Tractor Supply Store Sells for third time in five years

MARANA, Arizona – National Income Properties DST IV of Dallas, TX sold the Tractor Supply Store at 7735 N Casa Grande Hwy in Marana for $4.54 million $208 PSF) to another REIT.

Broadstone TRS Arizona, an affiliate of Broadstone Net Lease, Inc. of Rochester, NY acquired the asset. This is the third sale of the property since the 21,806-square-foot building was constructed in 2014. National Income Properties DST IV bought the Marana Property for $4.3 million and a 7.8% cap rate in 2015.

Part of the reason for the current Cap Rate compression is the sheer mass of cash in the market right now. REITs, hedge funds, and other institutions such as life insurance companies are paying record high prices for properties, producing a highly competitive landscape that brokers and other sellers are taking advantage of.

As of September 2019, Broadstone Net Lease owned 661 net leased properties in 42 U.S. states and one property in Canada with 187 tenants and 171 brands, diversified by geography and industry. Representing More than $4.3 billion in net leased real estate. Tenants include well-known retail, industrial, healthcare, and office brands with Long-term leases (weighted average remaining lease term of 11.7 years) with contractual rent increases.

With six properties in Arizona, including Pima Medical Institute in Mesa, Banner Health in Goodyear, Celerion in Tempe, and Hensley locations in Phoenix, Prescott and Chandler, this is Broadstone’s first acquisition in Tucson.

To learn more, see RED Comp #7357.

TUCSON Arizona — Gladstone Commercial Corporation (Nasdaq: GOOD) (“Gladstone Commercial”) acquired the property at 3382 East Global Loop in Tucson for $6,142,565 ($92 PSF) as part of a 509,211-square-foot, six building industrial portfolio with locations in San Antonio, TX; Albuquerque, NM; New Orleans, LA; Baton Rouge, LA; and Tucson, AZ.

The portfolio, acquired in a sale/leaseback transaction, is 100% leased to Iron Mountain Information Management, a global leader in the records storage industry with a 10-year lease term. The acquisition of the industrial properties is consistent with Gladstone Commercial’s growth strategy of acquiring high-quality assets in growth regions with credit-worthy tenants. The warehouses serve as regional hubs for the tenant within its core North American business segment, and each location generates a significant recurring revenue stream. The tenant plans to continue operating in these facilities for years to come.

“The acquisition of the facilities continues our strategic expansion into markets with increasing industrial demand. The investment is a great addition to our portfolio, improving the weighted average lease term and increasing the allocation of high-quality industrial properties” said Brandon Flickinger, Managing Director for Gladstone Commercial.

Bob Cutlip, President of Gladstone Commercial, agreed, “This transaction promotes our strategy of increasing our allocation to industrial buildings over the next few years and we are excited to add to the portfolio’s weighted average lease term with high quality real estate occupied by a credit-worthy tenant.”

Gladstone Commercial is a real estate investment trust focused on acquiring, owning and operating net leased industrial and office properties across the United States. As of September 30, 2019, Gladstone Commercial’s real estate portfolio consisted of 109 properties located in 24 states, totaling approximately 13.1 million-square-feet. For additional information please visit www.gladstonecommercial.com.

TUCSON, ARIZONA — Foundation Partners Group, a leading provider of innovative funeral and cemetery experiences and products, has purchased the Adair Funeral Homes and Desert Sunset Funeral Homes in Tucson, Arizona for an aggregate amount of $4.72 million.  The acquisition includes three locations in the greater Tucson area and expands Foundation Partners Group’s rooftops in the market to six.

* Desert Sunset Funeral Home, 3081 W Orange Grove Rd, Tucson sold for $778,000.
* Adair Funeral Home, 1050 N Dodge Blvd., Tucson sold for $1.938 million
* Adair Funeral Home, 8090 N Northern Ave., Tucson sold for $2 million.

“Adair Funeral Homes and Desert Sunset Funeral Homes make great additions to our growing portfolio of funeral operations in Tucson,” stated Bob Bukala, President and CEO of Foundation Partners Group. “The Adairs have set a high standard of service for their families and their community that perfectly matches ours. We are very proud to have Martha, Ron, Hank and their team join Foundation Partners and help us grow our presence in Arizona.”

The Adair Funeral Homes were founded in 1956 by Arthur and Martha Adair.  After Arthur passed away in 1973, Martha along with her sons, Ron and Hank, continued operating the firm.  The second Adair chapel opened in January of 1975 on the northwest side of Tucson, and a few years later, Desert Sunset was added to the company. Over the last 20 years, Hank’s daughter and son, Hillary and Taylor, joined the firm to continue the Adair legacy in the funeral profession.

“When I first met Bob Bukala a while back, I saw we shared the same vision of where the funeral profession is headed,” said Martha Adair, owner of Adair Funeral Homes.  “Now, having learned even more about Foundation Partners Group, I am convinced that they are best positioned to help us continue to address the needs of Tucson’s families in the coming years.”

“Our family sensed a real comfort level with the team at Foundation Partners, especially after we talked with other friends in funeral service who had joined them,” added Ron Adair.  “Foundation Partners Group will let us not only maintain our legacy in the Tucson market but allow us to grow it as well.”

“We continue to explore partnerships with the finest independent funeral homes and cremation centers in our profession,” stated Jason Widing, Vice President of Business Development at Foundation Partners Group. “We are pleased to welcome the teams at Adair and Desert Sunset to the Foundation Partners family.”

For more information, visit the Foundation Partners Group website at www.foundationpartners.com.