TUCSON, AZ (July 23, 2024)—The First Watch Restaurant at 2943 North Campbell Avenue, which opened on January 29, 2024, sold as a net lease investment for $4 million ($960 PSF). The newly renovated, single-tenant property is occupied by First Watch restaurant and features a drive-thru/pick-up window. It is located two miles from the University of Arizona.

The 4,164-square-foot restaurant sits on a 1.02-acre parcel at the signalized intersection of Blacklidge Drive and Campbell Avenue. A new 12-year corporate triple-net lease is in place, with rent increases every six years during the base term and each of the two five-year renewal options.

Headquartered in Bradenton, Florida, First Watch (NASDAQ: FWRG) is a daytime dining concept known for its made-to-order breakfast, brunch, and lunch using fresh ingredients. Two restaurant veterans tired of working late nights launched First Watch in 1983 in Pacific Grove, California. The restaurant is named and positioned according to a nautical timetable of the first work shift aboard a ship. First Watch is open from 7:00 a.m. to 2:30 p.m.

The transaction marks the first sale of a single-tenant First Watch restaurant in the Western United States with a record-low cap rate for 2024 at 5.75% cap.

One of the fastest-growing restaurant chains in the country, it has eight Tucson locations, four of which are ranked among the top 10-20% performing sites out of the 444 total locations tracked.

Bill Asher, Jeff Lefko, and Lee Csenar of Hanley Investment Real Estate Advisors represented the California seller and developer in the transaction. In association with Brian Brockman of Bang Realty and Cory Krupinsky of Brisky Net Lease represented the buyer, a private investor, also from Agoura Hills, California.

Hanley procured an all-cash buyer seeking a secure single-tenant investment to help fulfill a 1031 exchange requirement.

For more information, contact Bill Asher at 949.585.7684.

To learn more, see RED Comp #11391.

TUCSON, Ariz. (October 20, 2023) — Montecito Medical, a Nashville-based REIT, acquired the Pain Institute of Southern Arizona office building at 4741 East Camp Lowell at the Swan Corporate Center in Tucson for $2.9 million ($597 PSF) in a sale-leaseback agreement.

The Pain Institute of Southern Arizona (PISA) is a medical practice specializing in Interventional Pain Management. The Regional Pain Institute (RPI) joined the PISA practice and has helped expand quality patient care to Queen Creek/San Tan Valley and Apache Junction, Arizona.

Their team of renowned Interventional Pain Management Specialists, with training from world-class institutions such as the Mayo Clinic, Stanford, and Harvard, deliver state-of-the-art treatments and procedures. Their goal is to help patients find relief from pain—allowing them return to an enjoyable quality of life. They have multiple locations in Tucson, Queen Creek/San Tan Valley, and Apache Junction.

Independent provider groups such as PISA are a key source of acquisitions for Montecito that want to monetize their real estate to meet the particular needs of their practices. In late June, RevistaMed reported that seller activity by these providers in Q1 of 2023, while lower than a year ago, surpassed transaction activity for any quarter during the five years before the COVID-19 pandemic. These market trends are reflected in the opportunities currently being seen.

“In the first half of 2023, Montecito Medical reviewed nearly $10 billion in acquisition opportunities,” said Chip Conk, Montecito Medical CEO, in a written statement. “The sheer volume of these opportunities enables us to be highly selective about the deals we choose to underwrite.”

Mark Irvin, CCIM, SIOR, and Janine Irvin, with Mark Irvin Commercial Real Estate Services, represented the seller, PISA Real Estate.

Mark and Janine Irvin can be reached at 520.620.1833 for more information.

To learn more, see RED Comp #10917.

Tucson, Ariz. (October 19, 2023) – Twenty-four two-bedroom / one-bath units, in two-story buildings at 3234 E Bellevue Street in Tucson sold for $2,917 million ($121,541 per unit).

Amenities include a pool and onsite laundry; all units have fenced patios or balconies. Built in 1979, the property had 92% occupancy when sold and an average current rental rate of $850/month.

The buyer, Wetton Investment Properties c/o Doug Wetton of Costa Mesa, CA, plans to rehab the property and reposition it more for student housing. This is the second multifamily asset for the buyer in Tucson, who also owns College Town Tucson Apartments at 1300 E Fort Lowell Road.

The seller purchased the property in March 2004 for $1,065,000.

Dan Wesson with The Waterfall Group represented the seller, a family trust from San Diego, CA.  Wesson can be contacted at 520.529.6400, for more information. The buyer was self-represented.

To learn more, see RED Comp #10916.