at the Bridges Pad for $1.4M

TUCSON, ARIZONA — Mister Car Wash purchased 1.49 aces of vacant land at Tucson Marketplace at the Bridges located at 2975 South Kino Pkwy in Tucson for $1.4 million ($21.57 PSF). Tucson-based Mister Car Wash continues to expand, now with 266 car washes it operates in 21 states. Prior to this year the company had grown through acquisitions and recently opened two new locations built and developed by and for Mister Car Wash in Iowa and Utah.

It is this new product being developed by Mister Car Wash at the Bridges on a pad to the north of Discount Tire.  Mister Car Wash will be located on the northern most pad with KFC and Dutch Bro’s (in escrow) to the south near Culver’s and Discount Tire, as shown on site plan below.

Tucson Marketplace at the Bridges is ±114 acres with ±1 million square feet of proposed shops, pads, entertainment and anchors available for Sale, Ground Lease or Built-To-Suite in the dense infill section of South Tucson

The Marketplace at the Bridges feature one (1) mile of frontage along Interstate 10, two (2) Interstate 10 interchanges at the east and west ends of the project. It is part of a master planned community with KB Homes and the University of Arizona Bioscience Research Park, within 2.5 miles from the University of Arizona and two (2) miles south of downtown Tucson and three (3) miles from the Tucson International Airport.

CWPS, the buying entity for Mister Car Wash, was represented by Aaron LaPrise, Retail Specialist with Cushman & Wakefield | Picor.

The seller, Fullerton Tucson Kino Parkway, LLC, of Toronto, Ontario, Canada, was represented by Chad Russell and Randy Titzck of Land Advisors Organization in Phoenix.

For more information, LaPrise can be reached at 520.546.2770 and Russell and Titzck can be contacted at 480.483.8100.

To learn more, see RED Comp #6652.

 




Oregonian Investors Acquire Campbell Plaza Garden Apartments for $1.6 Million

TUCSON, ARIZONA — Built in 1976, the Campbell Plaza Apartments consist of 30 one-bedroom units in 6 single-story buildings totaling approximately 14,688-square-feet on approximately 1.12 acres.

The property at 1811 E Blacklidge Drive in Tucson recently sold for $1.6 million ($53,333 per unit) to Oregon investors, MLIII Investments, LLC and Clinton Ventures, LLC

Campbell Plaza Apartments enjoys superb curb appeal, features attractive low maintenance frame construction and desert landscaping that is aesthetically pleasing. Many of the coolers and all roofs were recently replaced. The parking surface has been resurfaced and is in excellent condition for future years. The kitchens in most units have been upgraded to achieve higher rents.

Each unit is approximately 480-square-feet equipped with low cost evaporative cooling, refrigerator, cable hookup, and semi- private courtyard patio. Select units are equipped with ceiling fans. Some of the property’ s former tenants have left the area to pursue employment opportunities and returned to the Campbell Plaza Apartments as repeat residents, evidencing the property’s appeal. Many of the current tenants have resided at the property for more than five years. Historically, the Campbell Plaza Apartment complex has been home to quiet singles and couples, nurses, social workers, cooks, chefs, retirees and graduate students.

The nearby University of Arizona serves as a focal point of the community, offering a full calendar of performances and events, from collegiate sports to world-class performing arts. The University of Arizona is the largest employer in the greater Tucson area, with approximately 14,000 jobs and a payroll in the range of $560 million.

John Buette of Buette DeRousse Commercial Real Estate Properties represented himself as Campbell Plaza Apartments, the seller. Joe Chaplik of Joseph Bernard Investment Real Estate represented the Oregon investors.

For more information, Buette should be contacted at 520.797.4406 and Chaplik can be reached at 480.305.5600.

To learn more, see RED Comps #6552.

 

 




Saguaros Viejos West 44 SFR Lots Sell for $2.84 Million in Oro Valley

ORO VALLEY, Arizona – Pulte Home Company purchased the Saguaros Viejos West subdivision in Oro Valley for $2.838 million ($64,500 per lot). The 44 lots were platted only for 12,000-square-foot lots in this new subdivision located northwest of Naranja and La Cholla Blvd. in Oro Valley.

Saguaros Viejos West is phase one and will be a gated community sitting on 56 acres.  The lots on phase one will have an average lot size of 30,000 square feet, much larger than phase two’s average lot size of 7,180 square feet.  Phase two(east), also gated, will sit on 85 acres, and when complete will feature 179 new homes.  Both portions of the development will have a maximum height allowance of 18 feet, or two stories.  The development will also include plenty of open space that will be complimented with bicycling/walking trails, ramadas, fitness stations, pet stations, benches and many other outdoor features.  A portion of land at the northwest corner of La Cholla and Naranja Drive will also be set aside for future commercial development.

Some conditions laid out by the Town Council for the development include preservation of 8 Saguaros that are 24 feet in height with two or more arms, which will not be moved and must be built around.  Any smaller saguaros on the property are likely to be transplanted, as well.  Improvements to Glover Road will also be made to account for the additional traffic the development will bring.  These improvements will include road widening, painted median, bike lanes and a shared use path on the south side of the road, extending all the way to La Cholla Blvd.

