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Baceline Investments, a private REIT out of Denver, CO (David Puchi, Managing Partner) purchased the Cortaro Crossings strip center at 8205 -8225 N Courtney Page Way in Marana, northwest of Tucson, for[mepr-show rules=”58038″]$3.78 million ($190 PSF). The 19,902 sq. ft. center (built 2007) is located within Continental Ranch near Arizona Pavilions. It was 94% occupied, with 1,200 sq. ft. vacant when it sold in this Receiver’s Sale.

The center is in one building and sold with 2.4 acres. Tenants include the Native New Yorker restaurant, Sushi Cortaro, Nana’s Kitchen, ChopStix, VIP Insurance, and a martial arts school. The sale did not include the car wash at the corner, but did include a vacant 22,309 sq, ft. expansion pad  to the west of property.

Michael Stilb of CBRE Tucson Management Services handled the management and leasing of property prior to sale and represented the seller and lender in this transaction.

The investor, Baceline Investments was founded in 2003 by David Puchi. After serving as a real estate asset manager for a privately held real estate investment firm, Puchi created Highline Group, LLC in 1994, a property management entity affiliated with Baceline REIT. Puchi continues as managing partner of Baceline, overseeing its capital development and leasing strategy. Baceline and its predecessor entities have developed an impressive track record of owning and managing a wide array of commercial properties, but has specialized in retail.

This is Baceline’s first acquisition in the Tucson market although it is not new to Arizona. It bought another retail center in Sedona last year. “We have Arizona connections and are looking for other retail assets,” according to Puchi. Typical investments range from $2 million to $30 million, and are class-B or higher multi-tenant properties with national, regional and/or local credit.

Currently the company owns 28 retail centers, including the two in Arizona. Others are in Texas and the Midwest. Puchi said, “Baceline prefers smaller, growing markets such as Sedona and Tucson. This property was bought as part of our ‘no-debt real estate investment fund’ an income fund that we manage.”

Baceline usually handles its own property management and hires local leasing agents for its properties.

Michael Sandahl, Senior Vice President Investment Properties at CBRE in Tucson handled the transaction for both investor and seller.

Puchi can be reached at (800) 730-9544. Stilb should be contacted at (520) 888-5127. Sandahl can be contacted at (520) 323-5115.

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[ismember]Sale date: 6/21/2013. Escrow Time: 90 days (March 27- June 21) Recorded seller was Courtney Page Way, LLC. Lease range was reported from the high teens to low twenties average rate was $18/SF/ NNN. Puchi reported that due to it being a receiver’s sale, the cap rate was higher than normal, with an NOI of  $359,100, property sold at a reported 9.5% cap rate based on income at time of sale. [/ismember]

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USA Pawn & Jewelry through affiliates (Craig McCall, Managing Member) sold two of its Tucson stores in sale leaseback agreements. The property at 4870 E 22nd Street sold for[mepr-show rules=”58038″]$995,000 ($187 PSF) to a California investor and the store at 5000 E Speedway sold for approximately $1.4 million ($133 PSF) to a Colorado LLC.  Both have been operated as successful USA Pawn shops, one for the past ten years & and the other, for fifteen years.

Within the past year, both properties have undergone approximately $100,000 in remodeling, including increasing building elevation height to approximately 25 feet and other visual enhancements. With the remodel complete, both have a ‘can’t miss’ or billboard-type visibility. Both are infill locations surrounded by high-density population.

EZCORP, Inc. (NASDAQ: EZPW), currently doing business as USA Pawn & Jewelry in Arizona is a market leader in specialty consumer financing, with approximately 850 locations throughout the United States, over 180 locations in Mexico, and nearly 70 locations in Canada. Headquartered in Austin, Texas, the company employs more than 6,000 employees worldwide.

The high profile freestanding building at 5000 E Speedway is located at the southeast corner of  Speedway Boulevard and Santa Rosa Avenue, west of Rosemont Boulevard, on .76 acre.  It is located on one of Tucson’s most heavily trafficked arterials (±46,000 acpd*) which has six driving lanes and a median break. The property being served by a median break with a left hand turn lane from Speedway provides easy access for traffic in both directions.

The other freestanding building at 4870 East 22nd Street is located east of Swan Road on .36 acre, also on one of Tucson’ s most heavily trafficked arterials (±46,000 acpd*) with six driving lanes. The property is serviced with a median break and left hand turn lane to provide easy access for both east and westbound traffic.

The buildings will continue to be occupied by USA Pawn as part of the sale lease back agreements between seller and investors.

