Community Behavioral Health Properties of Southern Arizona, LLC (COPE) sold the 12,358-square-foot office building at 4601 E. Broadway Blvd. in Tucson to Louis River, LLC (Emil Annabi, MD, member) for $1.75 million ($142 PSF).

The property sold in a sale leaseback agreement, with seller leasing back the building for three months, while its new location is under construction.

The buyer purchased the property that was constructed in 1979 on a 39,347-square-foot lot to renovate it into a medical clinic for Pima Pain Center.

Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the buyer and David Volk with CBRE, Inc., represented the seller in this transaction.

For additional information, contact Figueroa at 520.546.2743 and Volk should be reached at 520.323.5102.

To learn more, see RED Comp #4125.

Tucson showing strong signs of market recovery

Phoenix, AZ — Colliers International in Greater Phoenix has negotiated the sale of a portfolio containing five apartment communities in Tucson.  The properties were the first Arizona acquisition for a Colorado-based investment group and commanded a sale price of $47.5 million ($47,311 per unit) in a bulk portfolio sale.

Hamilton Zanze of San Francisco (Mark Hamilton, CEO) sold the portfolio to Monarch Investment & Management Group, LLC of Franktown, CO (Andy Newell, CEO).  Cindy Cooke and Brad Cooke of Colliers International in Greater Phoenix served as the exclusive sales agents for the portfolio.

“This portfolio was a great investment due to the strong cash flow and overall condition of the properties,” says Cindy Cooke, senior executive vice president with Colliers International in Greater Phoenix.  “The economic recovery in Tucson follows the Phoenix economy.  Phoenix has realized incredible appreciation in the recent years, so Tucson investors are well positioned to benefit from similar trends.”

Greater Tucson added approximately 13,000 jobs in the last 12 months and more than 240 businesses have opened in Downtown Tucson since 2008.  Mid-year 2016 statistics report Tucson’s multifamily market with a 6.8% vacancy.  Rental rates have increased 5% overall in the past 12 months in Tucson.  However certain properties have seen recent rent increases of 11-13%, and rates are expected to continue to climb and reach the peak rents of 2008 and higher.

The Tucson portfolio included:
– Hampton Park, a 160-unit community located at 8600 E. Old Spanish Trail in Tucson
– San Mateo, a 254-unit community at 2800 S. Mission Rd. in Tucson
– Solano Springs, a 152-unit community at 6340 S. Santa Clara Ave. in Tucson
– Lakeside Apartments, a 310-unit community at 8250 E. Golf Links Rd. in Tucson
– Highland Apartments, a 128-unit community at 555 N. 7th St. in Sierra Vista

Each of these properties was constructed between 1973 and 1985.  The communities contain 1,004 units totaling 686,314 square feet. The portfolio averaged 94% occupancy at the time of sale.

TUCSON, AZ – Lee & Associates is proud to announce the sale of a 72,000-square-foot former Raytheon Missile Systems flex office building at 3360 E. Hemisphere Loop, Building M10, Tucson for $10.5 million ($145.83 PSF).

Lee Principals Jerry Marrell and Dave Johnson negotiated on behalf of DCG IV, LLC, a Seattle-based investment firm. Lee Principal Pete Batschelet procured the buyer, 3360 E. Hemisphere Loop, LLC, Scottsdale.

Built in 2008, the single-tenant, two-story, building sits on approximately 4.45 acres with an additional 4.92 acres of land available for expansion. The building features 4.67/1,000 parking, two split system A/C systems and a contemporary architecture in a business park setting. It is a Department of Defense approved facility and was a built-to-suit for Raytheon Missile Systems. The property is close to the I-10 Freeway and Tucson International Airport.

Raytheon Missile Systems is headquartered in Tucson and is the largest non-governmental employer in the city. This business unit specialized in advanced weaponry development and is a critical defense industry contractor. Raytheon Co. is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. Founded in 1922, the company provides state-of-the-art electronics, mission systems integration, capabilities in C5I (command, control, communications, computing, cyber and intelligence), sensing, eff ects and mission support services. Raytheon Co. is headquartered in Waltham, Massachusetts.

For additional information, Marrell is at 602.954.3744, Johnson should be contacted at 602.954.3745 and Batschelet can be reached at 602.912.3522.

To learn more, see RED Comp #4103.