ARCP acquired the Tucson retail property Family Dollar Store at 9776 S Nogales Hwy in Tucson for $1.7 million ($199 PSF) from Hutton Growth One (Derek Jones, director) of Chatanooga, TN. The seller bought the .83 acre lot in April, 2014 for construction of the 8,392-square-foot Family Dollar.

Maryland-based, ARCP (NASDAQ: “ARCP”) is a leading, self-managed commercial real estate investment trust (“REIT”) focused on investing in single tenant freestanding commercial properties subject to net leases with high credit quality tenants. ARCP owns approximately 4,400 properties totaling 99.1 million square feet of leasable space. Additionally, ARCP acquires and manages assets on behalf of the Phoenix-based, Cole Capital® non-traded REITs, managing nearly $30 billion of high-quality real estate located in 49 states, as well as Washington D.C., Puerto Rico and Canada. ARCP is a publicly traded Maryland corporation listed on The NASDAQ Global Select Market. Additional information about ARCP can be found on its website at www.arcpreit.com.

NLA Marana transfered for $4.5 million ($204 PSF) the 21,806-square-foot Tractor Supply Store at 7735 N Casa Grande in Marana to National Income Properties DST of Addison, TX. NLA of Dallas, TX bought the Marana property this past October for $4.3 million.

The transfer was done to a Delaware Statutory Trust (DST), blessed by the IRS in 2004. DSTs are structured to meet the IRS requirements qualifying them as 1031 exchange replacement properties. Investors purchase interests in the Trust, which holds title to property and guarantees the mortgage loan. Investment in the real estate is shared amongst many investors. DST properties are institutional grade commercial properties. The key difference between a traditional tenancy in common (TIC) offering and a DST offering is that in a DST offering the investors are not direct owners of the real estate; they hold beneficial interests in a particular form of trust, known as a Delaware Statutory Trust. This eliminates the need for the investor to be on the deed and sign the loan documents. Accordingly, lenders do not care about the number of investors in a DST (assuming compliance with securities laws), and the limitation to 35 investors set forth in Revenue Procedure 2002-22 also does not apply.

The property sponsors, who are Trustees of the DSTs, are national real estate developers who purchase the property and structure it as a securities DST. There is a written offering document that provides very detailed information on tenants/leases, area demographics, financial projections, investment risks, and information about the property sponsor. Supporting documentation includes third party appraisal, property condition, and environmental reports. Mortgage bank financing and property management are pre-arranged by the property sponsor. These are issues that a 1031 exchanger would expend considerable effort to resolve. Reserves are set up to fund future capital expenditures, tenant improvement and leasing commissions for new tenants, and contingency funds for unexpected events. Any reserves remaining upon property sale are returned to the investors. Oftentimes, individual real estate owners do not adequately reserve for such future expenses and contingencies. Investors receive net monthly distributions after paying operating expenses, mortgage payments, and reserve contributions. The annualized income is generally 6%-7% of their cash investment amount.

For additional information see RED Comp #2494, #2201, #1506 and #2474 and #2181.

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[mepr-show rules=”58038″]9776 S Nogales Hwy, The Family Dollar Store sold: 1/28/2015, document #2015-0280481. Exact sale price was $1,666,789.17, all cash deal. We have not determined yet if it was part of bulk sale or not and wil update here when information becomes available.

7735 N Casa Grande, Tractor Supply, closed 1/30/2015, document #2015-0300266. Exact transfer price was $4,452.515 with zero down and a 7.8 cap rate. APN: 226-35-002H[/mepr-show]

‘Steady and active’ for office sales in January. While in 2014 the most common word was ‘steady’. ‘Steady and active’ seem to better describe the Tucson office market for the first month of this year.

The following January office sales total over $3 million:

Kenneth Swanson, Inc. of Los Gatos, CA purchased a 7,280-square-feet office building for investment at 1951 N Wilmot Road, Building 2 in Tucson for $1.565 million ($215 PSF). The property was fully leased to a single tenant, Southwest Surgery, when it sold at an above average cap rate. Chris Shoemaker of Hirsch & Associates based in Capitola, CA represented the investor. The seller was Carnes Properties LLC (Billy Carnes) of Tucson that Andrew D. Sternberg and Robert J. Nolan of Oxford Realty Advisors in Tucson represented in the transaction.

To learn more Sternberg and Nolan should be reached at 520.232.0200. See also RED Comp #2398 for additional information.

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HKR Holdings LLC of Tucson (Jonathan Kearns, manager) bought a 4,000-square-feet office building in Old Farm Executive Park for $525,000 ($131.25 PSF). The seller, 6147 E Grant Road LLC (Chet Smith, manager) of Tucson occupied the office previously for Tucson Sandblasting. The buyer is a computer software company. See also RED Comp #2396 for additional information.

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Cope Properties LLC purchased two office buildings at 660-662 N Craycroft Road in Tucson for $400,000 ($117 PSF). The buildings total 3,416-square-feet and were built in 1957 and 1960 on .54 acre. The buyer purchased to occupy the property. Tom Knox, SIOR, Office Specialist with Cushman & Wakefield | Picor, represented the seller, Ramparts Investments 3 LLC (Manuel Bracamonte, manager) of Tucson. The buyer was represented by Jason Hisey with the Ray Schneider Company of Tucson.

To learn more Knox can be contacted at 520.546.2701 and Hisey’s office number is 520.869.1544. See also RED Comp #2453 for additional information.

