STAG Industrial Acquires 129,047 SF Premier Industrial Building

PHOENIX, Arizona – On behalf of Dallas-based Colony Industrial, Cushman & Wakefield announced the firm facilitated the sale of Palo Verde Industrial, a 129,047-square-foot building on 7.32 acres in Tucson, Arizona. Boston-based STAG Industrial, purchased the asset for $10.025 million ($77.68 PSF).

Executive Managing Director Will Strong led the Cushman & Wakefield Capital Markets team on the sale, with local market support in Tucson from Brandon Rodgers, CCIM, and Rob Glaser, CCIM, SIOR, with Cushman & Wakefield | PICOR.

“Colony Industrial is one of the most active real estate investors in Arizona and around the country. They did an excellent job leasing it up as well as managing and maintaining it. With the property now fully leased, Colony felt like it was the right time to sell,” said Strong.

Palo Verde Industrial is an institutional quality industrial facility in the heart of Tucson, located at 6161 South Palo Verde Road. The property features 30’ foot clear height and heavy power as well as close proximity to Interstate 10 and Interstate 19. Palo Verde Industrial is currently 100 percent leased to PODS and Big O’ Tires.

The Tucson industrial market for the third quarter of 2018 continued its strong momentum, according to Cushman & Wakefield | PICOR research. Vacancy dropped to 5.7 percent, well below the historical average of 9.5 percent.  Also, building sales volume is robust with functional inventory selling quickly. Volume through the third quarter of 2018 at $105 million, well outpaced 2017’s full-year total of $67 million.

To learn more, see RED Comp #6445.

Tucson, Arizona – Tucson-based Larsen Baker, through its affiliate Gallery Row Group, LLC, has acquired Gallery Row, a 22,500-square-foot commercial property at the northeast corner of Skyline Drive and Campbell Avenue. Larsen Baker will reposition the former retail property into high end office space. The center will be renamed The Gallery Offices as part of the redevelopment.

Gallery Row was purchased from an investment trust serviced by CIII Capital Partners for $3.8 million ($169 PSF). The first two tenants at The Gallery Offices will be Stewart Title & Trust and Skyline Dental. Both have signed leases and will be opening over the coming months.

Built in 1999, Gallery Row was home to many prominent art galleries including Diana Madaras and Wilde Meyer Gallery, and restaurants including Soleil, Sur Real, and Acacia. It was the first of several upscale retail developments such as La Encantada Mall constructed at the intersection over the past 15 years.

“This investment for us is first and foremost about location. Gallery Row is a beautiful, well maintained property at one of the essential corners of Tucson.” said Melissa Lal, President of Larsen Baker.  “Rather than continuing to compete with the newer retail at the intersection, we saw an opportunity to create beautiful offices with views, signage and convenient access for the high-end office users that want to be close to their clients. Sunquest’s relocation from the Williams Centre into the former MDA Headquarters, and Merrill Lynch’s relocation into the former Five Palms restaurant building this year are great examples of the trend of companies moving into the foothills. We believe this renovation and repositioning program will attract companies that have been looking to relocate, but previously lacked viable office options in the foothills.”

Operating since 1993, Larsen Baker has become the largest independent retail-commercial property owner in Tucson. It is currently developing four new retail centers that will add ±300,000 square feet to its portfolio. The firm owns and manages over 2.5 million square feet of commercial space in over 48 locations with 350 Tenants throughout Tucson and Southern Arizona.

The property redesign, renaming and rebranding will be completed in conjunction with the architectural design firm Repp + Mclain based in Tucson, Arizona. For information about leasing opportunities contact Andy Seleznov at 520-296-0200 x 218 or Melissa Lal at 520-296-0200 x 213.

To learn more, see RED Comp #6403.

TUCSON, ARIZONA — HSL Properties purchased the Hampton Inn & Suites Tucson East/Williams Center, located at 251 S. Wilmot Road in Tucson, for $8.2 million ($81,188 per room) with plans to renovate the 101-room hotel, built in 2009.

This is the second recent hotel renovation for HSL at Williams Center, in 2015 HSL bought the DoubleTree by Hilton at 5335 E Broadway Blvd., formerly an Embassy Suites, at Williams Center for a $3 million renovation that includes a redesign of the lobby and restaurant, updates to the pool and exterior, and fully-revamped guest rooms.

The Hampton Inn features amenities such as a 24-hour business center, express check-in, and express check-out. This hotel has also has meeting facilities measuring 952 square feet (86 square meters), including a meeting room for up to 50 people.

Guest amenities include an outdoor pool, fully equipped fitness center, standard in-room and lobby WiFi, breakfast and beverage common areas, florist and on-site convenience store.

HSL now owns nine hotels, including the Ritz-Carlton at Dove Mountain and El Conquistador Tucson resorts, with over 1,700 guest rooms in total.

HSL is also building two new Hampton Inn hotels in Marana with 101 rooms, and in Rita Ranch with 104 rooms.

To learn more, see RED Comp #6389.