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Rillito Marketplace One, LLC an affiliate of the Krausz Companies, Inc. (Ron Krausz, President) of California closed on its second acquisition in Tucson, the Rillito Crossing Marketplace at 4206-4282 N 1st Ave. for[mepr-show rules="58038"]$16.9 million ($134 per foot) from Continental Tucson 61, LLC, an affiliate of Continental Properties, Inc. The 126,017 aggregate rentable sq. ft. on 13.31 acres is located at the northeast corner of 1st Avenue & Limberlost; 34,643 sq. ft. of this aggregate was planned future space at time of sale.
The Krausz Companies, established in 1996, is a privately held California company. This second acquisition for Krausz in Tucson comes almost exactly one month after acquiring Campbell Plaza Power Center at Campbell and Glenn in Tucson for $31.5 million. Nancy McClure and Michael Sandahl of CBRE in Tucson handled the Campbell Plaza transaction and continues to lease that property for Krausz.
The Krausz Companies also owns the Prudential Plaza Office Tower in Phoenix, located on Central Avenue Corridor in midtown Phoenix. Krausz is interested in additional retail and office investment opportunities in Arizona.
Continental Properties Company, Inc. (James H. Schloemer, Chairman & CEO), the seller and developer of Rillito Crossing, is privately held and headquartered in suburban Milwaukee, Wisconsin. Rillito Crossing was its only venture in Tucson, which began development in 2007; L.A. Fitness opened there in 2007 and Sunflower Market and additional in-line retail space and pads followed in 2009. Sunflower Market merged with Sprouts last year and changed its name to Sprouts.
Rick Borane commented, “Although Campbell Plaza and Rillito Crossing Marketplace properties differ in many ways, the investor was attracted to both centers due to the tenant mix. Rillito Crossing, with L.A. Fitness and Sprouts as anchors, is also positioned close to student housing that gives it enhanced tenant appeal with consistent day and night traffic.” The center was approximately 90% occupied at time of sale, with 10,000-11,000 sq. ft available and running lease rates of $24 per sq. ft.
Rick Borane and Dave Hammack of the Volk Company of Tucson handled the Rillito Crossing project from its inception, and represented Continental in both its acquisition and sale. Borane and Hammack continue to be retained by the Krausz Companies for the management and leasing at Rillito Crossing.
David Pyle, VP at Krausz , is at (415) 732-5600. Continental Properties can be contacted at (262) 502-5500. Dave Hammack and Rick Borane at Volk Company should be reached at (520) 326-3200.
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