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Phil Lipman and Jet to the Promised Land LLC of Tucson sold 630 E 9^th Street in Tucson for $304,000 ($66.64 PSF). Lipman had purchased the investment property in March 2013 and sold the excess land, in a separate transaction. The 4,562-square-foot red-brick office building was vacant; previously occupied by a non-profit group. The buyer is Orange Bambu LLC (Corbin Dooley, manager) of Tucson that owns a florist business and purchased property to owner occupy.

Kristy Kelley of Long Realty handled the transaction for seller, and can be reach at 520.918.6539 to learn more. See also RED Comps #2330, #2431 and #1477 for additional information.

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Rick and Brandy McLain purchased a 3,256-square-foot office building at 4226-4228 E Speedway Blvd in Tucson for $158,000 ($48.53 PSF). The building was vacant with deferred maintenance and buyer plans to renovate it for buyers’ two businesses. Rick is an Architect Contractor dba Repp + McLain Design and Construction, an award winning full service architecture and construction firm based in Tucson that specializes in residential and commercial desert appropriate, sustainable modern architecture. Brandy’s company, Modern House Numbers will occupy the other half. Modern House Numbers provides high quality address and mailbox numbers for the modern dweller, with distribution from Australia to Canada, California to Germany and everywhere in between.

Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | Picor, represented the buyers and Barbara McGill, Associate Broker with Tierra Antigua Realty, represented to seller, Jerald Getlan of Tucson, in the transaction. To learn more Zimmerman can be reached at 520.546.2755 and McGill should be contacted at 520.490.3640. See also RED Comp #2452 for additional information.

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Bobby and Erica Poplin purchased a 2,437-square-foot office building at 5714 E 22^nd Street in Tucson for $110,000 ($45 PSF). The buyers plan to owner occupy the building (built 1966) for Poplin Construction Company. The seller, The Crisis Pregnancy Centers of Tucson (John Tabor, director) had vacated it almost a year earlier. Tom Nieman, Office Specialist with Cushman & Wakefield | Picor represented the seller in the transaction. See also RED Comp #2454 for additional information.

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[mepr-show rules=”58038″] 1951 N Wilmot Rd: sale date: 1/2/2015. All cash transaction. Tenant has 4 years remaining on a NNN lease with a cap rate of 8% at time of sale. APNs: 121-01-649 & 650

Old Farm Executive Park, 6147 E Grant Rd: sale date 1/5/2015, conventional financing. APNs: 110-16-050B, 051B & 052B

660-662 N Craycroft: sale date: 1/23/2015. All cash transaction. APN: 127-03-546

630 E 9^th Street: sale date: 12/12/2014. All cash transaction. APN: 117-06-124A & 140A

4226-4228 E Speedway: sale date: 1/23/2015, $24,100 down, and balance financed conventionally. APN: 126-05-070A

5714 E 22^nd Street: sale date: 1/23/2015. All cash transaction. APN: 131-09-012 [/mepr-show]

Tucson, Ariz. – CBRE has completed the sale of a twenty-four property gas station and convenience store portfolio for properties in Tucson and 5 counties throughout Southern Arizona. The portfolio commanded a sale price of $39.75 million, in the largest sale to date for the new year in Southern Arizona.

Pete Villaescusa and Jesse Peron in CBRE’s Tucson office represented the seller, Reay’s Ranch Investors, LLC of Tucson. The buyer was a national REIT, American Realty Capital Properties (ARCP).

Of the twenty-four convenience store locations, eight are in the Tucson area, and the rest are located throughout Southern Arizona. Under a new master lease agreement between ARCP and El Paso, Texas-based Western Refining, the stores will be rebranded and operate under the “Giant” moniker.

Property addresses include: 15841 W El Tiro Rd, Marana, 6777 N Sandario Tucson, 11200 S Sierrita Mtn, Tucson, 6890 N Sandario Rd, Tucson, 6225 W Ajo Hwy Tucson, 3902 E Speedway Tucson, 4301 E Broadway Blvd, Tucson, 6280 E Broadway,Tucson, 1690 E Ash Street, Globe, 105 W 2nd Street, Winkelman, 520 N Pinal Pkwy, Florence, 780 N Arizona Blvd, Coolidge, 325 E Hwy 70, Safford, 105 E Hwy 70, Safford, 750 8th Ave, Safford, 1780 W Thatcher Blvd, Safford, 3775 W Main St, Thatcher, 104 E 4th St, Benson, 101 16th St, Douglas, 94 Bisbee, Bisbee, 1060 18th St, Douglas, 5620 S Hwy 92, Hereford, 251 Frontage Rd, Pearce, and 5217 S Hwy 92, Sierra Vista.

In addition to the twenty four sale properties, another seven locations were leased to Western Refining for a total of thirty-one new locations for Western to operate.

“This sale was the culmination of tremendous efforts and cooperation between the Reay’s Ranch group, ARCP, and Western Refining,” said CBRE’s Villaescusa. “It was a very complex deal involving operating businesses, fuel supply agreements, some fee owned and some leasehold real estate, and existing inventory and employees. It will provide Western Refining with more retail outlets for their product and reward the Reay’s group for building a successful business over their operating history.”

ARCP have been actively investing in Tucson in 2014 with the purchase of several CVS Pharmacies. See Real Estate Daily News coverage for ARCP Buys CVS Pharmacy at Broadway & Wilmot for $5.45 Million, and ARCP REIT Buys Second CVS in Tucson Area for $4.95 Million.

To learn more Villaescusa should be reached at 520.323.5112 while Peron can be contacted at 520.323.5130.

For additional information refer to RED Comp #2438.