Thrasher Law Offices Finalize $18.17 Million in Multifamily Transactions in Tucson
TUCSON, ARIZONA – Thrasher Law Offices, PLLC handled the sale of two apartment complexes with an aggregate value of $18.17 million.
Hamilton Zanze & Company of San Francisco, Calif. sold the Arches at Oracle Apartments at 5921 N Oracle Road in Tucson for $12.4 million ($86,111 per unit). The 144-unit complex sold to Oracle 5921 LLC of Scottsdale (Surinder Sidhu, manager).
The property, formerly known as Oracle Village Apartments, offers swimming pool and spa, volleyball and basketball court, and a clubhouse with WiFi access. The units consist of loft, townhome, and garden floorplans
In the second transaction, the Winthrop N Isaacsen Trust of Tucson sold the Rosemont Gardens Apartments at 5121 East 29th Street in Tucson for $5.765 million ($37,928 per unit). The 152-unit complex sold to RGCD Investments, LLC of Red Bank, NJ (Kenneth Motz, manager).
Two-story apartments were built in 1978 and 1983, and comprise 92 and 60 units respectively. The unit mix is approximately 68% one-bedroom and 52% two-bedroom units at Rosemont Gardens. Units are individually-metered for electricity. Hot water is provided by individual water heaters. The cost of water, sewer, and trash is partially reimbursed by tenant depending on number of occupants in each unit.
Thrasher Law Offices PLLC is a premier boutique law firm representing clients in corporate, real estate, and financial transactions throughout Arizona. With offices in Phoenix and Tucson, the firm offers a high level of service to clients throughout Arizona.
For more information, Thrasher Law Offices can be reached at 480.275.0543.
To learn more, see RED Comps #5238 and #5245.
Getty Realty Acquires Properties in Sale Leaseback Agreement
TUCSON, ARIZONA — Five Valero gas-stations and c-stores in Tucson were acquired by Getty Realty of Jericho, NY for $10.55 million from CST Arizona Stations, Inc. formerly known as Diamond Shamrock Arizona, as part of a $123 million portfolio.
To facilitate Empire Petroleum Partners LLC’s purchase of a portfolio of convenience stores from Alimentation Couche-Tard Inc., Getty Realty Corp. agreed to provide acquisition leaseback funding to Empire, in order to acquire fee-simple interests in 49 c-store and gas-station properties for $123 million under a unitary lease.
The properties are located primarily within metropolitan markets in the states of Arizona, Colorado, Florida, Georgia, Louisiana, New Mexico and Texas. Those in Tucson were at 15240 N Oracle Rd., Oro Valley; 5005 N La Canada Dr., Tucson; 1895 E Valencia Rd, Tucson; 1810 W Prince Rd, Tucson; and 9520 E 22nd Street, Tucson.
The unitary lease, effective at closing, provides for an initial term of 15 years, with four five-year renewal options. Rent is scheduled to increase annually during the initial and renewal terms of the lease.
“We are excited to have entered into this transaction and to begin a long-term relationship with Empire,” said Christopher J. Constant, president and CEO of Getty. “The properties being acquired represent a high-quality convenience-store and gasoline-station portfolio and are located in markets which we have been targeting for some time. We believe this transaction demonstrates our commitment to the convenience-store industry as well as our ability to respond quickly to meet the capital needs of our customers.”
Getty Realty paid for the transaction through funds available under its credit agreement. The transaction is subject to numerous closing conditions, including the closing of a separate purchase agreement under which Empire has agreed to purchase the properties from Couche-Tard, and regulatory review and approval of the separate agreement.
Empire Petroleum, Dallas, is a motor-fuels distributor of brands that include Chevron, Shell, Valero, ConocoPhillips, Marathon, CITGO, Texaco, Sunoco, BP, Exxon, Mobil and Gulf. It distributes motor-fuel products to more than 1,400 gas stations in 27 states in the mid-Atlantic, Southeast, Southwest and Midwest.
