NW Allied Physicians Building Sells for Investment at $2.9 Million

7890 N Cortaro Rd, Marana, AZ

MARANA, ARIZONA – A subsidiary of Diamond Ventures in Tucson (Bill Kelly, CFO) sold the building occupied by Northwest Allied Physicians at 7890 N Cortaro Road in Marana for $2.875 million ($368 PSF).

The 7,805-square-foot build-to-suit was built by the seller in 2017 and is fully occupied by Northwest Allied Physicians Cortaro.

Northwest Allied Physicians specialize in family medicine, gynecology, gynecologic surgery, internal medicine, cardiothoracic surgery, women’s imaging, orthopedics, gastroenterology, endocrinology, and more.

With offices located conveniently throughout the northwest Tucson area, the physicians of Northwest Allied Physicians are at the center of the range of services offered by Northwest Healthcare Network and can coordinate care with Outpatient Imaging, The Women’s Center, The Wound Care Center at Northwest, Outpatient Therapy, Inpatient Rehab, and Oro Valley’s Sleep Center.

Jaime Medress with Marcus & Millichap of Phoenix represented the Diamond Ventures and Humason Properties of Reno, NV (Robert Humason, Jr., manager) was represented by Todd Blonsley with Marcus & Millichap of Reno.

For additional information, Medress can be reached at 602.687.6778 and Blonsley is at 775.348.5220.

To learn more, see RED Comp #5519.




New JLL Capital Markets team wins Papago Gateway Center listing

Desmond, Moffitt, Bauman to market First Solar global HQ building for sale

PHOENIX, Arizona – On the heels of forming a new brokerage team focusing on both multi-tenant and net leased investments, Managing Director Dennis Desmond and Senior Vice Presidents Tivon Moffitt and Peter Bauman from the Phoenix office of JLL have earned the listing for Papago Gateway Center, a Class A trophy office building in the heart of Tempe, Arizona.

Desmond, Moffitt and Bauman will bring Papago Gateway Center to market for sale this month on behalf of Southern California-based property owner Chestnut Properties.

“Metro Phoenix – and Tempe in particular – are pinging on the radar of major, institutional-level office investors like never before,” said Desmond. “With its iconic design, premier location and major credit tenancy, Papago Gateway Center aligns perfectly with the advantages that investors are looking for.”

Serving as the long-term home to the global headquarters for First Solar, Papago Gateway Center totals 245,670-square-feet of institutional-quality, Class A, LEED Gold certified office space. It is located at 350 W. Washington St., at the intersection of Washington Street, Mill Avenue and Curry Road, in the heart of Tempe.

Building features include highly efficient, 38,000-square-foot floorplates; an exterior louver system for automated shade and cooling efficiency; and sweeping views of Camelback Mountain, Papago Buttes, Tempe Town Lake and the downtown Tempe skyline.

On-site amenities include direct access to a Phoenix Light Rail stop, a full fitness center with lockers and showers, the Office Nosh deli, Blink EV charging stations, and manned security. In addition to First Solar, tenants at Papago Gateway Center include Bryan University and WSP USA, Inc.

According to JLL, Tempe is metro Phoenix’s most in-demand office submarket, with a 6.3 percent Class A vacancy rate and average Class A rental rates reaching as high as $45 per-square-foot. Since 2014, Tempe has accounted for 27 percent of all Phoenix office absorption, despite only representing 8.4 percent of the market’s office inventory.

“The combination of market fundamentals and building amenities make Papago Gateway Center a credible, stable, true trophy asset,” said Moffitt. “We expect it to generate significant interest.”

Desmond, Moffitt and Bauman formed their new brokerage relationship in late 2017, following the successful collaboration on a Class A office building located in Albuquerque and leased in full to Raytheon Company.

The team is now utilizing their expertise to represent buyers and sellers of institutional-level, multi-tenant and national net leased investments, focusing on projects 100,000 square feet and above, with a value of $20 million and higher.

In addition to Papago Gateway Center, the team has also recently listed the Banner Health Desert Ridge Outpatient Center in north Phoenix, an office building in Chandler fully occupied by Walgreens, and the two-building, 302,521-square-foot Canyon Corporate Plaza office campus in northwest Phoenix.

