TUCSON, Arizona — Spirit Realty Capital (NYSE: SRC) of Dallas Texas added to its investment portfolio the new  Century Tucson Marketplace-14 for $15.55 million ($290 PSF). The new  Cinemark NextGen Theatres is located at 1300 East Tucson Marketplace Blvd. The 53,678-square-foot theatre, with 14 screens and 1,294 seats, has all-digital movie theatres and opened November 10, 2016.

Spirit Realty Capital is one of the largest publicly traded triple net-lease real estate investment trusts (REITs) in the United States. Investing in single-tenant, operationally essential real estate: free-standing facilities where tenants conduct activities that are necessary for their sales and profits. Spirit has approximately 7% of its portfolio in movie theatres.

As of December 31, 2016 the Spirit’s diversified portfolio was comprised of 2,615 properties, including properties securing mortgage loans made by the Company. Properties are leased to 450 tenants across 49 states with an aggregate gross leasable area of approximately 53 million-square-feet. Tenant include entertainment facilities as well as healthcare, industrial, and other industries that need special-use facilities.

The Theatres at Tucson Marketplace was sold by Eastbourne Investments, Ltd of Toronto, Canada and New York, the developer of Tucson Marketplace.

Tucson Marketplace is a 114-acre project with 1 million-square-feet of retail and entertainment anchors with fully complete. Current anchors include Costco and Super Walmart and over 96,000-square-feet of buildings that broke ground at Tucson Marketplace this past year. Cinemark’s 53,678-square-foot Century Theatre, a 12,550-square-foot Lin’s Chinese Buffet, and a 30,000-square-foot Dave & Buster’s opening April 10^th .

Randolph Titzck and Chad Russell with Land Advisors Organization in Phoenix represented the seller, Eastbourne Investments. Chad Tiedeman and Steve Underwood with Phoenix Commercial Advisors represented Spirit Realty.

For more information, Titzck and Russell should be reached at 480.483.8100. Tiedeman and Underwood can be contacted at 602.957.9800.

To learn more, see RED Comp #4578.

[mepr-show rules=”58038″]This transaction closed 2/22/2017. All cash. Document #2017-0530381, APN: 132-3-094. Sale price was $15,548,792. Property sold with a 15.5 year Initial Lease Term with 4-5 year options at a  7+ cap rate listing broker reported.[/mepr-show]

TUCSON, Arizona –  An investment group from Conroe Texas traded into the inline shops at Midvale Park Community Shopping Center at 1625-1645 West Valencia in Tucson. The property commanded a sale price of $6.9 million ($235 PSF).

The center is located across the street from the newly constructed 104,479-square-feet Fry’s store that opened Q3 206, with a 7,800-square-feet of inline shop space under construction, and mostly pre-leased by Rick Volk and Brenna Lacey of the Volk Company to Nationwide Vision, Great Clips and Lee Spa Nails. See Two Pads Sell for Construction at New Fry’s Center on Valencia.

To the west of the Midvale Park Community Shopping Center, a Tractor Supply store is being constructed as reported last week. See Tractor Supply Expands with 4^th Store in Tucson Metro.

Planning at 1955 W Valencia, located at Headley and Valencia,is under way as part of a 75,000-square-foot retail center with pads when complete at this 11.38 acres. See New 75,000 SF Shopping Center Coming to Southwest Tucson.

Valencia is a main arterial road serving the Southwest Tucson submarket with approximately 50,000 average vehicles per day. Neighboring tenants in Midvale Park include Walmart Supercenter, Lowe’s, several banks and many restaurants.

Development is pushing even farther west from Midvale Park along Valencia, Circle K Stores just closed on a 61,453-square-foot lot for $1 million ($16.27 PSF) at the northwest corner of Valencia and Camino de Oeste, for a new store site.

The 29,365-square-foot of inline space at Midvale Park Community Shopping Center was built in 1988, and sold fully leased with such tenants as Little Caesar, Super Pawn, Tucson International Academy, The UPS Store, Metro PCS and El Taco Tote.

Wilcox Center II, LLC of Tucson (Neil Kleinman, manager) the seller, owned the property since 2004.

