Heslin Holdings, Inc. Acquires Tucson Retail Property

Commercial Real Estate Firm to Invest $75 Million in Next 12 Months

TUCSON, Arizona – Heslin Holdings, Inc. of Laguna Hills, CA, a privately owned commercial real estate investment and development firm, with its newest acquisition, added 35,787-square-feet of retail building in Tucson to its protfolio. The acquisition is part of its larger plan to invest $75 million in retail properties over the next year and is the fifth in a series of similar acquisitions. The property will be remodeled, repositioned and leased to an undisclosed single tenant which will open in 2019.

Heslin Holdings purchased the former Safeway store at 5548 E. Grant Road from Albertson’s for $2.5 million ($70 PSF) and will invest $1.5 million in development and improvement efforts. The retail space is located at the southeast corner of Grant and Craycroft Roads, side-by-side to a ROSS Dress for Less.

“Heslin Holdings is aggressively looking for retail acquisitions, such as this one, in key metro markets in the western United States,” said Casey McKeon, vice president of acquisitions for Heslin Holdings. “Shifts in the retail marketplace continue to open up opportunities to reposition quality older assets for increased ROI.”

“Our firm has re-worked a number of similar spaces and been successful at attracting quality tenants back into these properties, to the benefit of the local community,” said Matthew Heslin, principal and CEO with Heslin Holdings. “With so many larger retailers going out of business, or reducing many of their physical real estate locations, there’s a heightened need to reimagine these assets.”

The newly acquired property sits along a prominent retail corridor, which supports demand from the roughly 102,278 surrounding population and 73,809 daytime employees, both within three miles. The 600-bed Tucson Medical Center is directly across the street and employs 2,900 individuals. Additional prominent national retailers and services within a mile of the site include Target, Trader Joe’s, Costco, Starbucks, Bank of America, Wells Fargo and others.

The firm will continue to pursue additional value-add commercial property opportunities throughout the country, with an emphasis on the Western U.S. growth regions where market fundamentals such as positive employment, housing and retail indicators support the firm’s value-add investment strategy.

Pat Darcy of Tucson Realty & Trust Co. in Tucson represented the seller, Safeway, and Wesley Connolly of Matthews Retail Advisors represented the buyer.

For more information, Darcy can be reached at 520.577.700.

To learn more, see RED Comp #6247.




Glen Una Buys Investment Property at Tucson International Gateway for $16.42 Million

6221-6223 S Palo Verde Rd., Tucson, AZ

TUCSON, Arizona — A Privately Held Real Estate Investment and Management Group, Glen Una Management, purchased the fully occupied office buildings at 6221 & 6223 South Palo Verde Road in Tucson for $16.42 million ($136 PSF) in the Tucson International Gateway Center.

The two buildings totaling 120,810-square-feet were built in 1998 on 10 acres at the northeast corner of Hemisphere Loop and Palo Verde Road are zoned industrial. Both buildings were fully occupied at time of sale, by two tenants: 6221 was leased to Centene, a large publicly-traded company and multi-line healthcare enterprise that serves as an intermediary for both government-sponsored and privately insured health care programs; and 6223 to Community Health Professional Services, a community health clinic.

The investor currently owns and operates more than 6 million-square-feet of industrial space in cities throughout the United States including Atlanta, Chicago, De Moines, Denver, Nashville, Memphis, and Phoenix. With over a million-square-feet of retail, Glen Una Management has focused primarily on grocery anchored shopping centers.  MSAs include Atlanta, Austin, Chicago, Dallas, Kansas City, Sacramento, San Antonio, St. Louis, Tucson, and Washington DC.

Glen Una Management also owns and operates nearly 3,000 units of apartments and senior housing throughout Arizona, Colorado, Georgia, Texas, and Washington.

The CBRE team of Tim Healy, Bob Delaney, Mike Sandahl and Martin Encinas handled the transaction for the seller, Wabash Hillcrest Regency, LP of Beverly Hills, CA and the buyer was self-represented.