“Transaction volume for net leased assets has reached record highs in recent years,” said Bauman. “It is an exciting time to launch this new partnership and to apply our expertise within the JLL network – not only in Phoenix but wherever our client relationships require.”

Collectively, the new team has completed the acquisition and disposition of more than 17 million square feet of office, industrial and retail properties.

“Our backgrounds are diverse, and we bring all of that knowledge to the table. Most importantly, we believe in integrity, professionalism and commitment,” said Desmond. “Our very first objective is to provide superior client care. Successful deals flow down from there.”

Desmond has enjoyed a 40-year career in commercial real estate – the last nine years as Senior Managing Director for JLL, charged with growing the Phoenix office from a tenant-rep operation into a full-service brokerage house with 46 JLL broker experts spanning office, retail, industrial, multifamily, healthcare, and related services within the real estate process.

Moffitt and Bauman joined JLL in 2016 as net lease market specialists, having previously served in net lease and tenant representation roles at brokerage houses in Arizona and Florida. Prior to brokerage, Moffitt worked as a New York-based management and strategy consultant and Bauman as an investment expert specializing in geology exploration at sites across the globe




Camelot Homes Holds Feb. 21 Grand Opening of New Community White Horse

photo credit: Mark Boisclair Photography, Inc.

SCOTTSDALE, ARIZ. – Camelot Homes, a third-generation homebuilder in Scottsdale, is holding a grand opening for White Horse, an iconic new community representing the pinnacle of Camelot’s 45-plus years of experience in luxury homes.

White Horse is holding an official grand opening on Feb. 21 with more than 200 homeowners and prospects. Three models will be available to tour.

“White Horse is an artistic and soulful community that breaks the bonds of the ordinary,” said Cammie Hancock Beckert, managing director of Camelot Homes. “Every Camelot home is built according to the Hancock’s highest standards of workmanship, designed to withstand the test of time.”

Thirteen of the community’s 50 half-acre lots, to be built in two phases, have already been sold. The light, bright and modern homes reflect a true paradigm shift in new home design with more outdoor space, options and flexibility to raise the standard of luxury living. Homes range from 4,000 to 6,000 square feet. The gated community is located off Pima Road and Los Gatos Drive, adjacent to DC Ranch. Homes prices are from the high $1 million.

WHAT: White Horse Grand Opening
WHEN: 4 to 8 p.m. Feb. 21
WHERE: 8865 E. Via Del Sol Drive, Scottsdale (off Pima Road and Los Gatos Drive, adjacent to DC Ranch)

Camelot Homes is one of the oldest, family-owned homebuilders in Arizona. With more than 45 years’ experience building thousands of homes in Arizona’s finest communities, Camelot Homes has established an unparalleled tradition of home building pride and excellence, and it shows. Three generations of the Hancock family have guided Camelot’s growth over the years. From its inception in the 1960’s by Maggi and J.W. Hancock, to today’s second and third generation of leadership by Mark and Julie Hancock, and Cammie Hancock Beckert, the family continues to carry out the company’s formula for success. It’s a formula based on a dedication to the customer with an uncompromising emphasis on unique architectural design, details and quality workmanship. Visit www.camelothomes.com.




DR Horton Joins Richmond American at Santa Cruz Meadows in Sahuarita

SAHUARITA, ARIZONA — DR Horton, Inc. purchased 10 finished lots under a rolling option agreement for 93-lots from Tucson Land, LLC at Santa Cruz Meadows in Sahuarita. The price was $51,000 per lot for the 7,000-square-foot lots.

DR Horton is the second builder at Santa Cruz Meadows along with Richmond American that has been building there for close to a year with 22 lots taken down on an agreement to purchase 49 lots at Santa Cruz Meadows.

Richmond American has taken down 22 lots of its 49-lot rolling option at Santa Cruz Meadows.

Tucson Land was represented by Randy Emerson of GRE Partners and DR Horton was represented by Dan Feig of Chapman Lindsey Commercial Real Estate.

For additional information, Emerson can be reached at 520.396.4812 and Feig should be contacted at 520.747.4000.

To learn more, see RED Comp #5510 and RED Comp #5455.