Gordon Wagner and Dave Dutson with NAI Horizon in Tucson were brokers involved in the transaction and Valerie Skylar with Partners Management in Tucson will continue to manage the property.

For additional information, Skylar can be reached at 520.745.6221. Wagner is at 520.398.5130 and Dutson can be reached at 520.326.2200.

To learn more, see RED Comp #4563 and #4579.

[mepr-show rules=”58038″] Midvale Park Center closed 2/15/2017, document #2017-0460608. Sale price was $6,900,000. APN: 138-24-164A & 164B, 129,159 SF lot. Cap rate was undisclosed. RED Comp #4563

Circle K site closed 2/21/2017, document #2017-0520573. Sale price was $1,000,118. APN: 210-23-080B (por) 1.4108 acres, 61,453 SF lot. RED Comp #4579. [/mepr-show]

Multifamily Portfolio Sells for $46 Million

Updated: 3/1/2017
Tucson, Arizona — New York-based, Dasmen Residential (Michael I Katz, CEO) purchased a 1,166-unit portfolio in Tucson from Omninet Capital of California for $46 million ($39,451 per unit). The transaction marks the buyer’s entry into Tucson and its first acquisition west of the Mississippi.

“Our goal is to bring these four apartment communities to the next level in terms of interior upgrades, as well as commons area improvements,” says Michael Katz, CEO of Dasmen Residential, LLC. “Historically, we purchase assets of similar vintage and upgrade them with high end finishes that rival any new construction deal such as Quartz Countertops and Stainless Steel Appliances. With numerous development projects in the works across the city, along with job growth showing very positive signs, DASMEN feels that Tucson is on the rise. We feel that its economy is growing at a very strong and healthy pace. With its hands-on management approach, DASMEN will look to offer the residents of all four communities impeccable service and to do our part in ensuring that Tucson continues to become a great and successful city.”

Omninet Capital acquired the portfolio in August 2014 for $34.65 million ($29,717 per unit) and at that time it was the largest multifamily units and sale price sold in Tucson multifamily since 2010. This is no longer the situation in 2017.

Cindy and Brad Cooke with the Greater Phoenix office of Colliers International brokered both transactions on behalf of the sellers.

“The timing for Tucson market is highly opportunistic for investors,” said Brad Cooke, senior vice president of Colliers International in Greater Phoenix.   “It is experiencing strong job growth and looks to be headed toward even stronger economic performance in coming years. With new businesses and development projects, the job market is seeing a rise in the high-wage job sectors, nationally recognizable businesses bidding for entry to the market. Healthy population growth will continue to support tenant demand for apartment properties.”

“We’re pleased to see the multifamily market going so well in Tucson,” said senior executive president Cindy Cooke, “the job growth over the past year and projections for 2017 made this a good deal for both buyer and seller.”

All assets were built between 1973 and 1984. They include:

– Sedona Springs, 373 N. Wilmot Road (408-units)
– Sienna Ridge, 5353 E. 22nd St.(305-units)
– Summit Ridge, 1252 S. Craycroft Road (360-units)
– Verrano Park, 6850 E. Golf Links Road (93-units)

Dasmen Residential LLC, a privately held real estate investment firm that owns and operates multifamily properties in major cities throughout the United States, makes opportunistic investments in growth markets and employs a range of strategies to create value and sustain long term asset appreciation. The company seeks to continue exceeding its goal of providing outstanding risk adjusted returns to its partners while providing the best possible living experience in its communities.

The portfolio was over 95% occupied at time of sale. Properties were being managed by MEB Management Services by seller and will continue management for new owner. MEB can be contacted at 520.620.1640.

For more information, the Cooke Multifamily Investment Team and Cindy and Brad Cooke can be reached at 602.222.5000.

See RED Comps #1922, #1923, #1924 and #1925 for prior transactions and RED Comp #4571.

[mepr-show rules=”58038″]Portfolio closed 2/14/2017. Document # 2017-0450572. Prices were split evenly over the four properties totaling $46 million with $800, total down payment.[/mepr-show]