Scottsdale Investor Acquires End Cap at Harrison Plaza in Tucson
Tucson, Arizona – Majestyk Tucson, LLC (Michael Bennian, manager) of Scottsdale purchased the property located at 2530-2532 S. Harrison Road and 9425 E. Golf Links Road, Tucson, Arizona for $375,000 ($117 PSF).
The approximately 3,200-square-feet of retail space in Harrison Plaza was built in 1997 and is the end cap at the northwest corner of Harrison Road and Golf Links in the center anchored by Big Lots. Each of the stores at this center are individually owned.
The transaction was an investment sale that sold full leased to two tenants, Hair Spraz Salon is in 800-square-feet and Cozy Corner Diner in the remaining 2,400-square-feet. Both will continue to occupy the spaces.
Paul Ash Management handles the property management.
Frank Arrotta of Tucson Realty & Trust Co. represented the seller, Trinum Properties, LLC of Los Angeles, California (Shawn Rita Abrahams, manager).
For more information, Arrotta can be reached at 520.577.7000.
To learn more, see RED Comp #6885.
Favorable Multifamily Market Trends Continue in Tucson
Picor Handles $3.47 Million in Multifamily Sales Tucson
TUCSON, Arizona — Allan Mendelsberg with Cushman & Wakefield | Picor closed on an aggregate of 48-units for $3.465 million ($61,625 per unit) in Tucson recently in four transactions.
California-based, Brad Land Investors, LLC and The Martin and Stacey Cohan Trust bought an 8-unit student housing building at 317 N Vine Avenue in Tucson. The property is located next to the UA Campus and sold for $1 million ($125,000 per unit). All were two-bedrooms except one, a one-bedroom. The seller was Bruce and Michelle Minkus of Tucson. Allan Mendelsberg, Principal and Multifamily Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.
To learn more, see RED Comp #6817.
Marc Henry and Gaynelle Henry purchased a 12-unit apartment building located at 3525 E. Flower Street in Tucson. The multifamily property was purchased from Rincon Flower Properties, LLC for $875,000 ($72,916 per unit). Allan Mendelsberg, Principal, and Logan Nagel and Zach Stone, Multifamily Specialists with Cushman & Wakefield | PICOR, represented the seller in this transaction. Alexandre Bensahel, with Marcus & Millichap Real Estate Investment Services, Los Angeles, represented the buyer.
To learn more, see RED Comp #6873.
KV Ironwood, LLC purchased Olive Street Apartments from KMS Enterprises, LLC for $640,000 ($40,000 per unit). The16-unit, multifamily property is located at 201 E. Olive St. & 5261 S. Nogales Highway in Tucson. Allan Mendelsberg, Principal and Multifamily Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.
To learn more, see RED Comp #6801.
Gary and Vicktoria Weessies purchased three buildings at Roger Road Apartments from Brandon B. Matheson. The multiple property transaction included three, 4-unit buildings located in Tucson: 220 W. Roger Rd. ($316,670), 234 W. Roger Rd. ($316,665), and 238 W. Roger Rd. ($316,665) or a total of $950,000 ($79,166 per unit). Allan Mendelsberg, Principal, Logan Nagel and Zach Stone, Multifamily Specialists, with Cushman & Wakefield | PICOR, represented the seller in this transaction. Laura Grijalva with Grijalva Realty Corp., represented the buyer.
To learn more, see RED Comp #6837.
For more information, Mendelsberg can be reached at 520.546.2721.
Culver’s and Dutch Bros to Open at Shops on Valencia in Midvale Park of Tucson
TUCSON, Arizona – Kyle Kolsrud, a Culver’s franchisee, closed on a 41,387-square-foot lot at the Shops on Valencia for $1.3 million ($31.40 PSF). This will be the third Culver’s operated by Kolsrud in metro Tucson and to be located at Valencia and Headley in the Midvale Park area.
The seller was Christifulli Companies of Phoenix (Nick Christifulli, member) was represented by Larry Cesare of Broadway Realty & Trust in Tucson.
Culver’s will join a newly finished build-to-suit Dutch Bros that will be opening ‘in two weeks’ here. This will be the fifth location for expansion-minded Dutch Bro’s in metro Tucson expecting to see more openings soon. Dutch Bros management has announced at the start of 2019 it wants to grow to 800 shops in five years from around 300 stores now.
