TUCSON, Arizona — High demand in the Tucson multifamily market saw cap rates tick up slightly this quarter by 2.57%; from a Q1 average of 8.55% to a Q2 average-to-date of 8.77% based on all multifamily property sales. There doesn’t seem to be any slowdown in sight as sales volume remained about the same quarter to quarter.

Sales this month negotiated by Tony Reed at Long Realty include these four transactions with an aggregate of 67-units and $3.5 million.

Phoenix investors, Christopher & Kathleen Dimitruck bought the multifamily property at 725 E 10th Street in Tucson in a $1.35 million ($79,412 per unit / $130 PSF) sale. The 17 railroad housing style units were built in 1921 of brick construction on .69 acres. The property is in the Central submarket, within 4 blocks of the University of Arizona. Unit mix consists of (9) Studios and (8) 2-bedroom units.

Tony Reed with Long Realty in Tucson represented the seller, First Tucson LLC of Boston, MA (Phil De Normandie). Benjamin Lair with My Home Group represented the buyers.
To learn more, see RED COMP #4946.

Reed represented First Tucson LLC also in the sale at 2340 E 8th Street in Tucson, in the Sam Hughes Neighborhood, for $737,500 ($81,944 per unit / $129 PSF) to California investor, Robert Bujarski of Encinitas CA. The nine units consist of seven 1-bedrooms and two 2-bedrooms in 5,735-square-feet (built in 1928) on 1.22-acres in the Central submarket.

Robert Redding with Centra Realty in Tucson represented the buyer in the transaction while Reed was the listing agent.

To learn more, see RED Comp #4854.

AZ Commons LLC of San Diego, CA (Kevin Easterly, manager) purchased a value-add multifamily property at 3653 E 2nd Street in Tucson for $1 million ($33,333 per unit / $43 PSF). The 30-units in 23,324-square-feet were built in 1978 on .84 acres in the Central submarket. Unit mix consists of thirty 1-bedroom units with covered parking, pool and A/C.

Chuck Corriere with Keller Williams of Southern Arizona represented the seller, Ramiro and Arcella Valencia of Tucson and Tony Reed with Long Realty represented the buyer in this transaction.

To learn more, see RED Comp #4931.

The Phillip and Kristen Voorhees Family Trust bought the multifamily property at 5630 East 2nd Street in Tucson for $425,000 ($38,636 per unit / $65 PSF). The property consists of 11-units in 6,528-square-feet (built 1969) on .88-acres. There are ten 2-bedroom units and one studio unit, located in the Eastern submarket of Tucson.

Tony Reed with Long Realty represented both buyer and seller, Winthrop N Isaacsen Separate Property Trust of Tucson in this transaction.

To learn more, see RED Comp #4861.

The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from  March 7 thru 11, 2016.

OFFICE – 7165 N. PIMA CANYON DR., TUCSON
Western Emulsions leased 4,693-square-feet of office space at 7165 N. Pima Canyon Drive from Double Z Pima Canyon L.L.C. The Landlord was represented by Michael Sarabia and James Hardman of DESCO Southwest. The Tenant was represented by Alan G. Moore of Chapman Lindsey. [mepr-show rules=”58038″]Asking lease rate: $22.50 SF/YR NNN; Tenant Phone: 520.624.4130[/mepr-show]

OFFICE – 1931 W. GRANT RD., TUCSON
InTegriLogic Corporation renewed their lease for 3,281-square-feet at 1931 W. Grant Rd., Suite 310 in Tucson from First Family Company, Ltd.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord.  Chuck Corriere with Keller Williams Southern Arizona, represented the tenant in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.229.1611[/mepr-show]

OFFICE – 1835 S. ALVERNON WAY, SUITE 202, TUCSON
Debbie Heslop, CCIM, of Volk Company represented PharmCareUSA of Phoenix, LLC in its lease of 2,147-square-feet at 1835 South Alvernon Way, Suite 202. The space is located within Midpoint Business Plaza, and the tenant plans to use the space for a closed door pharmacy. The landlord, Presson Midpoint, L.L.C, was represented by Paul Hooker and Rob Glaser of Cushman & Wakefield | PICOR.

