TUCSON, AZ (August 27, 2024) -- A multitenant retail pad in Montesa Plaza, at the corner of Broadway and Houghton Road, 150 South Houghton Road in Tucson sold for $1,190,000 ($264.44 PSF).
The asset closed on July 22, 2024.
The property serves an affluent east Tucson neighborhood with an average household income of $104,000, which speaks to the long-term tenancy of the tenants. The 4,450 RSF was sold with three tenants: Discovery Smiles Dentistry, Gallagher State Farm Insurance, and Sunrise Martial Arts - Karate for Kids with 30 dedicated parking spaces. The subject property sold with 250 square feet vacant.
Discovery Smiles Dentistry has been a part of the development since it was constructed in 2006, with both Gallagher State Farm and Sunrise Martial Arts as tenants for 10+ years. Galaxy Theatres, a fully integrated, privately owned entertainment company that ranks in the top 10% of its industry, anchored the center. 150 S Houghton benefits from this destination tenant, the only theatre in east Tucson.
Other notable businesses in the center include UPS Store, Cost Cutters, and Starbucks. In addition to the strong tenant base, it has a 95% occupancy and an upside in developing a remaining front pad.
The property sold with an NOI of approximately $87,000 and a 7.25% cap rate.
The seller with BH Broadway, LLC, an affiliate of Venture West of Tucson, represented by Kidder Mathews (Phoenix), Mike Ciosek, Ryan Sharpe, and Tyler Griffith.
The buyer was a family trust from Tucson that was self-represented.
For more information, Ciosek can be reached at 602.513.5135, Sharpe at 310.893.3397, and Griffith at 310.906.3282.
To learn more, see RED Comp #11406.