Phoenix T-Mobile Sold for $1.85 Million

Cushman & Wakefield Negotiates Sale of Freestanding Retail Building

PHOENIX, Arizona – Cushman & Wakefield completed the sale of T-Mobile, located at 4314 W. McDowell Road in Phoenix. Phoenix-based Sepmar LLC purchased the property from TK MCR LLC of Phoenix for $1.85 million ($617 PSF).

Cushman & Wakefield Senior Director Chris Hollenbeck represented the seller.

The 3,000-square-foot property was newly constructed in 2017 and is 100% leased to T-Mobile. Located on the highly visible intersection of 43rd Avenue and McDowell, the freestanding retail building is on a brand new 10 year lease with rent scheduled to commence in March 2018.

“This was a brand new build-to-suit with a corporate T-Mobile tenant. We were able to help the seller maximize value by finding an all cash, 1031 exchange buyer,” says Chis Hollenbeck.

Based in Bellevue, Wash., T-Mobile operates through its subsidiaries and its flagship brands, T-Mobile and MetroPCS. As of December 2016, there are approximately 2,000 retail locations under the T-Mobile and MetroPCS brands.




A Potential Solution to Short-Term Rentals

Derek Pfaff

OPED by Derek J. Pfaff

In 2016, Governor Doug Ducey signed Senate Bill 1350, thereby preventing Arizona cities, towns and counties from prohibiting vacation and short-term rentals, and curtailing their ability to regulate such rentals.  These restrictions are found in A.R.S. §9-500.39, governing cities and towns, and A.R.S. §11-269.17, governing counties.  Depending on whom you ask, this was either a win for the “little guy” who wants to earn extra money renting out a house or spare room, or was an unwanted intrusion by state government into local affairs.  While an absentee landlord would appreciate the flexible rental terms that this new law protects, an owner-occupant might instead be concerned about the additional noise, trash and crime that short-term renters could bring to the neighborhood.

In some communities, concerns have been raised about the effect these statutes could have on the availability of affordable rental properties.  Why rent that house to a local teacher, policeman or firefighter for $1,800 a month, when it might bring in $150 a night if listed with any of a number of online marketplaces that connect landowners with short-term renters?  This problem is particularly acute in places like Sedona, a city that has very little affordable housing, attracts a large number of tourists, and regulated short-term rentals until the passage of this law.

A list of the pro and cons of SB 1350 could go on for pages.  However, what do you do if you fall into the camp that is concerned about having the plot of Animal House –or Old School, if you’re a millennial– reenacted in your neighborhood every Spring Break?  At least one answer lies in restrictive covenants.

Your neighborhood may already have restrictions prohibiting short-term rentals.  Remember that thick packet the title company gave you before you closed on your house that you never bothered to read?  It’s time to do so.  Familiarize yourself with any restrictions that are already in place.  Tell your neighborhood association if you are concerned that property is being rented in violation of these restrictions.  If you serve on the board of a neighborhood association, consult with the association’s attorneys to determine what remedies are available.  If you live in a newer community where the developer is still involved, bring potential violations to its attention.  While it may have no legal obligation to act, preserving the character of the community is often in the developer’s best interests.  If all else fails, consult an attorney.  Although they can be very useful, restrictive covenants won’t enforce themselves.

What if your neighborhood covenants do not prohibit short-term rentals?  One option is to amend them to add the desired restrictions.  However, this is often difficult to achieve.  A single “no” vote may be all it takes to block such an amendment.

If existing restrictions cannot be amended or you live in an area where there are none, reach out to your neighbors to gauge their interest in creating new restrictions aimed at short-term rentals.  If you and your neighbors do head down that path, retain a qualified real estate attorney.  Stay focused.  Avoid the temptation to address every neighborhood annoyance.  Otherwise, you’ll likely make it more difficult to reach agreement with your neighbors on the terms of the restrictions.  Every third homeowner on your street agreeing to restrict their property won’t achieve much.  On the other hand, if you’re able to assemble a willing group of adjoining landowners, you may succeed in keeping Delta Tau Chi at bay.  Yep, you guessed it.  That’s another Animal House reference.

Derek Pfaff is an attorney practicing in the area of real estate focusing on acquisitions and dispositions of improved and unimproved commercial properties as well as farm and ranch properties, shopping center development, commercial leasing, and real estate finance. For more information, please contact Derek Pfaff at dpfaff@fclaw.com.

