When NLA Oro Valley, LLC, an affiliate of Nashville-based Net Lease Alliance (Patrick Cox, CEO), purchased the former Coxco Fuel station at 7201 North Oracle Road in Tucson, located at the northwest corner of Ina and Oracle for land value, it was purchased for construction of a Bedmart Store.

See Real Estate Daily News March 12, 2014 for full story.

About two months later, Bedmart was acquired by Mattress Firm and this weekend the doors opened on the new Mattress Firm store at 7201 N Oracle Road in Tucson. The 3,435-square-foot mattress store sold for $2.37 million ($690 PSF) to investors from Eureka, California in a net investment sale.

Net Lease Alliance provided 100% of the capital for the project and the loan-to-equity balance on the project.

In June last year the acquisition was completed, adding approximately 75 specialty retail stores to the Mattress Firm company-operated stores base primarily in Denver, Colorado, Phoenix, Arizona and Tucson, Arizona, for an aggregate purchase price of approximately $35 million. The purchase price was funded by cash reserves and revolver borrowings, as well as a $3.5 million seller note that is payable in quarterly installments over two years.

Mattress Firm then rebranded the Mattress King and BedMart stores into Mattress Firm stores, including this one before it was build.

Chad Tiedeman with Phoenix Commercial Advisors handled the transaction for both buyer and seller.

To learn more Tiedeman can be reached at 602.288.3472. For full details login for RED Comp #2966.

[mepr-show rules=”58038″]Sale date: 5/29/2015, Down payment: $727,000 with new conventional financing. Property closed in 65 days, at a 6.25% cap rate with a 12 year primary term and 10% rate increases with 10 year renewals. See RED Comp for full details.[/mepr-show]

NorthStar Healthcare Income, through its affiliate Watermark La Cholla Owner, LLC, acquired The Fountains at La Cholla for $69.9 million ($173,000 per unit) as part of a $640 million portfolio for 15 properties in 11 states.

The Fountains at 2001 West Rudasill Road in Tucson consists of 404-units, 241,466-square-feet in 17 buildings on 9.49 acres located in the Northwest submarket of Tucson, near Northwest Medical Center. A continuing care retirement community (CCRC), the property has various living options, including independent living, casitas’ living, assisted living and memory care.

NorthStar Healthcare Income Inc., a public, non-traded real estate investment trust (REIT) purchased 15 CCRCs from subsidiaries of Fountains Senior Living Holdings, LLC, in a deal totaling approximately $640 million.

National senior living operator, Watermark Retirement Communities Inc., will continue as the day-to-day operator of the CCRCs.

With more than 35 communities in 20 states, Watermark is the operating partner of Tucson-based acquisition, finance, design and development firm, The Freshwater Group.

The portfolio consists of six entrance-fee CCRCs and nine rental CCRCs, totaling 3,637 units. Of the total units, about 65% are rental properties and 35% are entrance fee properties, with 23 being contracted life estate units.

As part of the same portfolio, The Watermark, a Philadelphia retirement community in the Logan Square neighborhood of Philadelphia, a 420,000-square-foot building that has a mix of living options with 464-units also sold for $62.25 million, according to the Philadelphia Business Journal.

NorthStar will lease the entrance fee properties to affiliates of The Freshwater Group Inc., pursuant to a master net lease. These rental properties will be held under a RIDEA structure, with NorthStar owning 97% and Freshwater owning 3% of the joint venture. Under the joint venture agreement, NorthStar will manage and control the joint venture’s business and affairs, with Freshwater’s consent on certain major decisions.

NorthStar financed the deal with seven-year debt at a fixed interest rate of 3.92%, which is equal to approximately 64% of the portfolio’s purchase price. The parties entered into the purchase agreement in late February, and NorthStar’s $20 million deposit toward the purchase became non-refundable as of April 9, according to the Form 8-K.

Prior to this, NorthStar Healthcare Income Inc. owned a portfolio of 20 investments, including 16 equity investments with a total cost of $942.7 million and four debt investments with a principal amount of $145.9 million, as of Feb. 6, 2015. On that date, NorthStar issued a prospectus and announced an offering of up to $500 million in shares of common stock to the public at $10.20 per share in a primary offering. An additional $200 million in shares were offered at $9.69 per share.

