TUCSON, ARIZONA — Highlighted this week is a 13,440-square-feet of industrial space renewal at 3741 N. I-10 EB Frontage Road, Suites 101 & 103, in Tucson to Arizona Kawasaki KTM Triumph handled by Robert C. Glaser, SIOR, CCIM, Principal, and Stephen D. Cohen, Principal, Industrial Specialists with Cushman & Wakefield | PICOR,

The following leases were submitted to the Real Estate Daily News for the Tucson Lease Report from December 13 thru 17, 2021.

INDUSTRIAL – 3741 N I-10 FRONTAGE RD., STE 101 & 103, TUCSON
Arizona Kawasaki KTM Triumph renewed their leased for 13,440-square-feet of industrial space, at 3741 N. I-10 EB Frontage Road, Suites 101 & 103, in Tucson, from Peacock Investment Builders Tucson I, LLC. Robert C. Glaser, SIOR, CCIM, Principal, and Stephen D. Cohen, Principal, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – 5335 E 29^TH STREET, TUCSON
Blind Echo, LLC leased 12,611-square-feet of retail space, located at 5335 E. 29th Street in Tucson, from Parker Enterprises Ltd. Dave Hammack, Principal, Retail Specialist with Cushman & Wakefield | PICOR, and Stephen D. Cohen, Principal, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

MEDICAL OFFICE – 2100 N ROSEMONT BLVD., STE 100 & 101, TUCSON
TMC Sleep Lab renewed their lease with TMC Holdings, Inc. in Tucson Medical Park, 2100 N. Rosemont Blvd., Suites 100 & 110 in Tucson. Richard M. Kleiner, MBA, Principal, and Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

INDUSTRIAL – 750 E OHIO STREET, STE 1, TUCSON
Criterion Supply, Inc. leased 6,000-square-feet of industrial space at 750 E. Ohio Street, Suite 1 in Tucson, from Ohio Street Bldg. No 2 Ltd., LLLP. Robert C. Glaser, SIOR, CCIM, Principal, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Steve Bodeman with DAUM Commercial Real Estate Services, and Ben Gibbs with ESRP Advisor Dallas, LLC, represented the tenant.

MEDICAL OFFICE – 40 N SWAN, STE 25, TUCSON
Teri’s Health Services, LLC has leased 3,054-square-feet at the Forty North Swan medical office complex located at 40 N Swan, Suite 25. Teri’s Health Services is a mobile, office, telemedicine, and in home provider for medical, psychiatric, psychological, and specialized counseling services. They offer a fully telemedicine/remote approach for those who prefer telemedicine due to COVID-19 or other reasons. They will be opening in the beginning of 2022. The lease filled the last vacancy at the office complex which is now 100% leased. Isaac Figueroa represented the Landlord, Larsen Baker.

OFFICE – 5301 E GRANT RD, TUCSON
Air Methods Corporation renewed their lease with Tucson Medical Center for 2,038-square-feet of office space located at 5301 E. Grant Rd. in Tucson.  Richard M. Kleiner, MBA, Principal, and Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – 6960 E SUNRISE DR, STE 170, TUCSON
Cyclefit Solutions Bicycle Shop leased 1,515-square-feet of retail space at Shops at Ventana, 6960 E. Sunrise Drive, Suite 170 in Tucson, from Sunrise & Kolb East, LLC. Dave Hammack, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Greg Furrier, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant.

RETAIL – CAMINO SECO BUSINESS PARK, STE 401, TUCSON
Larsen Baker is pleased to announce that Alexander Mobile Detail, LLC has leased of 1,000-square-feet at Camino Seco Business Park, Suite 401. The space will be used for auto detailing and relates uses. Isaac Figueroa and Elaina represented the Landlord, Larsen Baker and handled this transaction.

RETAIL – 345 E CONGRESS STREET, STE 135, TUCSON
Urban Pita LLC leased 1,010-square-feet of retail space, at 345 E. Congress Street, Suite 135 in Tucson, from CH Retail Fund I/Tucson Grant Road LLC. Greg Furrier, Principal, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

RETAIL – CAMINO SECO BUSINESS PARK, 150 S CAMINO SECO, TUCSON
Behrouz Spa and Art By Woody both renewed leases at Camino Seco Business Park 150 S Camino Seco. Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction.

RETAIL – MANZANITA PLAZA, 2940-3000 W VALENCIA RD, TUCSON
Diamond Nails renewed its lease for another 5 years at Manzanita Plaza 2940-3000 W Valencia. Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction

RETAIL – 6435 N THORNYDALE RD, STE 141, TUCSON
Canyon Cabinetry renewed for 5 years at 6435 N Thornydale Rd, Suite 141. . Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction.