 




The EMPowerplay DEK Hockey Initiative – Coming to a TUSD School near you!

TUCSON, ARIZONA — The Tucson Unified School District (TUSD) Board gave a unanimous green light to a donation being offered by EMPowerplay, the Arizona Coyotes and Tucson Roadrunners to build a multipurpose outdoor DEK rink at Doolen Middle School at its regularly scheduled meeting Tuesday evening.

Mark Irvin, CCIM, SIOR, of Mark Irvin Commercial Real Estate Services and on the Emeritus Board of the Boys & Girls Club of Greater Tucson, moderated the presentation for the youth sports initiative joint project at the meeting.  Irvin also sits on the Rio Nuevo Board as its Vice Chair/Secretary and was instrumental in helping bring the Roadrunners to Tucson.

The Coyotes, Roadrunners and EMPowerplay partners are intrinsically involved in developing Hockey and youth sports throughout the region and are committed to not only the growth of local hockey, but the development of the program itself and being part of the bigger picture of Tucson youth sports – this not only helps encourage new local participation but exponentially increases the chances of overall success in the region.

In order to achieve this, the DEK initiative removes the need for expensive equipment needed to play hockey and can say: no  ice, no skates, no problem – everyone plays!

Much like TUSD and the City of Tucson itself, the Coyotes, Roadrunners and initiative partners are beyond willing to take the necessary measures and make the needed sacrifices to ensure not only the success of programs like this, but more importantly, the health and well-being of young athletes and community participants.

“This is the first of what we hope are many DEK rinks scattered across Tucson,” said Irvin. “We are exploring similar opportunities with the YMCA and are open to others, especially those with groups who are impacting youth.  Mayor Rothschild has been invaluable as has TUSD Superintendent Gabriel Trujillo and Michael Konrad, the Director of middle schools. They all share a similar and contagious passion for youth.  It’s great to work with the Mayor on something other than Rio Nuevo.  He gets it.  The Boys and Girls Clubs, which will administer the facility, will be outstanding.”

With these goals in mind, the first multipurpose outdoor DEK rink will be built at Doolen Middle School at 2400 N Country Club Road in Tucson, which already houses a Boys & Girls Club Club. The multipurpose rink can be used for other sports besides hockey, including basketball, pickle ball, even volleyball. The project partners, strategy and business development leaders hope to evolve a DEK hockey league system, with multiple locations throughout Tucson including clinics with Roadrunner players.

Construction time for the multipurpose rink is expected to be 8-weeks, once final administrative details are secured, at a final cost to the Arizona Coyotes and Tucson Roadrunners of $195,000, with no cost to TUSD, as part of the private-public partnership.

To learn more, the DEK Hockey Initiative as presented can be found HERE.

 




NAI Horizon negotiates $1.129M sale of Chandler industrial building

503-505 E. Boston, Chandler, AZ

PHOENIX, ARIZONA – NAI Horizon Senior Vice President Rick Foss represented the buyer in the $1.129 million sale of a 10,161-square-foot industrial building at 503-505 E. Boston Circle in Chandler, Ariz.

NAI Horizon represented Pacific Desert, LLC of Phoenix in purchasing the industrial building that sits on almost one acre of land. The property will be utilized by a business that sells and installs raised computer flooring.

“They buyer acquired this specific property to better serve its existing clients and expand for future business growth,” Foss said.

The sellers, Eric J. and Susan D. Cassinat and Anthony and Cindy L. Cassinat of Gilbert, Ariz., were represented by David Bean and Leroy Brienholt of Commercial Properties Inc.




Tucson CCIM Real Estate Legends welcomes Si Schorr

Si Schorr, latest iunductee into CCIM Tucson Real Estate Legends

TUCSON, ARIZONA — Si Schorr was inducted into the CCIM Tucson Real Estate Legends Tuesday at the CCIM Annual Forecast Meeting. The induction takes place each year to honor those “legends” who have built the commercial real estate community in Tucson from its early beginnings.