Laval, Quebec-based Couche-Tard’s network includes 8,081 convenience stores throughout North America, including 6,710 stores selling motor fuel, mostly under the Circle K, Kangaroo Express, Mac’s and Couche-Tard banners. Its North American network consists of 15 business units, including 11 in the United States covering 41 states and four in Canada covering all 10 provinces.
CST Brands, San Antonio, has more than 2,000 locations throughout the southwestern United States, Georgia, Florida, New York and eastern Canada.
Jericho, N.Y.-based Getty Realty is a publicly traded real-estate investment trust (REIT) specializing in the ownership, leasing and financing of convenience-store and gas-station properties. As of March 31, 2017, the company owned 736 properties and leased 87 properties from third-party landlords in 24 states and Washington, D.C.
Popeyes going in at the NEC Speedway & Stone in Central Tucson
TUCSON, ARIZONA – HZ Props RE, Ltd. of Sugar Land, Texas bought .61 acres at the northeast corner of Speedway and Stone in central Tucson for $800,000 ($30 PSF) for a built-to-suit Popeyes Louisiana Kitchen restaurant.
The buyer plans to construct an approximately 3,000-square-foot Popeyes on the site. This will be the fifth restaurant for the chain in metro Tucson
Burger King and Tim Hortons’ parent company Restaurant Brands International (RBI) acquired Popeyes earlier this year for $1.8 billion. The Popeyes Louisiana Kitchen acquisition added 2,600 outlets to its portfolio which already included Taco Bell, Pizza Hut and KFC with more than 40,000 stores worldwide.
Popeyes was growing like gangbusters before the acquisition by RBI and are now experiencing international growth as well.
Rob Tomlinson of Cushman & Wakefield | Picor in Tucson represented the seller, Speedway Stone Associated of Tucson (Evan Wallach, manager).
Dave Cheatham and Darren Pitts with Velocity Retail Group of Phoenix represented the developer, HZ Props RE.
For additional information, Tomlinson should be reached at 520.546.2757; Cheatham and Pitts can be contacted at 602.682.6050.
To learn more, see RED Comp #5206.
New Apartment Complex Planned for River and Craycroft in Tucson
TUCSON, Arizona – MC Companies of Scottsdale purchased 12.65 acres at River and Craycroft in Tucson for $3 million ($5.42 PSF). The site is at the southeast corner and will be used for construction of a 210-unit upscale apartment complex.
The first new apartment complex for quite some to be built in Tucson, the demand has finally out reached the supply of high-end apartments to warrant the new construction
GT Alley with Broadway Realty & Trust handled the transaction and is a member of the selling entity, Craycroft River Holdings, LLC (Joseph Cesare, manager).
There are 14 other MC Communities in Tucson including The Place at Village at the Foothills, The Place at Edgewood, The Place at Canyon Ridge, The Place at Rock Ridge, The Place at 2120, The Place at 7400, The Place at Broadway East, The Place at Nine90, The Place at Spanish Trail, The Place at Ten50, The Place at Twenty-Two, The Place at Wilmot North, The Place at Creekside, and The Place at Presidio Trails.
The new site sold with infrastructure and is expected to break ground on this new community in 45-60 days for Summer 2018 opening.
For more information, Alley can be reached at 520.747.5700.
To learn more, see RED Comp #5164.
Auto Zone and Burger King Coming to Sorrento Square in Tucson
TUCSON, ARIZONA – Sorrento Square, a new retail center development by Larsen Baker of Tucson, located southwest of the corner of Houghton and Golf Links Roads in Tucson will soon have a Burger King and an Auto Zone.
Laird Real Estate (Michael Laird, trustee) purchased a 16,190-square-foot pad at Sorrento Square for construction of the Burger King restaurant for $700,000 ($43. PSF). Tom and Brian Woods of Colliers in Phoenix represented the buyer and Andy Seleznov, CCIM, and Melissa Lal, CCIM, of Larsen Baker represented the seller, Payless Prudence Properties LLC, an affiliate of Larsen Baker.
For more information, Brian Woods can be reached at 602.222.5026 and Tom Woods is at 602.222.5031. Seleznov and Lal should be contacted at 520.296.0200.
