Cushman & Wakefield Arranges the Sale of Home Depot Anchored Center in Tucson, AZ

Weingarten Realty sells 150,170 SF destination retail shopping center with over 90% national / credit tenants

TUCSON, Ariz.– Cushman & Wakefield announced the firm has brokered the sale of Oracle Wetmore, a high-quality 150,170-square-foot retail destination shopping center located at the southeast corner of Oracle Rd. and Wetmore Rd. in Tucson, Arizona.  The buyer was an affiliate of Los Angeles, California-based Black Lion Investment Group, Inc.  Shadow-anchored by one of the nation’s largest home improvement stores, the retail center is home to over 90% national tenants.

The seller was Texas-based Weingarten Realty.  Michael Hackett and Ryan Schubert with Cushman & Wakefield in Phoenix represented the seller in the transaction.

The sale price totaled $38.025 million ($253 PSF) and closed February 1, 2021.

“Oracle Wetmore is a high-quality anchored retail asset,” said Michael Hackett.  “Regional and daily needs assets in Arizona such as Oracle Wetmore have performed very well the last year.”

The purchase is part of Black Lion Investment Group’s ongoing program to acquire very well-performing power centers in particular markets throughout the U.S.  Black Lion’s President, Robert Rivani, says that “Black Lion is happy to see our aggressive acquisition strategy unfolding right to plan despite today’s obvious challenges in the general market.”

Originally developed in 2005, Oracle Wetmore is ideally located on heavily trafficked Oracle Road (SR 77), the dominant north/south arterial connecting Oro Valley to Tucson, Arizona, anchored by Home Depot (not included in the sale).  Other major tenants include Jared Jewelers, BJ’s Restaurant and Brewhouse, NextCare Urgent Care, Bassett Furniture, Walgreens and PetSmart.

For more information, Hackett and Schubert should be reached at 602.253.7900.

To learn more, see RED Comps #8509 and #8510.



Developer sells Ready to Build, Permit in-hand, Self-Storage Site for $3 Million in Tucson

Tucson, Arizona –A self-storage developer has closed on the sale of their second Storage Development Opportunity in the Tucson market. The 3.15 acres at 1760 West Irvington sold fully entitled for a 3-story, two above ground, one below for a 100,000-square-foot building with 1,200-units to Gibralter Holdings LLC for $3 million.

The new facility will be managed by Life Storage, a real estate REIT specialized in the self-storage business.

Abraham Slilaty is manager for developer, working under various LLCs that have owned most of his land assets in Tucson for over 30 years. These sites have now become unique and strategically located within central areas of the City. Asset offerings are usually either CofO sales or Development Opportunity sales that include the land along with fully engineered and approved development plans including architectural construction documents, and third-party engineering reports, even underground soils & geotechnical studies. These properties more than “shovel ready” they are literally being sold ready-to-build with permit in-hand.

The seller / developer’s first self-storage project was purchased in 2019 by a large private equity company. At the option of the buyer, the project was purchased as a Development Opportunity, whereby the buyer was able to break ground and oversee the construction themselves, yielding a newly constructed facility of 100,000 NRSF at a 45% discount from stabilized retail value. This property has been open less than a year and is being absorbed well with over 35% occupancy.

To complete the recent sale of their second project, also purchased as a Development Opportunity at the option of the buyer, the developer spent nearly two years navigating the long and difficult governmental entitlement process to the end point of pulling the building permit and negotiating the final construction contract. This approach allowed the buyer to have input early in the process and customize the design and unit mix to their choice – and allowed the buyer to break ground immediately following close of escrow; yield the buyer a newly constructed facility comprised of 100,000 NRSF at a 45% discount from stabilized retail value.

The developer continues to hold in its land asset portfolio several one-of-a-kind sites in the heart of Tucson with un-met demand for storage. Currently, two projects are underway in the design & entitlement stage being made available for sale as a CofO or Development Opportunity.

Bill Alter of Rein & Grossoehme Commercial Real Estate, LLC represents the seller in these transactions.

For additional information about this sale and current and future opportunities contact Bill Alter at 602-315-0771 or Bill@RGcre.com.

To learn more, see RED Comp #8493.

 



Former Banner Medical Campus Trades for $2.045 million for redevelopment

TUCSON, ARIZONA — The former Banner-University Medical Center Tucson Campus at 655 East River Road in Tucson sold recently for $2.045 million ($52 PSF) for redevelopment.

The buyer, River People LLC, is a group of local investors managed and operated by Rick Volk of Volk Company.

“The location at First Ave and River was the primary reason to buy the renovation project,” Volk said. “With frontage on both River Road and First Avenue, we know the location is great for almost any use, but we’re still exploring possibilities. It is a gateway property to the Foothills and City. We bought it 100% vacant and have already had some interest shown for a conversion into a mixed-use project for restaurant / office tenants or possibly converting all or a portion of it into office condominiums.”

The three-building campus of 39,400-square-feet of medical office space with common courtyard was built in 1995 and sits on 3.4 acres.

“It needs some updating, but the interior finishing is good,” Volk continued. “And with rare C-2 zoning, it has endless potential.”

Pat Williams, Vicki Robinson and Chris Comey of JLL – Jones Lang LaSalle Phoenix represented the seller in the transaction and the investors were self-represented.

This was the upleg for investors in a 1031 exchange after selling Valencia Marketplace in January. Volk is still looking to invest in another $1 to $3 million property, to complete the exchange.

For more information, Volk should be reached at 520.326.3200 or 520.495.2242.

To learn more, see RED Comp #8468.