PIMA COUNTY, ARIZONA  – In its final approval of the fiscal year 2023 budget, the Pima County Board of Supervisors included $66.8 million for road repairs.

The funding continues the County’s commitment to repair all roads in the unincorporated areas to an average Pavement Condition Index (PCI) rating of 80 by 2030. PCI ratings are a zero to 100 index used to show the condition of roadway surfaces, with lower numbers indicating worse conditions.

The $66.8 million funding allocation will provide for the repair and preservation of more than 272 miles of roadway.  Since FY 2020, the Pima County Department of Transportation has completed or prepared bids to repair and preserve more than 750 miles of roadway. For the fiscal years 2020 through 2022, the County has committed more than $177.5 million to road repairs.

“We are excited to begin our fourth year of the Road Pavement Repair and Preservation Program,” said Department of Transportation Interim Director Kathryn Skinner. “The funding support from the Board of Supervisors has allowed us to develop a program to systematically improve roadway conditions throughout unincorporated Pima County.”

The Board of Supervisors adopted an innovative financial program to use existing revenue sources to fund capital improvements, particularly road infrastructure in 2019. The resulting PAYGO program draws funding from a percentage of the growth in the overall County tax base and recaptures a portion of the taxes no longer needed to pay off bonds, while still reducing the combined County property tax rate over time.

Additional funding for road repairs will come from the Department’s Highway User Revenue Fund, which is an allocation from the statewide gas tax.

Follow the progress of road repairs using this interactive map. To request repairs, go to www.pima.gov/SeeClickFix or download the SeeClickFix mobile app for Apple or Android.

TUCSON, ARIZONA — Two medical buildings at 2396 and 2404 E River Road in Tucson, fully occupied by Pima Heart & Vascular, sold for $9.26 million ($390 PSF).  The transaction closed on June 17, 2022.

The 23,746 square feet of improvements were built in 2009 on 1.83 acres. The seller, MED Properties, LLC is an investment group comprised of 9 member doctors that practice at Pima Heart. Alan Laulainen with Ascension Advisory of Scottsdale represented the seller.

“The property had great appeal as we received 8 or 9 full price offers in the first week on the market,” Laulainen said.  “It was a perfect fit for the buyers coming out of a 1031 exchange, that we priced right with a strong cap rate and a strong tenant.”

The buyer, S Wilson UpTown, Inc., Eric and Stu Wilson of San Diego, CA had previously been multifamily sector investors. This is their first branching out into the office net lease market.  Jim Ashcraft of Ashcraft Investment Services in California represented the buyer.

For more information on this transaction, Laulainen should be reached at 480.310.7974.

To learn more, see RED Comp #9953.

Phoenix, Arizona – CBRE announced the sale of two office properties in Scottsdale, Ariz. to North Dakota-based Edgewood Real Estate Investment Trust for $85 million.

CBRE’s Barry Gabel and Chris Marchildon represented the sellers, Wentworth Property Company and Northwood Investors, in the transaction.

Developed in 2008 & 2009, Terra Verde I and Tower at Scottsdale Landing, located at 16767 N Perimeter Dr. and 8660 E Hartford Dr., total 269,064 square feet. The two Class-A trophy quality properties are 92 percent leased, offering the Buyer a consistent income stream from a 5-year weighted average lease term. The buildings are leased to a diverse and credit worthy roster such as Pulte Homes, BOK Financial, Annexus Management, Sagicor Life Insurance, and Pulice Construction among others.

“These properties are irreplaceable in the urban North Scottsdale core; you simply can’t build this type of product in this market today. We already own buildings within this business park and are excited to expand our portfolio in this exciting market, “said Danny Hanson, Executive Vice President for Edgewood REIT.

These best-in-class, multi-tenant office buildings offer recent capital improvements, high end tenant finishes, garage parking, building signage, and prominently visible Loop 101 Freeway exposure. Both buildings are located within the 260-acre, master planned, Perimeter Center Business Park, a business park that historically has achieved in excess of 90% occupancy during its tenure.

“Despite current capital markets and economic volatility across the U.S., best-in-class, strategically located office buildings, that are well leased to a roster of credit worthy tenants, are in high demand among investors,” said Gabel. “We received substantial interest for these properties for those very reasons. We are honored to have worked with Northwood Investors, Wentworth Properties, and Edgewood REIT, who all stood tall and executed seamlessly throughout the sales process.”

Added Marchildon, “These two Class A buildings offer strong credit worthiness, consistent and reliable cash flow, and are centrally located in the Scottsdale Airpark. The buyer is sure to achieve continued success for years to come.”