For additional information, Healy can be reached at 520.323.5119, Sandahl is at 323.5115 and Encinas is at 520.323.5100. Delaney has since joined the country club brokers having retired from CBRE.

To learn more, see RED Comp #6149.




Blackstone Invests $270 Million to Acquire Two Luxury Student Housing Projects in Tucson and Tempe

The District on 5th, 555 N 5th Ave., Tucson, AZ

TUCSON, Arizona — New York-based, Blackstone Group LP paid $112 million ($536,780 per unit) for The District on 5th, a 208-unit student housing complex near University of Arizona in Tucson. The 5-story building, built in 2011, is located at 550 N 5th Avenue in Tucson with 764 student beds in one-two-, three- and four-bedrooms with resort-style luxury amenities.

The transaction was part of a portfolio acquisition totaling $1.2 billion that Blackstone Real Estate Income Trust Inc. acquired from EdR Student Housing Portfolio in a joint venture with Greystar Real Estate Partners.

In June, Blackstone Real Estate Income Trust, Inc. (“BREIT”) announced an agreement to acquire the EdR Student Housing Portfolio, with 10,500 beds across 20 assets, for $1.2 billion, in a 95%/5% BREIT-led joint venture with Greystar Real Estate Partners.

The Blackstone Group LP also paid $158.1 million ($566,666 per unit) for The District on Apache, a 279-unit student housing complex near Arizona State University in Tempe. The 6-story building at 977 E. Apache Boulevard features a lazy river pool design and an outdoor movie theater.

Both transactions were in conjunction with Greystar’s previously announced $4.6 billion acquisition of Education Realty Trust (EdR), including debt to be assumed or refinanced.

That huge portfolio includes 45,000 beds serving 47 universities in 26 states with projects at ASU and other universities, including University of Arizona in Tucson, University of California Berkeley, University of California Riverside, University of Virginia, University of Colorado Boulder and Penn State.

The Portfolio includes student housing assets adjacent to top-tier universities that have demonstrated strong enrollment growth, such as University of California Berkeley, University of California Riverside, University of Virginia, University of Arizona, Arizona State University, University of Colorado Boulder and Penn State.

The portfolio has consistently maintained occupancy rates over 97 percent and has achieved 98.5 percent beginning occupancy with 3.2 percent annual rate growth for the 2018-2019 academic year, according to New York-based Blackstone.

The Greystar/EdR team will continue to manage the assets.




Tucson may see Latest Downtown Housing Project, RendezVous Urban Flats, as early as next year

RendezVous Urban Flats rendering at 20 South Stone Ave., Tucson, AZ

TUCSON, Arizona — RendezVous Urban Flats, LLC (Roger Karber, manager) closed on an option to purchase the land and infrastructure at 20 S Stone Avenue in downtown Tucson from 1 SC Partners LLC for $2.65 million ($87 PSF). The project is ready to begin construction within weeks and may be as soon as one year for completion, the developer told us.

The developer, Aerie Development (Roger Karber, manager) plans to construct a six-story, 130,000-square-foot mixed use building on the .7 acre site next to Tucson’s tallest building, the 23-story, One South Church, built in 1986. The RendezVous Urban Flats is to have 4,000-square-feet ground floor retail and 100 market-rate rental units of one- and two-bedrooms ranging from 660-1,110-square-feet that should be desirable to any demographic group.

Aerial view of RendezVous Urban Flats at NWC Stone & Broadway

Karber, who grew up in Tucson, says he remembers the Fox Theatre as a kid and imagines people coming out of a show there and across the street to the RendezVous plaza to congregate again. “I envision coming out of the Fox Theater soon and being greeted by the RendezVous Urban Flats and ground-level plaza with public and private areas. The residents will enjoy fabulous views overlooking Downtown and the Tucson Mountains from their balconies and glass walls.”

It’s an exciting project for downtown Tucson! Karber told us a great deal of time has been spend discussing the preservation the Ben’s Bells mural and all the signed tiles that currently cover the elevator shaft on the vacant land to underground garage. “These tiles will be taken down and then brought back to be incorporated into the RendezVous plaza, said Karber. “With any extra tiles going to other places of interest in Tucson. Each signed tile shows an individual’s pledge to ‘Be Kind’ and do a good deed, we don’t want a single tile to be lost.”

