Hawaiian Investors Buy Chuys Mesquite Broiler for $1.028 Million
The property leased to Chuys Mesquite Broiler at 7101 E. 22nd Street in Tucson, Arizona sold to investors from Honolulu Hawaii, RR 22nd Street Tucson, LLC (Robert and Martha Riley, trustees) for $1.08 million ($411 PSF).
The property is an approximate 2,500-square foot single-tenant retail building on an estimated .49 acres of land. The brand new lease with JBL Restaurant Investments, Inc. is absolute triple-net (NNN) and commenced on November 1, 2014 for a term of 15 years with increases and renewal options.
Although this is a new lease at 22nd & Kolb, Chuys has been operating at this location since 1997 and the Chuys concept began in 1978 with independently owned locations in Arizona and California.
Chuys cooks everything on a mesquite grill which is visible from the entrance. Mesquite grilled chicken is a specialty of Chuys, but they also serve tri-tip beef and seafood such as fish and shrimp. This is one of two Chuys operated by this same owner; the other is at 7585 S Houghton Road in Tucson.
The property is located within Palo Verde Plaza at a high traffic hard corner with 97,000+ daily traffic counts alng 22nd Street and Kolb Road. Surrounding tenants within the plaza include Goodwill, Payless, Popeyes, Filiberto’ s, Pep Boys, Arby’ s and Desert Rat. Across the street from the subject property is a Toyota dealership, 99 cent store, Jack in the Box, Starbucks, SmashBurger, McDonald’ s, Bank of America, Wells Fargo, Sally Beauty Supply, ACE Hardware, Brake Masters, Enterprise and Tucson Bowl. Palo Verde High School is also located within one block from the property.
The property also benefits from a billboard leased to Eller Media Company that also sold in the deal adding income revenue.
The seller, 7101 E 22nd Street, LLC (Steven Mar, manager) was represented by Jamie Medress and Mark Ruble with Marcus & Millichap in Phoenix. The investor was represented by Bob Boyles with Colliers International in Phoenix.
To learn more Medress can be reached at 602.687.6778, Rubles is at 602.687.6766, and Boyles can be contacted at 602.222.5033.
For additional information such as cap rate log in and refer to RED Comp #2738.
[mepr-show rules=”58038″]Sale date: 3/16/2015. Sale Price: $1,028,000 all cash deal. Escrow took 30-days. Property sold with an NOI of $67,839 and a 6.6% cap rate.[/mepr-show]