The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from April 18 thru 22, 2016.

RETAIL – 70 N. HARRISON RD., TUCSON
TMCOne leased the 7,202-square-foot building at 70 N. Harrison Rd. for a clinic location. The landlord is Rain Scott Investments, LLC.  Rick Kleiner, MBA, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

INDUSTRIAL – 4875 N. SHAMROCK PL., TUCSON
Karam Pump & Supply, Inc. leased 5,027-square-feet at 4875 N. Shamrock Pl., Suite 101 in Tucson from Shamrock 3 LLC.  Pat Welchert, SIOR, Industrial Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Tenant Phone: Phone: 520.670.1266[/mepr-show]

INDUSTRIAL – 2102 N FORBES BLVD., TUCSON
Evans & McKinney Construction, Inc., dba EMC Insulation, leased 3,850-square-feet at 2102 N. Forbes Blvd., Suites 101 & 102 in Tucson from East Park VI Holding Company, LLC.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Dominic Perry with Avison Young, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.59 SF/MO Modified Gross; Tenant Phone: 520.447.3512[/mepr-show]

INDUSTRIAL – 3710 S PARK AVE., TUCSON
Meadows Catalina, LLC leased 3,600-square-feet at 3710 S. Park Ave., Suites 708-710 in Tucson from William Lee, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and George Hayduke with Westar Mortgage & Realty Corporation, represented the tenant in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.344.8882[/mepr-show]

INDUSTRIAL – 3720 S. PARK AVE., TUCSON
Fox Distributing, LLC leased 2,470-square-feet at 3720 S. Park Ave., Suites 705-707 in Tucson from William Lee, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.310.4298[/mepr-show]

INDUSTRIAL – 3150 N. FREEWAY INDUSTRIAL LOOP, TUCSON
General Parts, LLC, leased 2,400-square-feet of industrial space at 3150 N. Freeway Industrial Loop, Suite 100 in Tucson from P3 & G, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Jesse Blum with CBRE, Inc., represented the tenant in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.622.4560[/mepr-show]

RETAIL 6447 N. ORACLE RD., TUCSON
Sticky’s Smoke Shop has signed a leased for 1,860-square-feet across the street at 6447 N. Oracle Road, Tucson, AZ, in Orange Grove Village at the northwest corner of Oracle and Orange Grove Roads. This is a new store relocation of Sticky’s Smoke Shop and the owners are planning to open approximately May 1, 2016. Sticky’s Smoke Shop also has a store located at Ina and Thornydale. Craig Finfrock of Commercial Retail Advisors, LLC represented the Landlord, Orange Grove Village, LLC and Stephen Grimm of Grimm Commercial, LLC represented the Tenant, R L Bronson Enterprises, LLC in this lease transaction. [mepr-show rules=”58038″]Tenant Phone: 520.744.1063[/mepr-show]

OFFICE – 550 W. INA RD., TUCSON
Next Step Advisors, LLC leased 1,550 square feet of office space at 550 W. Ina Rd., Suite 201 in Tucson from Beemz, LLC.  Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Tenant Phone: Phone: 520.733.7478[/mepr-show]

INDUSTRIAL – 4585 S. PALO VERDE RD., TUCSON
Gila Electronics of Yuma, Inc. leased 1,500 square feet in Butterfield Center, 4585 S. Palo Verde Rd., Suite 413, in Tucson from Presson Equity Partners, LLP.  Rob Glaser, SIOR CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.37 SF/MO NNN; Tenant Phone: 928.782.9331[/mepr-show]

OFFICE – 5151 E. BROADWAY BLVD., TUCSON
AccentCare at Home, Inc. leased 1,480 square feet at 5151 E. Broadway Blvd., Suite 560 in Tucson from KCI-Broadway, LLC, Scott Seldin-Broadway, LLC, Belmont-Broadway, LLC and Tucson 5151 Investments, LLC.  Brandon Rodgers, Principal with Cushman & Wakefield | PICOR, represented the tenant and Sandra Alter with Rein & Grossoehme Commercial Real Estate, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $18.00 – $21.00 SF/YR Full Service[/mepr-show]

INDUSTRIAL – 3755 E. 34^th ST., TUCSON
Symbius Medical leased 1,400-square-feet at 3755 E. 34^th St., Suite 121 in Tucson from Rodgers Investment Fund, II, LP.  Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord and Michael Coretz with Commercial Real Estate Group of Tucson, represented the tenant in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.60 SF/MO Modified Gross; Tenant Phone: 520.731.1046[/mepr-show]

 INDUSTRIAL – 850 E. OHIO ST., TUCSON
Innovative Autowerx, LLC leased 1,390-square-feet at 850 E. Ohio St., Suite 10 in Tucson from RRL, Inc.  Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR, handled this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.205.2415[/mepr-show]

INDUSTRIAL – 1870 W. PRINCE RD., TUCSON
Ron Learner leased 1,200-square-feet in Exchange Place, 1870 W. Prince Rd., Suite 59, in Tucson from Presson Corporation.  Rob Glaser, SIOR, CCIM, and Paul Hooker, Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.

INDUSTRIAL – 3720 S. PARK AVE., TUCSON
Area 520 Productions leased 1,170-square-feet at 3720 S. Park Ave., Suite 604 in Tucson from William Lee, LLC.  Ron Zimmerman, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.979.0517[/mepr-show]

RETAIL –SE CORNER of ST. MARY’S RD. and SILVERBELL RD.,- TUCSON
Raw Smoke Shop, LLC, leased 975-square-feet within Saint Mary’s Plaza. St. Mary’s Plaza is located at the southeast corner of Saint Mary’s Road and Silverbell Road and is anchored by Safeway and Dollar Tree.  Rick Borane and Dave Hammack of Volk Company represented Tucson St. Mary’s Plaza, LLC.

