Tractor Supply, Circle K, Kneaders and Family Dollar Sell in Tucson Retail Investment Sales Total $13.5 Million and average 6.4% cap rate

The newly constructed Tractor Supply store at 15884 N Oracle Road in Catalina, AZ sold for $5.2 million ($238 PSF). The transaction was a sale-leaseback of the newly constructed store that opened June, 2015. The 21,702-square-foot store is located at the northeast corner of Oracle Road and Lamb Drive on 3.4 acres. This was a sale- leaseback of the Tractor Supply is the largest national operator of rural lifestyle retail stores in the U.S., and one of the largest retail supplier of basic maintenance products to home, land, pet and animal owners.

The investor is P. Chimento Properties – Catalina, LLC of Malibu, California (Robert Chimento, manager) and the seller / builder is Catalina Development Group, LLC of Southern Pines, NC, (William Ronalter, manager), the exclusive builder for Tractor Supply.

For additional information see RED Comp #3145 and #2278.

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The Circle K Convenience Store and Gas Station at 3880 West Tangerine Road in Marana, AZ sold for $4.315 million ($999.78 PSF). The 4,514-square-foot building was built in 2008 and is on 1.49 acres located northwest of Thornydale and Tangerine Roads. For more than 50 years, Circle K has been one of North America’s most popular and successful operators of convenience stores. Today, there are more than 3,300 Circle K stores across the USA and over 4,000 international locations.

The investor is Pacific NNN Properties, LLC of Union City, California and the seller is I.S. Tucson Circle, LLC and affiliate of Maple Leaf Properties of Boca Raton, Florida. Jamie Medress, Mark Ruble and Henry Kerson of Marcus & Millichap in Phoenix represented the seller in the transaction.

For additional information see RED Comp #3122.

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Kneaders Bakery & Café at 135 South Wilmot Road in Tucson sold for $2.5 million ($617 PSF). The transaction was a sale-leaseback of the newly constructed store that opened July 17, 2015 at the southeast corner of Broadway Blvd and Wilmot Road. Kneaders Bakery & Cafe is a fast-casual bakery chain created in the tradition of family-owned European bakeries and specialized in hand-kneaded, made-from-scratch breads as well as specialty cakes and other foods. Kneaders was recently ranked 8^th in the top 50 restaurant chains in the nation. This is Kneaders 11^th location in the state of Arizona.

The investor is Roebbelen Investors I and Miller Properties, LLC of Phoenix (Lynn Miller, manager) and the seller / builder is FFG Development of American Fork, UT.

For additional information see RED Comp #3123.

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The Family Dollar Store at 2820 W Los Reales in Tucson, AZ sold for $1.53 million ($184 PSF). The 8,320-square-foot building was built in 2013 on .99 acres located northeast of Los Reales Rd and Cardinal Avenue. As one of the largest discount retailers in the United States, Family Dollar continues to gain market share and appeal from net lease investors. Family Dollar holds investment grade credit ratings from S&P (BBB-) and Moody’s (Baa3) and operates under a landlord friendly net lease structure.

Greg Furrier with Cushman & Wakefield | Picor in Tucson represented the seller, 2820 W Los Reales, LLC of Tucson (Joanne Lopez, member) and Roger Breckenridge of Long Realty in Tucson represented the investor, Joseph W Graham of Sand Diego, California.

For additional information see RED Comp #3131.

New 56-SFR Lot Subdivision to be Called The School Yard

The TUSD Governing Board completed its first school asset sale Tuesday for 9.2 acres at 8950 E Wrightstown Road for $1.3 million ($3.24 PSF). The former Wrightstown Elementary School sold to Pepper Viner Homes of Tucson after one and a half years in escrow.

The property was sold contingent on rezoning which was rezoned from RX-1 to R-1, and final plat approval which is now platted for 56 SFR lots. The developer has responsibility for razing school buildings.

The new community will be appropriately called The School Yard and have 30,000-square-feet of functional open space. Homes will be from 1,400 to 2,100- square-feet with five floor plans. The homes will all enjoy beautiful Catalina Mountain views, recreational trails, and be environmentally friendly, high performance, and energy efficient.

Two other developers had bid on the property prior to Pepper Viner but with higher density homes. The neighbors did not want the higher density with more traffic on the streets. They also worried that a handful of two-story homes would block their mountain views, so Pepper Viner agreed to remove two-story homes from the south side of the development.

Jim Marian with Chapman Lindsey Real Estate Service of Tucson represented the buyer in the transaction.

“Pepper Viner, known for its quality homes, will make a nice addition to the neighborhood, and neighbors should be happy to see the security concerns go away with the vacant school building,” Marian said. “It was a long escrow but understandably so, due to the conscientious efforts of the TUSD Governing Board to negotiate the best possible price for the property on behalf of the District.”

With this first sale now complete, TUSD has at least three other school properties in escrow that should move smoother.

To learn more Marian can be reached at 520.747.400 ext. 106 and Pepper Viner is at 520.721.7964.

For additional information see RED Comp #3198.

HSL Properties of Tucson (Omar Mireles, vice-president) through an affiliate, HSL 60 N Alvernon, LLC, purchased the former Old Pueblo Grill restaurant at 60 North Alvernon in Tucson for $1.2 million ($147 PSF). The 8,147 square-foot building on 1.72 acres is located northeast of Broadway and Alvernon.

The historical building, built in 1957 and remodeled in 1977, was once a residence with three towers where peacocks strutted their colors around the fountains and  the gardens. The restaurant has always had a Southwest menu as far back as we could find and seating inside or out on the expansive patio.

The very popular restaurant and bar was closed May 29^th after a U.S. bankruptcy court seized the property as part of an unresolved bankruptcy involving other properties of the previous owner.

Located adjacent to HSL’s headquarters at 3901 N Broadway, at the northeast corner of Broadway and Alvernon, the buyer also owns the La Quinta Inns and Suites-Reid Park Hotel on the north side of the restaurant, at 102 N Alvernon Way.

Omar Mireles told us that the restaurant was greatly missed by the hotel since it closed and it is important for hotels to have restaurants nearby. For this reason, HSL purchased the building with plans to restore it to full restaurant use after some renovations, and as soon as possible.

Mireles says they already have had interest from several potential restaurant operators for the property.

HSL is well known for its multi-family housing in the Southwestern United States. In addition to multi-housing rental properties, HSL Properties currently owns and manages four hotels, offering a total of more than 900 hotel rooms. HSL hotels focus on excellent service and top-quality accommodations in well-situated locations that appeal to both business and pleasure travelers.

Pat Darcy of Tucson Realty & Trust Co. represented the buyer in the transaction and the seller was represented by court appointed, Keegan, Linscott & Kenon, a CPA firm in Tucson.

To learn more Darcy should be contacted at 520.577.700 and Mireles can be reached at 520.322.6994.

For additional information RED Comp #3197 is available.