With a focus on originating, acquiring and managing the assets of equity and debt investments in health care real estate, NorthStar Healthcare Income is a wholly-owned broker-dealer subsidiary of NorthStar Asset Management Group Inc. (NYSE: NSAM).

Another arm of NSAM, NorthStar Realty Finance Corp. (NYSE: NRF), recently acquired an $875 million portfolio of 32 independent living communities from an affiliate of Holiday Retirement.

And in one of the biggest seniors housing deals of 2014, NorthStar Realty Finance Corp. announced a $1.05 billion acquisition involving more than 8,500 beds in 43 mostly private-pay senior housing communities and 37 skilled nursing facilities. That deal was a joint venture with private investment firm Formation Capital LLC and global investment house Safanad.

Information source on the portfolio details was found in Senior Housing News. Read the full story here.

For additional information, login and reference RED Comp #2984.

[mepr-show rules=”58038″]Sale date: 6/2/2015. Public records show buyer paid $2,186,629 down on the Fountains at La Cholla. APN: 102-13-012C.[/mepr-show]

Arizona Ironwood, LLC of Tucson (Robert Bradley, owner) purchased the former Desert Garden Nursery and Cafe at 11011 E Tanque Verde Road in Tucson for $287,500 ($160 PSF). The Company needed expansion room for its specialized market serving mostly out of state and European customers with exotic wood products specialized for wood working.

The new retail space offers the opportunity for the company to get closer to the community, and offer only more items with a variety of wood working classes to the public. With over 27 years of wood working experience, the company has set the standard for the finest quality and rarest burl blanks and will maintain 2000 types of unique items at its new location including Arizona Desert Ironwood and Stabilized woods.

The founder and President, Robert Bradley, has been milling exotic woods since 1988. He began his career at Desert Hardwood Industries in Vail, AZ while completing his Bachelors degree at the University of Arizona and UOP, and Masters Degree at Thunderbird School of Global Management. Robert worked as a chemical engineer for MARS Technologies and has experience with various stabilizing methods.

Jack Marek with Tucson Arizona Real Estate in Tucson represented the seller, Mesquite Sunset Properties, LLC of Tucson (Ira Sra, manager) and Rosemary Lacy with Long Realty in Tucson represented the buyer.

For additional information, Marek can be contacted at 520.795.2500 and Lacy can be reached at 520.577.7400. To learn more about this transaction, login to see RED Comp #2894.

Arizona Ironwood can also be called at 520.647.3453 and on its website https://shop.arizonaironwood.com/ to learn more about this unique Tucson business.

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The former Maria’s Café at 3530-3538 S 6^th Avenue in Tucson sold to Lucatero Enterprise, LLC of Tucson (Rosa Lucatero, manager) for $220,000 ($38 PSF). The 3,730-square-foot restaurant (built 1955) and also a rental house (built 1958) are located on a 26,146-square-foot lot in front of the Southern Arizona VA Health Care Complex. The new restaurant will be owner operated as Carnitas Layoca.

Juan Teran, CCIM, with Chapman Lindsey Commercial Real Estate Services in Tucson represented the buyer in the transaction and Susan Ong with Broadstone Commercial Real Estate in Tucson represented the seller, Franklin and Margaret Gee Trust of San Francisco.

For more information, Teran can be reached at 520.747.4000 x 104 and Ong can be contacted at 520.623.8111. To learn more, login to see RED Comp #2952.

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Juan Teran, CCIM, also represented the seller, Hacienda De Sirupa, LLC of Tucson (Carlos Portillo, manager) in the sale of 234-248 E 22^nd Street in Tucson. The 9,500-square-foot retail space in two 4,500-square-foot buildings (built 1958 and 1968) on a 28,000-square-foot lot was vacant and sold for $182,500 ($19.21 PSF). La Buena 4^th LLC of Tucson (Ron Schwabe, manager) is the investor and plans to remodel the premises for lease.

The property is on a signalized corner at the SWC 22nd Street & 4th Avenue – high traffic and high population trade area. Formerly used as a restaurant and tortilla factory, the property can be demised to accommodate 3-4 separate tenants with frontage on 22nd Street and 4th Avenue.

For more information Teran should be contacted at Chapman Lindsey Commercial Real Estate Services at 520.747.4000 x 104 and Chris Sauer with Peach Properties who represented the buyer can be reached at 520.798.3331. To learn more, login to see RED Comp #2971.