TUCSON, Arizona — The former Five Palms Steak & Seafood in the Catalina Foothills at 3500 E Sunrise Dr., Tucson sold for $1.9 million ($148 PSF) for redevelopment. The 12,800-square-foot restaurant was originally built for Café Terra Cotta restaurant that moved from St. Phillip’s Square.

Located on Sunrise east of La Encantada Mall, Five Palms opened in late 2012. Over the years, the business evolved to include culinary concepts like Oliva Mediterranean Restaurant, Dovino Wine and Cigars, and the Five Palms Fine Bar.

One of Tucson’s priciest fine-dining restaurants, where the least expensive steak on the menu would set you back $39 — the same price as the pate de foie gras appetizer.

Five Palms closed in September 10, 2017.

The buyers, Gateway 1048, LLC and WCCP Sunrise, LLC of Torrance, Calif. purchased the property for redevelopment into office use. The 12,800-square-foot, two-story building responds to a growing interest in office space along the Sunrise corridor.

Nancy McClure and Buzz Isaacson with CBRE in Tucson represented the seller, Landmark Assets of Scottsdale and Phil Skillings with NAI Horizon in Tucson handled the transaction, as a principal, for the investors.

For more information, McClure should be reached at 520.323.5117 and Isaacson can be reached at 520.323.5151. Skillings can be contacted at 520.326.2200 ext. 4002.

To learn more, see RED Comp #5520.

TUCSON, Arizona– Holliday Fenoglio Fowler, L.P. (HFF) announces the $24.5 million ($248 PSF) sale of and the $17.8 million acquisition financing for Colonia Verde, a 98,937-square-foot, grocery- and pharmacy-anchored neighborhood shopping center in Tucson.

The HFF team marketed the property on behalf of the seller, Westwood Financial Corporation of Los Angeles and represented the buyer, ROK Properties, Inc of Vancouver, Washington.  Additionally, the HFF team placed the 10-year, fixed-rate loan with a global financial services firm.  HFF will service the loan.

Currently 99 percent leased, Colonia Verde is home to anchors Safeway and Walgreens in addition to Ace Hardware, Wells Fargo, Panda Express, Coldstone Creamery, Jamba Juice and more.  The center, which was completed in 1974 and renovated in 1993, comprises three multi-tenant buildings and one outparcel pad.  Situated on 8.6 acres at 7111-7189 East Tanque Verde Road in northeastern Tucson, Colonia Verde is located on the northeast corner of Sabino Canyon Road and Tanque Verde Road, which have combined traffic counts of more than 95,000 vehicles per day.  The center is adjacent to the upscale Catalina Foothills community, and more than 84,000 residents earning an average annual household income of $64,436 live within three-miles of the center.

The HFF retail investment advisory was led by managing director Gleb Lvovich, who represented the seller.  Senior director Nick Kassab worked with the buyer, who was in a 1031 exchange from another HFF-brokered property, Fourth Plain Shopping Center, in Washington earlier this year.

The HFF debt placement team representing the new owner included senior managing director Jeremy Womack.

“The sale of Colonia Verde Shopping Center represents HFF’s second significant grocery-anchored retail trade in Tucson in the past four months, and the pricing achieved underscores investor demand for grocery/drug-anchored retail,” Lvovich said.  “Arizona has seen significant inflows of capital from key West Coast markets, and HFF’s collaborative platform has been a significant driver of this capital into Arizona.”

“We are thrilled to have facilitated a successful 1031 exchange into a strategic asset for one of our great clients,” Kassab added.  “HFF’s debt team, led by Jeremy Womack, was instrumental in driving yield and ensuring the capital stack met our client’s needs.”

HFF, acting by and through Holliday GP Corp., is a commercial mortgage broker licensed with the Arizona Department of Financial Institutions.

HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF).  For more information, please visit hfflp.com.

For more information, Lvovich can be reached at 949.253.8800, while Kassab is at 503.224.0444 and Womack can be contacted at 602.648.8700.

To learn more, see RED Comp #5307.

TUCSON, ARIZONA – Walgreens at 4910 North 1^st Avenue in Tucson sold to The Clover Company (Paul Craft, CEO) for $3.925 million ($253 PSF) from 4910 N 1^st, LLC (Steven M Swanson II, manager).

Located at 1^st Avenue ad River Road, this net-leased investment is approximately 15,525-square-feet and has been in operation at this site since 1994. The building sits on a 2.56-acre lot and serve the upscale, high-income community of the Catalina Foothills, one of the most affluent communities in Arizona. The community also anchors Tucson’s Resort corridor which includes multiple resorts and health spas.

The single tenant property was remodeled in 2016 with improvements that included a new roof with transferrable 20-year warranty, new parking lot and an exterior facelift.

Walgreens lease was recently extended to over 12 years, showing the commitment to the location. This was the first time the property had been on the market in 20-years.

Peter Deltondo with Marcus & Millichap in Irvine, CA handled the transaction for buyer and investor.

For more information, Deltondo can be contacted at 949.419.3200.

To learn more, login and see RED Comp #4853.

[mepr-show rules=”58038″]Property sold 5/19/2017 at a 5.7% cap rate and an NOI of $223.560[/mepr-show]