OFFICE – PLAZA AT WILLIAM’S CENTRE, 5340-5480 E BROADWAY, TUCSON
Commercial Retail Advisors renewed its lease for 3 more years at Plaza at William’s Centre 5340-5480 E Broadway in Tucson. Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction.

MEDICAL OFFICE – 5225 E KNIGHT DR., TUCSON
Visions Clinical renewed for 1 year 5225 E Knight Drive in Tucson.  Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction.

RETAIL – TRI-VALLEY PLAZA, 1323-1328 E FLORENCE BLVD., CASA GRANDE
Goodwill renewed for 5 years at Tri-Valley Plaza at 1323-1385 E. Florence Blvd. in Casa Grande, AZ. Isaac Figueroa and Elaina Elliot represented the Landlord, Larsen Baker and handled this transaction.

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CHANDLER, Ariz. – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Whataburger Ground Lease, a 1.67-acre property located in Chandler, Arizona.

According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $2,697,000.

Chris Lind and Mark Ruble, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.

Whataburger Ground Lease is located within the New Layton Lakes Village retail center at intersection of Queen Creek Road & Gilbert Road in Chandler, Arizona. One mile off of the Loop 202 Santan Freeway which hosts 162,410 vehicles per day, the asset is in the middle of a rapidly growing trade area where households and population are projected to increase over 24-percent within a one-mile radius by the year 2025. Near the high-traffic intersection of Queen Creek Road and Gilbert Road, the property is visible to more than 45,800 vehicles per day and easily accessible to 263,165 residents within a five-mile radius.

PIMA COUNTY, ARIZONA —  ­ Pima County Friday sued the city of Tucson over the imposition of discriminatory, illegal, and unconstitutional water rates on Tucson Water customers in the unincorporated county.

The filing in Pima County Superior Court argues that the city’s new rates, which went into effect Dec. 1, 2021, are discriminatory, including discriminating on the basis of race in violation of the 14^th Amendment to the U.S. Constitution, violate a state law requiring municipal utilities set rates that are “just and reasonable,” and violates the state constitution’s prohibition on special laws.

“Pima County and the Board of Supervisors didn’t want this,” said Board Chair Sharon Bronson. “We spent a year asking and even pleading with the city not to do what should be clear to everyone is unfair, unreasonable, and unconstitutional. We gave them ample proof that what they were doing was wrong and illegal. Yet the City Council did it anyway. We have no option left but to seek relief from the court and protect county taxpayers from this ill-considered and illegal action by the Mayor and Council.”

The suit lays out in considerable detail the county’s arguments refuting the city’s various claims as to why it imposed higher water rates on its customers who live outside city limits and why it also exempted others who get Tucson Water but don’t live in the city, such as residents of Tucson Unified School District, the Indian Nations, and residents in Oro Valley and Marana.

It also points out the various illegalities of the city’s action and the discriminatory results of the city’s arbitrary and capricious rate increase.

The County’s suit includes several exhibits demonstrating the capricious nature of the city’s rate exemptions. One example would be the residents of Tierra Valencia who live south of Valencia Road near Casino Del Sol. Under the new city rates, those unincorporated residents will pay on average about $56 a month for water. Yet residents right next door in the Pascua Yaqui Nation would pay only about $50 a month.

The city claims that water delivery in the unincorporated County costs more to deliver than to city customers. Yet in the Tierra Valencia example, Tucson Water customers on either side of a road getting water from the same main Tucson Water pipe are paying different rates.

The county’s research, the suit says, shows there are thousands of Tucson Water customers in similar circumstances living adjacent to city residents or those exempted by the city’s rate ordinance, where they are drawing water from the same water delivery infrastructure, yet their position in respect to the arbitrarily drawn line determines whether they pay more or less for city water.

The County’s filing also references an agreement in which the city for over 50 years has cooperated with the county in the creation of regional water and sewer systems. That cooperation and the city’s own declaration that it is a regional water provider, not just municipal, is ratified in the 1979 city-county Sewer Merger Intergovernmental Agreement. The text of the agreement, which is still in effect, includes the city’s avowal to keep water rates low: “As a basis for agreements on effluent, the city and county agree that effluent is a major water resource that must be controlled by the city of Tucson in order to maintain management of total water resources of the Santa Cruz and adjacent water basins. It is further agreed that the city will endeavor to use effluent in such a manner as to preserve the underground water supply and to minimize costs to water rate payers in the city and county,” the agreement states.

The county’s legal claim also gets to the bottom of what’s really motivating the City Council – annexation.

“When stripped of its post-hoc, pretextual, justifications, the City’s real reason for implementing differential rates becomes clear: It is using its control over the region’s water—a vital resource—to force Tucson Water customers living in unincorporated areas to vote in favor of annexation,” the county’s filing states.

The county asks the court to declare the city’s ordinance setting the new rates illegal and discriminatory, and that the court prevent the city from enforcing it.

Read the Complaint here.