Pier 1 Tucson Sells in Net Lease Sale for $3.8 Million

TUCSON, AZ – Pier 1 Imports at 5919 East Broadway Blvd. in Tucson sold in a net lease sale for $3.782 million ($335 PSF) to a California investor, Barrett Associates of Castro Valley California (Kent Woodell, manager).

Pier 1 has operated at this location for 25 years, since 1990, and recently extended its lease thru May 2023.

The property benefits from its superb retail location immediately across the street from the Park Place Mall, a 1.1 million-square-foot General Growth Properties center with over 150 retail, restaurant and service tenants. Broadway Boulevard is a major east/west arterial in the trade area with over 53,000 cars per day, and more than 250,000 people in a 5-mile radius.

Nordstrom Rack will be opening (2016) nearby at the northeast corner of Broadway and Wilmot Road, joining Dick’s Sporting Goods, TJ Maxx, AT&T and Burger King.

Pier 1 also has great retail synergy with Peter Piper Pizza and Verizon, generating continuous traffic.

The corporate NNN lease with Pier 1 Imports (NYSE:PIR) which operates over 1,000 stores, has a market capitalization of approximately $333 million, 2015 revenue of $1.87 billion (5.3% sales growth in 2015), and a S&P rating of B+.

Nancy McClure with CBRE in Tucson and Philip Voorhees, Megan Wood and John Read with CBRE in Newport Beach California represented the seller, Burnham USA Equities of Newport Beach, CA

For additional information, McClure should be reached at 520.323.5117, and Voorhees is at 949.725.8521.

Login for additional information and to learn more see RED Comp #3994.

[mepr-show rules=”58038″]Property was 100% occupied with a NNN lease with Pier 1 Imports at time of sale and sold with an NOI of $299,105 and a 7.9% cap rate.[/mepr-show]