The following presentation was read at the induction, presented by Jim Marian, CCIM, of Chapman Lindsey Commercial Real Estate and George Larsen, CCIM, of Larsen Baker:

Si Schorr is in top story telling form.  The story starts with a lettuce farmer named Bud Antle who once owned Peppertree Farms in Marana.  Dow Chemical Company was the property owner.  Then came Lew McGinnis, a storied real estate genius.  Charlie Keating got involved.  Tucson real estate legend Robert Sarver got into the act.

But it was Si Schorr who choreographed the property that is now the centerpiece of the Town of Marana.  You see, the lettuce farmer owned the land that became Cortaro Farms/Continental Ranch.  It is quite a story, and you will hear more about it from our 2018 real estate Legend … Si Schorr.

Not many of us knew Tucson in 1957.  That is when Si and his bride Eleanor moved to Tucson from New York City.  They came to Tucson for its healthy climate.  Their introduction to our town in 1956 was via the Benson Highway in a Ford convertible.  It was some honeymoon trip!

Si was a newly minted lawyer in 1957, and in those days, young lawyers were mentored by the likes of Roy Drachman and Evo DeConcini.  They told Si to get involved and help mold Tucson’s future. 

Si took their advice to heart.  He served on the City Planning and Zoning Commission, then later he was Tucson’s Assistant City Manager, and then Urban Renewal Director.  Later, he was the City’s Special Counsel for Urban Renewal. He helped bring us the Tucson Convention Center and a myriad of downtown buildings.

He was also a founding board member of Pima Community College and helped buy their west campus land (for $2.50/acre!).  He was chairman of the State Transportation Board and was a founding Board Member of the Southern Arizona Leadership Council.

There’s more ….  Si was Building Chair of the Tucson Jewish Community Center and the first Chairperson of the Regional Transportation Authority.  He served on the Tucson Airport Authority and the Tucson Parks and Recreation Commission.

All the while, Si was a practicing lawyer representing the who’s who of Tucson’s commercial real estate developers (most of them also Legends alumni).  Si was long ago recognized by his peers as one of the “Best Lawyers in America” for his land use/zoning law expertise.

And of course, Si played Father knows Best to his lovely wife Eleanor and his four children, two of whom are his law partners.  Quite a busy, happy, and purposeful life!

And oh the stories Si call tell!  He was here for Tucson’s highlights (IBM’s relocation to Tucson in 1976) and for its low lights (the Motorola fiasco in the late 1970s).  He was the go to lawyer for GAC, the largest land developer in the world.  He represented the land owner for the largest rezoning case ever in Pima County.  He figured out how to get Williams Centre built.  He’ll tell us some of these stories about Tucson’s past.

Si worked alongside of Tucson Legends like Roy Drachman, Bill Estes, Peter Herder, Joe Kivel, and Bert Lopez.  He helped guide Tucson’s growth and prosperity over the past sixty years, as it evolved from a small town to a big city.  Si is still contributing to our city today and, in his 8th decade, is still practicing law as a senior partner in Lewis Roca Rothgerber Christie.

Tucson CCIM Real Estate Legends welcomes Si Schorr and thanks him for getting involved and helping to mold Tucson.




Phoenix West Commercial Welcomes Sandra Griggs, Sr. VP Office / Retail

Sandra (Sandy) Griggs

Avondale, AZ – Sandra Griggs has been a commercial real estate broker for over 30 years. Ms. Griggs has worked extensively with owners of new, planned, to-be-renovated and existing properties, parks and land—designing and implementing creative marketing programs to maximize the value of the real estate, secure the highest possible purchase price and/or rental rates and solve disposition/excess space challenges. She has been the exclusive marketing director for numerous properties and land parcels, including: a planned, 1.2-million-square-feet, 132-acre mixed-use project on a former landfill (where she leased the first speculative 105,000-square-foot office building and sold a parcel to an office user for its corporate headquarters, then sold the entire project to a developer for $38 million); a 14-acre land parcel (sold to a retail developer); a 56-acre land parcel (sold to an investor); a 70,000-square-foot manufacturing facility (sold to Lennar for a townhome development); a vacant Safeway retail store (sold to a developer in conjunction with a change of usage to a technical school); a down-zoned, rail-served lumber retail store (subleased to a retail user in conjunction with the user’s purchase of the property three years later); leasing of a 250,000-square-foot Class A office building owned by John Hancock Mutual Life; and leasing of several CBD and suburban office buildings and exclusive leasing agent for over 2-million- square-feet of shopping center and retail strip center space.

