TUCSON, Arizona – Investment group, Keystone 6630 Grant Road, LLC of Tucson (Steve Grimm, manager) bought the C-2 Zoned Retail Pad, a former a Valero Gas Station, at 6630 East Grant Road in Tucson for $580,000 ($32.22 PSF).

Built in 2001, the former gas station, with 2,140 –square-foot convenience store and kiosk with 3 dispensers for 6 fueling stations sits on an 18,000-square-foot pad is located in the Target Shopping Center at Grant and Tanque Verde.

The property shares the lot with Albertson’s, Target, McDonald’ s, Boston Market, and Taco Bell near Jiffy Lube, Goodyear Auto Service Center, Discount Tire Store & Enterprise Rent-A-Car.

Property sold to lease or for resale to be redeveloped for a new retail use based on tenant requirements.

Alexander Pavone of Commercial Plus in Scottsdale represented the seller Grant 6630 LLC of Scottsdale (Russell Scaramella, manager) and Steve Grimm with Grimm Commercial was self-represented in the transaction.

For more and redevelopment information, Grimm should be reached at 520.795.5200.

To learn more, see RED Comp #4568.

TUCSON, Arizona – An affiliate of Comvest Group Holdings sold the final remaining Haggen store in Tucson at 8740 E Broadway Blvd. to AMERCO Real Estate for $2.2 million ($42 PSF). The former Safeway, fetched $3.9 million ($74 PSF) for the 52,566-square-foot anchor building in Broadway East Plaza, at the southeast corner of Broadway and Camino Seco, when Haggen purchased it in 2015.

Comvest, a Florida-based private equity firm, bought a majority stake in Haggen in 2011. In the first two years of ownership, Comvest shrunk the number of stores from around 30 to 18.

In 2014, Safeway agreed to merge with Albertsons and in order to get approval from the Federal Trade Commission, Albertsons was forced to divest some of its stores. Comvest became interested in purchasing 146 of the stores for Haggen, and a deal was announced in December 2014. The purchase price for the 146 stores totaled $309 million, according to court documents.

Expanding from 18 stores to 164 proved to be an “unmitigated disaster” for Haggen, according to court documents. Eight months after the purchase was finalized, the Bellingham-based grocer filed for Chapter 11 bankruptcy. The company closed, auctioned off or sold 135 stores between August 2015 and December 2015, leaving 29 core stores. Those 29 core stores were auctioned off in March to Albertsons, which was the only qualified bidder. The remaining Haggen stores joined Albertsons in June 2016, with 15 stores retained by Comvest.

In November 2015, Albertsons placed a bid on two of the three Haggen stores in Tucson: $1 million for 10380 E. Broadway, a former Safeway, and $700,000 for its former store at 1350 N. Silverbell Road, which was slated to close. The Tucson stores were three of ten in Arizona sold.

The final Broadway property AMERCO purchased was one of the last remaining stores and the final Haggen store in Tucson. The transaction closed January 10, 2017.

Phoenix-based AMERCO Real Estate Co., the development and acquisition arm for U-Haul Company purchased it for conversion to a climate controlled U-Haul self-storage planned for opening in June 2017.

AMERCO looks for big boxes and warehouse properties on major commercial arterial roads, at the edge of new growth areas.

To learn more, see RED Comp #4473.

After Haggen purchased 146 Albertsons and Safeway stores late last year, it later filed a lawsuit against Albertsons LLC and Albertsons Holdings LLC seeking more than $1 billion in damages shortly before filing bankruptcy. Monday, Albertsons placed a bid on two of the three Haggen stores in Tucson.

The complaint, which was filed in United States District Court for the District of Delaware, alleged that following Haggen’s December 2014 purchase of 146 Albertsons and Safeway stores, Albertsons engaged in “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor in over 130 local grocery markets in five states,” and “made false representations to both Haggen and the FTC about Albertsons’ commitment to a seamless transformation of the stores into viable competitors under the Haggen banner.”

A total of 94 Haggen stores are up for auction this week as part of the company’s chapter 11 bankruptcy proceeding. The Bellingham, Wash.-based grocer entered the Tucson market in May 2014 as part of a massive expansion, growing from 18 stores to 164.

Court records filed in U.S. Bankruptcy Court for the District of Delaware show Albertsons’ has placed a $1 million bid for the former Haggen store at 10380 E. Broadway, which was formerly a Safeway and a $700,000 for its former store at 1350 N. Silverbell Road, which is slated to close by the end of the month.

No bid has been placed for the store at 8740 E. Broadway yet.

The three Tucson stores are part of 10 in Arizona that are up for auction. Albertson’s has also placed a $1 million bid for the store in Lake Havasu City. None of the three stores in Phoenix, two in Prescott or the one in Flagstaff have received bids.