The Dutch Bros built-to-suit was handled by Marty Olejarczyk (Marty O.) and Jesse Rozio of GPS Retail Advisors in Phoenix and being marketed as a net leased investment sale.
In addition to these confirmed tenants, the center’s broker, Larry Cesare at Broadway Realty & Trust is pre-leasing a 10,000-square-foot building for two tenants that have shown interest in approximately half of the building each.
Kurt Kalocin with SRS Real Estate Partners of Phoenix represented Culver’s in the transaction.
For additional information, Cesare can be reached at 520.584.5804 and Kalocin should be contacted at 602.682.6078. For more information on the Dutch Bros contact Rozio at 480.603.6892.
To learn more, see RED Comp #6751.
KFC Closes on Tucson Marketplace at the Bridges Site
TUCSON, Arizona – STRR Investments of Houston (Rehman Ahmed (manager) has closed on a 39,120-square-foot pad at Tucson Marketplace at the Bridges. For $675,000 ($17.25 PSF). The site in located north of the northeast corner of Kino Parkway and Tucson Market Place Blvd.
KFC is joining Mister Car Wash, Discount Tire and Culver’s at this section of the Tucson Marketplace along with a potential Dutch Bros next door. Tucson Marketplace is a 1 million-square-foot mixed use master planned commercial development.
The U.S. chicken chain based in Louisville, KY has been doing something in 2019 that it hasn’t done in 15 years: add more locations. KFC has shrunk by 1,400 locations since 2004 but expects to change direction this year. To do this, the chicken chain is providing incentives to operators who build new units. It is also finding new places to put new restaurants, focusing more on nontraditional locations and eyeing urban, inline locations the chain has abandoned in recent years. While the chain is focused on new units, it is also working to keep closures to a minimum.
Chad Russell and Randy Titzck of Land Advisors Organization in Phoenix represented the Canadian–based seller, Fullerton Tucson Kino Parkway. Greg Saltz, Marty Olejarczyk (Marty O.) and Jesse Rozio with GPS Retail Advisors represent KFC and Dutch Bros in Arizona.
For more information, Russell and Titzck should be contacted at 480.483.8100. Saltz, Olejarczyk, and Rozio can be reached at 480.603.6892.
To learn more, see RED Comp #6774.
Presson Corp. adds 29th Street Business Plaza to Porfolio for $3.075M
TUCSON, ARIZONA — Phoenix-based, Presson Corporation (Daryl Burton, President) purchased the 29th Street Business Plaza, a 72,190-square-foot industrial zoned flex property located at 4901-5069 East 29th Street in Tucson for $3.075 million ($42.60 PSF).
Built in 1976, the 60 warehouse / incubator style flex units were originally 1,200-square-feet each on 5.48 acres northeast of Swan on 29th Street; over the years many of the units have been combined. The mix of tenants include Marksman Pistol Institute, Old Pueblo Trophy, Evolved Behavior Health Services, Tasc Incorporated, Integra Custom Systems, Gus Mare Plumbing & Air, Advantage Medical Products, and Repower Old Pueblo Solar Heating.
Property was 80% occupied at time of sale.
The buyer was represented by Robert C. Glaser, SIOR, CCIM, Principal and Industrial Specialist with Cushman & Wakefield | Picor of Tucson. Jon Jump, Principal with Jump Ventures, Inc., represented the seller, Dybvig Pima County of Tucson (David Dybvig, manager).
The Presson Corporation primarily operates in the Commercial and Industrial Building Operation business / industry within the Real Estate sector and has been operating for approximately 30 years.
“The 29th Street Business Plaza represented a stable opportunity for the buyer,” said Jon Jump. “The property is in a great location in the heart of central Tucson, with the high occupancy and tenant mixture, and a low price per square foot, creates exceptional appeal for the incubator market.”
Cushman & Wakefield | Picor will handle leasing of the property for the buyer.
For additional information, Glaser can be reached at 520.546.2707 and Jump should be contacted at 520.733.0007.
To learn more, see RED Comp #6851.
