TUCSON, ARIZONA — River Village, a 16,650-square-foot shopping center attached to a high-performing Albertsons grocery store and located at 5075-5095 La Cañada Drive in the northwestern section of Tucson sold for $4.15 million ($249 PSF). Built in 1998, the Albertsons boasts the second highest sales volume for the area and the inline shops hosts a strong mix of tenants including Great Clips, TitleMax, Subway, Papa John’s and Jackson Hewitt.

Steve Julius, Jesse Goldsmith and Chase Dorsett with Newmark Knight Frank of Phoenix were the sole brokers on the transaction, representing both the seller, VIG River Village LLC, of Colorado and the buyer, HAZ Holdings LLC, of California.

The buyer was in a 1031 exchange and the property sold fully occupied.

“The seller was able to execute its repositioning plan by leasing up roughly 30% of the property,” said Dorsett. “Meanwhile, the buyer was able to acquire a well-stabilized asset with a strong, grocery anchor tenant.”

Julius, Goldsmith and Dorsett continue to be active, completing 27 transactions year-to-date with 3 properties under contract, further confirming Metro Phoenix’s strong market fundamentals, the recovery of the real estate markets in both Phoenix and Tucson, and the expectation of continued growth for the market in the new year.

For more information, Julius should be reached at 602.952.3845, Goldsmith is at 602.952.3846 and Dorsett can be contacted at 602.952.3844.

To learn more, see RED Comp #9463.

Tucson, Arizona –Larsen Baker recently brokered the sale of  3815 E Grant Rd. Tucson, AZ  on behalf of the seller, Southern Arizona Association For The Visually Impaired (SAAVI) to Border Chicken AZ, LLC. The property sold for $450,000 ($33 PSF). The new owner intends to build a Church’s Chicken on the site.

Isaac Figueroa with Larsen Baker brokered the sale on behalf of the seller and handled the transaction.

In a separate transaction, Larsen Baker sold the office building at 3350 E Grant Rd in Tucson to SAAVI who will relocate from their Grant & Alvernon headquarters. The asset sold for $2 million ($90 PSF).

Originally founded by two sisters in 1964, SAAVI first began as a social club for visually impaired individuals, and has since grown into a statewide agency serving thousands of visually impaired children, adults and seniors throughout the state of Arizona.

The seller, TRT Grant/Rita Associates, LLC, an affiliate of Larsen Baker, was represented by Isaac Figueroa. The buyer SAAVI, was represented by Gregory Hopley with Colliers.

Tucson, Arizona– Scottsdale-based investment firm, Sterling Real Estate Partners, recently acquired Hotel Tucson City Center at 475 N Granada Ave in Tucson in an off-market transaction with plans to convert the hotel into market rate apartments. Originally built in the 1960’s, the 278-unit Downtown hotel will be transformed into a modern, 210-unit apartment complex with approvals to develop an additional 154 units. This acquisition marks the first adaptive reuse project undertaken by Sterling.

“We are really excited about the business plan and location of the property. It is a rare, underutilized 10-acre site next to the historic El Presidio Neighborhood District in Downtown Tucson,” said David Zeff, President of Sterling Real Estate Partners. “Throughout Covid, we have been pursuing the arbitrage between the value of hotels and apartments. This property also has the additional benefit of excess land for future development.”

Sterling had the property under contract since January of 2021 while it underwent the rezoning process for residential use. Sterling collaborated with the neighbors throughout the process to receive zoning approval without opposition. Upon acquisition, Sterling will become a Choice Hotel franchisee and has engaged Ledgestone Hospitality to operate the four-story building as a hotel while the adjacent buildings are converted to apartments. Additionally, the site was approved for an additional 154 units that will be developed at a later date.

“While the price for existing apartments continues to exceed replacement costs, this is another opportunity for Sterling to find and create value in this market,” added Zeff.

The seven building, 10-acre site is located adjacent to the historic El Presidio neighborhood of Downtown Tucson. Its proximity to Downtown and direct access to the I-10 make the property highly accessible to nearby employment and entertainment hubs. Residences will consist of luxury studio and one-bedroom units ranging from 300 to 700 square feet. Site amenities will be updated during the conversion with upgrades budgeted for the pool area, fitness room, clubhouse, conference room, dog park, and outdoor lounge. Upon completion, the apartments will offer low gross rents with luxury interior finishes to support the high demand for quality and affordable housing in the Downtown submarket.

To learn more, see RED Comp #9517.