The building will have floor-to-ceiling glass walls and 5-foot wide balconies. The 3-story garage will remain undisturbed shared with One South Church offices. The project is expected to go up quickly, with the underground infrastructure already in place. Karber believes it could be completed one year from ground breaking.

Alliance Bank is the lender on the project, Davis Architecture and Design of Tempe the architect and UEB of Scottsdale, the builder.

For related story click here.

For more information, Karber should be contacted at 520.977.5456.

Ben’s Bells ‘Be Kind’ mural covers the elevator shaft on the vacant lot

 




Continental Ranch Shopping Center sold for $3.4 Million

Continental Ranch Shopping Center, 8235-8245 N Silverbell Rd., Marana, AZ

MARANA, ARIZONA — Continental Ranch Shopping Center at 8235-8245 N Silverbell Rd., Marana, AZ on the corner of Wade Rd. and Silverbell Road in Marana sold to 2908 RT. 130, LLC for $3,386,733 ($157 PSF). The 21,600-square-foot Multi-tenant retail center received an offer within the first week of being listed and was 93% occupied.

John Barnes & Spencer O’Donnell of Colliers International in Phoenix and Gary Heinfeld, CCIM and Ryan W. Heinfeld, CCIM of Advisors in Real Estate, Inc. represented the seller, CJR at Continental Ranch LLC, with Dylan Brown and Andrew Fosberg of CBRE representing the investor.

The Continental Ranch Shopping Center in Marana is very active. Tenants include: Pizza Hut, Psychosomatic Fitness, The Station Restaurant, Sweet Smiles Family Dentist, Foot Massage, a Barber Shop, BTO Yogurt, Feisty Studios Hair Salon, State Farm Insurance, Rincon Ventures Property Management, and an office for a hospice care firm.

The Town of Marana is now the third fastest growing city in Arizona and multiple offers were received on the property.

This is the third multi-tenant retail center in the area sold by Gary Heinfeld, CCIM and Ryan W. Heinfeld, CCIM. Another property listed by them has also garnered multiple offers.

For more information, Gary and Ryan Heinfeld should be reached at 520.299.0700 and Dylan Brown can be contacted at 602.735.1714.




Casa Marin and Eucalyptus Gardens Apartments in Tucson Sell for $5.7 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 Casa Marin, a 72-unit apartment community along with Eucalyptus Gardens, a 48-unit apartment community located in Tucson, AZ, according to Ryan Sarbinoff, regional manager of the firm’s Phoenix and Tucson offices. The Casa Marin asset sold for $3,480,000 ($48,333 per unit) and The Eucalyptus Gardens sold for $2,220,000 ($46,250 per unit).

Hamid Panahi and James K. Crawley, investment specialists in Marcus & Millichap’s Tucson office, had the exclusive listing to market the property on behalf of the sellers, both private investors. The buyer, a limited liability company, was secured and represented by Hamid Panahi and James K. Crawley.  “Casa Marin presented the opportunity for the new ownership to capitalize on operational momentum through continued interior and exterior enhancements”, says Crawley.

Casa Marin is located at 438 East Prince Road in Tucson, AZ.  Eucalyptus Gardens is located at 414 East Prince Road in Tucson, AZ. “Eucalyptus Gardens was part of a series of dispositions from a local owner operator as he consolidated his portfolio.  The property presented an excellent opportunity to the buying entity to expand its footprint in the neighborhood by acquiring both Eucalyptus Gardens and Casa Main, resulting in efficiency and scale of operations with a strong value-add opportunity,” stated Panahi.

For additional information, contact Panahi at 520.448.5045 and Crawley at 602.687.6807.

To learn more login and see RED Comp #6150 and #6153.