National RV Central at Orange Grove I-10 Plaza Sells for $6.74 Million
MARANA, AZ — The LeClaire Group of Marcus & Millichap (NYSE: MMI) of Denver brokered the sale of National RV Central, a 125,015-square-foot enclosed RV storage facility located at 6260 North Travel Center Drive in Marana, AZ for $6.74 million ($54 PSF). Located in the Orange Grove I-10 Plaza, the seller was also the developer of the property and the 21-acre Plaza in 2006.
Thomas Parsons, Investment Associate, and Adam Schlosser, Senior Vice President Investments, had the listing to market the property on behalf of the seller, NSS RV Central OG, Limited Partnership, a local partnership with the Schomac Group (Dennis Winans, CFO).
“This is one of the largest fully enclosed and climatized RV storage facilities in the country which helped drive interest from nationwide investors,” said Parsons. The buyer was a national private self-storage operator, In Self Storage, based in Colorado. This is the buyer’s first investment in the Tucson market.
RV Central sits on 7.03 acres and in addition to this the buyer purchased an additional 2.42 acres of vacant land for an aggregate value of $583,458 ($5.54 PSF) for future expansion. Gordon Wagner with NAI Horizon in Tucson handled the lot sales.
National RV Central is the only fully enclosed and climate-controlled RV and boat storage option in this market. Built in 2006, the facility is comprised of 112,115 NRSF of indoor climate-controlled RV storage, 5,100 NRSF of traditional drive-up self-storage, and a 7,800 NRSF service bay rented to a third party. There is no outside storage, 100 percent of the RV and boat storage is fully enclosed. The property is strategically located next to Interstate 10 (I-10).
Because of the tall buildings and prominent signage, the facility is very visible to all 110,000 vehicles which drive by each day. The property is situated in a populated area with approximately 130,279 people and 53,233 households in a five-mile radius with an average household income of $72,389.
For additional information, Parsons and Schlosser can be reached at 303.328.2068 and Wagner can be contacted at 520.398.5130.
To learn more, see RED Comp #6661, #6734 and #6738.
HSL Adds Another Prime Parcel to Portfolio in Vail, Arizona
HSL continues to grow its eastside holdings with addition of prime Houghton road parcel
TUCSON, Arizona – HSL Houghton Apartments, LLC, and affiliate of Tucson-based, HSL Properties (Omar Mireles, president) closed on a second site in the Vail submarket for $4.083 million from Mattamy Homes.
The approximate 17 acre site is located in Saguaro Trails Master Planned Community, a successful new community by Mattamy that opened last February to respond to the pent-up demand for housing in the area. The HSL Apartment site is on Houghton Road across from the well-known environmentally friendly community of Civano in southeast Tucson.
Will White and John Carroll of Land Advisors Organization handled the transaction
“It is an excellent parcel and location, no question about it. The Houghton corridor continues to see strong record demand for all types of residential uses,” said White. “The Vail area is seeing some of the best data in the Tucson market right now and we do not see this slowing down for many years. It has an excellent school district, growing list of retail and restaurant amenities, convenience to Tucson’s employment core, and strong aesthetics.”
HSL recently broke ground on the first luxury apartment community for Vail, Encantada at Rita Ranch at 9410 E Valencia Road is at the southeast corner of the Valencia and Nexus. With 312-units under construction, this new site on Houghton will be HSL’s second luxury community for Vail.
The Encantada at Rita Ranch, like other Encantada luxury apartments, will include a clubhouse with a fully equipped fitness room, rental room for parties or special gatherings, a movie theater room, and a swimming pool.
For more information, White and Carroll should be reached at 520-514-7454.
Tucson’s Mixed-Use Project “Union on Sixth” Assemblage Closes for $5.5 Million
Union on Sixth Brings 165 market rate apartments and 7,000 SF additional commercial / retail space to 4th Avenue
TUCSON, ARIZONA – GEdR Union on 6th, LLC recently closed on an assemblage of 1.4 acres at the southwest corner of Sixth Street and Fourth Avenue in Tucson for $5.5 Million ($89.63 PSF) for land value.
The project has been in planning for several years an delayed with concerns over the changes in appearance that it would happen to uniique 4th Avenue.
Discussions between stakeholders over this infill project has finally resulted in approval of the Historic Preservation Zones where it will sit and the Individual Parking Plan (IPP) approval.
Union on 6th will consist of two buildings. The one along Herbert Avenue will split the development into a 40,540-square-foot East Building and a 125,065-square-foot West Building.
