Desert Cardiology Northwest Sells to REIT for $6.5 Million

TUCSON, ARIZONA — Carter Validus Mission Critical REIT Inc. purchased the building occupied by Desert Cardiology Northwest at 6080 N La Cholla Blvd in Tucson on the Northwest Hospital Campus for $6.5 million ($185 PSF) from Northwest Hospital in a four property portfolio sale by Community Health Systems and Northwest Hospital.

Carter Validus Mission Critical REIT Inc. (CVMC REIT I) and Carter Validus Mission Critical REIT II Inc. (CVMC REIT II), both publicly registered, non-traded real estate investment trusts, recently entered into a definitive agreement to merge in a stock and cash transaction, creating an entity valued at approximately $3.2 billion. The transaction is expected to close in the second half of 2019, with the approval of CVMC REIT I stockholders.

The combined company will retain the name Carter Validus Mission Critical REIT II Inc. and will own 150 healthcare and data center properties in 33 states, totaling approximately 8.7 million-square-feet of space, operating at a weighted average occupancy of 95.3% with a weighted average rent escalation and a weighted average remaining lease term of 2.3% and 10.1 years, respectively

At the September 26, 2019, CVREIT Special Meeting of Stockholders, the proposal to consummate the merger with the Company was approved by approximately 91.7% of the votes cast.

Under the terms of the merger agreement, the Company acquired approximately 179 million outstanding shares of CVREIT common stock, with each CVREIT stockholder receiving $1.00 in cash and 0.4681 shares of the Company’s Class A common stock for each share of CVREIT common stock owned.

“The closing of this transaction represents the beginning of a new and compelling chapter for the Company,” stated Michael A. Seton, Chief Executive Officer and President.

“We believe CVREIT is an excellent complement to our portfolio, bolstering our healthcare investment portfolio and supporting our growth strategy through increased size and scale as well as further diversification of our existing tenancy and geographic distribution. We look forward to continuing to demonstrate value creation for our stockholders.”

Upon completion of the merger, current CVMC REIT I stockholders will own approximately 39 percent and current CVMC REIT II stockholders will own approximately 61 percent of the combined company, on a fully diluted basis.

Carter Validus Mission Critical REIT II invests in net leased data center and healthcare assets and raised approximately $1.2 billion in investor equity after launching its initial primary offering in May 2014. The company’s follow-up offering, which closed in November 2018, raised $86.9 million as of July 23, 2018.

CarMax Revving up to Launch Second Tucson location

TUCSON, ARIZONA – CarMax, Inc. (NYSE: KMX), the nation’s largest retailer of used cars, has assembled 5.45 acres in two transactions at  22nd Street and Alvernon Way in Tucson for $2.75 million ($11.50 PSF) for a new CarMax Auto Superstore site in Tucson.

The site is a portion of the former 19 acre DeAnza Drive-in Movie Theater which was Tucson’s last operating drive-in movie theater sold to Phoenix-based, Evergreen Development from De Anza Land and Leisure Corporation in 2009. The drive-in theater had operated on the site since 1951.

With building permit in process, this will be the company’s second store in the Tucson area and fifth store in the state. The other CarMax Superstore in Tucson is located at 4755 N Oracle Road and has the capacity to stock approximately 248 used vehicles of nearly every make and model. CarMax customers can also request transfers of almost any vehicle to this store from other CarMax locations throughout the country.

CarMax disrupted the industry more than 25 years ago by offering a high integrity car-buying experience customers want that’s transparent and stress-free. Since that time, CarMax has continued to revolutionize the experience through customer-focused technology innovations. Approximately 90% of CarMax purchasers start on or the CarMax mobile app. Customers can browse CarMax’s nationwide inventory of approximately 50,000 vehicles, hold a vehicle for a test drive, schedule an appraisal, and even get pre-qualified for financing before visiting the store. CarMax stands behind their vehicles with a 7-Day Money-Back Guarantee and a limited warranty that covers a vehicle’s major systems for 90 days or 4,000 miles, whichever comes first.

Greg Furrier, Principal and Rob Tomlinson, Retail Specialist with Cushman & Wakefield | PICOR, handled these transactions and sold the original land to Evergreen Development. Russ Shaw with Ventura Properties was also representing the seller, WAA Alvernon, LLC, that had purchased the property for a storage facility.

For additional information, Furrier should be contacted at 520.546.2735 and Tomlinson is at 520.546.2757. Shaw should be reached at 520.906.4987.

To learn more, see RED Comp #7176 and #7177.

Sahuarita Palms Plaza Fetches $3.4 Million

SAHUARITA, ARIZONA — Michael Hackett and Ryan Schubert of Cushman & Wakefield, Phoenix, handled the sale of Sahuarita Palms Plaza, a 11,997-square-foot Safeway (NAP) grocery-anchored neighborhood shopping center located 1325 W Duval Mine Road, at the southeast corner of Duval Mine Road & La Canada Drive in Sahuarita, Arizona. Sahuarita Palms Plaza spans 1.64 acres.

Scottsdale-based, PWP La Canada Duval, LLC was the seller and AJ Safeway Park, LLC based in Goodyear, Arizona was the buyer. The property commanded a sale price of $3.38 million ($282 PSF).

The Property offers a complimentary tenancy mix, consisting of mostly daily needs’ retailers, such as Papa John’ s and Edward Jones, Sunstreet Mortgage, Jerry Bobs restaurant, along with other local tenants.

The Property is well located, at the Dominant Retail Intersection in Sahuarita, with nearby national retailers Walmart, Petco, ROSS, Big Lots and Joann Fabrics all doing business at this busy intersection. Sahuarita Palms Plaza located less than one half a mile south of the full-diamond interchange at the Interstate 19 & Nogales Highway. Interstate 19 is the major arterial that connects Tucson with Sahuarita and Mexico.

For more information, Hackett can be reached at 602.224.4449 and Schubert is at 602.224.4472.

To learn more, see RED Comp #7128.