Auto Zone signed a ground lease for an adjoining 18,438-square-foot pad at Sorrento Square to build a 6,446-square-foot building. The Auto Zone Store #3682 will be on a long tern ground lease. Plans are to have the store open by first quarter 2018.
Phil Bramsen, Development Manager of Embree Commercial Real Estate Advisors in Phoenix negotiated the ground lease for Auto Zoned and Andy Seleznov, CCIM, and Melissa Lal, CCIM, represented Larsen Baker.
For more information, Bramsen can be contacted at 602.717.7447. Seleznov and Lal should be reached at 520.296.0200.
Tucson’s St. Mary’s Village Retail Center Sells for $2.2 Million
TUCSON, Arizona – St. Mary’s Village Center at 1301-1325 W St. Mary’s Road in Tucson sold for $2.2 million ($141 PSF). The 15,600-square-foot multi-tenant retail strip center has solid mix of national and local tenants with a variety of office, medical, service and food uses.
Tenants include H&R Block, Supercuts, SimonMed, First Chiropractic and Papa John’s Pizza.
Located west of Interstate 10 on West St. Mary’s Road and about 1/2 mile east of the St Mary’s Hospital, the center was built in 1986 on 1.46 acres.
John Yarborough and David Carrol with Romano real Estate Corporation of Tucson represented the seller, Fortune Retail LLC of Tucson and Andy Seleznov, CCIM, and Melissa Lal, CCIM, with Larsen Baker represented the investors, St. Mary’s Investors LLC and David Dybvig of Tucson in the transaction
For additional information, Yarborough and Carroll can be contacted at 520.577.1000. Seleznov and Lal can be reached at 520.296.0200.
David Lee Completes Retail Sales Worth $1.93 Million in Tucson
TUCSON, Arizona – Marlee Saguaro, LLC of Tucson (David Lee, manager) purchased a 5,215-square-foot free standing restaurant at 4499 W. Ina Road in Marana AZ for $680,000 ($130 PSF).
The former Chuy’s Mesquite Broiler was vacant at time of sale on a 52,042-square-foot pad. The buyer owns an adjacent 35,000-square-foot pad to the west of the center and intends to lease either lease or split the pads for redevelopment into three smaller retail pads.
The two-year long Ina Road construction project is on schedule for 2019 completion.
David Lee of David Lee Real Estate represented himself as the buyer. Nancy McClure of CBRE represented the seller, Edwards Ina Lee Mar, LLC in the transaction.
In a separate transaction, Lee Family Property Management, LLLP (David Lee, manager) traded into an Arby’s franchise at 1893 W Grant Road in Tucson for $1.25 million ($411 PSF). The 3,043-square-foot Arby’s sits on a .90-acre pad sold in a net investment sale.
Located in one of Tucson’s high trafficked corridors, near the intersection of Grant Road and I-10, the property is within walking distance of two major industrial and office parks: Grant Road Industrial Center and Broadbent Business Park. Across the street from a Safeway anchored shopping center that includes Walgreens, GNC, Subway, US Bank, and Wells Fargo among others.
The Arby’s is subject to a new 20-year triple-net sale leaseback with Cardinal RB Arizona LLC, an 8-unit Arby’s operator in metropolitan Tucson.
Glen Kunofsky, Edward Otocka and Garaub Reja with Marcus & Millichap’s National Retail Group and the Net Leased Properties Group represented the seller and David Lee of David Lee Real Estate represented himself as the buyer.
For more information on these properties, Lee can be reached at 520.798.3199 and McClure can be contacted at 520.323.5117.
To learn more, see RED Comp # 5187 and #5235.
Meritage Reloads at La Estancia / Richmond Continues Acquisition Surge this time at Dove Mountain
TUCSON, ARIZONA – Meritage Homes acquired 142 SFR lots at La Estancia having almost completed its first phase of 195 lots in this new master planned community since opening in June 2016.
The seller, SBH La Estancia, an affiliate of Sunbelt Holdings, sold the lots for $6.25 million, or $44,000 per finished lot and $1,100 per front foot. Meritage homes range from 1,612- to 2,917-square-feet.