The plan GEdR requested was for the transit-oriented development including bicycle accommodations and public transportation is to have 209 parking spaces on the basement level and ground floor level of the western building in addition to on-street parking. The project is to house 165 multi-family market-rate apartment units and approximately 6,900-square-feet of retail/commercial space.
Union on Sixth will bring about 300 new residents to the area, living in the 165 market rate apartments. GEdR is hoping to market the apartments to young professionals, empty nesters and graduate students looking to live around 4th Avenue. The final plan shows that 65 percent of the units will be studio, one-bedroom or two-bedroom units with the other 58 units are 3-bedrooms.
In regards to the multiple retail/commercial units, 6,900-square-feet worth, The 4th Avenue Merchants Association has been working with GEdR to make sure that only local tenants will occupy these ground floor units.
One point of misconception concerning this project from the beginning seems to have been the height of the project. It has always been presented as “The 7-story development replacing The Flycatcher on 4th Avenue.” In reality, the portion of the building fronting 4th Avenue will be 2 and 3 stories in height. While the eastern building does eventually step up to 5 stories, it is set back from 4th Avenue and 6th Street by at least 50 feet. Building #1, the western building, does sit at 7 stories, although it steps down to 2 stories (25 feet) where it fronts 6th Street and is separated from 4th Avenue by more than 200 feet and Herbert Avenue.
Tony Reed with Long Realty in Tucson represented the buyer, GEdR Union on 6th, LLC. Phil Lipman with Bright Properties of Tucson represented the sellers, Four Emeralds / Flycatcher at 340 East 6th Street and Honeybadger Happenings, LLC and Tigre Properties I, LLC at 422 and 424 North 5th Avenue and 316 East 6th Street.
For more information, Reed should be reached at 520.918.5189 and Lipman can be contacted at 520.906.7215.
Miles Labeling Co. Moves Manufacturing to Oro Valley following Tucson Fire
ORO VALLEY, Ariz. – Miles Labeling Company (Paul J. Miles, president) purchased the building at 2300 E Vistoso Commerce Loop in Oro Valley recently for $1.125 million ($95 PSF) from Anthem Equity Group.
Miles Labeling Company is a 107-year-old printing business that lost its building on North Business Park Drive, near Cortaro Road and Interstate 10, when it suffered significant fire damage on April 17th. The building had been the company’s home office since 1985, leaving the company to deal with insurance companies to see what their next steps would be.
From its humble beginnings in an Iowa garage to today’s modern industrial plant in Tucson, Miles Label Co., Inc. remains a family business. When Russell Hubert Miles began running a printing operation out of his Des Moines garage in 1912, he started a family legacy that lives on a century later. By 1930, he and his son Paul Wilson Miles, were printing labels and creating such specialty items as policy labels and business forms for insurance companies. Paul Wilson Miles, Russell’s son, began doing gum labels for the insurance industry in the 1930s and now they are doing almost any kind of label and packaging products for a variety of industries. Paul Wilson and his son Robert H. Miles moved the business to Tucson, Arizona in 1962 and in 1967 the first Mark Andy label press was brought online and its current manufacturing started.
The new 11,800-square-foot building, built in 1980, sits on 1.84 acres with an 8,400-square-foot warehouse and 3,400-square-feet of office space.
Rob Glaser, SIOR, CCIM, and Max Fisher, Industrial Specialists with Cushman & Wakefield | Picor, represented the seller in the transactions. John Slattery and Jesse Blum, both Senior Associates with CBRE in Tucson, represented the buyer.
For more information, Blum and Slattery should be reached at 520.323.5100. Glaser and Fisher can be contacted at 520.748.7100.
To learn more, see RED Comp #6807.
Dollar General Deals Still Strong Investments for Out-of-State Investors
TUCSON, ARIZONA — Benson-DBS, LLC, a California investor from Rancho Mission Viejo, CA, purchased the brand-new Dollar General located at 28890 S. Nogales Highway in Amado, AZ. The 9,100-square-foot Dollar General, that opened last week, was purchased from DCM Development Company, LLC for $1,642,800 ($180.53 PSF). The store sits on a 1.8-acre site.
Dave Hammack, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction.
