Michaels & Ace Hardware Trade for $4.95 Million at Thornydale Plaza

An affiliate of Gladstone Development of Greenwich, CT (Rich Gladstone, principal) purchased the Michaels and Ace Hardware stores at 3749 W Ina Road in Thornydale Plaza for $4.95 million ($130 PSF). The 38,220-square-feet of retail was built in 1985 and sold fully occupied by these two anchor tenants at the center.

Located at one the busiest intersections in Northwest Tucson, these anchor spaces are on the southeast corner of Ina and Thornydale Roads. Other tenants at the intersection include Loews, Target, Office Max, Walmart, CVS, Bookman’s and Fry’s. Property is located less than 1 mile East of I-10 in Marana.

Michaels retail stores specialize in arts and crafts supplies, and are located in 49 states, Michaels products include framing, floral, wall decor, kitchenware, beads, seasonal merchandise, and other home decorations. Based out of Irving, TX, Michaels manages close to 140 stores and over 43,000 employees. Michaels stores create over $4 billion in revenue for parent companies Bain Capital and Blackstone Group.

Ace Hardware Corporation is the second largest dealer-owned cooperative in the United States. The co-op pools buying and promotions for its 5,100 local hardware, home center, and lumber stores located in all fifty of the United States as well as in 65 foreign countries and territories. Ace’s emphasis on service and modern retailing techniques has helped locally owned and operated Ace retail stores confront intense competition from such home improvement powerhouses as Home Depot and Builders Square. The co-op manufactures its own line of paints and also supplies other products under the Ace brand.

Gladstone told us the transaction was the upleg of a 1031 exchange and the company’s first venture in Arizona. “Because we like Tucson and the property had such happy long-term tenants, we decided to venture out of our normal areas of investment,” Gladstone said.

Gladstone Development Corp. (“Gladstone”) is a real estate investment company that specializes in the development, ownership and management of commercial real estate primarily in the Eastern United States. With principals that have over 70 years of combined experience in commercial real estate, Gladstone has operated in 11 states, working with a wide range of retail, multi-family, mixed-use and industrial assets, in addition to raw land.

Venture West of Tucson handles the property management of the center that includes nine separate lots.

The seller, Rain Scott Investments, an affiliate of De La Vega Corporation of Dallas, TX (Artemio De La Vega, principal) was self-represented, as was the investor.

Gladstone can be reached at (561) 586-9930 and Del La Vega is at (214) 750-7398 for more information.

[mepr-show rules=”58038″]Sale Date: 3/13/2014. Buyer paid all cash in a 1031 exchange. Buyer reported that property sold at a 7.5% cap rate at time of sale, with rents scheduled to increase soon after closing. The leases are true triple net leases, with tenants paying all building maintenance, taxes and insurance.[/mepr-show]