Texas Instruments Announces $29 Million Project with Purchase of final lot at Williams Centre

TUCSON, ARIZONA — Daniela Gallagher,  Vice President, Economic Development at Sun Corridor broke the news of a new Texas Instruments project coming to 301 South Williams Blvd in Tucson Thursday at the Pima County Research Council meeting. Previously to this only known by the code name “Project Treasure”.

Texas Instruments, Inc. of Dallas, Texas closed on the last remaining 8.28-acre parcel at the Williams Centre for $4.96 million ($13.75 PSF). A Texas Instrument spokesman told us the company plans to construct a 125,000-square-foot, three-story building on the site for the 300-330 fluctuating number of employees currently working at the 5411 E Williams Blvd. facility.

The new facility is to be built at a cost of $29 million to allow expansion and plans to add an additional 35 jobs over time, increasing employment opportunities in the area for electrical engineering, financial managers, electrical and electronics technicians, general administration, operations managers and financial specialists.

The company has been operating in Tucson since 2000, when it acquired Burr Brown Research Corporation.

Earlier this month, the City Council approved an unnamed company’s request for incentives under the Primary Jobs Incentive program, which requires companies to invest at least $5 million in facilities or equipment, create at least 25 jobs that pay wages of $52,400 or more and cover at least 75 percent of employee health insurance premiums.

Reimbursement of permit fees were valued at $81,000 and offsets to impact fees for the project or job training were estimated at $338,364 for the development dubbed “Project Treasure,” filings with the city show.

“A project assessment prepared for Sun Corridor Inc. showed that from 2019 to 2023, Texas Instruments’ economic impact is projected at more than $1 billion,” Daniella Gallagher said. “The economic impact of the company’s investment is expected to be $68 million over the next five years.”

The seller was Kent Circle Partners and Seldin Real Estate, Inc of Scottsdale (Scott Seldin, manager). “Texas Instruments wanted to stay in the William Center area,” Seldin told us.  “We were happy to oblige them with exactly what they wanted and are happy about the economic growth Tucson is witnessing.”

Seldin still owns 250 S Williams Blvd. across the street occupied by Raytheon and the 5151 E Broadway tower nearby.

David Montijo with CBRE in Tucson handled the sale of the property for Seldin and Texas Instruments was self-represented.

To learn more, login and see RED Comp #6077.

 

 

 

 




Southern Arizona CCIM Chapter Conversation Corner July

TUCSON, ARIZONA — The following commercial real estate transactions totaling $3.3 million created a lot of conversation at the July meeting of the Southern Arizona CCIM Chapter, in case you missed it, we’re publishing them here as part of our CCIM Conversation Corner.

Jade Bossert with Tierra Antigua represented the buyer, Erna K Kaplan and the seller, Antonio S Moreno, in the sale of Menlo Park, a 14-unit, 9,512-square-feet apartment building at 1204-1233 W Cedar Street in Tucson for $951,000 ($67,929 per unit / $100 PSF). The property is on a 33,541-square-foot lot located 4 blocks away from the new Caterpillar headquarter. Judy Kaiser with Fidelity National was the escrow agent. To learn more see RED Comp #5921.

James P Robertson, Jr., CCIM, and Omer Kreso, CCIM Candidate with Realty Executive Tucson Elite represented the seller, Caroline Duff of Tucson and the buyer, Ann Boyce of Bakersfield, California. The 8-units in 7,378-square-feet sold in an all cash transaction for $780,000 ($97,528 per unit / $106 PSF).  Vicki Relich of Pioneer Title Company was the escrow agent. To learn more, see RED Comp #5930.

Craig Finfrock, CCIM, of Commercial Retail Advisors, LLC represented the buyer, Surf Thru, Inc, and Rob Tomlinson and Isaac Figueroa of Cushman & Wakefield | Picor represented the Seller, Altima Investments, LLC, in the sale and purchase of land at 6307 E Grant Road. This is the third Surf Thru site in the Tucson. The Bakersfield, CA based quick service carwash chain paid $700,000 ($14.90 PSF) for 46,986-square-feet of land.  Located at the northeast corner of Grant and Wilmot Roads adjacent to Carl’s Jr. and Costco. This will be the 16th location for Surf Thru Express Car Wash, with four locations under construction. Surf Thru is expanding throughout the Southwest, including Southern California, Arizona, Nevada, New Mexico, and Texas. To learn more, see RED Comp #5816.

James P Robertson, Jr., CCIM, with Realty Executive Tucson Elite handled the sale of 4610 E Speedway Blvd. in Tucson for $308,000 all cash ($197.82 PSF). I Chief, LLC of Mesa was the seller and Chelton, LLC of Tucson the buyer. The property will be converted to food and beverage service. To learn more, see RED Comp #5978.

