Taking advantage of low interest rates and costs, spurred by a rising economy and looking to the future, physicians in Northwest Tucson are finding it an ideal time for medical office expansion.

Tucson Endocrine Associates (Dr. Alexander Zwart and Dr. David Alster) purchased the 4,190-square-foot medical building at 5910 N La Cholla Boulevard in Tucson for $920,000 ($219.57 PSF). Wanting to expand from its current 2,719-square-feet office at 6050 N Corona Road and stay within the Northwest Medical Campus area Tucson Endocrine Associates sold its Corona building in March to Sonoran Behavioral Health Hospital in a reverse 1031 exchange, with USGE Holdings of Arizona XXII LLC facilitating.

Tucson Endocrine Associates is one of many healthcare providers expanding, contributing to a boon in medical office sales in Northwest Tucson. Doug Marsh with Oxford Realty Advisors in Tucson told us this was the third time he had sold the building at 5910 N La Cholla Blvd and represented the seller, Four Legged LLC in this transaction.

“Business-smart physicians are looking to the future,” said Marsh, “for some, the timing is right for expansion. In addition to low interest rates and construction costs, a large selection of buildings that once housed failed businesses are for sale or lease.”

Such was the case with the office condo at 1631 West Ina that had never been occupied and was sitting vacant, in shell condition, for many years waiting for the right occupant.

Four Legged LLC (Jeanette K Wend, trustee) dba NNS Clinical Research, a neuroscience research clinic, sold the 5910 N La Cholla building for expanded space in 7,462-square-feet at 1631 West Ina Road, Tucson that was bought in December 2014. The tenant improvements of the West Ina building having been shell condition, took a bit longer than expected and postponed the move for not only Tucson Endocrine Associates but also the Sonoran Behavioral Health expansion into their new location.

Once TI’s are complete, all the parties should be prepared to shuffle into new places.

David Volk and Bruce Suppes with CBRE in Tucson represented the buyer at 5910 N La Cholla Blvd, Tucson Endocrine Associates; while Doug Marsh and Lori Casey of Oxford Advisors represented the seller, Four Legged LLC.

Dean Cotlow of Cotlow Company represented the seller, Amigo Properties, at 1631 W Ina Road and Doug Marsh represented the buyer, Jeanette K Wendt for NNS Clinical Research.

The buyer and seller of 6050 N Corona Road were self-represented in that transaction.

For more details on the sale of 6050 N Corona Road, Tucson see RED Comp #2761, details on 1631 W Ina Road, Tucson see RED Comp #2308. For additional information on the sale of 5910 N La Cholla Blvd, see RED Comp #1402 and #2888.

Larsen Baker of Tucson (George Larsen and Don Baker, partners) through an affiliate, Circle Plaza Sports LLC, purchased the property at 7280 E Broadway Blvd in Tucson for $500,000 ($27.81 PSF) for land value from James and Judith Murray of Tucson. The 17,980-square-foot lot currently has two buildings occupied by Play It Again Sports as a storefront with storage in the back building.

Play It Again Sports, a pioneer in the resale of used sports equipment, plans to move to 7707 E Broadway Blvd at Broadway and Pantano for June 1^st. One of three Play It Again Sports’ stores in town, the others are at 4750 E Speedway Blvd. and 7963 N Oracle Road in Tucson, with more stores in Tempe, Phoenix, Mesa and Goodyear.

The purchase took about five years to negotiate an agreement between the parties. Both seller and buyer were self-represented in the transaction with Andy Seleznov, CCIM, and Melissa Lal, CCIM, of Larsen Baker handling the negotiations. Seleznov told us the buildings were originally a Sambo’s Restaurant, built in the early 1970’s and in poor condition. The plan now is to raze the buildings to make room for a new retail pad with approximately 4,700-square-feet available.

Located at Broadway and Kolb, one of the highest traffic intersections in Tucson, the property borders to the east of the neighborhood center, Circle Plaza, anchored by Michaels, Ross Dress for Less, Starbucks, Sports Authority, HomeGoods, Lane Bryant, Natural Grocers and Freddy’s Steakburgers.

To learn more Seleznov and Lal should be reached at 520.296.0200. For additional information see RED Comp #2863.

The Carioca Company (Marvin Rose, president) through its affiliate RG3 LLC bought 5.77 acres at Rita Tech Park at the northeast corner of I-10 and Rita Road in Tucson for $1.5 million ($6 PSF). Carioca is a Shell gas distributor / Convenience store and Subway franchisee, founded in 1972, that now owns 42 Shell stations across Arizona. The Phoenix-based company employs approximately 800 people.

Jim Edwards with Rein & Grossoehme Commercial Real Estate in Scottsdale represented the buyer and had this to say, “The buyer likes growing areas on the outskirts of town and Rita Tech Park in southeast Tucson met all the criteria. The property has visibility and signage from I-10 and is adjacent to the University of Arizona Science and Tech Park and Target Distribution Center in an expanding part of town.”

Jerry Hawkins with CBRE in Tucson and John Rehling with CBRE in Phoenix represented the seller, Diamond Ventures of Tucson (Bill Kelley, CFO) in the transaction.

To learn more Hawkins can be reached at 520.323.5100, Rehling is at 602.735.5555, and Edwards should be contacted at 480.214.9400. For additional information see RED Comp #2801.

In a separate transaction, a Walmart Neighborhood Market will be the first to go vertical at a new retail center at the southwest corner of Tucson Blvd and Drexel Road in Tucson, a portion of Tucson Airport Commerce Center. Walmart paid $1.34 million ($6 PSF) for the 5.1 acres for construction of a 4,100-square-foot Neighborhood Store.

Alex Clark with B.D. Baker Company of Scottsdale represented Walmart in the transaction and the seller, Diamond Ventures of Tucson was represented by Bill Kelley, CFO.

Shannon Murphy with DVI Realty and Diamond Venture will be marketing three additional pads and shop space at this new center.

To learn more Clark can be reached at 480.951.4377 and Murphy should be reached at 520.577.0200. For additional information see RED Comp #2862.

The Tucson Gem and Mineral Show will be back at the Clarion Hotel at 4550 S Palo Verde Road in Tucson after Daniel Duke purchased 4.79 acres for $875,000 ($4.19 PSF) specifically for this purpose. Duke is president of Gem Marketing International and an organizer of the Tucson Gem and Mineral Show, with several sites in town.

Norm Hoegger with Norman Hoegger Realty of Tucson represented the buyer. Hoegger said, “Last year the Gem and Mineral Show was not at this location for the first time in a long while and it was sorely missed. That will now be corrected going forward. Located adjacent to the Clarion, the Gem Show site benefits from use of the Holidome and Clarion Hotel.”

Jerry Hawkins with CBRE in Tucson represented the seller, Raka Hospitality Tucson LLC of Vancouver, British Columbia Canada in this transaction.

To learn more Hoegger should be reached at 520.745.6598 and Hawkins at 520.323.5100. For additional information see RED Comp #2839.