La Estancia offers master-planned living in a prime southeast submarket location, just off of I-10 and Wilmot Road, and nearby some of Tucson’s most prominent employment centers including Raytheon Missile Systems, Davis Monthan Air Force Base, U of A Tech Park and the Tucson International Airport. Residents benefit from community amenities including a sparkling pool, splash pad, shaded ramadas and play equipment, ready for use. Future plans include sports fields and more.
Richmond American, continuing its acquisition surge, bought 98 lots at Bridge Pass II in Dove Mountain in Marana for $6.8 million from Forestar (USA) Real Estate Group of Austin, TX. The lots, platted and engineered, are to be finished by Richmond, a new builder at Boulder Bridge Pass.
Richmond lot purchases have been surging, with 1,267 lots acquired in the Tucson Metro area within the past year.
Boulder Bridge Pass is at the northwest corner of Dove Mountain Boulevard and Boulder Bridge Pass. The 98 lots are on about 44.5 acres with open space and consist of (30) 85’X150’ and (68) 60’X125’
Will White with Land Advisors Organization in Tucson handled both of these transactions with associate, John Carroll.
“The market for land is hot overall and we are seeing continued demand by homebuilders to build in Tucson’s better performing projects,” said White. “The communities on the southeast and northwest parts of Tucson Metro have seen almost 80% of the lot transactions over the past 18-24 months. This is mainly due to the success that is coming out of those regions of Tucson. We see no reason that those areas won’t continue to be the talk of the town”
“The Tucson master-planned communities continue to see a large amount of demand from homebuilders in the past 18-months. Sales, permits, and traffic have been strong from these specific projects and homebuilders are looking to continue to build on that success. We feel that this trend will continue in the communities that have proven to have very good pricing power and pace.” White stated.
For more information, White and Carroll should be reached at 520.514.7454.
To learn more, see RED Comps #5239 and #5258.
Tucson Office Sales Gaining Traction in 2017
TUCSON, ARIZONA — According to tracking done by Real Estate Daily News and RED Comps, the Tucson office market is picking up steam as 2017 advances.
The average price per square foot for office buildings selling is once again on the rise, with Q3 reaching $145.54 per square foot, a 25.84% increase over Q2 ($115.65 PSF) and a 15.43% increase over Q3 2016 ($126.08 PSF). Sales volume is also up by 37.61% quarter-over-quarter to $41.48 million and 23.48% year-over-year, or $90.6 million to-date.
Newly constructed Marana Health Center (MHC) purchased the building at 5224 W Dove Center Road for $4.5 million ($283 PSF). The 15,915-square-foot MHC facility was a built to suit in Marana. The Dove Mountain Health Center opened in 2016 at Tangerine Road and Mountain Centre Boulevard houses integrated healthcare (Medical and Behavioral Health) services, case management, general radiology, laboratory services and an Urgent Care with extended hours of service. The seller was KJT Capital Investments, LLC; PVP Investments, LLC and Medical Funding, LLC.
Margie Lannon the owner of Homewatch Caregivers purchased an 8,000-square-foot building for $625,000 ($78 PSF) to occupy. The office is located at 4625 E Fort Lowell in northeast Tucson. The two-story building was built in 1974 on .46 acres of block construction with a secure courtyard and parking for 40+ vehicles and secure storage space. The seller, Almonte Associates (John Hollingsworth, member) was represented by Rick Kleiner and Isaac Figuroa from Cushman & Wakefield | Picor. The buyer was represented by Gary Lovelace, Broker, at Spectrum Real Estate in Tucson.
For more information, Kleiner and Figuroa can be reached at 520.748.7100 and Lovelace should be contacted at 520.297.3639.
To learn more details, see RED Comp #5182.
Ross Capital, LLC of Woodland Hills Calif. purchased the property at 70-80 W Franklin Street in Downtown Tucson for $350,000 ($113 PSF) to owner occupy. The 3,088-square-foot freestanding building north east of Court Ave on Franklin Street is on a 6,003-square-foot lot with seven parking spaces. Jeff Casper and Buzz Isaacson at CBRE in Tucson represented the seller, Eric Cahan who owner occupied it previously as Cahan Law Firm.
