Denver REIT Prefers Marana Over Phoenix

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Baceline Investments, a private REIT out of Denver, CO (David Puchi, Managing Partner) purchased the Cortaro Crossings strip center at 8205 -8225 N Courtney Page Way in Marana, northwest of Tucson, for[mepr-show rules=”58038″]$3.78 million ($190 PSF). The 19,902 sq. ft. center (built 2007) is located within Continental Ranch near Arizona Pavilions. It was 94% occupied, with 1,200 sq. ft. vacant when it sold in this Receiver’s Sale.

The center is in one building and sold with 2.4 acres. Tenants include the Native New Yorker restaurant, Sushi Cortaro, Nana’s Kitchen, ChopStix, VIP Insurance, and a martial arts school. The sale did not include the car wash at the corner, but did include a vacant 22,309 sq, ft. expansion pad  to the west of property.

Michael Stilb of CBRE Tucson Management Services handled the management and leasing of property prior to sale and represented the seller and lender in this transaction.

The investor, Baceline Investments was founded in 2003 by David Puchi. After serving as a real estate asset manager for a privately held real estate investment firm, Puchi created Highline Group, LLC in 1994, a property management entity affiliated with Baceline REIT. Puchi continues as managing partner of Baceline, overseeing its capital development and leasing strategy. Baceline and its predecessor entities have developed an impressive track record of owning and managing a wide array of commercial properties, but has specialized in retail.

This is Baceline’s first acquisition in the Tucson market although it is not new to Arizona. It bought another retail center in Sedona last year. “We have Arizona connections and are looking for other retail assets,” according to Puchi. Typical investments range from $2 million to $30 million, and are class-B or higher multi-tenant properties with national, regional and/or local credit.

Currently the company owns 28 retail centers, including the two in Arizona. Others are in Texas and the Midwest. Puchi said, “Baceline prefers smaller, growing markets such as Sedona and Tucson. This property was bought as part of our ‘no-debt real estate investment fund’ an income fund that we manage.”

Baceline usually handles its own property management and hires local leasing agents for its properties.

Michael Sandahl, Senior Vice President Investment Properties at CBRE in Tucson handled the transaction for both investor and seller.

Puchi can be reached at (800) 730-9544. Stilb should be contacted at (520) 888-5127. Sandahl can be contacted at (520) 323-5115.

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[ismember]Sale date: 6/21/2013. Escrow Time: 90 days (March 27- June 21) Recorded seller was Courtney Page Way, LLC. Lease range was reported from the high teens to low twenties average rate was $18/SF/ NNN. Puchi reported that due to it being a receiver’s sale, the cap rate was higher than normal, with an NOI of  $359,100, property sold at a reported 9.5% cap rate based on income at time of sale. [/ismember]