Oracle Road Medical Office sold to Private Investors from Michigan

TMCOne, 7510 N Oracle Road, Ste 100, Oro Valley

Oro Valley, Arizona – Pearl Peak, LLC of Whitefish, Michigan (Nicholas R. Chickering) closed on a triple net investment property at 7510 N Oracle Road, Ste 100, in Oro Valley, Arizona for $2.2 Million ($360 PSF). The 6,008-square-foot office condominium, built in 2009 of masonry construction, is located in Oracle Medical Plaza Condominiums and sold fully leased to TMCOne.

Tucson Medical Center One Medical Group is a group practice with 16 locations. Currently, Tucson Medical Center One Medical Group’s 59 physicians cover 14 specialty areas of medicine. The following specialties and service are available at this Oracle location: Internal Medicine (same-day access), Gynecology, Wound care, Sports medicine, and X-ray imaging.

Tom Nieman with Cushman & Wakefield | Picor represented the seller, CCSAM Revocable Trust of Tucson while Rick Kleiner also with Cushman & Wakefield | Picor represented the buyer.

For more information, Kleiner and Nieman can be reached at 520.748.7100.

To learn more, see RED Comp #6091.




Berkadia Completes $128 Million Portfolio Sale – Reaches New Record

Pinnacle Heights Apts., 7990 E Snyder Rd., Tucson

TUCSON, Arizona – When Berkadia’s Senior Managing Director Art Wadlund and Director Clint Wadlund of the Tucson closed recently on Pinnacle Heights Apartments it was the conclusion of a five-property portfolio sale, worth just under $128 million, representing the highest bulk apartment sale for the region and setting a new record.  The Wadlunds represented San Diego-based MG Properties Group (Mark Gleiberman) in the portfolio sale that sold to two separate buyers with an aggregate of 1,102 units at $115,767 per unit.

Pinnacle Heights Apartments at 7990 East Snyder Road in Tucson sold for $47.15 million ($152,097 per unit) for the 310-unit complex to a group of investors from Salt Lake City, Utah, dba Pinnacle Apartments SPE, LLC. Built in 1995, the Class- A complex offers one- and three-bedroom floorplans. Renovated in 2006 by the seller, the two-story buildings include amenities such as a fitness center, spa, pool, and media center / movie theater.

In addition to Pinnacle Heights, there was a $43 million in sales and the $30 million financing of Hacienda del Rio and Colonia del Rio to the same Salt Lake City investment group. The two garden-style multifamily properties in Tucson. Managing Director David Bleiweiss and Senior Analyst Jack Hunsicker of the Berkadia Irvine, California office secured the loan through Freddie Mac.

Built in 1983 and located at 4545 and 4601 N. Via Entrada, Colonia and Hacienda del Rio sold for an aggregate of $101,415 per unit for the 424-units, offering one-, two- and three-bedroom floor plans with walk-in closets, pantries, open breakfast bars, garbage disposals and dishwashers, central air conditioning and heat and ceiling fans. Select units have washers and dryers as well as wood-burning fireplaces. Residents of both properties have access to two pools, two 24-hour laundry facilities, a play area, a dog park, a business center, barbeque grills and picnic tables, 24-hour emergency maintenance and a clubhouse with a kitchen, a pool table and flat-screen televisions.

HSL Properties of Tucson (Omar Mireles, president) also purchased the following two properties for an aggregate of $37.425 million: Casa Lindas Apartments at 699 West Magee Road in Oro Valley, a 144-unit complex, sold for $17.65 million ($122,569 per unit); and Springhill Apartments at 8030 E Lakeside Parkway in Tucson, a 224-unit complex, sold for $19.775 million ($88,281 per unit).

“We were pleased to be able to purchase the two northwest Tucson properties,” Omar Mireles said. “We had looked at them when the MG Properties and Gleiberman Investments had purchased them in a portfolio along with three other properties that they are also selling.”

All of the properties were at or around 95% occupancy at time of sale.

For additional information, Art Wadlund should be reached at 520.299.7200 and Clint Wadlund is at 520.615.1100.

To learn more, see RED Comps #6124, #6125, #6126, #5956 and #5957.




