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Saguaro Ranch has been a struggling luxury community in northwest Tucson for a number of years. The original developer filed Chapter 11 in February 2009 and the property was returned to the largest secured creditor, Kennedy Funding of Englewood Cliffs, NJ, holding claim to $23.9 million in 2011. Kennedy’s intent was to find a buyer for the assets for resale.

Before being caught in the maelstrom that hit Arizona especially hard, Saguaro Ranch luxury community suffered setbacks in its plan to develop 180 single family homes tucked away on 1,035-acres in the Tortolita Mountains. Before filing bankruptcy some of the vacant lots there were selling for $1 million each.

Over the past 30 days, Kennedy Funding has sold over $50 million in assets. Northlight Financial LLC (“Northlight”), is an established corporate lender and asset-based investor of private equity debt and real estate assets. Northlight acquired 115-lots at Saguaro Ranch for $8.08 million, falling on the heels of their acquisition of a majority stake in Seven Canyons, a Sedona, Arizona 18-hole golf resort designed by Tom Weiskopf; both were distressed properties.

Northlight currently manages over $500 million in corporate loans, real estate loans and REO properties. Founded in November 2002, Northlight has been registered as an Investment Advisor with the US Securities Commission since 2006.

Head of Northlight’s real estate investments, Ben Gerig, told us that their goal at Saguaro Ranch “is to start building homes as soon as possible”. Gerig says, “In order to reach that goal we are moving carefully and speaking with land planners as to what makes the most sense for the community. Today’s market interest may not be the same as it was when Saguaro Ranch was first planned, so we want to first finish the infrastructure there, while evaluating all options for the community.”

Northlight plans to joint venture the project with a developer. According to Gerig the firm found there was a synergy with Saguaro Ranch and the rest of their investment portfolio that focuses primarily on high-end luxury communities and resorts.

Northlight has recently invested in a number of resort properties across the western United States, including two other in Arizona, Seven Canyons in Sedona and Quintero Golf and Country Club outside of Phoenix; Wyoming’s Snake River Sporting Club near Jackson, WY; and The Residence Club at PGA West in La Quinta, CA.

“We see substantial value in Saguaro Ranch,” said Gerig, “It’s a beautiful property in a spectacular setting. The potential is enormous.” The setting — surrounded by the Tortolitas and natural desert beauty– has consistently won praise for its visually dazzling uniqueness.

Northlight brings the required capital and experience needed to complete the infrastructure and move Saguaro Ranch forward.

Jeff Raymond of Strategic Real Estate Partners (SREP) in Scottsdale was with Land Advisors Organization when he handled the transaction for the investor. Will White with Land Advisors Organization of Tucson represented the seller.

Additional information on Northlight may be obtained by visiting www.adviserinfo.sec.gov . Raymond can be contacted at (480) 225-3999. White should be reached at (520) 514-7454.

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[ismember]Sale Date was 7/25/2013. Exact Sale Price:$8,075,000 all cash. The buyer acquired approximately 768 acres in this transaction. Lots were platted from 4 acres to 40 acres for a reported total of 115 SFR lots by buyer. Of the 70 tax parcels some are roads, some have multiple addresses for homes. Block 2 alone is 201 acres unplatted. [/ismember]

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Pima Professional Plaza at 5700 E Pima Street, at Craycroft and Pima in Tucson, sold in a receivership sale for[mepr-show rules=”58038″]$1.9 million ($95 PSF) with some seller concessions. The investor is a local investment group put together by Eddy Chernecki of Tucson. Eileen Lewis of Cushman & Wakefield / Picor was  receiver for the seller, Hamilton-East Pima, LLC of California and the lender in the transaction.

The 20,041 sq. ft. medical complex (built 1978) on 2.23 acres was 50% occupied by four high quality medical groups with upside potential in new leasing when it sold. The center offers convenient medical space near Tucson Medical Center and other Eastside hospitals as well as financial district.

The highly visible property features easy access from Pima Street and ample parking for clients and patients. Many of the suites had recently undergone extensive interior renovations.

Healthcare practitioners readily anticipate the significant increase in demand for medical services expected over the next decade. Shifting demographics and new heath care legislation are expected to expand the patient base. As a result, job creation in the healthcare field is expected to mirror the increased demand in the industry. In response to this growth, the Urban Land Institute estimates the demand for medical office buildings (MOBs) will increase 19% by 2019. The recent spike in demand for quality medical space in the region is indicative of that trend.

