Marcus & Millichap Arranges the Sale of an 8,400 SF Net-Leased Family Dollar in Tucson, AZ

TUCSON, Ariz. – Marcus & Millichap (NYSE: MMI) has announced the sale of Family Dollar, a 8,400-square foot net-leased property located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $1,665,000 ($198 PSF).

Zack House, Chris Lind, Jamie Medress and Mark Ruble, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The brand-new 2019 construction and new 10-year lease with corporate guaranty made this Family Dollar asset extremely desirable to potential buyers,” House stated. “The property ultimately sold within one week of the store opening to a 1031 exchange buyer out of California.”

Family Dollar is located at the northwest corner of West Irvington Road and South 9th Avenue in Tucson, Arizona. Tucson Spectrum, a 1,100,000-square-foot shopping center, is just 1.1 miles west of the property and contributes to the 27,400 vehicles per day that pass along West Irvington Road, giving great visibility to the property. Situated less than one mile off the Interstate-19, the location affords quick access to downtown Tucson and The University of Arizona.

Land Getting Premium Pricing in Opportunity Zones

Globe St.com is reporting investors and developers are paying a premium for land sites in opportunity zones. A new study from Real Capital Analytics shows a rapid increase in pricing for opportunity zone deals. According to the study, prices for redevelopment projects in opportunity zones increase 14.2% since December 31, 2017, while prices for vacant land for ground-up construction has increased 20.9%.

“These higher land prices suggest that the tax benefits are now being priced into land sales and investors do not appear to ascribe any future Net Operating Income (NOI) growth to Opportunity Zones resulting from that designation,” Phil Jelsma, partner and chair of the tax practice team at Crosbie Gliner Schiffman Southard & Swanson, tells GlobeSt.com. “If NOI were expected to grow in Opportunity Zones, the program would demonstrate the potential to increase productivity within the target areas. Rather the program seems to be resulting in higher sales prices to existing landowners for transactions that would have occurred in the absence of the Opportunity Zone program.”

While the prices have increase rapidly since the announcement of the opportunity zone tax benefit, Jelsma expects pricing to continue to increase for assets in opportunity zone areas. “I don’t believe these price increases are temporary,” he says. “I think you’ll find the same or similar price increases in multifamily. Developers are moving on available properties that fit the opportunity zone property profile, either older property that is ripe for redevelopment or vacant land.”

This is actually good news. It shows that the opportunity zone model is attracting strong interest and—due to the high capital investment—could be effective in revitalizing disenfranchised communities.

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600+ business groups sign US Chamber USMCA letter: All in on ratification

USMCA ratification urged at National Association of Manufacturers fly-in in D.C.

U.S. Chamber Business News is reporting business groups across the nation are taking action in support of the U.S.-Mexico-Canada Agreement, which would replace the 25-year-old North American Free Trade Agreement (NAFTA). The U.S. Chamber of Commerce and the National Association of Manufacturers have activated businesses, trade associations and community leaders from each state to urge Congress to ratify the agreement.

The U.S. Chamber of Commerce spearheaded a coalition letter co-signed by more than 600 business and agricultural organizations representing every state and every sector.

“More than 12 million American jobs depend on trade with Canada and Mexico,” the letter reads. “U.S. manufacturers export more made-in-America manufactured goods to our North American neighbors than they do to the next 11 largest export markets combined, and the two countries account for nearly one-third of U.S. agricultural exports. They are also the top two export destinations for U.S. small and medium-size businesses, more than 120,000 of which sell their goods and services to Canada and Mexico.”

According to U.S. Chamber Senior Vice President for International Policy John Murphy, the letter emphasizes the importance of ratification.

“The thrust of the letter really is to show the extremely geographic and multisectoral support for the agreement. The fact that every state in the union and every sector of industry is represented sends an important message to Congress about the need to approve the agreement,” he said. “This agreement will preserve and modernize our trade ties to Canada and Mexico, which are by far our most important trading partners.”

Last week, a delegation of manufacturing leaders met with Vice President Mike Pence and other lawmakers on Capitol Hill to outline the importance of the USMCA to the manufacturing industry here in the United States. Part of the National Association of Manufacturers (NAM) delegation, executives from companies such as General Motors, PING, Emerson, and HM Manufacturing met with a bipartisan group of representatives and senators, pushing for legislation to be passed as quickly as possible in order to boost multiple industries that operate across the North American borders.

“Trade with Canada and Mexico supports two million American manufacturing jobs,” Linda Dempsey, NAM Vice President of International Economic Affairs said. “This agreement modernizes and strengthens this critical trade alliance and ensures that manufacturers in the United States can compete globally on a level playing field.”

Canada and Mexico purchase more U.S.-made goods than most trading partners the U.S. has, even though they make up less than four percent of the global economy. Exports to Canada and Mexico pump life into more than 40,000 small- and medium-sized businesses in the United States. And beyond manufacturing, other industries like the produce trade depend heavily on a solid working relationship with our neighbors to the north and south.

The USMCA is outlined to help modernize and boost free trade between the three countries, replacing NAFTA and helping out farmers, ranchers, and produce companies. The United States can expect to see expanded exports if ratified as well as improvements in intellectual property protections. Two-way trade between Mexico and Arizona, including trains, commuter vehicles, and commercial trucks, saw a 7.7-percent bump in 2018, bringing in more than $16.5 billion and nearly $28 billion worth of goods flowing in through our ports of entry. More than 228,000 jobs in Arizona are dependent on the annual trade and investment relationship with our border neighbors, according to a report by the Arizona Chamber Foundation and Arizona-Mexico Commission.

“Members of Congress from both sides of the aisle were receptive to our message and reaffirmed their belief in the importance of a strong North American trade relationship,” Dempsey said. “There is still work to be done, but ratification of the USMCA remains our top legislative priority, and we are confident it will get done.”

Last month, in a sweeping 114-4 vote, the Mexican Senate voted overwhelmingly to ratify the new free trade pact. Now, the U.S. and Canada must take action for the trade deal to move forward.

Read more here.