RETAIL – NE CORNER of FIRST AVE., and WETMORE RD., TUCSON
Starbucks leased 2,000-square-feet in the Riverfront Shopping Center, located at the northeast corner of First Ave. and Wetmore Rd. in Tucson, from First Avenue Associates, LLC.  The site was formerly occupied by Golden Corral and demolished. A new Starbucks’ drive-through building will be constructed on the property.  Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant and Andy Seleznov with Larsen Baker, LLC, represented the landlord in this transaction.

OFFICE – 6565 E. CARONDELET DR., TUCSON
Richard Cohn, M.D., renewed his lease for 1,996-square-feet of medical office space at 6565 E. Carondelet Dr., Suite 225 in Tucson from Tucson 6565 Medical Properties, LLC.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.886.9779[/mepr-show]

RETAIL – 2741 N. CAMPBELL AVE., TUCSON
Yoshimatsu LLC leased 1,763-square-feet at 2741 North Campbell Avenue for a restaurant. Rick Borane of Volk Company represented Yoshimatsu LLC, The Landlord was Zeta Partnership, represented by Jeff Zellet of Cushman & Wakefield | PICOR. [mepr-show rules=”58038″]Tenant Phone: 520.320.1574[/mepr-show]

OFFICE – 17 W. WERMORE RD., TUCSON
Busy Richard Industries, LLC leased 1,484-square-feet of office space at 17 W. Wetmore Rd., Suite 202 in Tucson from Mary Francina Richardson and Suzanne Garvey. Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR represented the tenant and Terry Lavery with Tucson Realty & Trust Co., represented the landlord in this transaction.

RETAIL – 8250 E. BROADWAY BLVD., TUCSON
Richard Witham and Jennifer Dewey, dba Retro Hair Studio, leased approximately 1,340-square-feet of retail space located at 8250 E. Broadway Boulevard, Suites 101 & 102, Tucson, Arizona, from Trinum Properties, LLC.  Frank Arrotta and Pat Darcy of Tucson Realty & Trust Co. represented the Landlord and Frank Arrotta of Tucson Realty & Trust Co. represented the Tenant in the transaction. [mepr-show rules=”58038″]Asking lease rate: $13.00 SF/YR Modified Gross; Tenant Phone: 520.298.7428[/mepr-show]

OFFICE – 1715 E. SKYLINE DR., TUCSON
Cadre Partners LLC leased 1,264-square-feet of office space at 1715 E. Skyline Drive, Suite 131 from United Insurance Company of America. Michael Sarabia and James Hardman of DESCO Southwest represented the Landlord. The Tenant was represented by Jeff Casper of CBRE.

RETAIL – 5625 E. 22^ND ST., TUCSON
Alex Guerrero and Danitza Guerrero leased approximately 1,200-square-feet of retail space located at 5625 E. 22nd Street, Tucson, Arizona, from DG Commercial, LLC.  Frank Arrotta of Tucson Realty & Trust Co. represented both the Landlord and the Tenant in the transaction.

OFFICE – 333 N. WILMOT ROAD, TUCSON
Edward D. Jones & Co., L.P., dba, Edward Jones, leased approximately 1,119-square-feet of office space located at 333 N.Wilmot Road, Suite 180, Tucson, Arizona, from National Bank of Arizona. Michael Gross of Tucson Realty & Trust Co. represented the Landlord and Chris Tsighis and Victoria Lem of Coldwell Banker represented the Tenant in the transaction.

OFFICE – 1715 E. SKYLINE DR., TUCSON
Edward D. Jones & Co., LP leased 1,092-square-feet of office space located at 1715 E. Skyline Drive, Suite 121 from United Insurance Company of America. Michael Sarabia and James Hardman of DESCO Southwest represented the Landlord. The Tenant was represented by Chris Hollenbeck of Cushman & Wakefield. [mepr-show rules=”58038″]Tenant Phone: 520.777.7616[/mepr-show]

OFFICE – 622 N. COUNTRY CLUB RD., TUCSON
Open Form, LLC renewed their lease for 950-square-feet at 622 N. Country Club Rd., Suite D in Tucson from Siegmund Properties, LLC. Jeff Zellet and Isaac Figueroa, with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.477.9623[/mepr-show]

INDUSTRIAL – 3819 S. EVANS RD., TUCSON
American Resource and Services, Inc. leased 932-square-feet in the Ajo / Evans Business Park, 3819 S. Evans Blvd., Suite 307 in Tucson, from Ajo / Evans Business Park, LLC.  Pat Welchert, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

