The following medical office buildings sold in Tucson during Q2 2014:

A 2,539-square-foot medical office condo sold to Green Valley Medical Building, LLC of Tucson (Scott Sheftel, MD) at 18855 S La Canada Dr., Unit 1, in Green Valley for Sheftel Dermatology. The property is new construction in Santa Rita Professional Plaza and commanded a sale price of $650,000 ($256 PSF).

Marana Health Center purchased the 5,360-square-feet building at 1323 W Prince Road in Tucson for $700,000 ($131 PSF). The buyer was a tenant in the property prior to sale dba Flowing Wells Family Health Center specializing in Family Practice, Osteopathic Manipulation, and Women’s Health will continue to occupy it. Tony Reed with Long Realty Company in Tucson handled the transaction for buyer and sellers, R.L. Goedecke, DO and J.R. Sowers, DO.

Alvernon Medical Center, LLC (Dr. Kai Uwe Lewandrowski) bought the 7,767-square-feet building at 717 South Alvernon Way in Tucson to occupy as an Orthopedic Surgeon’s office. The seller was The Blake Holding Company that previously owner occupied the property dba Easter Seals Blake Foundation Living Services. The two-story building (built 1982) sold for $775,000 ($100 PSF). Tari Auletta with Tucson Realty and Trust handled the transaction for both sides.

Aspin Investment, LLC of Tucson (Allan and Siri Pratt, members) purchased the 3,927-square-foot medical building located at 5295 E Knight Dr. in Tucson from TMC Holdings, Inc. of Tucson. The property (built 1985) on a ground lease owned by TMC commanded a sale price of $250,000 ($64 PSF). Tom Knox, SIOR and Rick Kleiner, MBA Principals and Office Specialists with Cushman & Wakefield | Picor represented the buyer. Jordan Simon with Venture West Real Estate represented the seller in the transaction.

Oracle Professional Investments, LLC of Surprise, AZ (Dr. L. Phillip Wall) purchased the 4,612-square-feet medical offices at 5585 N Oracle Road in Tucson in a sale leaseback transaction for $940,000 ($204 PSF). The seller, 5585 N Oracle, LLC (Dr. John A Pierce) will continue to occupy the property (built 1987) dba Aesthetic Surgery of Tucson.

An investment sale of the 8,936-square-feet multi-tenant medical office building at 170 N La Canada in Green Valley sold to Green Valley Professional Center, LLC (Carl Zimmerman and CE Patterson) for $950,000 ($106 PSF). The building (built 1977) sits on 1.23 acres and was sold by Bohart 1969 Trust of San Jose, CA. Zimmerman occupies an adjoining property at 150 N La Canada Dr. dba Santa Rita Nursing and Rehabilitation Center.

A freestanding 2,559-square-feet former dental office at 375 West Ajo Way in Tucson sold to Shane Traugott of Tucson for $325,000 ($127 PSF).The property was built in 1973 on a 13,964-square-foot lot will be converted a veterinary office dba Animal Birth Control of Tucson a company founded by Shane Traugott. Roger Breckenridge of Long Realty Company in Tucson represented the buyer and the seller Nels E Rasmussen Jr. Trust of Tucson.

To learn more, Reed can be reached at (520) 918-5189 and Breckenridge is at (520) 918.5813. Knox can be contacted at (520) 546-2701 while Kleiner is at (520) 546-2745. Simons should be reached at (520) 722-9292 x 103. Contact Auletta at (520) 235-2727.

Westport Tucson Self Storage, an affiliate of Westport Properties and US Storage of Irvine, CA (Barry Hoeven, president) bought two ‘Lock-It-Lockers’ storage facilities at 4115 E Speedway and 2825 N First Ave. in Tucson for an aggregate total sale price of $4.675 million ($4,942 per unit blended).

The property at 4115 E Speedway Blvd commanded a sale price of $2.375 million ($4,969 per unit) for the 478-unit mini-storage project (built 1977) on 1.38 acres. The second property sold for $2.3 million ($4,915 per unit) for the 468-unit mini-storage at 2825 N First Avenue in Tucson (built 1974) on 2.16 acres. Both properties sold with deferred maintenance3 due to age. The Speedway property was reported as almost 100% rented and the First Ave property was about 90% rented at time of sale.

The buyer, California-based, US Storage Centers (USSC) has been around since 1985. USSC develops, owns, operates and manages over 75 facilities, throughout 12 states and totaling over 5.1 million rentable square feet.