For more information, Casper can be found at 520.323.5181 and Isaccson can be reached at 520.323.5151.
To learn more details, see RED Comp #5218.
Goldsmith Real Estate, a full service real estate company, purchased an office condominium at Cresta Loma for $282,500 ($182 PSF). The office, located at 5431 N Oracle Road Ste 191 in northwest Tucson was purchased to be owner occupied. The 1,551-square-foot condominium was built in 2007. David Montijo and Damian Wilkinson with CBRE’s Tucson office represented the seller, 5431 N Oracle LLC (Gary Repovsch, manager). Goldsmith Real Estate (Ellen Golden, designated broker) was self-represented in the transaction.
For more information, Montijo and Wilkinson can be reached at 520.323.5100 and Golden is at 520.219.3100.
To learn more details, see RED Comp #5106.
The principal of the Rabb Law firm purchased a 1,254-square-foot office building for $245,000 ($194 PSF) in the La Cholla Corporate Center II. Located at 7442 N. La Cholla Blvd. in northwest Tucson, the property was built in 2005 and sold move-in ready. The seller, Noble House Partners, LLC (Patricia Noble, member) purchased to occupy and was represented by Jordan Simon and Karen Ferrell at Venture West Real Estate Services. Gordon Wagner with NAI Horizon in Tucson represented the buyer in the transaction.
Simon and Ferrell can be reached at 520.722.9292 and Wagner should be contacted at 520.326.2200.
To learn more details, see RED Comp #5208.
Pinnacle Realty Investors (Jarrett Reidhead, manager) purchased a 1,255-square-foot condo in La Cholla Corporate Center for $185,000 ($147 PSF). Located at 7526 N La Cholla Blvd.in northwest Tucson, the property was built in 2004. The buyer purchased to owner occupy the property. Kristy Kelley with Long Realty represented the seller, M&L Robinson, LLC (Michael Robinson, member) and Jarrett Reidhead with Tucson Integrity Realty was self-represented in the transaction.
For more information, Kelley should be reached at 520.918.6539 and Reidhead is at 520.331.8050.
To learn more details, see RED Comp #5041.
$70.2 Million Southern Arizona Multifamily Portfolio Sold by IPA
TUCSON, Arizona – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI) announces the sale of a three-property, 812-unit portfolio of multifamily assets in Southern Arizona. The portfolio sold for $70,225,000, or $86,484 per unit.
Bascom Arizona Ventures acquired the three apartment communities located in Tucson & Sierra Vista, Arizona. Bascom Arizona Ventures assumed existing HUD loans for all three properties. Hamid Panahi of Marcus & Millichap represented the buyer and seller in the transactions.
“Multifamily property fundamentals in Southern Arizona have rebounded triumphantly due to stabilization in the single-family housing market and positive strides in the job market,” commented Hamid Panahi, first vice president investments. “Investors are attracted to the Tucson market because of its strong apartment fundamentals and higher yields than are available elsewhere.”
Panahi, Steve Gebing, senior managing director, and Cliff David, senior managing director, with IPA at Marcus & Millichap, represented the seller, a private investor, and procured the buyer, Bascom Arizona Ventures.
All three properties offer a resort-style swimming pool, relaxing spa, 24-hour fitness center, business center, and private garages. Residents at Summit Vista (288 units) at 4701 W Linda Vista Blvd. in Tucson was built in 2008 and Crescent Ridge (272 units) at 3980 W Linda Vista Blvd. in Tucson was built in two phases (2001 & 2008). Both enjoy easy access to Interstate 10 and are proximate to some of the area’s largest employers, as well as a plethora of retail, dining, and entertainment options. Also built in two phases (2004 & 2008), Port Royale (252 units) at 1201 North Colombo Avenue in SierraVista, AZ is proximate to Ft. Huachuca, the largest military installation in the state.
Summit Vista and Crescent Ridge are located within the rapidly growing North Tucson submarket with close proximity to key employment draws, including Northwest Medical Center, Foothills Mall, and Arizona Pavilions shopping center.