OFFICE – 2231 N. INDIAN RUINS RD., TUCSON
LeadLine, LLC leased 710-square-feet of office space at 2231 N. Indian Ruins Rd., Suite 4 in Tucson from Rich Rodgers Central, Inc.  Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $12.00 SF/YR Modified Gross[/mepr-show]

OFFICE – 880 W 4^th ST., BENSON
Sonora Quest Laboratories, LLC renewed their lease for 636-square-feet at 880 W. 4^th St. in Benson, AZ., from L. Michael & Susan LeSueur.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

OFFICE – 2737 N CAMPBELL AVE., TUCSON
Yoshimatu LLC leased 177-square-feet at 2737 North Campbell Avenue for an office. The Landlord was Zeta Partnership, represented by Jeff Zellet of PICOR. Rick Borane of Volk Company represented Yoshimatsu LLC. [mepr-show rules=”58038″]Asking lease rate: $14.00 SF/YR NNN; Tenant Phone: 520.320.1574[/mepr-show]

The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from November 30 thru December 4, 2015.

RETAIL – 6301 E. BROADWAY BLVD., TUCSON
Brian & Tom Woods- Colliers represented Payless Shoesource on a 10-year lease with Wilmot Plaza LLC at Wilmot Plaza, 6301 E. Broadway Blvd. Shops E, Tucson, Arizona, 85710 for 6,334-square-feet. Signed in 4th Q 2015.

INDUSTRIAL – 2725 N. GRAND AVE., NOGALES
Handling Systems, Inc. leased 5,000-square-feet at 2725 N. Grand Ave. in Nogales, Arizona, from Ruiz Logistics, LLC. Denisse Angulo-Badilla, Commercial Specialist with Cushman & Wakefield | PICOR, and Allen Buchanan, with Lee & Associates Commercial Real Estate Services, represented the tenant and Jose Dabdoub with NAI Horizon, represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.624.1895[/mepr-show]

OFFICE – 2424 N. Wyatt DR., TUCSON
Genesis OB/GYN, PC expanded their lease at 2424 N. Wyatt Dr. in Tucson for an additional 2,307-square-feet from landlord TMC Holdings, Inc. Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord and Mark Irvin, CCIM, SIOR, with Mark Irvin Commercial Real Estate, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking Lease Rate: $28.00 SF/YR Full Service; Tenant Phone: 520.219.5779[/mepr-show]

OFFICE – 1605 E. RIVER RD., TUCSON
Summit Funding, Inc. (Tenant) has leased 2,120-square-feet at 1605 E. River Road, Suite #251, from Macalu Partners, LLC (Landlord). Russel Gallaway of Gallaway Commercial represented the Tenant and Andrew Sternberg and Douglas Marsh of Oxford Realty Advisors represented the Landlord in the transaction. [mepr-show rules=”58038″]Tenant Phone: 520.873.9105[/mepr-show]

OFFICE – 3275 W. INA RD., TUCSON
Fairhaven Partners, LLC leased 1,543-square-feet at 3275 W. Ina Rd., Suite 255 in Tucson from Caldor Investments of Arizona, LLC. Tom Nieman, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord and Chuck Corriere with Keller Williams Southern Arizona, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking Lease Rate: $17.00 SF/YR Full Service; Tenant Phone: 267.761.2552[/mepr-show]

RETAIL – SPEEDWAY BLVD. & COUNTRY CLUB, TUCSON
Jackson Hewitt leased 1,315-square-feet in Speedway Center at the northwest corner of Speedway Blvd. and Country Club Rd. in Tucson from Mahoney Family Partnership. Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, represented the landlord and Jason Bruner with SRS Real Estate Partners – West, represented the tenant in this transaction.

RETAIL – 3514 E. GRANT RD., TUCSON
Bellazza, LLC leased 1,200-square-feet at Grant Plaza, 3514 E. Grant Road from Miramar Property Investors, LLC; Gordon Wagner of Coldwell Banker represented the Landlord in this transaction.

OFFICE – 3333 N. CAMPBELL AVE., TUCSON
The Party Staff, Inc. has leased 560-square-feet at 3333 N. Campbell Ave, Suite #8, for a period of 5 years, from Copper Villas, LLC. Robert Nolan of Oxford Realty Advisors handled the transaction. [mepr-show rules=”58038″]Asking Lease Rate: $16.00 SF/YR Full Service; Tenant Phone: 520.314.4820[/mepr-show]