The mixed-use, Plaza Centro, at the heart of Downtown Tucson’s revitalization was sold to Crow Holdings of Dallas, Texas (Daniel Feeney, VP) for $8.7 million ($367 PSF).

Located at the core of the heartbeat of downtown, 4th Avenue and Congress Street is the entertainment, dining and nightlife epicenter. The property’s 23,734-square-feet total consists of 19,067-square-feet retail and 2,219-square-feet office space.

Constructed in 2013, the modern architecture & improvements, and exceptional design of Plaza Centro was built by the seller, Oasis Tucson (Jim Campbell, manager). The seller had invested approximately $2.7 million installing the current tenants at Plaza Centro that sold 100% leased.

Tenants include Hi-Fi nightclub, Fed by Threads, Planet Smoothie, Gio Taco, Fired Pie, Obon Sushi and the World of Beer. The El Centro Garage was not part of the sale; however, the property has a lease agrement for 189 of the 378 total parking spaces in El Centro garage included in the transaction.

The investor bought the property as part of its urban infill portfolio strategy that has been acquiring properties in revitalized downtown areas such as Phoenix, Denver, Dallas, New Orleans and Portland.

The investor purchased 6501 E Grant Road in Tucson in November 2015, and this is its first investment in the downtown business district.

Nancy McClure with CBRE in Tucson and Phil Voorhees with CBRE in Newport Beach, California handled the transaction.

McClure said there were several investors that showed interest in the property but Crow Holdings was the best fit. “Having a sophisticated buyer in urban development, such as Crow Holdings give its seal of approval acknowledges that downtown revitalization is moving in the right direction,” McClure said.

Plaza Centro is the gateway of downtown Tucson’ s eastern entry and benefits from the dedicated Streetcar stop connecting the property to the University of Arizona (40,600 students), with an estimated 100,000 people living and working within a half-mile of the Streetcar route.

Plaza Centro was built with a Government Property Lease Excise Tax Incentive (GPLET) that also transferred to the new owner in the transaction.

For more information, Voorhees can be reached at 949.725.8521 and McClure is at 520.323.5117

To learn more, see RED Comp #4053

Golf Cars of Arizona (Dereck Makowski, manager) bought the property at 4924 East 22^nd Street in Tucson for $170,000 ($71 PSF). The former BAP Import Auto Parts consists of a 2,400-square-foot metal building is on a 13,601-square-foot lot.

Buyer purchased the property to occupy it for expansion of Golf Cars of Arizona located at 4888 East 22^nd Street.

The seller, the Richard and Elizabeth Betes Living Trust was represented by Billy Mordka of Harvey Mordka Realty in Tucson and the buyer was represented by Thomas DeSollar of Arizona First Properties in Tucson.

For additional information, Mordka can be contacted at 520.298.8500 and DeSollar is at 520.219.1204.

To learn more, see RED Comp #3901

Starwood Property Trust, Inc., Walker & Dunlop LLC and CW Financial Services LLC sold the Burlington Coat Factory retail building located at 3660 S. 16th Ave. in Tucson, AZ to Agree Realty Corporation for $7.5 million, ($98 PSF).  Located at 3660 South 16^th Avenue in Tucson the property was sold at auction in an REO sale fully leased to Burlington Coat Factory, the tenant.

Completed in 1983, the single-tenant building totals 76,366-square-feet on 6.9 acres in the South Tucson submarket of Pima County.

The tenant, Burlington Coat Factory is a strong national company, who successfully went public in 2013 with a total revenue increase north of 16% increase from 2013 to 2015 and 2015 revenue of $4.85 billion. The lease features a scheduled 10% rental increase in two years – 2018, and at the beginning of each 4 (5-Year) option periods, which generates steady NOI growth and hedges against inflation.

The property is co-anchored by Fry’s Food (Kroger Inc.), with additional national tenants including DaVita Dialysis, Wells Fargo, Subway, Foot Locker, etc. This tenant lineup creates top tier customer draw, increases consumer traffic in the shopping center, and also serves to enhance the overall tenant synergy from Burlington Coat Factory. In addition, Burlington is located within a dense infill trade area with over 230,400 people and an employee base of 143,500 people living within a 5-mile radius.

Matt McNeill of Metro City Realty in Scottsdale along with Tim Chichester and Donald MacLellan with Faris Lee Investments of Irvine, CA represented the sellers. The buyer was self-represented.

For more information, McNeill can be reached at 602.570.7522 and Chichester and MacLellan are at 949.221.1800.

To learn more, see RED Comp #3971 and login for more information here.

[mepr-show rules=”58038″]Property sold at auction, leased to Burlington Coat Factory with an NOI of $648,040 and an 8.64% cap rate, with a 10% increase in 2018. The current rent of $8.50 PSF, broker reported.[/mepr-show]