Greg Wexler with Wexler and Associates of Tucson handled the transaction for the sellers, Chia-Jung Chang and Yang-Wen Lin.

This is Pulte’s second acquisition in Oro Valley since the start of the year. Pulte Home Company is also platting an additional 45 acres in Oro Valley at Rancho Vistoso. The land drew a sale price of $4.9 million ($108,888 per acre).

For additional information, Wexler should be reached at 520.977.8500.

To learn more, see RED Comp #6597.

Saguaros Veijos East and West shown




Grimm Commercial Bringing RoadHouse Cinemas to Northwest Tucson

TUCSON, ARIZONA – An investment group of seven LLCs managed by Steve Grimm of Grimm Commercial has acquired the Fiesta Plaza at the northwest corner of Oracle and River Road in Tucson for $5.3 Million and is planning to bring RoadHouse Cinemas to the site.

The acquisition followed the sale of a ground lease in Marana with a leased fee interest to Village Inn at 5955 W Arizona Pavilions Drive for $2.6 million and was the downleg in the 1031 exchange.

The Fiesta Plaza purchase includes the Red Lobster Restaurant and First Watch Restaurant in addition to three vacant pads. The U-like Buffet was not included.

The plan is to now bring the popular Roadhouse Cinemas to the back pad, Grimm told us. Roadhouse Cinemas has locations at Crossroads Festivals Shopping Center at Grant Road and Swan in Tucson, and two others in Scottsdale and Colorodao Springs.

Open 365 days a year, RoadHouse Cinemas offers an inviting movie and dining experience, with an extraordinary restaurant menu created by an award-winning chef and restaurateur, an impressively creative full bar featuring high quality wines and craft beers, and overwhelmingly comfortable recliners, all to be enjoyed while experiencing state-of-the-art digital projection and 7.1 Dolby Digital Surround Sound!

For additional information Grimm should be reached at 520.323.9752.

To learn more, see RED Comps #6634 and #6641.

Fiesta Plaza, NWC Oracle & River in Tucson, AZ




Volk Co. Agents Close $8 Million in Sales this Month

5341 E Speedway, Tucson, AZ

TUCSON, Arizona — Volk Company started the year off strong with eight closings in a thirty-day period, totaling almost $8 million, and including four restaurant sales.

Brenna Lacey and Kevin Volk of Volk Company represented the seller, Steamroller Pad LLC, in the $2,660,000 net leased investment sale of the Starbucks on the southwest corner of Valencia and Indian Agency Roads.  The 3,000 square foot drive-thru restaurant is part of the Valencia Marketplace Shopping Center, anchored by a 100,000 square foot Fry’s.  The buyer, FLM, LLC, was represented by Jim and Craig Kovaleski, formerly with Cushman and Wakefield, now with CBRE. To learn more, see RED Comp #6633.

Rick Borane and Brenna Lacey of Volk Company handled the $1,100,000 sale of the Allstate Vehicles property at 5341 E. Speedway.  The 6,106 square foot building sits on 59,516 square feet of land and will continue to be used as an automotive sales facility.  The seller was Allstate Speedway LLC and the buyer was R&R Real Estate LLC. To learn more, see RED Comp #6587.

4625 E Grant Rd., Tucson, AZ

Brenna Lacey of Volk Company handled the $1,050,000 sale of the former Applebee’s at 4625 E. Grant Road.  The buyer, Sage Tucson, LLC, plans to redevelop the property with a Dutch Bros drive thru restaurant and 5,069 square feet of high visibility retail, restaurant and office space.  Brenna Lacey is handling the leasing.  The seller was Thomas and King Real Estate, LLC. To learn more, see RED Comp #6653.

5010 S Campbell Ave, Tucson, AZ

Jeramy Price of Volk Company represented the seller, Quananhdai LLC, in the $750,000 sale of the Kentucky Fried Chicken drive-thru restaurant at 5010 S. Campbell Avenue.  The building is 2,526 square feet and sits on 28,970 square feet of land.  The buyer, Oneten REI Main LLC, was represented by Sean Lieb of SRS Real Estate Partners.  Price formerly represented the Quananhdai LLC in its acquisition of the property. To learn more, see RED Comp #6558.

Terry Dahlstrom of Volk Company represented the seller, Wright-Oracle L.L.C., in the $702,500 sale of a 2,736 square foot building on 14,400 square feet of land at 5841 N. 67th Avenue in Glendale, Arizona.  The buyer was represented by Milly Sells AZ.

Rick Borane of Volk Company represented the buyer, Meridiano Investments III, LLC, in the $615,000 acquisition of a 10,010 square foot industrial building on 15,645 square feet of land at 3529 E. Golf Links.  The seller was represented by Ron Zimmerman of Picor/Cushman and Wakefield. To learn more, see RED Comp #6591.