USA Pawn & Jewelry has locations in Nevada, Oregon and Arizona. In Tucson, there are a total of ten stores at 3867 N Oracle, 2590 S Kolb Rd, 1726 W Ajo Way, 1895 W Valencia, 420 W Valencia, 1902 E Irvington, 5000 E Speedway Blvd, 3402 S 6th Avenue, 2904 N 1st Avenue, and 4870 E 22nd Street.

Terry Dahlstrom with the Volk Company in Tucson handled the transaction for buyers and seller.

McCall can be reached at (702) 851-8155. Dahlstrom is at (520) 326-3200.

For related story on USA Pawn’s purchase of its store on First Avenue in Tucson click here.

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[ismember] 5000 E Speedway: Sale date was 5/29/2013 for $1,372,000. Property sold with true net lease with 9 years remaining and was marketed at a 7.15% cap rate. Seller was Tucson Speedway Blvd. an affiliate of USA Pawn and the buyer was 1403 E 22nd Street, LLC of Durango, CO. In prior sale, the property was purchased by seller on 4/21/2006 for $1,287,500

4807 E 22nd Street: Sale date was 5/228/2013. Property sold with true net lease with 9 years remaining and was marketed at a 7.15% cap rate. Seller was 4870 22nd Street, LLC, an affiliate of USA Pawn and the buyer was The Patel Trust of Sherman Oaks, CA. In prior sale, the property was purchased by seller on 9/7/2001 for $300,000[/ismember]

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With office activity pretty much flat since 2012, a sudden surge in office condominium sales in the Northwest Foothills area of Tucson is seen as encouraging.

NORTHWEST SUBMARKET
Dr. Mikel Lo, About Faces Cosmetic Surgery, purchased a 5,225 sq. ft. class-A medical condo building at La Cholla Medical Park on the Northwest Medical campus, 5940 N La Cholla Blvd. in Tucson for[mepr-show rules=”58038″]$1.13 million ($216 PSF). The building (built 2003) was leased to a single tenant and had economic vacancy for one year when it sold. It will be owner occupied by Dr. Lo for About Faces next year when its lease at 6127 N La Cholla Blvd. expires. Compass Bank of Tucson handled financing. Doug Marsh with Oxford Realty Advisors in Tucson represented the seller, GACD, LLC of Newport Beach, CA. The buyer was represented by Clint Buckelew of Buckelew Realty in Tucson for this transaction.

Doug Marsh commented, “With interest rates being what they are, businesses prefer to buy rather than lease. To accommodate this trend, Oxford has taken on a condo conversion project in the Northwest to convert a retail center into office condos.”

Also at the La Cholla Medical Park on the Northwest Medical campus, 5910 N La Cholla Blvd. sold for $867,000 ($223 PSF) to the Northwest NeuroSpecialists Medical Group. Built in 2004,  the 3,887 sq. ft. four-condo building was move-in ready for buyer that plans to occupy immediately. Alliance Bank handled the

financing. Doug Marsh of Oxford Realty Advisors in Tucson represented the sellers, Mr. & Mrs. Randall Cohen. The buyer was represented by Alan Moore of Chapman Lindsey in Tucson.

“As the office market comes back, it seems natural for medical use to be in the forefront, since medical space needs are the most predictable for long term space requirements,” according to Gary Heinfeld, CCIM of Advisors in Real Estate

Heinfeld sold a 1,200 sq. ft. condo at San Jose Plaza, 10134 N Oracle Road #11 in Oro Valley for $252,000 ($210 PSF) to Oro Valley Weight Loss Clinic, Dr. Robert McCarver of Chandler. This will be the first office in Tucson for Dr. McCarver. Built in 2009, the building was being marketed for lease or lease-purchase. This is the first occupant in the new condo that sold ready to move-in, after paint and flooring is finished for final build out. Gary Heinfeld, CCIM of Advisors in Real Estate represented the seller. The buyer was represented by David Montijo, 1st Vice President and Bruce Suppes, Vice President with CBRE in Tucson.

Domino Pizza purchased a 3,025 sq. ft. office condo for its Tucson administrative office at Magee Corporate Center, 2205 W Magee Rd. in Tucson. The sale price was approximately $386,000 ($128 PSF) for shell condition in this class-A complex. Constructed in 2007, the 24 month road construction project now completed along Magee and La Cholla must be welcomed news. Domino will be next to Arizona Sunset Dental and complete the tenancy in this building. Tom Nieman and Rick Kleiner, MBA, Principals and Office Specialists with Cushman & Wakefield / Picor Commercial Real Estate Services handled the transaction.

Nieman reported that Magee Corporate Center at the southwest corner of Magee & La Cholla has only one 2,251 sq. ft. shell condo remaining and the developers are considering whether or not the time has come to build another shell office building.

