Super Star Car Wash Closes on New Tucson Site for $1.43 Million

TUCSON, ARIZONA – Super Star Car Wash will be coming to the southeast corner of Midvale and Valencia Roads in Tucson. Evergreen Devco of Phoenix (Derrick Lis, manager) recently purchased 4.89 acres here to split for development of two retail pads each 1-acre and hold the approximate 3 acres remaining for investment.

Evergreen rezoned the property to C-2 while in escrow and sold the easterly 40,717-square-foot pad to SSCW Valencia Midvale, LLC dba Super Star Car Wash for $1.43 million ($35 PSF).

This is the second Tucson site selected by Super Star Car Wash, the first is at Orange Grove and Oracle.

After opening its first carwash in 1993, Super Star Car Wash quickly established a footprint throughout central Arizona and San Diego, with recent expansion to the Los Angeles area as well. The company currently operates 28 Arizona locations serving the Valley and nine California locations, with plans to expand into Southern Arizona and Colorado this year.

Services offered include single washes and unlimited monthly plans for express washes, while full-serve locations offer full-serve washes and detailing. Select full-serve locations also offer fluid changes and quick lube services.

The successful company may be in the business of washing cars, but it shines in community involvement as well.

The brand donates and partners with organizations including Phoenix Children’s Hospital, Big Brothers Big Sisters of Central Arizona, HALO Animal Rescue and other local nonprofits for fundraising, events and sponsorships.

The company also helps with fundraising and sponsorships for local sports teams.

Jeramy Price with VOLK Company represents the buyer, Super Star Car Wash in its expansion into Tucson and Evergreen Devco was self-represented in the transaction.

For more information, Price should be reached at 520.326.3200.

To learn more, see RED Comp #9776 and #9764.

Harrison Street Tucson Medical Portfolio Sells for $58.5 Million Part of $600 Million Sale

Portfolio had a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital with nine properties in Arizona; six in Tucson.

TUCSON, ARIZONA – Harrison Street Real Estate sold six medical properties in Tucson for an aggregate total of $58,488,000 to NorthWest Healthcare Properties REIT as part of a larger $600 million medical property portfolio. The Tucson sale included two micro-hospitals and four medical office buildings as follows:

Micro-hospital at 7475 S Wilmot Road in Tucson sold for $20.22 million ($648 PSF)
Micro-hospital at 5620 W Cortaro Farms Road in Tucson sold for $20.444 million ($676 PSF)
Medical Office Building at 4892 N Stone Avenue in Tucson sold for $7.13 million ($371 PSF)
Medical Office Building at 551 W Magee Road in Tucson sold for $3.45 million ($323 PSF)
Medical Office Building at 1055 La Canada Drive in Green Valley sold for $3.88 million ($162 PSF)
Medical Office Building at 1704 West Anklam Road in Tucson sold for $3.37 million ($248 PSF)

JLL’s Healthcare Capital Markets group announced that it closed the $600 million sale of a 27-property, best-in-class, core-quality healthcare real estate portfolio totaling 1.2 million-square-feet in Arizona, California, Colorado, Illinois, Indiana, Florida, Massachusetts, Minnesota, Oklahoma and Texas markets.

JLL marketed the portfolio on behalf of the seller, Harrison Street. NorthWest Healthcare Properties acquired the assets.

“Harrison Street is proud to have partnered once again with JLL’s Healthcare Capital Markets team to execute the sale of this complex portfolio spanning multiple medical sub-sectors and U.S. states,” said Ben Mohns, Senior Managing Director and Head of North American Asset Management at Harrison Street. “The successful sale of these diversified healthcare assets reinforces the strength of Harrison Street’s ongoing partnership with JLL, and the portfolio execution ability of our talented team who have worked diligently to execute on behalf of our investors.”

The portfolio has a mix of 15 medical office buildings, five micro-hospitals, four behavioral hospitals, two inpatient rehabilitation hospitals, and one heart and surgical hospital. The portfolio includes nine properties in Arizona; five properties in Texas and Illinois; two properties in Florida and one property each in Minnesota, Massachusetts, California, Oklahoma, Colorado and Indiana.

The portfolio is 97% occupied by key healthcare providers, including Advocate Aurora Health, Rush University Medical Center, Memorial Hermann, Ascension, Banner Health, Tenet Health, Lutheran Health Network, Baylor Scott & White Health and Edward-Elmhurst Healthcare.