In a separate transaction, another Dollar General at 3436 N Country Club Road in Tucson sold for $1.670 million ($185.50 PSF). Built in 2014, this is the second time the investment property has sold with an absolute NNN lease term to the Rayner Family Trust from Palo Alto, CA.
The 9,002-square-foot building sits on a .8-acre site in central Tucson in a dense population area with approximately 113,236 people within a 3-mile radius of the site.
Dollar General is one of the largest dollar store chains in the US and a publicly traded company. It started in 1939 by J.L. Turner in Kentucky offering a broad selection of merchandise, including consumables, seasonal, home products and apparel at deep discounts.
From a net lease point of view, Dollar General is appealing given its lower price points, respectable sales record, and corporate expansion strategy in a growing market segment. Dollar General’s new store model is approximately 9,100 square feet on approximately 1-acre of land to accommodate a minimum of 30 parking spaces. Dollar General net lease properties have high visibility and full ingress/egress along retail corridors with good traffic. Higher cap rates and lower price points result in a larger pool of qualified buyers.
All Dollar General net leases have a corporate guarantee and typically the newer stores are NNN with 15-year initial terms. New Dollar General’s lease terms usually include 10% bumps every five (5) years and in options making it a passive investment deal for Out-of-State investors. A significant portion of the new stores are subject to build-to-suit arrangements.
At the end of 2018, Dollar General operated 15,227 stores across 44 states. In the first three quarters of 2018, Dollar General opened 750 new stores. Dollar General plans to open 975 additional stores this year.
For more information Dave Hammack should be reached at 520.546.2712.
To learn more, see RED Comp #6803 and #6750.
Newly completed Ina & I-10 Interchange has Jack in the Box Coming
MARANA, ARIZONA — Ina QOF, LLC an affiliate of I Chief, LLC, purchased the former Quick Mart at 4479 West Ina Road in Marana, at Ina & I-10, for construction of a Jack in the Box restaurant. The .71 acres has a 1,071-square-foot building to be razed and was sold for $798,700 land value ($25.80 PSF) by David and Cathy Lee Trust.
David Lee with David Lee Real Estate Company in Tucson handled the transaction.
San Diego based, Jack in the Box Inc. (NYSE: JBX), is a restaurant company that operates and franchises Jack in the Box® restaurants, one of the nation’s largest hamburger chains, with more than 2,100 restaurants in 21 states and Guam.
The Southern Arizona franchisee was recently noted for its community participation in such programs as No Kid Hungry and Make a Wish Foundation. It is a family owned business that has completely remodeled 5 existing locations and committed to building 3 brand new Jack in the Box locations in metro Tucson with this its second in Marana. This location design feature will include RV and trailer parking and have a larger than normal drive-thru to accommodate travelers.
Gene Goldstein of Bramic Design Group in Tucson is the architect for the project.
The other two brand new Jack in the Box restaurants are the one just completed at Mission and Ajo and the soon-to-start construction location at Marana and Sandario roads.
For more information, Lee should be reached at 520.954.8008.
Additional Apartment Units Proposed for Downtown Tucson in Two New Projects
Developer Ross Rulney wants to build 144 market-rate apartments in two separate downtown Tucson projects
TUCSON, ARIZONA — Fifth Avenue Partmers OF, LLC (Ross Rulney, Manager) recently acquired the former Codac Behavioral Health building at 111 and 127 South Fifth Avenue in Tucson for $1.775 million ($175 PSF or $73 PSF for the land). The developer wants to raze the 10,000-square-foot building to rebuild a 7-story, 100 unit Apartment building on the site. The apartment units are to be studios and one-bedrooms with 9-foot ceilings on the 24,394-square-foot lot.
An affiliate of Holualoa Companies, HP Fifth Avenue, LLC, was the seller.
Efforts are increasing to keep up with Tucson’s rising population. Located around the corner from 140 East Broadway that was purchased by Rulney in 2006, where Rulney wants to build a 5-story, 44-unit loft-style apartment building with 16-foot ceilings on a 27,380-square-foot lot.
Both properties are in a downtown Tucson opportunity zone and buyer is requesting GPLET assistance from Rio Nuevo and the City of Tucson for both projects in order to begin construction before year end. Opportunity Zones were added to the tax code in late 2017 and are designed to spur economic development by providing tax benefits to investors.