Two pads sold at the Fry’s center under construction at Valencia and Valley Indian Agency Road in Tucson for an aggregate sum of $987,363 ($5.63 PSF).

The hard corner pad located at the southwest corner of Valencia and Valley Indian Agency Road is 71,025-square-feet and was purchased by Steamroller Pad LLC (Rick Volk, Manager) for $544,104 ($7.66 PSF) to be a national restaurant built-to-suit.

The other, a 104,479-square-foot pad adjacent to the Fry’s store under construction sold for $443,259 ($4.24 PSF) and will be used for 7,800-square-feet of inline shop space. The inline space is over 50% pre-leased to Nationwide Vision, Great Clips and Lee Spa Nails, with 900 – 3,600-square-feet available for lease.

The end cap is to include a 600-square-foot patio ideal for a restaurant tenant.

The shop space has broken ground and is scheduled to open in early November.

The seller of both properties was Smith’s Food & Drug Centers, Inc. of Tolleson, Arizona that was self-represented in the transactions. Brenna Lacey of Volk Company in Tucson represented the buyer, Steamroller LLC.

Brenna Lacey and Kevin Volk are the leasing contacts for the buyer.

For more information, Lacey and Volk should be reached at 520.326.3200.

To learn more, see RED Comp #3973 and #3974.

The Rio Nuevo Multipurpose Facilities District closed on the purchase of a 46,107-square-foor land parcel at 801 East 12^th Street in Tucson for construction of the new Greyhound Bus Terminal. The property commanded a sale price of $575,000 ($12.47 PSF).

The Rio Nuevo Board announced at its February 2^nd meeting it had contracted to purchase a 46,107-square-foot parcel of land at the southeast corner of Euclid and Broadway as the location for a new location for the Tucson Greyhound bus terminal.

The parcel was “Greyhound’s number one choice” stated Chairman Fletcher, when announcing the selection, “It is close to downtown, close to the UofA and adjacent to the new downtown links.”

The Board also released a site plan and rendering of the new terminal prepared by Greyhound.  The Board anticipates improving the parcel with Rio Nuevo funds and leasing it back to Greyhound with a total budget of $1.9 million, including construction of a 1,500-square-foot terminal that is open later this year. Upon completion of construction, the terminal will be leased by the District to Greyhound Corporation pursuant to the existing Build to Suit Lease.

The Rio Nuevo Multipurpose Facilities District is asking for bids to build a new Greyhound terminal near Broadway and Euclid. The bids will be opened July 29^th, with the contract being awarded soon after, Rio Nuevo officials said. Once the terminal is built, it will be leased to Greyhound Corp. The terminal project is expected to cost about $1.9 million. It will be on the alignment for Downtown Links, a project that will allow traffic to get to I-10 without going through downtown.

The relocation of Greyhound almost derailed Allan Norville’s acquisition of the Arena Site until Rio Nuevo stepped in and offered to locate, acquire and build a new Greyhound bus terminal. As a result of the Board’s efforts, Mr. Norville is now in the process of improving the Arena Site and his adjacent parcel with new exhibition space, a new 4-star hotel and parking for this developing area.

The building will be state of the art, board member Edmund Marquez said. “It’s going to be beautiful — a huge upgrade to the trailer they’re in now.”

The seller of the lot at 801 E 12th Street, Broadway Euclid LLC (Don Bourn, manager) was represented by Rob Tomlinson and Aaron LaPrise, Retail Speicalists with Cushman & Wakefield Picor in Tucson and Ian Stuart and Dave Blanchette with CBRE in Tucson represented the buyer in the transaction.

For more information, Tomlinson and LaPrise can be reached at 520.748.7100 while Stuart and Blanchette should be contacted at 520.323.5100.

To learn more, see RED Comp # 3982.

$8 Million Property Renovation Planned to Transform Hotel Back to Original Glory

Caliber Hospitality, a division of Caliber-The Wealth Development Company, acquired the 7-story, 232-guestroom, Hilton Tucson East in Tucson, AZ, for $9.27 million ($39,947 per room). Located at 7600 E Broadway Blvd. in Tucson’s business district, the property features 12,000-square-feet of meeting and convention space, a pool and upgraded dining facilities.

Purchased with private investor equity, (Tucson East LLC, Sam Fox, manager) in partnership with the Caliber Distressed Real Estate Income Fund (CDIF, LLC), Caliber plans an $8-million property renovation. The Hilton Tucson East purchase expands Caliber’s lodging investment portfolio to six hotel properties in both Arizona and Alaska, and includes Crowne Plaza, Hampton Inn & Suites and Holiday Inn & Suites. As with all of Caliber’s hospitality holdings, HMC Hospitality will manage the hotel’s day-to-day operations.

Chris Loeffler, CEO and co-founder of Caliber-The Wealth Development Company said, “The Hilton Tucson East is the proverbial ‘diamond in the rough’ that with the proper renovation plan and managerial expertise, will be transformed into one of the finest hotels in Caliber’s portfolio.” He added, “The property will provide significant investor value creation as it was purchased approximately 70% below estimated replacement cost. Due to its solid market fundamentals, we’ve wanted to expand within Tucson beyond our current single-family and multi-family residential portfolio. This hotel is an excellent opportunity to do just that.”

The hotel is located on 6.36 acres between Downtown Tucson and Saguaro National Park and is along one of Tucson’s main east-west thoroughfares, Broadway Boulevard. “We’re thrilled to partner with Caliber, and excited to revitalize and restore this property to its original beauty,” said Frank Heavlin, president of HMC Hospitality. “We’ve set into motion our personnel and property plans in order to elevate services and provide an exceptional experience for our guests. This hotel will become a diamond in the Caliber /HMC hotel portfolio.”

Caliber assists investors in building their wealth through both equity and debt real estate based investments, either through individual assets, or through private funds. Caliber is focused upon opportunistically acquiring various types of commercial assets, with in place cash flow, and maintaining low leverage on them. Through its proven renovation and management expertise, Caliber is able to increasing revenue, maximize tax benefits, all the while protecting investor capital. Caliber currently invests in Hotels, Self-Storage, Apartment Communities, Single Family Residential Properties, and Office Buildings. Caliber is a fully, vertically integrated, full service real estate investment firm controlling all aspects of the investment cycle. Services include acquisitions, construction, development, property, and asset management.

Bill Murney with HREC Investment Advisors of Phoenix handled the transaction for the seller, Champion Investment Corporation (Chia Sheng Hou, CEO) based in Poway, California.

To learn more, see RED Comp #3963.

For more information, Murney can be reached at 602.732.4777.