The JLL Healthcare Capital Markets team representing the seller was led by Senior Managing Directors Mindy Berman, Evan Kovac, Andrew Milne and Brian Bacharach and Managing Directors Tim Joyce and Brannan Knott, with support from Vice Presidents Trent Jemmett and CJ Kodani. Local support was provided by JLL licensed brokers in each location.

“The offering was well received due to its scale and the mix of medical office and acute care facilities,” Berman said. “Healthcare assets have seen increased investor interest, as the sector offers long-term leases with quality tenants that provide steady income to landlords.”

To learn more, see RED Comps #9779, #9780, #9781, #9782, #9783 and #9784.

PHOTO #1: Marana Micro-Hospital, 5620 W Cortaro Farms Road; #2: Micro-Hospital, 7475 S Wilmot Road.

Northmarq completes $54.85 Million sale and financing of Two Tucson Multifamily Communities

TUCSON, ARIZONA —Northmarq’s Phoenix-based investment sales team of Trevor Koskovich, Bill Hahn, Jesse Hudson and Ryan Boyle, brokered the $28.5 million ($142,500 per unit) sale of Mission Creek Apartments and the $26.35 million ($149,716 per unit) sale of San Marin apartments, both located in Tucson.

Northmarq marketed the properties,which were part of a four-property portfolio on behalf of the seller, Los Angeles-based AndMark. Chandler-based Next Round Asset Management was the buyer of Mission Creek. Break of Day Capital, based in Manhattan Beach, California, was the buyer of San Marin.

Northmarq’s Phoenix-based debt/equity team of Bryan Mummaw, Griffin Martin, Brandon Harrington, Tyler Woodard, and Bryan Liu arranged acquisition financing for both transactions. Both loans were floating rate bridge loans, which allowed the borrower to best execute their business plans. The Mission Creek loan was $21.45 million, while the San Marin loan was $21.31 million, both of which included future funding of their respective capital improvement budgets.

Built in 1987, Mission Creek is a garden-style community comprising 13 buildings and 200-units. The property is located at 1451 West Ajo Way, in proximity to Davis Monthan Air Force Base, which employs more than 10,000 workers, and the University of Arizona, which employs ±12,000 workers and has an annual enrollment of ±46,000 students. The community includes five different one-or two-bedroom unit types ranging in size from 450- to 868-square-feet, and all strategically positioned for interior renovations.

Mission Creek community amenities include resort-inspired pool, clubhouse, covered parking, lush landscaping, laundry facility, fitness center, picnic area with barbeque, public parks nearby, on-site maintenance, ceiling fans, vertical blinds, dishwashers, kitchen pantry, plush carpeting, vaulted ceilings, spacious walk-in closets, private patios and balconies.

“This was our fifth transaction with Next Round Asset Management, a buyer that is very familiar with the Tucson market,” said Hudson.“Mission Creek presented a value-add opportunity that Next Round will capitalize on to increase its value through upgrades and higher rents.”

Built in 1986, San Marin is a 176-unit, garden-style gated community located at 5650 S Park Avenue in Tucson’s South submarket and in proximity to Davis Monthan Air Force Base and the University of Arizona. The community includes six different one-or two-bedroom unit types ranging in size from 496- to 745-square-feet. San Marin community amenities include resort-inspired pool and jacuzzi, community clubhouse, fitness center, business center, laundry facility, picnic area with barbeque, new children’s playground, bark park, new wood front cabinets, vinyl flooring, walk-in closets and ceiling fans.

According to Hudson, Break of Day Capital focused on acquiring San Marin out of the portfolio because of its low basis per unit with a good unit mix. Multifamily sales in Tucson continues to grow in both core and value-add assets. Apartment property sales accelerated in the final months of 2021, nearly doubling total transactions from the previous quarter. The median sales price rose to $113,200 per unit while cap rates averaged 3.4 percent. The sale of Mission Creek and San Marin demonstrates that the strong Tucson multifamily market of 2021, noted in Northmarq’s recently released Tucson Q4 Multifamily report, has momentum into the quarters ahead.

For more information, Koskovich, Hahn, Hudson, and Boyle can be reached at 602.254.5790.