TUCSON, AZ – Chuck E. Cheese Corporation has purchased franchisee’s 15,184-square-foot building situated on 2.33 acres of land located at 6125 E. Speedway Blvd., Tucson, AZ. Chuck E. Cheese is the #1 operator in the family entertainment industry in the world, with 659 locations.

The asset was purchased from the Franchisee for $3.3 million ($217 PSF).

This transaction closed on December 15, 2021, and also re-opened the location the same day.

Craig Finfrock of Commercial Retail Advisors, LLC represented the seller, Melvin Property #3197.

Commercial Retail Advisors, founded in 2001, specializes in the leasing and sales of shopping centers and retailer tenant representation throughout southern Arizona. For more information, please contact Craig Finfrock of Commercial Retail Advisors at (520) 290-3200 or visit their website at www.cradvisorsllc.com.

To learn more, see RED Comp #9570.

TUCSON, ARIZONA – Aerie Development affiliate, Aerie Northwest, paid $3.7 million for 12.7-acres at 2050 W Oracle Jaynes Station Road for its latest luxury multifamily project.  Located at La Cholla and Oracle Jayne Station, the property is adjacent to The Fountains at La Cholla.

Aerie Development (Roger Karber, manager) took over an existing escrow between M3 Engineering and Technology and Rhodock Holdings (Allen Murdock, principal) to acquire the TR-Zoned property.

Karber estimated the site would be able to accommodate roughly 130-units after taking into account the hills and washes. Plans are to construct 2-story, 8-plexes, with 10 ft ceilings, and plenty of windows, balconies and oversized patios to take advantage of those views.

The new apartment homes will be similar to Pima Canyon Apartment Homes, also developed by Aerie from 2017-2018 with 240-units at 750 West Orange Grove Road. Pima Canyon was sold in 2019 to investors.

Aerie Northwest will be equally luxurious with all the Aerie style amenities.

Improving multifamily property fundamentals have contributed to a healthy pace of transaction activity in the Tucson market for the past several years, and the investment market gained momentum again during the fourth quarter. More properties traded at higher prices in the 4th quarter, as investors have become more aggressive, and competition for assets intensified. While a few newer properties have changed hands in recent months, the bulk of the sales activity has been occurring in late 1980s- and 1990s-vintage, Class B properties. The median price in these types of properties (40+ units) has reached nearly $179,000 per unit, up from less than $159,000 per unit in Q3 2021.

To learn more, see RED Comp 9430.

TUCSON, ARIZONA – An affiliate of Amazon, Amazon.com Services, purchased 51 acres across from its current Fulfillment Center at 6701 South Kolb for $7.5 million ($146,000 per acre). A portion of Block 3 in Century Park, the property will be used for construction of an approximate 100,000+ square-foot Delivery Station.

Amazon bought its current site in 2018 for its 1.2 million-square-foot building at 6701 S Kolb Road also in Century Park, with 63 loading docks, nearly 400 transport trailer parking spaces, along with 2,500 standard parking spaces, on the site. Amazon requested this location be annexed into the City of Tucson. Amazon’s fulfillment center brought 1,500 full-time jobs.

Amazon has multiple types of logistics facilities: fulfillment centers, sortation centers, delivery stations and other specialized locations, such as air hubs. Each of these locations, for the most part, functions in a specific step in the company’s supply chain.

Amazon Delivery stations are dwarfed by the size of their fulfillment centers. The average size of a delivery station is 123,292-square-feet, according to Amazon.

These Delivery stations are used to prepare customer orders for last-mile delivery service to customers. Amazon delivery providers then enable fast, everyday shipping to customers.

The explosion in locations for Amazon’s smallest logistics asset has happened fairly quickly. Amazon had 159 locations at the end of 2019 and 337 at the end of 2020.

Fulfillment centers are designed to fill orders, they’re not designed to optimize transportation in any way.

This is where delivery stations help Amazon. Trucks leave fulfillment centers with trailers full of unorganized parcels. The parcels are organized for transport — grouped by delivery location — at sortation centers and later the delivery stations.

It’s a process similar to what happens at other companies, like UPS or FedEx, and highlights the company’s continued trend to insource its logistics network.

Packages are loaded onto conveyor belts at delivery stations where they are then separated by the ZIP code for delivery. These parcels are then put on a pallet, wrapped, and loaded onto another truck.

This will be Amazon’s third delivery station in metro Tucson.

Steve Cohen with Cushman & Wakefield | Picor negotiated the transaction for Amazon and the seller, Valencia Kolb Properties of Tucson (Michael Farley, manager).

For more information, Cohen should be reached at 520.546.2750.

To learn more, see RED Comp #9524.