Port Royale is situated near Fort Huachuca, Cochise College, and the University of Arizona South Campus.
The purchase comes on the heels of Bascom’s recent acquisitions of Springs at Silverbell, a 290-unit “Class A” community, and Springs at Continental Ranch, a 196-unit “Class A” community, both located in northwest Tucson, as well as La Entrada, a 186-unit community located near downtown Tucson.
For more information, Panahi should be reached at 602.687.6649, Gebing can be contacted at 602.687.6771 and David is at 602.687.6763.
To learn more, see RED Comp #5231.
Colliers Completes Sale of Two Apartment Communities in Tucson for $6.1 Million
Georgetown and Park Village Communities Sold for $6.1+ Million
Phoenix, Arizona – Colliers International in Greater Phoenix has sold two different apartment communities in Tucson for a total sales price of $6,149,000 ($39,417 per unit) . The developments contain a combined 156 apartment units and were sold to separate California-based investors.
“These two properties offered outstanding opportunity for long-term investment benefits,” says Jesse Hudson, associate with Colliers International in Greater Phoenix. “Both Georgetown and Park Village provide immediate, attractive cash flow with capital improvement options that could bring stronger revenue in the future.”
Hudson, Trevor Koskovich and Bill Hahn of Colliers International in Greater Phoenix marketed the properties and negotiated the sales.
Georgetown Apartments were built in 1972 and are located at 2510 N. Winstel Blvd. The community contains 96 apartment units totaling 71,659-square-feet on 3.52 acres of land.
Transpacific Asset Management of California purchased the community from Georgetown Apartments Tucson, LLC for a price of $4,224,000 ($44,000 per unit). Transpacific Asset Management owns several assets in Greater Phoenix and Tucson.
Located just three miles from University of Arizona, Georgetown Apartments features primarily two and three-bedroom townhome units with private patios. Its outstanding central Tucson location and wide array of amenities has made Georgetown Apartments a popular leasing destination. Units include oversized closets, large fenced patios, great mountain views, gas stoves and wood style flooring within a community that offers 24-hour maintenance service, beautiful pool and barbecue areas, as well as on-site professional management.
Park Village is located at 5290 S. Park Ave. and was constructed in 1985. Alpha Wave Investors, LLC, a private equity investment company from California, purchased the community from California-based Jesus Alfredo Estupinian for a price of $1,925,000 ($32,083 per unit). The community contains 60-units situated in two-story buildings on 1.84 acres of land. The buyer owns several assets in Tucson and Las Vegas and this represents an expansion of their portfolio.
The community features 60 percent one-bedrooms and the remainder are two-bedroom units. Apartments feature private balcony/patio, semi-private entry and outside storage.
Chapman and Partners Purchase Pima Street Office Project
TUCSON, Arizona – Lillestrom II, LLC of Tucson (Swain Chapman, Managing Member) purchased the multitenant office building at 5920 & 5930 East Pima Street in Tucson for $1.8 million ($87 PSF).
The 20,140-square-foot office complex was built in two phases, 1986 and 2002, on 1.67 acres and features covered parking and a shared courtyard in a high-profile area of Tucson. The property was 95% occupied when it sold.
Swain Chapman who represented himself and the investment group said, “We saw good value and a unique opportunity in this office environment. We managed the project for years and it’s a known commodity. It’s in great shape, has really good fundamentals, and fits into our paradigm of what we envision one segment of the future office market will look like. This project will cater to the smaller user with open spaces ranging from 600- to 2,700-square-feet and 900-square-feet on average.”
Andrew Sternberg with NAI Horizon of Tucson will continue to lease the property and Chapman Management Group will continue the property management.
Chapman Management Group is a local commercial real estate firm, with more than 30 years of investment brokerage, development and property management experience in Arizona, it has been an integral partner in the growth of Tucson. Its local experience, trusted advice and proven results have earned it a reputation as an essential investor resource for identifying, building and managing high quality investments.
For additional information, Chapman can be reached at 520.867.8711 and Sternberg should be contacted at 520.729.1694.