Four Retail Net Investment Deals Worth $5.4 Million Sold Recently in Tucson
The search for yield is pulling more investors toward the retail real estate sector and this has led to a pop in values. Despite its stronger showing, retail remains cheaper than other property types; with cap rates for retail properties closer to 6% than 5%, the average rate for apartment and office assets.
The following four retail net investment properties sold recently:
- * Circle K at 3215 N Swan Road in Tucson changed hands for $4.383 million ($1,581 PSF). The seller was Sunset Development, LLC of Tucson (Lee Jestings and John Webster, members) and the investor, Brauer Capital Company of Westlake Village, CA (Robert Brauer, managing member). The property was constructed in 2003 on 1.02 acres for Circle K.
Tatyana Meulemans of Newmark Grubb Knigh & Frank in Phoenix handled the transaction for seller.
* New construction at 3996 W Ina Road sold for $2.35 million ($234 PSF). The 10,040-square-foot strip center (built 2013) is west of Ina and Thornydale Roads in Marana and was fully leased to two tenants when it sold. Pet Club occupies 6,040-square-feet and R&S Mattress is in 4,000-square-feet, all with triple net leases at this center immediately in front of Harbor Freight, on 1.15 acres. The property sold as a net leased investment to the Carl Family Trust of Escondido, CA.
The seller, SAM Seventh, LLC (Steven Mar, managing member) and the investor were represented by Jamie Medress and Mark Ruble of Marcus & Millichap in Phoenix. Pat Darcy of Tucson Realty and Trust handled the lease-up of the building.
- * Camelot Strip Center, LLC & 2011 Recker, LLC purchased a 2,667-square-foot, freestanding, quick service restaurant (QSR) building leased to Jack-in-the-Box as a net leased investment at 2985 W Valencia at the SWC of Valencia Rd and Cardinal Ave. in Tucson from Valencia Corners, LLC & Dahlstrom Investments, LLC. The property commanded a $2 million sale price ($750 PSF). The property was built in 2006 for Jack-in-the-Box on 1.63 acres.
Jeff Zellet and Pat Welchert, SIOR, with Cushman & Wakefield | PICOR, represented the investor in this transaction and Rick Volk and Terry Dahlstrom of Volk Company in Tucson represented the seller.
- * Another strip center at 8195 N Oracle Road in Tucson changed hands for $1.028 million ($217 PSF). Tenants at the center include Enterprise Car Rental, Sandlewood Spa and a recent lease with Chuy’s restaurant to bring the center to fully leased. The property sold out of receivership for the Capin Family Trust and Michael Stilb of CBRE Tucson Management Services as Receiver. The investor was 8195 N Oracle Road, LLC (Ray Lopez) of Tucson.
To learn more Meulemans should be reached at (602) 471.0907; Medress is at (602) 687.6778 and Ruble at (602) 687.6766. Darcy can be contacted at (520) 577.7000. Zellet can be contacted at (520) 546.2739 and Welchert is at (520) 546.2748. Volk and Dahlstrom should be contacted at (520) 326-3200, and Stilb is at (520) 888.5127.
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[mepr-show rules="58038"] Circle K at 3215 N Swan sold on 6/27/2104 with a cap rate of 5.75% This was the buyer's upleg in a 1031 exchange. The strip center at 3996 W Ina Rd sold on 7/1/2014 with a 7.2% cap rate. The Jack-in-the-box sold on 5/23/2014 with a 6.2% cap rate. Additional information was not available on the sale of 8195 N Oracle Road that closed on 6/23/2014.[/mepr-show]