Youth On Their Own (YOTO) of Tucson recently purchased the building at 1642 N Alvernon Way in Tucson for $285,000 ($75 PSF). YOTO is a non-profit that provides youth, through no fault of their own, who lack a parent or long-term legal guardian in their lives with a stable nighttime residence, financial assistance, basic needs and guidance as they work to obtain a high school diploma. We spoke to Teresa Baker, Executive Director of Youth On Their Own about the transaction.

Baker told us that in 2010 Pima County had 2,000 homeless youth in need of help; that number had grown to 6,000 by 2013. Baker knows that it will increase again when the 2014 stats are released for Pima County.

Last year, YOTO had budgeted for 1,250 kids, but instead helped 1,500 kids. Baker proudly said, “We have never turned anyone away, and of those 1,500 kids there were 350 seniors who had a 95% graduation rate from high school last year.”

The complex process of human development presents opportunities and challenges at every phase. Despite the obstacles these youth face, many of them flourish. They make the transition from adolescent to young adult feeling good about who they are. They believe they can make important contributions to society and will have opportunities to do so, and they know they possess supportive and caring connections to a range of positive people and groups. However, these young people did not travel the unfamiliar road to adulthood without assistance

The increase in need was a large motivating factor for YOTO to buy the former arts and crafts gallery next door to its current headquarters located at 1660 N Alvernon Way in Tucson.

The plan is to turn the store it into a specialized thrift shop for home goods that would also provide an opportunity to the kids fresh out of high school, and without scholarships, to learn the retail business. The program is partnering with ENACTUS, an international organization that connects students, academic and business leaders through entrepreneurial-based projects and will be guided by the Terry J Lundgren Center for Retailing at the University of Arizona.

Briefly, YOTO will offer one semester internships in a Workforce Development training program that teaches basic workforce etiquette to students who are in good standing with grades and academic performance before entering the program. YOTO is also seeking opportunities with local retailers who would be interested in hiring these out of high school kids as part of their internship.

In addition to such an ambitious undertaking, YOTO plans to set up a parallel online store for any oversize items or surplus donations.

There were no brokers involved in the transaction. Bob L. Villaman with Waterfall Economidis, Caldwell, Hanshaw, Villamana donated his time to handle the transaction for buyer and seller.

The YOTO Thrift Shop grand opening is expected before the end of September.

There are a variety of ways to support Youth On Their Own. Any way in which you are able to give to YOTO and further its mission — whether it be money, mini-mall items, or your time  — makes a huge difference! Contact YOTO at 520.293.1136 or go to https://yoto.org/yoto-resale-home-store/ for more information.

Tractor Supply, Circle K, Kneaders and Family Dollar Sell in Tucson Retail Investment Sales Total $13.5 Million and average 6.4% cap rate

The newly constructed Tractor Supply store at 15884 N Oracle Road in Catalina, AZ sold for $5.2 million ($238 PSF). The transaction was a sale-leaseback of the newly constructed store that opened June, 2015. The 21,702-square-foot store is located at the northeast corner of Oracle Road and Lamb Drive on 3.4 acres. This was a sale- leaseback of the Tractor Supply is the largest national operator of rural lifestyle retail stores in the U.S., and one of the largest retail supplier of basic maintenance products to home, land, pet and animal owners.

The investor is P. Chimento Properties – Catalina, LLC of Malibu, California (Robert Chimento, manager) and the seller / builder is Catalina Development Group, LLC of Southern Pines, NC, (William Ronalter, manager), the exclusive builder for Tractor Supply.

For additional information see RED Comp #3145 and #2278.

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The Circle K Convenience Store and Gas Station at 3880 West Tangerine Road in Marana, AZ sold for $4.315 million ($999.78 PSF). The 4,514-square-foot building was built in 2008 and is on 1.49 acres located northwest of Thornydale and Tangerine Roads. For more than 50 years, Circle K has been one of North America’s most popular and successful operators of convenience stores. Today, there are more than 3,300 Circle K stores across the USA and over 4,000 international locations.

The investor is Pacific NNN Properties, LLC of Union City, California and the seller is I.S. Tucson Circle, LLC and affiliate of Maple Leaf Properties of Boca Raton, Florida. Jamie Medress, Mark Ruble and Henry Kerson of Marcus & Millichap in Phoenix represented the seller in the transaction.

For additional information see RED Comp #3122.

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Kneaders Bakery & Café at 135 South Wilmot Road in Tucson sold for $2.5 million ($617 PSF). The transaction was a sale-leaseback of the newly constructed store that opened July 17, 2015 at the southeast corner of Broadway Blvd and Wilmot Road. Kneaders Bakery & Cafe is a fast-casual bakery chain created in the tradition of family-owned European bakeries and specialized in hand-kneaded, made-from-scratch breads as well as specialty cakes and other foods. Kneaders was recently ranked 8^th in the top 50 restaurant chains in the nation. This is Kneaders 11^th location in the state of Arizona.

The investor is Roebbelen Investors I and Miller Properties, LLC of Phoenix (Lynn Miller, manager) and the seller / builder is FFG Development of American Fork, UT.

For additional information see RED Comp #3123.

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The Family Dollar Store at 2820 W Los Reales in Tucson, AZ sold for $1.53 million ($184 PSF). The 8,320-square-foot building was built in 2013 on .99 acres located northeast of Los Reales Rd and Cardinal Avenue. As one of the largest discount retailers in the United States, Family Dollar continues to gain market share and appeal from net lease investors. Family Dollar holds investment grade credit ratings from S&P (BBB-) and Moody’s (Baa3) and operates under a landlord friendly net lease structure.

Greg Furrier with Cushman & Wakefield | Picor in Tucson represented the seller, 2820 W Los Reales, LLC of Tucson (Joanne Lopez, member) and Roger Breckenridge of Long Realty in Tucson represented the investor, Joseph W Graham of Sand Diego, California.

For additional information see RED Comp #3131.

New 56-SFR Lot Subdivision to be Called The School Yard

The TUSD Governing Board completed its first school asset sale Tuesday for 9.2 acres at 8950 E Wrightstown Road for $1.3 million ($3.24 PSF). The former Wrightstown Elementary School sold to Pepper Viner Homes of Tucson after one and a half years in escrow.

The property was sold contingent on rezoning which was rezoned from RX-1 to R-1, and final plat approval which is now platted for 56 SFR lots. The developer has responsibility for razing school buildings.

The new community will be appropriately called The School Yard and have 30,000-square-feet of functional open space. Homes will be from 1,400 to 2,100- square-feet with five floor plans. The homes will all enjoy beautiful Catalina Mountain views, recreational trails, and be environmentally friendly, high performance, and energy efficient.

Two other developers had bid on the property prior to Pepper Viner but with higher density homes. The neighbors did not want the higher density with more traffic on the streets. They also worried that a handful of two-story homes would block their mountain views, so Pepper Viner agreed to remove two-story homes from the south side of the development.

Jim Marian with Chapman Lindsey Real Estate Service of Tucson represented the buyer in the transaction.

“Pepper Viner, known for its quality homes, will make a nice addition to the neighborhood, and neighbors should be happy to see the security concerns go away with the vacant school building,” Marian said. “It was a long escrow but understandably so, due to the conscientious efforts of the TUSD Governing Board to negotiate the best possible price for the property on behalf of the District.”

With this first sale now complete, TUSD has at least three other school properties in escrow that should move smoother.

To learn more Marian can be reached at 520.747.400 ext. 106 and Pepper Viner is at 520.721.7964.

For additional information see RED Comp #3198.