Brandon Rodgers, CCIM, at Cushman & Wakefield | Picor and James T Lavery, CCIM, at Realty Executives Tucson Elites handled the sale of 2.8 acres at 4980 E Canada Street in Tucson for $215.964 ($1.75 PSF). Zoned I-2, the buyer, John Dorris, purchased it for expansion and outside storage space. Judy Kaiser with Fidelity National was the escrow agent. To learn more, see RED Comp #6032.

James P Robertson, Jr., CCIM, with Realty Executive Tucson Elite sold the property at 3228 S 12th Avenue in Tucson for $175,000 ($64.41 PSF) to The Harty Family Living Trust of Phoenix. The property will be converted to a medical office clinic. Vicki Relich of Pioneer Title Company was the escrow agent. To learn more, see RED Comp #5924.

Mark Hayes of Tierra Antigua handled the sale of 1.18 acres land northwest of River Road and Oracle Road for $110,000 ($2.14 PSF) in an all cash estate sale. Bob Camino Principal, LLC (Bob Zhang, manager) was the buyer who plans to re-zoned for development of four SFR lots. Bob Zhang, with Neal Manning Real Estate in Tucson, was self-represented in the transaction. To learn more see RED Comp 6031.

 




Newly Constructed Arby’s Sells in Sale-Leaseback at Old Vail Plaza

Arby’s, 10115 E Old Vail Rd., Tucson

VAIL, Arizona – The newly constructed Arby’s Restaurant at 10115 East Old Vail Road in Tucson in Old Vail Plaza recently sold for $1.59 million ($749 PSF).

The brand new 20-year triple-net (NNN) sale-leaseback with zero landlord responsibilities was purchased by Lee & Lee Properties, LC (45% share) and (55% share) Lee Family Property Management, LLLP (David Lee managing member). The investors traded into the property from property sold to the City of Tucson recently.

Newly opened in April 2018, the 2,110-square-foot building on 4,056-square-foot pad has a drive-thru, communal tables, contemporary lighting and shared common area.

Old Vail Plaza aerial (Image Google maps)

The restaurant is located in Old Vail Plaza next to Big O Tires that is under construction and Freddy’s Frozen Custard and Steakburgers. Old Vail Plaza is northwest of Houghton Road and Old Vail Road in the eastern submarket of Tucson (Vail) across from the successful Houghton Town Center and Northwest Medical Center.

Jonathan Eckerd with Marcus & Millichap in Phoenix represented the buyer, David Lee, also a licensed broker with David Lee Real Estate in Tucson. Gaurab Reja with Marcus & Millichap in New York represented the seller, Irish RB’s Properties, LLC (Arby’s).

For more information, Lee can be reached at 520.795.3199, Eckerd is at 602.687.6700 and Reja can be contacted at 646.805.1412.

To learn more, login and see RED Comp #6015.

 




A 3-Property Apartment Portfolio Sells in Southwest Tucson Submarket for $8.6 Million

TUCSON, Arizona – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of three apartment properties in Tucson, AZ:  River View Villas (80-units), Santa Cruz Vista (56-units), and Westlake Village (100-units), according to Ryan Sarbinoff, regional manager of the firm’s Phoenix/Tucson office. The portfolio, totaling 236-units, sold for $8.6 million ($36,441 per unit).

The 236-unit multifamily community, enjoys a commanding position on Ajo Way, also known as State Route 86. Completed in 1981, 1983 and 1984 the properties feature solid frame and stucco construction with a mix of studios, one-, two-, and three-bedroom apartment units, with a weighted average unit size of 597-square-feet.

Unit interiors feature a well-equipped kitchen, ceiling fans, and wood-vinyl flooring on the downstairs units. Select units include linen closets, additional outside storage, walk-in closets, and dishwashers. Community amenities include a pool at each community, a welcoming leasing office, gated access into the property from each entry along Ajo Way, three laundry facilities, and outdoor space with barbecue grills and shuffleboard courts. The current ownership has replaced the pools and roofs for all three properties, improving the presentation of the properties.

Hamid Panahi and James K. Crawley, investment specialists in Marcus & Millichap’s Tucson office, along with Peter R. Flis, an investment specialist in Marcus & Millichap’s Sacramento office, had the exclusive listing to market the property on behalf of the seller, a private investor.

“The West Tucson portfolio sale was successful due to collaborative efforts between Hamid, James and Peter which brought together relationships from Arizona and California to help our clients achieve their investment goals,” says Sarbinoff.

The buyer, an individual/personal trust, was also secured and represented by Panahi, Crawley, and Flis.

