Picor Brokers Tucson 10-Unit Multifamily Complex for $105,000 per unit.

TUCSON, AZ (July 12, 2024) — Cushman & Wakefield | PICOR’s experienced multifamily team, led by Allan Mendelsberg and Joey Martinez, successfully closed on the sale of Coronado Heights, a ten-unit apartment at 3035-3053 N Los Altos Ave. in Tucson for $1,050,000 / $105,000 per unit / $167.48 PSF.

Mendelsberg and Martinez represented the buyer and seller, both based in California.

Coronado Heights, a community in the central submarket of Tucson, is strategically located just 2.7 miles from the University of Arizona. It is situated west of Los Altos and Delano Street. Built in 1948, the property sits on a 36,000-square-foot lot and is sold as a value-add opportunity with some recent capital improvements, landscaped walkways, a private backyard, and additional storage units.

The unit mix consists of (9) two-bedroom/one-bath and (1) three-bedroom/one-bath units.

For more information, Mendelsberg can be reached at 520.546.2721, and Martinez is at 520.546.2730,

To learn more, see RED Comp #11382.

Home2 Suites by Hilton sells in Scottsdale, AZ

JLL’s Hotels and Hospitality group led the sales efforts and secured acquisition financing for the 130-suite hotel

SCOTTSDALE, AZ (July 12, 2024)—JLL Hotels & Hospitality Group announced today that it arranged the sale and financing of Home2 Suites by Hilton North Scottsdale near Mayo Clinic, a 130-room hotel in Scottsdale, Arizona.

JLL represented the seller, and working on behalf of the new owner, JLL also procured the acquisition loan from a regional credit union.

Built in December 2022, the hotel is designed to provide a comfortable and convenient extended-stay experience, featuring a range of amenities, including a fitness center, outdoor pool, complimentary high-speed Wi-Fi, business center, EV charging, pet-friendly accommodations, and 500 square feet of flexible meeting space. Additionally, the guestrooms in the hotel offer separate living and sleeping areas, functional living space, in-room flat-screen TVs, and high-speed internet access.

Conveniently located at 20001 N Scottsdale Rd, the suite hotel is just one mile away from restaurants and shopping and only 2.1 miles from Grayhawk Golf Club. Within a four-mile radius, guests can easily access the Scottsdale Airport SCF, Mayo Clinic Hospital, Penske Racing Museum, and the Nationwide Insurance Regional Office.

The JLL Investment Sales and Advisory team was led by Managing Director Ketan Patel and Melvin Chu.

“We are thrilled to have successfully facilitated the sale of the Home2 Suites by Hilton in Scottsdale,” said Patel. “The remarkable growth and recovery in Scottsdale further solidify its position as a dynamic destination for hotel investors.”

Chu added, “This property presented an exceptional chance to invest in a well-established hotel with a strong track record and capitalize on Scottsdale’s reputation as a top-tier travel market. We are honored to represent the seller on this transaction and are excited about this hotel’s future.”

Managing Director Adrienne​ Andrews spearheaded the JLL Debt Advisory team.

Picor Reports: Tucson’s Q2 Office Market Stability, Medical Demand, and Strategic Conversions

TUCSON, AZ (July 12, 2024) — Picor reports the vacancy rate in Tucson’s office market remained relatively stable, with a slight increase to 10.5% during Q2 2024. Tucson continues outperforming larger cities, remaining less affected by broader macroeconomic trends. The medical market remains a bright spot, with sustained high demand and a limited supply of better-quality products. The scarcity of inventory for medical properties, coupled with rising construction costs, has driven premium prices for turnkey properties.

Medical users actively sought to expand or open new practices. Given the low availability of medical office build outs, many are willing to undertake conversions themselves post-purchase or agree longer to lease terms (seven-plus years) with landlords. A notable trend is the conversion of large office properties to industrial use, driven by high industrial demand, provided the ceiling heights meet requirements. This trend presents an opportunity for owners to shift to meet market demand in a time of high call-center vacancy.

Central Tucson, Northwest Tucson, and the Foothills submarkets continued to be hot spots in the market. There was strong demand for freestanding medical buildings and smaller offices around 2,500 square feet (sf), which often lease or sell within just a few weeks.

Notable leases included the Pain Institute of Southern Arizona, which secured 8,190 sf on the second floor at 1020 S Harrison. The second largest lease was at 1760-1790 E River, where an undisclosed tenant leased 8,018 sf. Significant sales for Q2 featured the Pioneer Building downtown, which sold for $3.8 million, or $37.63 per square feet (psf), 4825 N Sabino Canyon, which sold for $2.7 million ($107 psf), and 3773 E Broadway, which sold for $925,000 ($82.07 psf).

Landlords sought tenants willing to commit to lease terms of three or more years, especially for larger spaces, and offered significant tenant improvement allowances for the right tenants. Prices for medical properties continued to rise, with buyers willing to pay a premium. In contrast, larger office buildings, call centers, and downtown properties saw discounted prices, illustrating a dichotomy in the market between these two extremes.

Read the full report here.