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Realty Income Corporation, a California REIT, through an affiliate purchased the Family Dollar store at 6641 N Sandario Road in the Picture Rock area of Tucson for[mepr-show rules=”58038″]$1.62 million ($206 PSF). Built in 2012, the 7,880 sq. ft. Family Dollar is on a .97 acre lot by the seller. The Hutton Company of Chatanooga, TN.

As one of the largest discount retailers in the United States, Family Dollar continues to gain market share and appeal from net lease investors. Family Dollar holds investment grade credit ratings from S&P (BBB-) and Moody’s (Baa3) and operates under a landlord friendly net lease structure. As a result, free-standing Family Dollar retail stores provide an attractive combination of a long-term lease, investment grade credit, and a growing market concept that continues to capture value conscious shoppers, which boosts store productivity.

In 2011, Family Dollar started a multi-year initiative to re-energize the brand. The program included physical improvements to building facades, fixtures and signage, and expanding in-store offers. These improvements took place to existing stores, while the company also focused on market expansion and store relocations.
Realty Income Corporation (NYSE: O) is a real estate investment trust known as “The Monthly Dividend Company” (a registered trademark) for its practice of paying investor dividends on a monthly rather than quarterly basis. It is chartered in the state of Maryland and has its headquarters in Escondido, California. As of January 2013, the company owned over 3,500 commercial real estate properties in 49 states, with total assets of approximately $9.0 billion and net income of $115 million.

Founded in 1969 by William E. Clark and Evelyn J. Clark. Realty Income’s first acquisition was a Taco Bell restaurant in early 1970. By 1992 the company had formed 22 partnerships, which controlled 628 properties and involved 68,000 individual partners. In 1994, Realty Income Corporation merged its various partnerships into a publicly traded company, listed on the New York Stock Exchange with the single letter “O” as its symbol. In the first quarter of 2013 Realty Income saw its revenues rise more than 52% over the same quarter from the previous year.

The company primarily acquires properties that are freestanding, single-tenant locations, and that are leased to regional and national commercial enterprises under long-term net-lease agreements.

The Hutton Company can be reached at (423) 756-9267. Realty Income is at (877) 924-6266.

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[ismember]Sale date: 6/21/2013. Exact sale price was $1,620,648. The typical Family Dollar net lease is 10 years with successive option periods when the rent increases 10% every five years during the options. The Family Dollar net lease typically requires minimal responsibilities from the landlord, limited only to roof & structural maintenance while the tenant is responsible for insurance, taxes and all other maintenance and repairs. Recently, Family Dollar has offered sale-leasebacks with 15-year NNN leases which might be an indication that the build-to-suit programs will also start producing NNN opportunities. CAP Rate 2012 avg. 8.66% 2013 avg. 7.22% [/ismember]

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The following list of office sales completes our reporting of 2Q Tucson sales, and although all are not all medical spaces, most are. According to NAR, while the US healthcare system is bracing for the addition of 30 million previously uninsured patients,  there are a series of business transformations taking place having significant real estate effects.

EAST SUBMARKET
James and Vicki Sherman of Tucson sold their medical condo at 6562 E Carondelet Dr. Suite 205 in the San Rafael Medical Center on St Joseph Hospital campus to Jorge and Joanne Alvarez of Tucson for

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$185,000 ($87.55 PSF). Dr. Sherman an OB/GYN occupied the space and Dr. Alvarez, DDS will also owner occupy it as a dental office. Financing was handled through and SBA loan.

NORTHEAST SUBMARKET
The office condo at 7367 E Tanque Verde Rd in Tucson sold for $294,000 ($140 PSF) to Richard Gage of Tucson. The office condo in Tanque Verde Place was vacant and will be occupied by buyer dba Financial Equities Strategies, a financial advisor. Mark Hays of Tierra Antigua Realty in Tucson represented the seller, Tucson and Green Valley Team Office, LLC of Tucson (Robert Eyer and Jeffrey Arnett). The buyer was represented by Larry Potter and Amy Star of Keller Williams Southern Arizona in Tucson.

Baggins sold two adjoining office buildings at 5375 and 5403-5407 East Pima Street in Tucson for $265,000 ($75 PSF). The buyer KLM Properties, LLC dba Collins Excavating intends to owner occupy the properties located northwest of Craycroft, between Beverley and Craycroft. Bob Bohacik of Arizona Sunbelt Business Advisors in Tucson represented the seller. Greg Boccardo of Hoot Gibson Realty in Tucson represented the buyer.

The medical office building at 4715 E Camp Lowell (built 2000) in the class-A Swan Corporate Center at Swan and Fort Lowell in Tucson sold for $1 million ($235 PSF). The seller Dr. Jeffrey Palen, a Gynecologist sold the property to Dr. Jeffrey Monash dba Tucson Bariatric. The seller and new owner are sharing the building as Tucson Bariatric Obstentrics and Gynecology temporarily.

CENTRAL SUBMARKET
Charter School, Presidio High School paid $750,000 ($92 PSF) for the vacant 8,187 sq. ft. office building at 1615 East Fort Lowell Road in Tucson, located northeast of Cherry and Fort Lowell. Presidio serves approximately 400 students K-12 and will use the building for administrative offices. Mark and Janine Irvin of Mark Irvin Commercial Real Estate Services handled the transaction.

