It’s been a tough few years for the Tucson Industrial Market, but Q4 ended on a high note, when the Industrial market saw 55% of its annual sales close in the last three months of the year. Although a decrease of 7.7% in sales volume from 2013, the market has trended slowly but surely in a growth direction each and every quarter during 2014.

Like the national market, the Tucson industrial market has the stage set, poised and ready, for a full recovery cycle in 2015.

The following four industrial sales, totaling over $8.3 million, wrapped up the rousing year end.

>> Holualoa Capital Management of Tucson purchased an 80,600-square-foot industrial building with excess land at 3301-3321 E Global Loop in Tucson for $3,035,000 ($37.66 PSF). The property is located in Tucson International Business Center and sold vacant with 9.38 acres of excess land. The building was previously occupied by Spectra-Physics and has 20,800-square-feet of clean rooms, a 9,800-square-feet R&D lab, 5,000-square-feet manufacturing space and 45,000-square-feet of office and 215 parking spaces. The buyer purchased to hold for investment.

Bill Divito and Jesse Blum of CBRE’s Tucson office handled the transaction for buyer and seller, Tarlow Family Investments II, LP of Prescott Valley, AZ and will also be marketing the property for sale of for lease. To learn more call Divito at 520.321.3339 and Blum at 520.321.3335.

>> 5505 Nogales, LLC of Greenfield, WI purchased an 81,094-square-foot industrial building (built 1988) at 5505 S. Nogales Hwy in Tucson for $2.8 million ($34.53 PSF). The seller was We Valoroso Holding Corp. of Phoenix (John Lynch, manager) and the property was 100% occupied by Fluoresco Lighting as Corporate Offices.

Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction. To learn more call Zimmerman at 520.248.0427.

>> An affiliate of the Presson Corporation of Phoenix (Daryl Burton, manager) bought the 33,082-square-foot industrial building at 4650 S Coach Drive in Tucson for $2.05 million ($62 PSF). The property was not on the market when it sold fully leased by four tenants.

Jon O’Shea, Rob Fischrup and Eric Lamb with Vast Real Estate Solutions of Tucson represented the seller, 3430 Sunrise, LLC of Tucson (Eddy Chernecki, manager). The buyer was represented by Rob Glaser CCIM, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR of Tucson.

To learn more call O’Shea, Fischrup and Lamb at 520.624.9400 and Glaser at 520.546.2707.

>> Deb & Russ, LLC purchased a 12,765-square-foot industrial building at 1215 E Warehouse Ave in Tucson from American Builders & Contractors Supply Co., Inc. for $440,000 ($34.47 PSF). Deb & Russ operate Aztec Flooring, a locally owned and operated flooring company serving Tucson and Southern Arizona since 1967.

Stephen Cohen and Russ Hall, SIOR, GSCS, Industrial Specialists with Cushman & Wakefield | Picor, represented the seller and Neal Manning of Manning Company Realtors in Tucson represented the buyer in this transaction.

To learn more call Cohen at 520.546.2750 and Manning at 520.325.6616.

Tucson office sales in 2014 saw increased volume over 2013. The full RED Comps Office report will be out soon, but in the meantime, here are the final year-end office sales totaling $3.7 million from December 2014.

NORTHEAST SUBMARKET

Brinton Investments (Carol & Mark Brinton) of Wilcox, AZ purchased the approximately 30,000-square-foot office building at 6303 E Tanque Verde Rd in Tucson for $1.492 million ($50 PSF). The property sits on an approximately 67,433-square-foot lot located at the corner of Tanque Verde where Pima and Wilmot intersect. The unique value-add property has an atrium in the middle that tenants use for company barbeques and was 60% occupied at time of sale.

Michael Gross with Tucson Realty & Trust Company in Tucson represented the seller, Roben Family Limited Partnership, LP of Bainbridge Island, WA and John Weaver of John A Weaver Broker in Tucson represented the investor. See RED Comps #2329 for more information.

To learn more Gross should be contacted at 520.577.7000 and Weaver is at 520.298.3010.

Tanque Verde Group LLC of Tucson (Edward Akins, manager) purchased the mixed-use retail / office building at 6842 E Tanque Verde in Tucson for $950,000 ($108 PSF). The first floor retail was vacant at time of sale with 5,253-square-feet available and the second floor was occupied by three office tenants. The buyer plans to occupy the available office space upstairs and lease the downstairs. The were no brokers involved, Rodger Ford of Anthem Equity was a principal in the selling group, Nicholson Investors, LP and handled the transaction. See RED Comp #2297 for more information.

To learn more contact Diana Dessy at Anthem, 520.886.1226 x226.

BCPT Properties of Tucson bought a 3,998-square-foot office condo at 7493 E Tanque Verde, in Tanque Verde Place for $907,760 ($227 PSF). The seller was the developer, TVP Development, an affiliate of Venture West Developers (Jordan Simon, Executive VP). The office was in shell condition and buyers will finish build out as a BodyCentral Physical Therapy Sports and Wellness Center. See RED Comp #2304 for more information.

