Tucson is getting the first new Fry’s supermarket in nearly a decade. It is planned for the southwest corner of Valencia Road and Indian Agency in Tucson. Tuttle-Click sold the 13.4 acres of vacant land at 1805 West Valencia to the supermarket for $3.51 million ($6 PSF).

The new Fry’s, a 104,000-square-foot supermarket, is planned to open in Q3 2016, with ground breaking anticipated for March.

Valencia is a main arterial road serving southwest Tucson with 48,582 average vehicles per day. The property is at a signalized intersection and a 7,800-square-foot of shop space and a 57,000-square-foot pad with drive-thru potential that will adjoin the new Fry’s Center is being marketed by Brenna Lacey and Kevin Volk with Volk Company in Tucson.

Neighboring tenants include Walmart Supercenter, Lowe’s and several banks and restaurants.

To learn more about the retail shop space for lease or the corner pad, contact Lacey and Volk at 520.326.3200.

For additional information see Red Comp #3320.

In other Supermarket news this week, a total of 94 Haggen stores were up for auction this past week as part of the company’s chapter 11 bankruptcy proceeding. The Bellingham, Wash.-based grocer entered the Tucson market in May 2014 as part of a massive expansion, growing from 18 stores to 164 stores almost overnight.

Court records filed in U.S. Bankruptcy Court for the District of Delaware show Albertsons’ has placed a $1 million bid for the former Haggen store at 10380 E. Broadway, which was formerly a Safeway and a $700,000 for its former store at 1350 N. Silverbell Road, which is slated to close by the end of the month.

No bid has been placed for the store at 8740 E. Broadway yet.

The three Tucson stores are part of 10 in Arizona that were up for auction. Albertson’s has also placed a $1 million bid for the store in Lake Havasu City. None of the three stores in Phoenix, two in Prescott or the one in Flagstaff received bids.

Albertson’s was successful bidder on 33 of the Haggen stores, Smart & Final won 4 and Sprouts another 4 stores at the auction.

To see the full list of Haggen stores sold at auction click here Haggen auction.pdf

Senior housing demand, driven by the aging of Baby Boomers, a healthy housing market, an attractive spread between borrowing rates and capitalization rates, and relatively limited new development has seen a steadily rising market demand in the Tucson metro area.

North American health care REIT Welltower Inc. acquired the senior living community formerly known as Emeritus at Pantano for $18 million, or $128,571 per bed, and has renamed the facility Sierra Del Sol Senior Living.

C.P. Tucson LLC, an affiliate of Seattle-based Columbia Pacific, sold the 140-bed assisted living and memory care community at 8151 East Speedway Blvd in Tucson to Ohio-based Welltower (NYSE: HCN). The deal was an all cash transaction.

Located in the northeast side of Tucson, the property borders Saguaro National Park East, off Speedway next to Mesquite Valley Growers, giving access to grocery stores, doctors, banks, golf courses, parks and restaurants in the area. Plus just minutes from two major hospitals, Tucson Medical Center and St. Joseph’s Hospital.

Sierra Del Sol was built on the 4.68-acre site in 1997 and totals 79.859-square-feet. The community has 104 assisted living beds and 36 memory care units, including daily meals and medical services.

Health Care REIT (NYSE: HCN) in September announced that the company—one of the largest owners of senior housing real estate in the country—would change its name to Welltower Inc.

The renamed company continues to trade its common and preferred stock under the New York Stock Exchange ticker symbol “HCN,” according to information the Toledo, Ohio-based company.The company filed for the Welltower trademark name in early June.

The company now known as Welltower has assets totaling more than $26 billion and owns 1,411 properties throughout the U.S., UK and Canada. The company primarily owns assisted living facilities and has made major investments in the post-acute space recently.

There were no brokers involved in the transaction.

In a separate transaction, Indian Ridge LLC (Bennett Silverman, member) acquired the 10-bed assisted living home business and real estate at 2641 N Bahana Drive in Tucson for $375,000, $37,500 per bed.

The assisted living community was fully occupied when it was sold by Phillip and Ronna Secker of Marana, and the business valuation was sold separately from the real estate.

Mark Biery, CCIM, a senior housing specialist with Berkshire Hathaway Premier Properties in Tucson, handled the transaction for buyer and seller.

Biery should be contacted at 520.577.8333.

To learn more see RED Comp #3402

Cushman & Wakefield Represents Buyer, Will Provide Leasing Services for New Building

PHOENIX, AZ – Cushman & Wakefield, has announced that Dared 89 LLC (dba Douglas Allred Company) purchased a ±64,853-square-foot industrial building at 4039 E. Raymond Street in Phoenix for $3.6 million ($55.51 PSF). The San Diego-based full-service real estate firm announced plans to tear down the existing building and develop Allred 40, a ±90,000-square-foot, two-story office building.

Cushman & Wakefield Executive Director Jim Wilson represented Douglas Allred Company in its purchase of the property. The seller was R.E. Exchange Services, Inc. (Avalon Pacific-Santa Ana, L.P.) from Newport Beach, CA.

“Douglas Allred Company has been very successful in developing highly sought after properties in the right locations,” said Mr. Wilson. “Their ability to recognize and take advantage of the opportunity this location presented for a new office building was another example of their understanding of what users in our marketplace are looking for.”

Removal of the existing industrial building is slated to begin before year-end with occupancy on the new Allred 40 office building by June 2016. Located in the Airport submarket, Allred 40 will offer ±45,000 square foot floor plates, and 6.48/1,000 parking. Mr. Wilson has the leasing assignment for Allred 40.