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The medical / administrative building at 4881 E Grant Road in Tucson was purchased by Hazen Enterprises through affiliates for[mepr-show rules=”58038″]$4.3 million ($284 PSF) from BP Crossroads Investors, LLC (Don Bourn, managing member). The two-story, 15,000 sq. ft. building is located on just under an acre in The Crossroads Festival Center, at the northeast corner of Swan and Grant Roads.

The seller, an affiliate of Bourn Partners, developed the property in 2008 as a build-to-suit and sold it fully occupied to Genesis OB/GYN, the parent company of Crossroads OB/GYN. The second floor serves as administrative headquarters for Genesis with medical space for seven OB/GYN doctors on the ground floor.

Genesis is the parent company to over a dozen OB/GYN, Diagnostic Imaging and Maternal Fetal Medicine centers in the region.

Tucson-based Hazen Enterprises began as Hazen Brothers Construction in 1981, a family owned and operated enterprise, the construction company built townhomes. In 1986, that portion of the business was halted when tax laws changed and Hazen Enterprise continued its property management and commercial real estate investments in the community. Brandt Hazen, son of Paul Hazen and nephew to Steve and Jeff Hazen the company founders, took over the business about 12 years ago. Hazen currently manages 426 townhomes in 30 locations and approximately 200,000 sq. ft. of office space.

The investor recently sold another office building at 3160 E Transcon Way in Tucson to Infinity Insurance for its new Tucson location. This transaction was the buyer’s up-leg in a 1031 exchange. Additional information on this prior sale is available to subscribers here.

Hazen pointed out that there was more involved than just doing a tax deferred exchange when deciding to purchase a property. Hazen explained, “It’s about relationships and that means the people involved, not just the property. We look for relationships, not just properties. It’s more than a leased building to us, it’s a new partnership with Genesis.” Hazen takes as much pride in the relationships as the townhomes his company has built in Tucson.

Genesis is the parent company to over a dozen OB/GYN, Diagnostic Imaging and Maternal Fetal Medicine centers in the region.

Michael Sandahl, Senior Vice President of Investment Properties and David Montijo, First Vice President, at CBRE in Tucson handled the transaction for both parties.

Hazen can be reached at (520) 795-8429. Bourn is at (520) 323-1005. Sandahl can be contacted at (520) 323-5115 and Montijo is at (520) 323-5136.[/mepr-show]

[ismember]The precise sale price was $4,265,000. Property sold at a reported 9.14% cap rate, a lease rate of $26 PSF/ NNN. There was a 30-day look and 30-day close. The building SF was reported by the buyer per appraisal survey at time of sale as 15,000 SF, this differs slightly from the County Assessor number of 14,771 SF. Broker reported that the property was off-market when it sold. Land area is 43,180 SF, or .99 acre.[/ismember]

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D.R. Horton, a Texas based company and one of the largest homebuilding companies in the United States, operating in 26 states and 77 metropolitan markets.

In Caddis Haley Estates, D.R. Horton (NYSE: DHI) acquired 9 finished lots for[mepr-show rules=”58038″]$180,000, or $20,000 per finished lot as part of a rolling option for 161 lots, from Caddis Bridge, LLC (Greg Anderson, manager). Caddis Haley is located west of Tucson near Star Valley, west of Casino del Sol. D.R. Horton offers five models there ranging in price from $127,900 to $160,000. Average lot size is 5,128 sq. ft. Dan Feig and Aaron Mendenhall of Chapman Lindsey represented the seller.

In Sahuarita Highlands, D.R. Horton took down an additional 6 lots for $258,000, or $43,000 per finished lot from Red Point Development, Inc. (Daniel Leung, President) as part of a rolling option agreement for 153 total lots. Sahuarita Highlands offers five floor models that range in price from $187,900 to $206,900. Dan Feig of Chapman Lindsey represented the seller.

In a new agreement that began 1Q 2013, D.R. Horton purchased 12 lots in Sonoran Ranch II for $294,000, or $24,500 per finished lot from Son.Land Company (John Agresti, manager). This is the second takedown of 52 lots there. Sonoran Ranch is located west of Tucson near Star Valley and offers six models ranging in price from $141,900 to $193,900. The average lot is about 5,000 sq. ft. Dan Feig with Chapman & Lindsey in Tucson represented the seller.

D.R Horton Homes generally range in size from 1,000 to 4,000 sq. ft. and in price from $100,000 to $600,000. For the year ended September 30, 2012, D.R. Horton closed 18,890 homes nationally with an average price of approximately $223,300.

To contact D.R. Horton’s executive office call (817) 390-8200. Dan Feig and Aaron Mendenhall can be reached at (520) 747-4000.[/mepr-show]

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NBA player, formerly with the Phoenix Suns and more recently the Brooklyn Nets, Josh Childress, purchased through a private investment firm Franklin Street Partners of North Carolina, the Casa Grande Village Apartments at 5950 S Park Avenue in Tucson.

The 52-unit complex was 90% occupied at time of sale; 79% were two-bedroom and 21% one-bedroom units. The property was reportedly well maintained and sold for[mepr-show rules=”58038″]$1.48 million ($28,500 per unit) or $42 PSF for the 35,456 sq. ft. complex (built 1986) in five two-story buildings on 2 acres. Located in the southern part of Tucson at Park Ave and Mossman, the property is near I-19, the Tucson Airport, Hughes Aircraft Co., and Desert Diamond Casino.

Property amenities include two onsite laundry rooms, a playground, patios and balconies, ceramic tile floors, individual heating and air conditioning, and dishwashers in select units.

Franklin Street Partners, an asset manager since 1990, provides independent, strategic and highly personal advice to clients with high standards of professionalism, fiduciary responsibility and discretion. Investment clients run the range of endowments, foundations and other sophisticated institutional investors, as well as families and individuals with significant portfolios who require a more comprehensive solution.

Cohen Financial of Phoenix financed the sale.

North Star Management and Consulting in Tucson has been retained by the new owner for leasing and property management.

The multifamily team of Bill Hahn, Jeff Sherman, and Trevor Koskovich of Colliers International in Phoenix handled the transaction for seller, Westmoreland Apartments, LLC of Tucson and investor.

Franklin Street Partners can be reached at (919)489-2600. Cohen Financial is at (602) 381-3700. North Star Management should be contacted at (520) 885-8590. Hahn, Sherman and Koskovich at Colliers should be contacted at (602) 222-5000.[/mepr-show]

[ismember]Market time was 90 days and a 30-day close. Buyer paid $454,000 (30%) down and financed the balance with Cohen Financial. GPI ($334,440) with 1-bedroom units renting at $465/ month and 2-bedrooms renting at $555/month (average rent $536) and was 10% vacant at time of sale ($33,444) with operating expenses annualized at $132,400 and $300 per unit reserves ($15,600), the property sold with an NOI of $148,000 or approximately a 10% cap rate based on income at time of sale.[/ismember]