USSC is a leader in the self-storage industry through its active involvement in the Self Storage Association and state associations such as the California Self Storage Association. Several members of our management team frequently act as board members, speakers and panelists for industry groups and events. “We believe in the self-storage industry and try to do our part to give back to an industry that has been very good to us over the years,” according to the company’s website.

Bill Alter and Denise Nunez of Rein & Grossoehme handled the transaction on behalf of the buyer and seller, Warehouse Associates IV and IX, of Phoenix. Rein & Grossoehme specializes in the sale of investment properties and retail, office and industrial leasing.

To learn more Alter can be contacted at (602) 315.0771.

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[mepr-show rules=”58038″]Both properties closed on 7/2/2014. The cap rate on First Avenue was reported at a 7.1% cap rate and the cap rate on Speedway was an 8.3% cap. Blended the two properties were at a 7.7% cap. Escrow time was reported at 60-days and market time the same.[/mepr-show]

Four Retail Net Investment Deals Worth $5.4 Million Sold Recently in Tucson

The search for yield is pulling more investors toward the retail real estate sector and this has led to a pop in values. Despite its stronger showing, retail remains cheaper than other property types; with cap rates for retail properties closer to 6% than 5%, the average rate for apartment and office assets.

The following four retail net investment properties sold recently:

• * Circle K at 3215 N Swan Road in Tucson changed hands for $4.383 million ($1,581 PSF). The seller was Sunset Development, LLC of Tucson (Lee Jestings and John Webster, members) and the investor, Brauer Capital Company of Westlake Village, CA (Robert Brauer, managing member). The property was constructed in 2003 on 1.02 acres for Circle K.

Tatyana Meulemans of Newmark Grubb Knigh & Frank in Phoenix handled the transaction for seller.

* New construction at 3996 W Ina Road sold for $2.35 million ($234 PSF). The 10,040-square-foot strip center (built 2013) is west of Ina and Thornydale Roads in Marana and was fully leased to two tenants when it sold. Pet Club occupies 6,040-square-feet and R&S Mattress is in 4,000-square-feet, all with triple net leases at this center immediately in front of Harbor Freight, on 1.15 acres. The property sold as a net leased investment to the Carl Family Trust of Escondido, CA.

The seller, SAM Seventh, LLC (Steven Mar, managing member) and the investor were represented by Jamie Medress and Mark Ruble of Marcus & Millichap in Phoenix. Pat Darcy of Tucson Realty and Trust handled the lease-up of the building.

• * Camelot Strip Center, LLC & 2011 Recker, LLC purchased a 2,667-square-foot, freestanding, quick service restaurant (QSR) building leased to Jack-in-the-Box as a net leased investment at 2985 W Valencia at the SWC of Valencia Rd and Cardinal Ave. in Tucson from Valencia Corners, LLC & Dahlstrom Investments, LLC. The property commanded a $2 million sale price ($750 PSF). The property was built in 2006 for Jack-in-the-Box on 1.63 acres.

Jeff Zellet and Pat Welchert, SIOR, with Cushman & Wakefield | PICOR, represented the investor in this transaction and Rick Volk and Terry Dahlstrom of Volk Company in Tucson represented the seller.

• * Another strip center at 8195 N Oracle Road in Tucson changed hands for $1.028 million ($217 PSF). Tenants at the center include Enterprise Car Rental, Sandlewood Spa and a recent lease with Chuy’s restaurant to bring the center to fully leased. The property sold out of receivership for the Capin Family Trust and Michael Stilb of CBRE Tucson Management Services as Receiver. The investor was 8195 N Oracle Road, LLC (Ray Lopez) of Tucson.

To learn more Meulemans should be reached at (602) 471.0907; Medress is at (602) 687.6778 and Ruble at (602) 687.6766. Darcy can be contacted at (520) 577.7000. Zellet can be contacted at (520) 546.2739 and Welchert is at (520) 546.2748. Volk and Dahlstrom should be contacted at (520) 326-3200, and Stilb is at (520) 888.5127.

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[mepr-show rules=”58038″] Circle K at 3215 N Swan sold on 6/27/2104 with a cap rate of 5.75% This was the buyer’s upleg in a 1031 exchange. The strip center at 3996 W Ina Rd sold on 7/1/2014 with a 7.2% cap rate. The Jack-in-the-box sold on 5/23/2014 with a 6.2% cap rate.  Additional information was not available on the sale of 8195 N Oracle Road that closed on 6/23/2014.[/mepr-show]