6872 E. Tanque Verde Rd., Tucson, AZ

Terry Dahlstrom of Volk Company represented the buyer, Dahlstrom 6782 Tanque Verde LLC, in the $592,262 acquisition of the Kentucky Fried Chicken restaurant property at 6872 E. Tanque Verde Road.  The 2,100 square foot drive-thru building sits on 18,000 square feet of land.  The seller was represented by NAI Horizon. To learn more, see RED Comp #6570

Terry Dahlstrom of Volk Company represented the seller, Valdrex LLC, in the $360,000 sale of a 2,400 square foot 7/11 convenience market on the northeast corner of Cardinal and Drexel Roads.  The building sits on approximately 19,000 square feet of land, and the buyer was Fadhl Nagi Obeid Aldhali. To learn more, see RED Comp #6572.

For additional information, Volk Company agents can be reached at 520.326.3200.




Starbucks at Valencia Marketplace Fetches $2.66 Million

TUCSON, Arizona – A California investor from Alamo, CA, FLM LLC, traded into the acquisition of a Starbucks outpad at 1765 West Valencia Road in Tucson for $2.66 million ($850 PSF).

Brenna Lacey and Kevin Volk of Volk Company represented the seller, Steamroller Pad LLC (Richard Volk, manager) in the net leased investment sale at the southwest corner of Valencia and Indian Agency Roads.

The 3,130-square-foot drive-thru restaurant was built in 2017 and is part of the Valencia Marketplace Shopping Center, anchored by a 100,000-square-foot Fry’s.

The buyer was represented by Jim and Craig Kovaleski, formerly with Cushman and Wakefield, now with CBRE. This was its first investment in Tucson.

To learn more, Lacey and Volk should be reached at 520.326.3200 and the Kovaleski’s can be contacted at 408.453.7400.




Skin Appeal Takes Two Fort Lowell Condos for Expansion Space

TUCSON, ARIZ. —  MK Tucson Properties, owner of Skin Appeal, purchased expansion space at 1700 East Fort Lowell Rd. Ste. #101 & #102 in Tucson for $723,150 ($136 PSF).

The additional 5,317-square-feet in two condominiums were constructed in 2000 in the Fort Lowell Condominiums and will allow expansion for Skin Appeal located currently in suite 108.

James P. Robertson Jr., MBA, CCIM, Associate Broker: Investment & Commercial Brokerage with Realty Executives Tucson Elite, assisted MK Tucson Properties, LLC, in their purchase.

“This property was ideal for MK Tucson Properties, LLC,” said Robertson, “allowing them to operate/manage their business out of this location and still be convenient to their clients. At $136 per square-foot, the additional 5,317-sqaure-feet was an opportunity to both parties.”

The seller’s agent, Alex Hardie with Buzz Isaacson Realty assisted in facilitating the transaction.

For additional information, Robertson should be reached at 520.331.5466 and Isaacson and Hardie can be contacted at 520.529.1300.

To learn more, see RED Comp #6622.

 

 




HSL Sells Bear Canyon Apartments to Cali Investment Portfolio for $35.6 Million  

TUCSON, Arizona– HSL Properties (Omar Mireles, President) through its affiliate HSL Bear Canyon Apartments, sold Bear Canyon Apartments at 9055 East Catalina Highway in Tucson for $35.6 Million ($150,000 per unit) to M3 Multifamily Fund of Santa Barbara, CA.

The property was originally platted for condominiums in 1996 with (72) one-bedrooms, (118) two-bedrooms and (48) three-bedroom units, however had been run as an apartment complex since being built and was re-platted by HSL in 2012 as one tax code.

The property was 97% occupied at time of sale.

The 2-story, class A property with 18 buildings is located at the foot of the Santa Catalina Mountains in the eastern submarket of Tucson, within reach of the Park Place Mall, 4th Avenue and provide easy access to nine golf courses and the airport is only 30 minutes away. Floor plans feature all electric kitchens, 9-foot ceilings, large walk-in closets, full size washer and dryer and spacious living areas. In addition to these comforts, the gated community amenities include two resort-style heated pools, a 24-hour fitness center, clubhouse, barbeque areas, covered parking, wood burning fireplaces, extra storage, private enclosed patio or balcony and is a pet friendly community

Art Wadlund and Clint Wadlund of Berkadia in Tucson represented the seller in the transaction.

“The buyer owns other properties in Tucson already and wanted to expand its portfolio here,” said Clint Wadlund. “They like Tucson for their investment portfolio.”

M3 Multifamily, LLC was formed in 2008 by John Mosby and Jon Martin for the purpose of acquiring, renovating and managing existing apartment communities in the United States in order to create cash flow and profits from sale for their investors.

Since then M3 has grown steadily, and currently owns/manages apartment communities in Austin, San Antonio, Nashville, Reno, and Tucson totaling 2,312 units. A majority of these properties are managed through M3’s affiliated property management company, M3 Property Management, Inc.

For more information, Art Wadlund can be reached at 520.299.7200 while Clint Wadlund is at 520.615.1100.

To learn more, login and see RED Comp #6612.