Houghton Town Center Ends Year with Investment Sale and New Surf Thru Car Wash Site

9172 S Houghton Rd., Tucson, AZ

TUCSON, ARIZONA – Houghton Town Center is a highly successful 60-acre community center located on Houghton Road north of I-10 and serving Rita Ranch, Vail and southeast Tucson.  Anchors include Walmart, Discount Tire, TJ Maxx, AutoZone, Petco, Brake Masters, Nationwide Vision, SuperCuts and Ross Dress For Less joined by numerous restaurants, retailers and service tenants including Northwest Emergency Center and Hughes Federal Credit Union.

Jaime Medress of Marcus & Millichap in Phoenix represented Houghton Developers’ affiliate, HTC Shops III LLC (Bill Kelley, manager) in the sale of a 9,075-square-foot retail pad at Houghton Town Center for $3.51 million ($387 PSF) at 9172 S Houghton Road, Tucson.

The buyer is an investor from San Diego, NWCD, LLC an affiliate of DePrima Ventures (Dave Karlman, director). The property was fully leased at time of sale with four tenants: Jersey Mike’s Subs, Realty Executives, Sunstreet Mortgage and Inverse Jiu Jitsu.

The buyer was represented by Bryce Karlman of CBRE San Diego / Northern Baja office.

In a separate transaction, Brenna Lacey and Jeramy Price of Volk Company represented Houghton Developers, LLC in the $925,000 ($15.42 PSF) sale of approximately 60,000-square-feet of land at 10206 & 10212 E Old Vail Road in the Houghton Town Center to Surf Thru, Inc. of Bakersfield, CA.

Surf Thru purchased the site for its fourth Car Wash in the metro Tucson region.

Craig Finfrock of Commercial Retail Advisors represented Surf Thru.

For additional information, Medress can be reached at 602.687.6700 and Karlman is at 858.546.2605. Lacey and Price should be contacted at 520.326.3200 and Finfrock is at 520.290.3200.

To learn more, see RED Comp #6431 and #6449.




TruAmerica Multifamily Continues to Build Its Phoenix, AZ Portfolio with Acquisition of Two Tempe Communities for $67.3 Million

Highland Park in Tempe AZ

Los Angeles, CA — TruAmerica Multifamily, in joint venture with an institutional capital partner, has acquired a two-property, 472-unit apartment portfolio in Tempe, AZ for $67.3 million ($142,585 per unit) increasing its local portfolio to more than 2,400 units.

“We continue to be net buyers in Phoenix, and Tempe in particular,” said TruAmerica Director of Acquisitions Chris MacLeod.  “Nearly six out of 10 residents in Tempe are renters making it the highest propensity to rent-vs-own submarket in Arizona.  Despite the robust population and job growth, not much product has been added to the inventory.  What has been built, is higher priced mid- and high-rise development, out of the reach of the majority of the area’s renter population.   This has created a severe supply/demand imbalance and an extremely competitive investment environment. In the end, it was our local relationships and reputation for execution that was key to acquiring the portfolio,” said MacLeod.

The portfolio is comprised of 276-unit Highland Park and 196-unit Park View, located within a block of one another near the I-10 and Baseline Road, one of the major east/west arterials in Tempe.  Each low-density garden style development was built in the early 1980s and feature one-, two- and three-bedroom apartment homes.  Each community is highly amenitized with resort style pools, fitness centers, clubhouses and recreational areas.  The properties are within a 20-minute commute from three major employment hubs: Sky Harbor, Downtown Tempe, and Papago, which accounted for more than 50 percent of the job growth experienced by the Phoenix metro from 2017 to 2018.

With the majority of apartment units still in their original condition, Highland Park and Park View represent a strong value-add opportunity for TruAmerica.   TruAmerica will initiate a significant capital improvement program across the portfolio including upgrading apartment interiors, renovating all community amenities and refreshing exteriors and landscaping to meet the demands of today’s renter.

The acquisition was leveraged with favorable financing through Freddie Mac’s Select Sponsor Program originated by the CBRE Capital Markets team led by Vice Chairman Brian Eisendrath.

Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch from CBRE’s Phoenix office brokered the transaction.




Plaza Encantada Offices Sell to California Investors for $1.275 Million

TUCSON, ARIZONA – Plaza Encantada Office complex at 2802-2810 N Alvernon Way in Tucson sold for $1.275 million ($103 PSF) to a group of California investors, MBLA Tucson, LLC c/o MEI Real Estate Services of Los Angeles.

Plaza Encantada, the Enchanted Place, is full of southwestern charm. Located at the northeast corner of Alvernon & Glenn, it is a unique and exclusive office complex with 12,704 square feet, and 6 tenant spaces on 1.06 acres. Built in 1985, Plaza Encantada features a lush courtyard, French doors, skylights and covered parking.

The property was fully leased with such tenants as Life Cycles Arizona, Southwest Integrative Health, Tucson Homeopathy, Moss Meredith A PA, Pleasurebent Tours, Inc. and El Sol Consulting and Psychotherapy.

This is the first investment for the buyer in the Tucson market.

Mike Sandahl, Jeff Casper and Martin Encinas of CBRE in Tucson represented the seller, Ventana-Encantada in the transaction.

Dennis Dillon, Chelsea Novelli and Ed McKeegan with MEI of Los Angeles represented the investment group.

For more information, Sandahl should be contacted at 520.323.5115, Casper is at 520.323.5181 and Encinas can be reached at 520.323.5173. Novelli can also be contacted at 310.258.0444×119.

To learn more, login and see RED Comp #6350.

[mepr-show rules=”58038″]Sale date 11/16/2018. APNs: 110-06-134E, 113A, 130, & 131. Property sold at an 8.99% cap rate and was fully occupied at time of sale with 6 tenants.[/mepr-show]