Tucson-based HSL closed Friday on Tucson’s largest golf resort, the El Conquistador Golf Resort, for $15 million. HSL intends on retaining the 313,857-square-foot Hilton resort that sits on about 55 acres and spin off the 45-hole Oro Valley golf course with approximately 296 acres, a 31,475-square-foot club house, 31 tennis courts, two pools, a fitness center and restaurant, for $1 million to the Town of Oro Valley to reinvent as a public rec center.

The seller was Met Life, the lender who had taken it back from Florida-based, CHH Tucson Partnership in December 2012 for $69 million.

Troon Golf has already taken over management of the golf courses since the deal closed, and forecasts the golfing operation to break even in about four years. In total, the golf course will need about $8 million in its first five years of operation to overcome financial hurdles in bringing it back: $3 million in improvements to the golf courses, $2.5 in operational deficits and $2.5 million in improvements to the facilities.

At its December 17 meeting, the Oro Valley Council approved the purchase and the half-cent tax increase in a 4:3 vote. Since then a group of citizens have filed an application for referendum petition that needs 1,000 signatures to overturn that vote and bring it to a vote by the electorate.

Others in Oro Valley are surprised by the protest to such a deal.

Members of the Oro Valley Country Club received notice that Dallas-based ClubCorp (NYSE: MYCC) has acquired the Oro Valley Country Club at 300 West Greenock Drive in Oro Valley for $2.9 million ($93 PSF). ClubCorp, a world leader in private clubs plans a million-dollar reinvention project that will include improvements to the golf course, clubhouse and outdoor patio.

Oro Valley’s 28,000-square-foot clubhouse features a grill, men’s and women’s card room, state-of-the-art fitness center, a 3,200-square-foot ballroom offering stunning views of the mountains and golf course and an additional 6,000 feet of outdoor covered space and the 18-hole golf course on 123 acres.

The addition of Oro Valley continues the rapid expansion of ClubCorp’s overall portfolio of owned and operated clubs, which has increased by 35% since the company’s IPO in September 2013. ClubCorp’s portfolio of owned and operated clubs now stands at over 200 clubs in 26 states, the District of Columbia, Mexico and China.

Then in yet a third transaction, the former temporary golf club at Stone Canyon, 405 W Tortolita Mountain Circle in Oro Valley sold for $1.1 million ($274 PSF). The buyer was a company formed by David Williamson of Fairfield Homes who purchased it for continued use as a sales center for Fairfield’s Premier at Stone Canyon.

The Stone Canyon Club was purchased out of bankruptcy last year by Phil Mickelson and partners in management, M Club, who celebrated the official grand opening of The Stone Canyon Golf Club under new management this past November. The group is planning construction of a new $4 million club house to begin in January 2015, we were told. The 18-hole Stone Canyon Club first opened in 2000 and ranks in the Top 100 courses in the United States.

Elsewhere in Arizona, the Mickelson group owns the McDowell Mountain Golf Club in Scottsdale, the Palm Valley Golf Club in Litchfield Park, and the Rim Golf Club and Chaparral Pines, both in Payson.

The sale of a Class-A, 8-story office tower at 4400 E Broadway Blvd in Tucson closed yesterday for $8.125 million ($67 PSF). The 121,300 rentable-square-feet tower is also known as the ‘Bank of Tucson Building’ due to its main tenant and signage on top. Built in 1969, with elevators, the 8,200-square-foot basement combined with the 8-stories, the gross building size is closer to 132,000-square-feet and sits on a 4.57 acre lot.

The building had no deferred maintenance we were told when it sold and even had new elevators installed less than 1-year ago. The basement is used for dry storage, and each of the floors measures approximately 11,400-square-feet.

The investor is 4400 Broadway, LLC (Daniel Norville, manager) of Phoenix who plans to spend an additional $1 million in upgrades to the lobby, for lighting and other cosmetic improvements. The building was 70% leased at closing, and should have 78% occupancy shortly based on potential leases out for signature. Tenants include Bank of Tucson in 16,000-square-feet, Power Physique in 9,000-square-feet, a health spa in the west wing, a full service restaurant and Daisy Diamond hair salon are in the building, and Congresswoman-elect Martha McSally has her office here in 3,800-square-feet.

The property has more than ample parking with 490 spaces and a 1:240 parking ratio.

The seller, 4400 Tower, LLC (Robert & Alvin Kivel, members) of Tucson was represented by Michael Gross of Tucson Realty & Trust Co. and Rick Kleiner of Cushman & Wakefield | Picor of Tucson. The buyer was self-represented in the transaction.

This was the third time Gross told us he had sold the building in over 30-years managing it. The Kivels bought it in 1998 and prior to that, Gross sold it in 1985. Needless to say, Gross has been retained by the new owner to continue management and leasing of the property.

Kleiner said, “The property seems to be a great fit for the investor, who knew exactly what he wanted, a stable investment in an ideal location where value could be added.”

To learn more Gross can be contacted at 520.577.7000 while Kleiner can be reached at 520.546.2745.

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[mepr-show rules=”58038″]Sale date 12/17/2014. Escrow time was 3 months.  Asking lease rate at time of sale: $17/SF/full service. [/mepr-show]

Approximately 7,462-square-feet of office space at 1631 West Ina Road sold in shell condition with a 6,854-square-foot building pad for $1.15 million ($154 PSF) at Ina Road Professional Center, located on Ina Raod west of La Canada and east of La Cholla in the Northwest submarket.

The buyer was Dr. Jeanette K Wendt, a neurologist and Research Director of NNS Clinical Research, currently located nearby at 5910 N La Cholla Blvd. NNS participates in neuroscience research as part of an ongoing effort to improve care and enhance lives. The staff at NNS Clinical Research is involved in numerous clinical trial studies with a focus on Alzheimer’s Disease, Multiple Sclerosis and Parkinson’s Disease.

The office space will be built out as a neurological research and testing clinic and the adjoining fully improved building pad held for future expansion up to 14,496-square-feet. The center has front door parking 1:139 ratio and outstanding access and signage along Ina Road.

NNS Clinical Research will be in the west end of the building shared with BodyBasics in 1631 W Ina Road, Suite 111.

Dean Cotlow of the Cotlow Company in Tucson represented the seller, Amigo Properties LLC of Tucson (Mike Kelley and Mike Evans, members).

The Ina Road Professional Center was first developed as a medical center by a group of physicians, but it developed with portions as leased fee interest and others fee simple, it was complicated and very difficult to manage as a condominium complex. Cotlow told us that all the mixed forms of ownership have since been cleaned up at the Center, something that long needed to happen to improve the centers’ desirability in this great Northwest location.

Currently there are two building pads, each 6,700-square-feet, ready for building and a back 2.5 acre CR-1 zoned pad still available in the center.

Doug Marsh with Oxford Realty Advisors in Tucson represented the buyer in the transaction.

To learn more Marsh can be reached at 520.232.0200. Cotlow should be contacted at 520.241.0180.

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[mepr-show rules=”58038″]Sale date: 12/5/2014. All cash transaction. Escrow time was 45-days. No additional conditions other than building was in shell condition.[/mepr-show]