Simon can be reached at 520.722.9292 x 103 to learn more about this transaction.

CENTRAL SUBMARKET

Joseph S Alpert, MD of Tucson purchased the office condo at 3615 N Prince Village Place, Suite 181 in the Prince Village Office in Tucson for $145,000 ($128.55 PSF). The seller, Luis and Roberto Felix, et al, and the buyer were represented by Peter Canacakos of Long Realty in Tucson. To learn more contact Canacakos at 520.907.9850 or see RED Comps #2343 for more information.

NORTHWEST SUBMARKET

West Mountain Healthcare, PLLC (Romina Lo-Montano, member) purchased a medical condo at 1625 W Ina Rd, Suite 117, in Tucson for $175,000 ($99 PSF). The seller was also a doctor, Elaine J Sapiro, DPM, PC. Ron Zimmerman of Cushman & Wakefield | Picor represented the buyer and Andrew Sternberg of Oxford Realty Advisors represented the seller. See RED Comp #2368 for more information.

Or contact the brokers to learn more, Zimmerman can be reached at 520.546.2755 ad Sternberg is at 520.232.0200 x115.

Tucson net leased retail investments properties was the No. 1 alternative-investment pick for 2014.

As fixed-income yields remained historically low and equities surged, investors turned to gently rebounding net-leased single-tenant (NLST) real estate properties as a favorite for individual investors. The competition for NLST product in Tucson has been stiff in 2014. Private investors competed against institutional investors such as real estate investment trusts, insurance companies, and pension funds for investment-grade assets. Those properties leased by tenants that have received a credit rating of BBB- or higher from credit rating agencies such as Moody’s and Standard & Poor’s are seen by many investors as an alternative to bonds, producing a steady return with very little risk.

The following three Tucson retail sales closed before year-end 2014 and total $13.5 million.

AVG Partners of Beverly Hills, CA purchased the 45,000-square-foot property on 8.5 acres, occupied by LA Fitness at 8850 N Oracle Road in Oro Valley for $9.6 million ($212 PSF) in a sale leaseback agreement. The sale was part of a seven property investment portfolio sold by LA Fitness International. The buyer was unwilling to disclose method for price allocations or a total portfolio sale price. AVG Partners is a private equity group formed in 1997 for the purpose of investing in NNN commercial properties. Peter Gilbert, CCIM, Executive Vice President at AVG handled the transaction. See RED Comp #2373 for more information.

White Toys, LLC and Steamy Shops, LLC of Tucson (Rick Volk, managing member) acquired the 17,800-square-feet in two buildings on 2.9 acres at 11015 N Oracle Rd in Steam Pump Village Retail Center in Oro Valley for $3 million ($169 PSF). The property was 100% leased with five tenants when it sold: Tucson Children’s Museum, Carpet One, Baggin’s, Interior Expressions and Farmers Insurance.

The shops (aka Lot 1) are a portion of Steam Pump Village, a 42-acre, mixed-use project containing other businesses and amenities such as BASIS School, Chili’s, Quik Trip, Holiday Inn and the new HSL luxury Encantada Apartments at Steam Pump Ranch.

The seller was Evergreen-Steam Pump, and affiliate of Evergreen Devco of Phoenix (Bruce Pomeroy, president). Brenna Lacey and Rick Volk of Volk Company in Tucson handled the transaction. See RED Comp #2327 for more information.

HiFalutin Western Grill (Cheree Garrett, president) at 6780 N Oracle Road in Tucson sold to private investors, Thomas and Ines Leanard of Tubac, AZ for $850,000 ($257.58 PSF). The 3,300-square-foot restaurant was built in 2001 as an authentic hacienda style freestanding building bringing an old west feel to long-term tenant, HiFalutin, the same owner as gourmet sandwich shops, Baggin’s.

Stephen Grimm of Grimm Commercial handled the transaction for investors and seller, DG Oracle, LLC of Tucson (Marcel Dabdoub, manager). See RED Comp #2364 for more information.

To learn more about these transactions, Peter Gilbert can be reached at 310.273.0864. Make contact with Volk and Lacey at 520.326.3200. Grimm should be phoned at 520.323.9752.

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[mepr-show rules=”58038″] LA Fitness closed 12/26/2014. Exact sale price is $9,558,750. APN 225-12-065A. Although investor would not disclose cap rate for property or portfolio, other recent sales of LA Fitness have been delivering cap rates in general from 7.18% to 7.4% according to an LA Fitness representative. See RED Comp #2373 for additional information.

Lot 1 at Steam Pump Village Retail closed 12/12/2014. APN 220-08-452. The transaction was an upleg for one of the buyers in a 1031 exchange. Property sold at a 7.8% cap rate.

HiFalutin restaurant closed 12/24/2014. APN 12-03-150F. The property sold at a 9.4%-9.5% cap rate.[/mepr-show]