Craig Courtney, owner and developer of Magee Center Office Condominiums, on the northwest corner agrees, “There seems to be signs of a shortage in office inventory coming to the Foothills; but added, as long as there exists such a wide gap in pricing between ‘buying new’ versus ‘refurbished’, it’s challenging to know if new construction is warranted.” Courtney has plans to develop his corner as 50,000 sq. ft. retail and 20,000 sq. ft. office and potential hotel site

Across the street, on the southeast corner at La Cholla Corporate Center, Amram Dahukey, MD bought a 1,748 sq. ft. medical condo at 7590 N La Cholla Blvd. in Tucson for a Podiatrist office

from Dr. Rosenfeld for $230,000 ($132 PSF). Property was previously occupied by the seller as medical space. Buyer purchased to owner occupy dba Premier Foot and Ankle Surgeons. Nancy Gansline of Oxford Realty Advisors in Tucson represented the seller and David Montijo of CBRE in Tucson represented the buyer in this transaction.

Dr. Wenhui Cai bought a 2,567 sq. ft. condo at Plaza Campana, 6879 N Oracle Rd. #32 & #33 in Tucson for $346,545 ($135 PSF) for investment. The condo located southwest of Ina and

Oracle was vacant at time of sale. This is Cai’s second condo purchase in the complex for investment. John Yarborough of Romano Real Estate handled the transaction. Yarborough has listing for the 2,567 sq. ft. available for lease at an asking rate of $22/SF/modified gross in this class-A complex.

Palm Canyon Dermatology, Dr. Gregory Ertle is relocating from Yuma and purchased the 2,143 sq. ft. condo at 12460 N. Rancho Vistoso Blvd., Ste 110 in Oro Valley for $300,000 ($140 PSF). The space was previously owner occupied dba Desert Day Spa. The clinic will be open for business on September 3 according to the recorded phone message there. We were unable to determine if there were brokers involved.

Marsh and Gansline with Oxford Realty can be reached at (520) 232-0200. Buckelew at Buckelew Realty is at (520) 975-2409. Moore with Chapman Lindsey can be contacted at (520) 747-4000. Heinfeld with Advisors in Real Estate should be reached at (520) 299-0760. At CBRE, Montijo is at (520) 323-5136 and Suppes is at (520) 323-5155. Nieman can be contacted at (520) 546-2728 and Kleiner is at (520) 546-2745 at Picor. Courtney of Courtney Realty can be contacted at (520) 293-8280. Yarborough of Romano Realty can be reached at (520) 577-1000.

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[ismember] 5940 N La Cholla sold on 5/16/2013. Tucson class A office (BOMA class B). The recorded buyer was MTCL, LLC and seller, GACD, LLC. It was in escrow 90-days. Buyer put $175,000 down and financed the balance.
5910 N La Cholla sold on 5/13/2013. Tucson class A office (BOMA class B). The recorded buyer was Four Legged, LLC (Drs. David Weidman, Reuben Hill et al, and seller, Mr. & Mrs. Randall S & Cathryn Cohen of Tucson. The escrow time was 45-days. Buyer put $214,000 down and financed the balance.
10134 N Oracle Rd #11 sold on 6/19/2013. Tucson class A office (BOMA class B). The recorded buyer was Oro Valley Weight Loss Clinic, LLC and seller San Jose Commercial Center Lot 4, Inc. Square footage is appraised SF, assessor uses 1,143 SF. Escrow time was 23 days, all cash.
2205 W Magee Rd #22 & 23 sold on 5/23/2013. Tucson class A office (BOMA class B). The recorded buyer was Team So-Cal, Inc. of Ventura, CA and the seller, Landmark Title Trust #18,183-T, Magee Corporate Center, beneficiary. The space was on the market for sale or lease at $21.96 / SF. Escrow time: N/Av, all cash transaction.
7509 N La Cholla sold on 6/3/2013. Tucson class A office (BOMA class B). The recorded buyer was 7590 La Cholla, LLC and the seller, Rosenfeld Building, LLC of Virginia Beach, VA. Square footage is per tax assessor. Escrow time: N/Av, all cash.
6879 N Oracle sold on 4/25/2013. Tucson class A office (BOMA class B). The recorded buyer was Cyan, LLC and the seller, San Carlos Institute of Art & Design, Inc. of Tucson. Escrow Time: N/Av, all cash. The other condo Dr Cai purchased last year by this same buyer is currently leased on a short term lease to Nova Homes.
12460 N Rancho Vistoso Blvd sold 4/25/2013.Tucson class A (BOMA class B). The recorded buyer was Gregory A & Sue A Ertle, the seller PR Properties, LLC Pamela Crim. Escrow Time: N/Av, all cash deal. SF is per buyer, tax assessor shows 2,119 SF. [/ismember]