Rio Nuevo District Acquires Broadway Corridor, Sunshine Mile Office Building

2221 East Broadway Blvd., Tucson

TUCSON, ARIZONA – Rio Nuevo Multipurpose Facilities District bought a 12,686-square-foot office space from New Dekel, LLC (Amram Dahukey, managing member) at 2221 East Broadway Boulevard in Tucson for $700,000 ($55 PSF). The 62% vacant multi-tenant building was constructed in 1965 and is located on the Broadway widening area known as the Sunshine Mile district.

Rio Nuevo, the City of Tucson and the Regional Transportation Authority (RTA) have an agreement to offer incentives to private developers to create walkable, outdoor plazas with places to eat and shop areas along three public sections of Broadway between Euclid Avenue and Country Club Road.

Rio Nuevo has issued three Requests for Qualifications (RFQs) for professional design services and redevelopment plans for three properties along the Sunshine Mile, including this recently acquired property known as the “Donut Hole Block”.

Plans as to what will be done with these public / private spaces are fluid.

In 2017, New York-based, Project for Public Spaces (PPS) prepared a program and vision plans for two of the three walkable clusters projects along the Broadway Sunshine Mile: the Historic Bungalow Block and the Solot Block. These plans provided suggestions on how to transform the two clusters into vibrant and unique destinations. Included were landscape and urban plans, sketches and precedent images. PPS is to develop a similar placemaking vision for the third destination: the “Donut Hole Block” though stakeholder interviews, focus groups and other outreach techniques planned to obtain consensus and ideas for the detailed block placemaking block plans.

Placemaking inspires people to collectively reimagine and reinvent public spaces as the heart of every community. Strengthening the connection between people and the places they share, placemaking refers to a collaborative process by which the community can shape the public realm in order to maximize shared value. More than just promoting better urban design, placemaking facilitates creative patterns of use, paying particular attention to the physical, cultural, and social identities that define a place and support its ongoing evolution.

PPS is to collaborate with the architectural firms selected by Rio Nuevo to develop a block by block plan for the three selected destinations. The block by block plan will be developed with a level of detail necessary to obtain RTA approvals and property titles for the three areas.

PPS will be responsible for a conceptual design that ties into the vision plan and a neighborhood-wide strategy, the proposed clusters’ activation and programming, and pedestrian, bicycle and vehicular access to the walkable clusters, with parking strategies. PPS will produce detailed plans and 3D views for each of the blocks and collaborate with and support the architectural firms regarding their deliverables.

Dave Montijo, Damian Wilkinson and Ian Stuart of CBRE’s Tucson Office represented the seller, New Dekel. The buyer was self-represented with Rio Nuevo, secretary, Mark Irvin, CCIM, SIOR, of Mark Irvin Commercial Real Estate acted on behalf on behalf of buyer as a non-commissioned broker.

For additional information, Montijo should be reached at 520.323.5136, Wilkinson is at 520.323.5193 and Stuart can be contacted at 520.323.5180. Irvin can be reached at 520.620.1833.

Donut Hole Block aerial view




Vail Development Makes Headway; formerly the ‘Passages’ 400 Acre Site Sold at Auction

VAIL, Arizona – Chicago-based Rancho Del Lago developer, RMG Vail II LLC, has closed on approximately 400 acres of land from Pima Land, LLC of Minneapolis, MN.  Located at I-10 and US 83 in Vail, the purchase price of $475,000 or about $1,200 per acre was the auction price.

The property is comprised of two separate parcels. The larger parcel is 300 acres and has over a mile of direct frontage along west bound I-10.  To the north, another 97 acres, is accessed from Success Drive. Both parcels are zoned CI-1 in Pima County, allowing for a wide variety of commercial and industrial uses.

RMG was represented by Randy Emerson of GRE Partners, LLC of Tucson. The buyer intends to hold the land for future development. “They believe that the recent growth in the southeast submarket as evidenced by the new fulfillment center being developed for Amazon and the rapid residential and commercial growth in the Vail area are strong market indicators,” said Emerson. “Also, this property is 30 miles directly north of the Rosemont mine site and could provide support services should the Rosemont Mine obtain final approvals.”

