TUCSON, ARIZONA, January 13, 2023 – Tractor Supply Store at 1715 West Valencia Road in Tucson sold for $6.7 million ($306 PSF) in a net lease sale to a California-based company, Ingemanson Enterprises. The seller was I.S Corporation of Boca Raton, Florida.

The 21,702-square-foot Tractor Supply store on 2.3 acres was a built-to-suit in 2017 and is the fourth Tractor Supply in metro Tucson with other locations in Catalina, Green Valley and Marana. The store includes a 15,000-square-foot fenced outdoor display area.

Located near the new 104,000-square-foot Fry’s Supermarket along Valencia Road, a major arterial road serving the southwest submarket of Tucson. Neighboring tenants include Walmart Supercenter, Lowe’s and several banks and restaurants. Tractor Supply Company targets ranchers, homeowners, do-it-yourselfers, contractors and trade workers, with its inventory that includes tractor/trailer parts and accessories.

The property had 10 years remaining on the lease with rare 10% rental increases.

The last time if sold was in 2017 for $5.075 million. This latest transaction sold on December 28, 2022, with no brokers involved.

To learn more, see RED Comp #10398.

TUCSON, ARIZONA (January 11, 2023) – Cushman & Wakefield of San Francisco and Cushman & Wakefield | Picor arranged the sale of the Amazon Last Mile Distribution building at 775 W Silverlake Road in Tucson in a net investment sale for $22.3 Million ($451 PSF). The 49,500-square-foot distribution center with 15 loading docks, is located near I-10 and I-19, close to downtown Tucson.

The Amazon “last mile” Distribution Center was constructed in 2019 on the 10.74-acre parcel and leased to Amazon.

The investment group, FEM Real Estate out of New Jersey (Evin Feliciano, manager) real estate investors purchased it for $18 million ($364 PSF) in July 2012 was the seller. The Varnhagen Family Trust of San Francisco, c/o Anthony Varnhagen as trustee is the buyer with 7 years remaining on the lease and three 5-year options.

Amazon’s “last mile” distribution centers play a key role in the company’s logistics.

When the economy sputtered with the coronavirus pandemic‘s spread, unemployment surged as employers laid off workers by the thousands. Amazon took a different tack, hiring 400,000 workers to stow, sort, pick, pack and deliver goods from its warehouses across the country, and pushing its total employee count over 1.1 million people.

It didn’t stop there. The e-commerce giant leased 12 Boeing 767-300 cargo aircraft, bringing its air fleet above 80 jets. It added 220 package facilities since the start of 2020, ranging from urban delivery stations to giant warehouses, according to an industry consultant.

Amazon used the crisis, when prices on everything from commercial real estate to cargo jets plummeted, to amass a logistics system already beginning to rival the U.S. operations of United Parcel Service and FedEx.. But its ambition reaches well beyond delivering parcels to its own customers, the company is building a logistics system to one day deliver packages for customers to compete directly against UPS and FedEx, something it’s already doing in the United Kingdom.

Amazon reported on a recent earnings call that it boosted its fulfillment capacity — the collection of warehouses, delivery stations and drivers it uses to get packages to customers — by 50 percent this year, helping fuel $30 billion in total capital spending.

While Amazon’s move into shipping its own packages and freight has been building for years, the implications will provide it a stark advantage over Amazon’s rivals that Amazon now delivers for too.

Andrew Bogardus and Douglas Longyear of Cushman & Wakefield in San Francisco with Steve Cohen of Cushman & Wakefield | Picor in Tucson handled the transaction for seller and Michael Kuhn from the San Francisco Bay area represented the buyer.

For more information, Longyear can be contacted at 415.677.0458, Bogardus can be called at 415.677.0421 and Cohen should be reached at 520.546.2750.

To learn more, see RED Comp #10385

TUCSON, ARIZONA, January 10, 2023 — Two properties recently sold for conversion to Behavioral Health Facilities: The Red Rock Inn at 1000 S. Freeway in Tucson sold for $2.63 million ($148.46 PSF) and 502 N Silverbell Road in Tucson sold for $925,000 ($82 PSF).

The 17,715-square-foot hotel was built in 1953 on .72 acres and has operated as a 42-room, Red Rock Inn Motel for years. The transaction closed December 27, 2022

The second property on Silverbell was previously a Behavioral Health Facility, Los Amigas Behavioral Health, in an 11,302-square-foot building, built in 1980, on 1.04 acres. The transaction closed December 23, 2022.

The buyer of both properties, Valley ALF Ventures of Goodyear, AZ, c/o Jarrett Duncan and Sergiu Lupescu, plan extensive renovations for both properties.

Focused housing for the most needy, Valley ALF Ventures is a real estate syndication firm that acquires and leases residential assisted living facilities such as behavioral health and senior care facilities. Its business plan includes: purchasing single-family homes that have been converted or have the potential to be converted to assisted living facilities; ensuring proper zoning and licensing is in place to operate the facility; sourcing qualified, experienced local operators looking to expand their business to a new location; leasing the facility to the operator on a 4-5 year lease with the option to purchase after year 3; exiting the property – either through the purchase option or refinancing of the existing loan.

These are the buyer’s first acquisitions in Tucson with a large Phoenix portfolio in place. Buyer expects it to take 3-4 months after plan approvals for renovations to be completed.

Rob Lamb with Long Realty represented the seller, LAXMI, Inc. c/o Richa Patel at 1000 S Freeway and Mark Biery, JD, CCIM with Berkshire Hathaway Commercial Real Estate represented the buyer.

Paul Hooker, SIOR, and Thomas J Nieman, Principals with Cushman & Wakefield | PICOR  represented the seller of 502 N Silverbell Rd., CODAC Health, Recovery & Wellness.

More information on Valley ALF Ventures can be found at Valley ALF Ventures | Real Estate Syndication Firm.

To learn more, see RED Comp #10394 and #10396.