In the realm of investment sales, Ms. Griggs has sold leased CBD and suburban office, retail, industrial and life sciences investment properties — including a 150,000-square-foot, 3-building industrial park and a 102,000-square-foot trophy life sciences headquarters property. Additionally, Ms. Griggs has done extensive corporate services and tenant representation work, including: team leader for 3-1/2 years for AT&T’s multi-state disposition requirements; build-to-suit and site search work for United Airlines’ credit union; exclusive representation for Walgreen’s Patelco Credit Union in its branch office and headquarters requirements; site selection for various firms, including Hewlett Packard, Aldi and Kiddie Academy Daycare; account manager for United Airlines’ requirements, including negotiating its renewal lease on its 40,000-square-foot reservations center; a $25 million sale/leaseback for deCODE Genetics; representing Morrison-Knudsen in its 140,000-square-foot office relocation requirement; and representing various smaller “users” and professionals, including two physician groups, two dozen dentists, and numerous franchisees in their real estate purchase and/or leasing requirements.

Before joining Phoenix West Commercial, LLC, Ms. Griggs was Senior Director at GVA Chicago as well as Director, Midwest Region, for Alliance Real Estate. She also spent 6 years as Associate Vice President with The Galbreath Company/Norris, Beggs & Simpson (now JLL/Jones, Lang, LaSalle) and 12-years at Coldwell Banker/Coldwell Banker Commercial (now CB Richard Ellis)—where she attained the status of senior sales consultant, a designation given only to the upper 8% of the firm’s brokers nationally.

Ms. Griggs’ expertise includes acquisition and disposition of real estate; tenant representation and corporate advisory; property leasing/subleasing and sales; service delivery leadership; site selection; build-to-suit; mixed-use and business park marketing/sales; land sales and development; change of usage; investment sales; and financial and market analysis.




JANUARY 2018 Tucson Housing Statistics

The Tucson Association of REALTORS® (TAR) representing the interests of over 5,100 professionals in Southern Arizona as the voice of the real estate industry publishes month residential statistics on the housing market for metro Tucosn.  Details at www.tucsonrealtors.org.

Below are some highlights from the January 2018 Residential Sales Statistics:

          • Total Sales Volume of $227,851,861 is a decrease of 17.72% since December’s number of $276,914,274 but an increase of 2.99% over January 2017.
          • The Average Sales Price of $243,431 is a decrease of 1.89% since December’s $248,131.
          • Average List Price of $249,970 is down from $255,058 in December, a 1.99% decrease.
          • Total Under Contract increased to 1,823 from last month’s 1,290.
          • Total Unit Sales of 936 fell from December’s number of 1,116, resulting in a 16.13%
          • The Median Sales Price, $200,000, is down from $205,000 in December resulting in a
          • 44% decrease but an 8.11% increase over January 2017.
          • New Listings increased this month to 2,019 from 1,272 in December, a 58.73% jump.
          • Total Active Listings of 3,375 is a decrease of 2.26% from last month.
          • Average Days on Market of 49 is an increase from December’s number of 46.
          • Conventional loan sales of 44.6% exceeded Cash Sales of 26.3%.

More detailed information is available here for sales: statsjan2018 and here for rent stats: statsrentjan2018




Tucson Multitenant Office Complex on Swan Road Sells for $700,000

TUCSON, ARIZONA — The multitenant office building at 800 N Swan Road in Tucson sold to Lerdal 800, LLC (Swain Chapman of Chapman Management,  managing member) for $700,000 ($70 PSF). The seller was a Canadian investment group from Ontario.

The 10,000-square-foot professional class B, office complex was built in 1982 on 1.13 acres and was 85% occupied at time of sale.

“It’s a very nice garden office property, perfect for small professional users,” Chapman commented. “Office suites range from 450 to 800-square-feet, geared for the small professional user.”

Tenants include The League of Women Voters, Acupuncturists, Psychologists and other professional uses in three single story buildings placed in a U-Shape with common courtyard.

For more information, Chapman can be reached at 520.622.5544.

To learn more, see RED Comp #5500.