There is an option under the Pima County zoning code to develop up to 50% of the site or 200 acres for residential use. The investors of RMG Vail II are looking to develop approximately 600 homes in addition to the commercial development.

The property formerly known as the “Passages” had been planned for a 6 million-square-feet of open-air mixed-use project by a developer from Minnesota, who was also a principal in the Mall of America in Bloomington, Minnesota. The project was to include industrial, office, hotel and retail use along with 2,400 residential units. The prior owner did considerable planning and engineering work in 2004-2005 before the project came to a halt when the market tanked in 2006 and the developer defaulted on $7 million in loans.

The property was put out to auction a year ago, awaiting just the right buyer to come along. Emerson had brought two earlier buyers to bid on it, but those buyers didn’t close.

Sewer lines needed for development are planned to be connected from Rancho Del Lago, two miles away, at the Safeway and Walgreens that opened this year, located on the doorstep to growing Rancho Del Lago master community. Sewer construction will be pending approval of Pima County. The former developer had a sewer service agreement negotiated and in place with the County. We were told by the developer that the response from Steve Christy, Pima County District 4 Supervisor has been positive to the Vail project that has yet to be named.

Emerson will be project manager for the development and boots on the ground in Tucson. For more information Emerson should be reached at 520-429-4967.

To learn more, see RED Comp #6148.




Live / Work Building near UA Sells to Used Furniture Start-Up

103 N Park Ave., Tucson, AZ

TUCSON, ARIZONA — The live/work building at 103 North Park Avenue in Tucson sold for $625,000 ($124 PSF) to Loon Lake LLC of Tucson (Andrew Suter, manager). The building consists of studio and loft space for office, retail and/or living space.

Located between the University of Arizona and Tucson South Central Business District, 103 North Park Avenue is strategically located to take advantage of various amenities. The building is within walking distance of the University as well as 4th Avenue where many of the area s restaurants and entertainment are located.

Commercially zoned, the building has been redeveloped with new services and style while keeping the historic feel and look of the building.

The investment property sold with four tenants: Tucson Foodie, Claire Harlin, Pure Mettle Hair Salon and American Friends Service. The buyer plans to owner occupy the 650-square-feet of vacant space for a start-up business as a used furniture store, expected to open this fall.

Frank Arrotta of Tucson Realty & Trust represented the seller, 103 Park Holdings LLC (John Madocks, member). Chris Itule of Long Realty represented the buyer.

For more information, Arrotta should be reached at 520.465.5291 and Itule is at 520.548.4321.

To learn more see RED Comp #6037.




Hood Distribution Building on Toole in Tucson Sells for $1.5 Million

Hood Distribution 501 S Toole Ave., Tucson, AZ

TUCSON, Arizona – The Hood Distribution / McEwen Group building at 501 S Toole Avenue in Tucson sold for $1.468 million ($47 PSF) in a net lease investment sale. The 31,160-square-feet of buildings was built in 1972 and sits on a 3 acre lot. It was 100% occupied at time of sale to a single tenant.

Hood Industries, Inc. is a blend of wood manufacturing and distribution concerns that include two plywood and four lumber manufacturing plants, and fourteen specialty wood product distribution operations, located in thirteen states serving the northeast, southeast and southwest United States.

The Tucson facility opened its doors in the Tucson Market in 1985 as Southwest Hardwood. The facility was expanded in 1998 to its current 26,000 square foot of covered storage space. The Branch was acquired in 1998 by Hood Industries and is currently doing business as Hood Distribution / McEwen Group. With products shipping in via rail direct to the facility, the company serves its customers with the highest quality products at very competitive prices.

Rob Glaser with Cushman & Wakefield | Picor represented the seller, JBM Technologies of Sedona, Arizona (John Brent Mullen, manager).

The investor was a Tucson Trust, WAA GST Exempt Trust, and represented by Russ Shaw of Ventura Properties in Tucson.

For more information, Glaser can be reached at 520.546.2707 and Shaw should be contacted at 520.293.7441.

To learn more, see RED Comp #6044.