We continue to see a flight to quality within the medical office market as practices seek to upgrade facilities and increase efficiency. The healthcare industry is working to meet the demand of a rapidly changing environment and companies are getting creative and more resourceful.

Andrew Sternberg, Specialist in Professional and Medical Office Services with Oxford Realty Advisors in Tucson represented the seller in the transaction. Rob Fischrup and Jon O’Shea, Principals, Specialized in Investment Sales and Acquisitions at Vast Real Estate Solutions in Tucson represented the investor.

For additional information, Fischrup and O’Shea should be contacted at (520) 624-9400. Sternberg can be reached at (520) 232-0200.[/mepr-show]

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[ismember]Sale date was 8/1/2013. Net sale price was $1,550,000 after $350,000 was held back in escrow to be paid by seller for deferred maintenance. Buyer paid $475,000 down and obtained new financing for the balance. Escrow time was reported to be 60 days. Property sold with an approximate NOI of $100,000, a 6.45% cap rate based on income at time of sale and property 50% vacant. Asking base lease rate was reported at $16/SF/ modified gross [/ismember]

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Mattress Firm opened its 12^th store this week. Five Guys Burgers & Fries will open Monday its 5^th location in town, while Chipotle’s Mexican Grill works anxiously to catch up keeping to plans of opening the first week in September. Where is all this new retail activity happening in Tucson?

It’s all going on at the southwest corner of 22^nd St and Harrison Road, 9484 E 22nd Street in Tucson. BP SWC 22^nd and Harrison, LLC (Don Bourn, manager) bought the 1.2 acres from Wells Fargo Bank in January to construct an 8,164 sq. ft. retail strip center. The property, now complete and fully leased, has been sold to a California private investment group, Parliament Properties, Inc. of Cardiff, CA (Alan J Wallock) for[mepr-show rules=”58038″]$3.6 million ($444 PSF) as investment sale.

Five Guys Burgers was named the fastest growing restaurant franchise in 2012 by Forbes. The owners in Tucson have grown to five stores since opening first in June 2010 at Campbell Plaza on Campbell and Glenn. Their 5th location at 22nd & Harrison will be followed soon by a 6th at the Tucson Spectrum, 5315 South Calle Santa Cruz in Tucson. Store hours of operation for Five Guys is 11:00 a.m. to 10:00 p.m., but doors open at 10:45 a.m. daily the owners told us.

Mattress Firm’s 12^th store is the most recent and farthest eastside location for the firm. Mattress Firm has 32 locations in the Phoenix area. Established in 1986, Mattress Firm started as a small idea of three childhood friends. Paul Stork, Steve Fendrich, and Harry Roberts began their careers believing that quality merchandise should be available at reasonable prices and sold by honest sales people who specialized in product knowledge and customer service. On July 4^th 1986 the founders opened the first store in Houston, Texas. Mattress Firm now has over a thousand locations nationwide that are deeply imprinted with the values the three founders agreed upon: trust, passion, and growth.

Mattress Firm has also placed value within the Tucson market through community volunteer programs such as Habitat for Humanity and the local Ronald McDonald House as well as contributing to funds for the TGen Cancer Pancreatic Cancer Research Lab in Phoenix.

When Chipotle’s Mexican Grill opens next month, it will be number nine for the chain in Tucson.

Barker Morrissey was General Contractor for the center.

Alan Tanner with Bourn Advisory Services of Tucson represented landlord on all the leases and also the tenant D&G Holdings for Five Guys Burgers.  Darren Pitts & Bonnie Arlia of Velocity Retail in Phoenix represented  Mattress Firm. Ben Craney of West Commercial Real Estate Advisors in Tucson represented Chipotle.

Tanner may be reached at (520) 318-6624. Pitts and Arlia are at (62) 682-8100. Craney should be contacted at (520) 264-5000.

Paul Schloss, formerly of CBRE in Tucson, handled the purchase of the property for the developer-seller and can be contacted at (520) 977-3800. [/mepr-show]

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[ismember] Sale price was $3,625,000 on 7/31/2013  Allan Wallock the buying entity managing member is a broker in CA and can be reached at (760) 327-1115  [/ismember]