SOUTH TUCSON SUBMARKET
A single-story office building at 2716 S 6th Avenue, South Tucson sold for $425,000 ($49 PSF) to MHB Insurance Services of Tucson dba Medicare Health Benefits. The property was bank owned by an affiliate of Stancorp Mortgage of Hillsboro, OR when it sold. The 8,733 sq. ft. building (built 1982) is on a .57 acre lot. Tom Neiman of Cushman & Wakefield / Picor Commercial Real Estate Services represented the seller. Peter Canakacos of Long Realty represented the buyer.

NORTHWEST SUBMARKET
Dr. Mary Gharagozloo, DDS through an affiliate bought the dental office jointly shared with Dr. Todd Southall, DDS at 1840 E Innovation Park Drive in Oro Valley for $200,000 ($129 PSF). Southall was the seller of the 1,550 sq. ft. dental office in Innovation Corporate Center, a PUD on a 3,696 sq. ft. lot that Southall purchased in 2009 for $146,250.

Dr. Alvarez cam be reached at (520) 722-1655. Mark Hays is at (520) 544-2335. Larry Potter and Amy Star and be contacted at (520) 615-8400. Bob Bohacik is at (520) 577-1212. Greg Boccardo can be reached at (520) 955-0777. To reach Dr. Jeffrey Monash call (520)319-6000. Mark and Janine Irvin should be contacted at (520) 620-1833. Tom Neiman with Picor is at (520) 546-2728 while Peter Canakacos is at (520) 299-2201.  Dr. Mary Gharagozloo & Dr. Todd Southall should be reached at (520) 505-4422.

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NORTHWEST SUBMARKET
New at Tierra Linda Nueva – D.R. Horton paid[mepr-show rules=”58038″]$160,000 ($40,000 per lot) for four finished lots in the Northwest submarket, southwest of Emigh Road and Sanders Road in Marana. This is the first takedown on an option for 48-lots from Tierra Linda Nueva, an affiliate of Estes Land and Development of Tucson (Kip Volpe, President) in a 190 SFR lot subdivision of 36,000 SF minimum lot size.

New Northwest Community for Meritage Homes of Arizona in Scottsdale. Meritage bought a 50 platted lot subdivision at Tangerine and La Cholla in Oro Valley, in the Northwest submarket, for $982,500 ($19,650 per lot). Rancho de Plata, LLC of Tucson (Yoram Levy) sold the subdivision by the same name, Rancho de Plata. Mike Carlier and Jim Vincent of the Carlier Company represented the seller in the transaction.

A.F. Sterling of Tucson (Randy Agron, VP) took down four finished lots at Tortolita Vistas for $429,800 ($107,450 per lot) for these 3/4 acre custom home sites. The transaction was part of a rolling option for a total of 34 custom home sites that began in 2011. The seller was Cottonwood Properties of Tucson (Bill Hallinan, VP).

SOUTHEAST SUBMARKET
New at Civano in the Southeast – Pepper Viner has entered into a rolling option agreement with Spectrum Capital Holdings of Tucson for 32 total lots at Civano. Eleven of the lots are in Civano I (PAD-12) and 21 lots in Civano Block 2 (PAD-6). Pepper Viner’s first takedown was for four lots, two lots in each subdivision for $175,000 ($43,750 per lot).

SOUTHWEST SUBMARKET
D.R. Horton bought three finished lots at Estancia Del Corozon in Rancho Sahuarita for $165,000 ($55,000 per lot) from Robert Spinelli. Rancho Sahuarita is south of Tucson. The three lot sizes were 80’ x 120’in size. This was a cash purchase for the builder.

WEST SUBMARKET
Willow Bridge, LLC of Tucson (Greg Anderson, managing member) bought 51 finished lots in the Silverbell Residential subdivision located is in the West submarket, at Silverbell and Goret in Marana. The cash purchase for $700,000 ($13,725 per lot) was an investment purchase. The seller was Metropolitan Housing Corporation of Tucson (Gary Bachman, CEO). Aaron Mendenhall and Dan Feig of Chapman Lindsey of Tucson negotiated the transaction and are listing agents on the lots for resale.

D.R. Horton (520) 790-6005. Volpe (520) 571-1958. Meritage Homes (877) 275-6374. Vincent (520) 548-0216 and Carlier (520) 529-3800. Feig and Mendenhall (520) 747-4000. Metropolitan (520) 795-7555. Agron (520) 577-3600. Hallinan (520) 299-8424.

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[ismember] D.R. Horton closed on the lots at Tierra Linda Nueva 5/24/2013. Land area is 174,912 SF. Subdivision is zoned SH, .93 RAC.
Pepper Viner at Civano closed on 6/12/2013. Buyer’s option at Civano I is for (11) cluster lots, zoning PAD-12; and (21) lots (85’ x 110’) in Civano Block 2, zoned PAD 6, totaling 32 lots. Totaling 28,727 SF as follows 3,846 sf; 3,573 sf; 9,350 sf; 11,9578 sf
DR Horton’s Rancho Sahuarita 3 lots sold on 6/25/2013. Land area was 29,779 SF.
Meritage Homes at Rancho de Plata closed 6/21/2013. Gross land area was 19.45 acres, net acres 18.77. All platted to 55’ lots approximately 6,000 SF lots zoned R-7.
Willow Bridge purchase was on 6/6/2013. The subdivision consists of 85 total lots on 20.16 acres. The project is a residential cluster project.
AF Sterling lots at Tortolita Vista closed on 6/27/2013.[/ismember]