OFFICE – 3275 W. INA RD., TUCSON
Peak Action Physical Therapy, LLC leased 635-square-feet at 3275 W. Ina Rd., Suite 209 in Tucson from Caldor Investments of Arizona, LLC.  Tom Nieman, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $17.00 SF/YR Full Service; Tenant Phone: 520.269.6870[/mepr-show]

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Tucson net leased retail investments properties was the No. 1 alternative-investment pick for 2014.

As fixed-income yields remained historically low and equities surged, investors turned to gently rebounding net-leased single-tenant (NLST) real estate properties as a favorite for individual investors. The competition for NLST product in Tucson has been stiff in 2014. Private investors competed against institutional investors such as real estate investment trusts, insurance companies, and pension funds for investment-grade assets. Those properties leased by tenants that have received a credit rating of BBB- or higher from credit rating agencies such as Moody’s and Standard & Poor’s are seen by many investors as an alternative to bonds, producing a steady return with very little risk.

The following three Tucson retail sales closed before year-end 2014 and total $13.5 million.

AVG Partners of Beverly Hills, CA purchased the 45,000-square-foot property on 8.5 acres, occupied by LA Fitness at 8850 N Oracle Road in Oro Valley for $9.6 million ($212 PSF) in a sale leaseback agreement. The sale was part of a seven property investment portfolio sold by LA Fitness International. The buyer was unwilling to disclose method for price allocations or a total portfolio sale price. AVG Partners is a private equity group formed in 1997 for the purpose of investing in NNN commercial properties. Peter Gilbert, CCIM, Executive Vice President at AVG handled the transaction. See RED Comp #2373 for more information.

White Toys, LLC and Steamy Shops, LLC of Tucson (Rick Volk, managing member) acquired the 17,800-square-feet in two buildings on 2.9 acres at 11015 N Oracle Rd in Steam Pump Village Retail Center in Oro Valley for $3 million ($169 PSF). The property was 100% leased with five tenants when it sold: Tucson Children’s Museum, Carpet One, Baggin’s, Interior Expressions and Farmers Insurance.

The shops (aka Lot 1) are a portion of Steam Pump Village, a 42-acre, mixed-use project containing other businesses and amenities such as BASIS School, Chili’s, Quik Trip, Holiday Inn and the new HSL luxury Encantada Apartments at Steam Pump Ranch.

The seller was Evergreen-Steam Pump, and affiliate of Evergreen Devco of Phoenix (Bruce Pomeroy, president). Brenna Lacey and Rick Volk of Volk Company in Tucson handled the transaction. See RED Comp #2327 for more information.

HiFalutin Western Grill (Cheree Garrett, president) at 6780 N Oracle Road in Tucson sold to private investors, Thomas and Ines Leanard of Tubac, AZ for $850,000 ($257.58 PSF). The 3,300-square-foot restaurant was built in 2001 as an authentic hacienda style freestanding building bringing an old west feel to long-term tenant, HiFalutin, the same owner as gourmet sandwich shops, Baggin’s.

Stephen Grimm of Grimm Commercial handled the transaction for investors and seller, DG Oracle, LLC of Tucson (Marcel Dabdoub, manager). See RED Comp #2364 for more information.

To learn more about these transactions, Peter Gilbert can be reached at 310.273.0864. Make contact with Volk and Lacey at 520.326.3200. Grimm should be phoned at 520.323.9752.

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[mepr-show rules=”58038″] LA Fitness closed 12/26/2014. Exact sale price is $9,558,750. APN 225-12-065A. Although investor would not disclose cap rate for property or portfolio, other recent sales of LA Fitness have been delivering cap rates in general from 7.18% to 7.4% according to an LA Fitness representative. See RED Comp #2373 for additional information.

Lot 1 at Steam Pump Village Retail closed 12/12/2014. APN 220-08-452. The transaction was an upleg for one of the buyers in a 1031 exchange. Property sold at a 7.8% cap rate.

HiFalutin restaurant closed 12/24/2014. APN 12-03-150F. The property sold at a 9.4%-9.5% cap rate.[/mepr-show]

The former Chads Steakhouse & Saloon at 3001 North Swan Road in Tucson sold in an REO sale for $350,000 ($84 PSF). The buyer was ADG Swan LLC, (Stephen Grimm, managing member) a local investment group interested in redeveloping the property for restaurant or other use.

The seller was the U.S. Small Business Administration.

The 4,158-square-foot building on 22,366-square-feet of land was constructed in 1976 and has been a landmark property in Tucson’s steakhouse community for more than two decades.

Chad’s opened in 1991 and quickly earned a following for being a cowboy’s steakhouse. But a kitchen fire in July 2012 resulted in extensive water damage to the building when a sprinkler ran for hours not connected to the alarm. The restaurant rebuilt and reopened but then closed shortly after reopening in April 2013.

Rick Borane of Volk Company in Tucson represented the investors in the purchase.

Borane said the property is a prime location located on the northwest corner of Swan Road and Fort Lowell. “Swan serves as a main gateway route to and from the Foothills of Tucson, across the street from time-honored McMahons Plaza, kitty corner to the newly renovated upscale Plaza Palomino and within walking distance of Camp Lowell and Swan which is considered one of the most desired office locations in Tucson,” said Borane.

Grimm told us he would be handling the leasing of the property through his firm, Grimm Commercial for the investment group, “We already have interest shown in the property from several new concept tenants and would be willing to work with a restaurant tenant wanting to develop a new restaurant concept at an affordable lease rate at the site.”

To learn more Grimm should be contacted at (520) 795-5200. Borane can be reached at (520) 326-3200