“The three assets are an excellent addition to the buyer’s portfolio in Tucson, as it results in immediate scale in the southwest Tucson submarket,” says Crawley.

“Extensive capital improvements were recently completed at the property, but the buyer has further opportunity to add value through both exterior and interior enhancements,” added Panahi.

The seller purchased the portfolio in January 2017 as a value-add for $7.05 million.

For additional information, contact Panahi at 520.448.5045 and Crawley at 602.687.6807. Flis can be reached at 916.724.1286 in Sacramento.




Carl’s Jr. in Southwest Tucson Sells for $2.065 Million

Tucson, Arizona CBRE arranged the $2.065 million ($506 PSF) sale of a single-tenant retail property leased to Carl’s Jr., a 4,084-square-foot building located at 1070 E. Ajo Way in Tucson.

Nancy McClure with CBRE’s Tucson office and Andrew Fosberg with CBRE’s Phoenix office represented the seller, Cumming D. Carl’s, LLC, who had recently extended the Carl’s Jr. lease. The buyer, California-based JGNK Investments Arizona, acquired the property, which benefits from a long-term lease with an established franchisee who has operated the property for more than 33 years and is the daughter of the restaurant chain’s founder.

Situated in the Southwest Tucson retail and employment hub, the property has access to approximately 11,928 employees within a one-mile radius and over 198,000 employees within a five-mile radius. The property boasts immediate access to the I-10 freeway and is located one block south from the new Tucson Marketplace at the Bridges power center and in the near vicinity to the VA Hospital.

“This Carl’s Jr. offering garnered the attention of multiple buyers and offers from investors in search of long-term net leased properties with an established tenant and positive operating sales,” said CBRE’s McClure. “The property sold at a price higher than the listed price which was a plus for our client, the seller, and a testament to the quality investment.”

For more information, McClure should be reached at 520 323 5117 and Fosberg can be contacted at 602.735.1723.

 




Pima County Moves Ahead to Acquire 3,283-acre Tesoro Nueve Ranch

PIMA COUNTY — The Pima County Board of Supervisors at its June 19 meeting voted 3-2 to acquire more than 3,283 acres of riparian habitat on the eastern slopes of the Catalina Mountains for future conservation.

The Tesoro Nueve Ranch includes 1,476 acres of land and 1,807 acres of state grazing leases. The ranch, located in the San Pedro River watershed, is surrounded by conservation properties owned by the County and its Regional Flood Control District (RFCD) as well as the Coronado National Forest.

The total purchase price is $1.55 million ($457 per acre), with $488,000 to be paid by the RFCD and the balance of $1.062 million to be paid by the County Administrator’s Special Revenue Fund at closing, scheduled to occur before August 17. That fund includes $1 million received from a 2014 Kinder Morgan mitigation agreement and can’t be used for purposes other than purchasing land for conservation. NO general funds will be used to acquire the property.

The property will be designated as part of the county parks system and managed by the County’s Natural Resources, Parks and Recreation Department. The land is an important riparian habitat, with springs and streams that provide home for vulnerable and threatened fish, frogs, birds and other wildlife.

“With this acquisition, the entire watershed of Buehman Canyon, an important Sky Island drainage, will be conservation status, protecting a major wildlife linkage to the San Pedro River and beyond,” said Julia Fonseca, environmental planning manager with Pima County’s Office of Sustainability and Conservation. Brian Powell, also with Sustainability and Conservation, added that “the property contains one of the most important springs in the Santa Catalina and Rincon mountains area, and that spring supports some of the largest populations of native fishes and frogs in our area.

The Ranch is ideally situated to complete the reserve system in the San Pedro River watershed, which is anchored by Pima County’s A7, Six Bar and M Diamond ranches, and complemented by the existing Regional Flood Control District – owned Buehman Canyon Preserve. Because the acquisition boundaries run along the middle of Buehman Canyon, acquiring this property will greatly simplify – and make consistent – the management of this rare flowing stream.

The property was part of the estate of Katheryne B Willock, a noted archeologist and a generous contributor to the University of Arizona Libraries, who passed away in January 2017.




Thrasher Law Offices Finalize $18.17 Million in Multifamily Transactions in Tucson

Arches at Oracle (photo credit: Apartment.com)

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.

Couche-Tard’s Circle K Stores Inc. agreed to sell a portfolio of 71 properties to Empire to satisfy compliance with regulatory requirements associated with its acquisition of CST Brands Inc.

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

St Mary’s Village, 1301-1325 W St. Mary’s Rd., Tucson

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.

To learn more, see RED Comp #5160 and to find more available properties like this one, go to https://www.redlistingregistry.com/