The Southern Arizona CCIM Chapter held its 23^rd Annual Forecast Meeting Tuesday to a packed room of over 300 attendees. The Forecast is an opportunity for Tucson Commercial Real Estate Professionals to showcase their knowledge of our local market, share their data, thoughts, insights, opinions and suggestions as to where the local market is heading.

This year there was a special effort to bring City and County dignitaries to the event. City of Tucson Mayor, Jonathan Rothschild was keynote speaker and Ward 3 Council member Karin Uhlich also attended with Hector Martinez from the City of Tucson Real Estate Department. Although several County Supervisors had accepted the invitation, none were present.

Mayor Rothschild delivered an energized and honest review of the mechanics of being Tucson’s Mayor and what it looks like going from the 1^st floor to the 10^th floor.  Rothschild said he gets it and claimed, “The City Council is beginning to understand that it takes a thriving economy to bring all the community services that people want.”

Rothschild’s two-year plan spoke of the Five T’s: technology, trade, transportation, tourism and teaching as a way to create future jobs for Tucsonans.

Although subtle, the message was expressed often, that we are still the state of 5 C’s: cattle, cotton, citrus, climate and copper. As members of the industrial panel pointed out to the audience, the mining industry and its off-shoot businesses has been the major impetus for private job growth during the recession.

The forecast categories were industrial, land, finance, multi-family, office and retail. All predictions were similar, ‘expect slow growth’. One member of the multi-family panel finally said as she saw it, “Let Rosemont Mine open or nothing is going to change.”

Another panelist, a local commercial appraiser, expressed his thoughts with a limerick:

               There once was a town called Tucson

               That grew environmentalists quite fearsome

               Rosemont is delayed

               Grand Canyon was filleted

               No wonder our wages are gruesome

Nick Miner, a CCIM member from Phoenix who had also attended the CCIM Forecast meeting last month in Phoenix commented, “The Tucson Market appears to be four years behind Phoenix in the recovery.”

CCIM Chapter President, James Robertson, Jr. and Brandon Rodgers, CCIM, Vice-President and Market Forecast Chair warned at the start of the meeting, “There’s a sense in the Tucson market that we can see the light at the end of the tunnel and we don’t think it’s a train.”

INDUSTRIAL – 924 N TWEEDY ROAD, ELOY, AZ (PINAL COUNTY)
ELRUS of Calgary, AB, Canada, a heavy-duty mining equipment manufacturer, leased a 71,708 sq. ft. single-tenant industrial building at 924 N Tweedy Road in Eloy, AZ from Sky Cast Properties, LLC of Concord, ON, Canada. The building includes an expansive production area with reinforced floors and cranes in place, along with offices, men’s and women’s locker areas, lab space and other mechanical and maintenance rooms. In addition, the property has a secure fenced area and additional land available for expansion.

This is ELRUS’ first manufacturing facility in theUnited Stateswhere it plans to fill approximately 100 positions primarily for highly skilled mechanics and welders.

Pat Feeney, Dan Calihan and Rusty Kennedy of CBRE in Phoenix represented the landlord in negotiating the five-year lease. Kevin Lange of Cushman & Wakefield in Phoenix represented the tenant.

“ELRUS not only found a building ideally suited for its unique manufacturing requirement, but its location – between Phoenix and Tucson – will allow the company to draw from a wider pool of applicants to quickly fill its employment needs,” said CBRE’s Feeney. “The area’s pro-business environment was also instrumental in ELRUS’s decision to locate in Eloy, and the company should be up and running by the third quarter of the year.”

INDUSTRIAL – 420 E COLUMBIA STREET, TUCSON
JV Metals of Tucson, a metal recycler, leased 14,278 sq. ft. at420 E Columbia St. in Tucson. Located at Fair Avenue and Columbia, the four building complex is on a 2 acre industrial lot. Brandon Rodgers and Pat Welchert of Cushman & Wakefield / Picor Commercial Real Estate represented the tenant and landlord, Plastic and Metal Parts, Inc. of Tucson, in the transaction.

INDUSTRIAL – 230 EAST 27TH STREET, SOUTH TUCSON
2,784 sq. ft. of warehouse space at 230 E 27th Street was leased by Brandon Schilling. Ron Zimmerman of Newmark Grubb Knight Frank in Tucson represented the landlord, Tin Cup Properties.

RETAIL – HISTORIC BATES MANSION – 283 N STONE AVE, TUCSON
Marketplace Holdings dba Artfire.com, leased the Historic Bates Mansion at 283 N Stone Ave. in Tucson. The Tucson based web marketplace ArtFire.com will be moving their software development and web marketing team to the former home of the exclusive Mountain Oyster Club to launch a new artisan focused maker space on the property, called “Maker House”.

Maker House will serve as a community hub and education space for artists, artisans and creative entrepreneurs. It will feature classes, events, music, theater and tech ‘hackathons’ in the 5,000 sq. ft. historic space and the 5,000 sq. ft. courtyard, hidden behind 9 foot high walls. Maker House will also feature a new artisan coffee bar, in-house experts and access to creative equipment ranging from 3D printers to vinyl cutters, paper embossers, and computer guided sewing machines that artists and makers may not have readily available in home studios.

Renovation of the space is already underway. Maker House is projected to soft launch over the summer with a Grand Opening in September. ArtFire.com will move into the new corporate offices at the mansion in May.

John A. Jacobs, CEO and Founder of ArtFire.com says, “We’re excited to join the many companies, large and small, who are investing in the future of downtown Tucson. Moving ArtFire.com into this wonderful historic space perfectly matches both the future of tech companies in Southern Arizona and our commitment to artisans and the creative entrepreneur.”

Scott Soelter of Newmark Grubb Knight Frank in Tucson represented the landlord, Prudent Preservation Partners.

RETAIL – 6211 E SPEEDWAY BLVD, TUCSON
Rebellion Tattoo leased the 7,298 sq. ft. building at6211 E Speedway Blvd. in Tucson from MaS Enterprise. Greg Furrier and Aaron LaPrise of Cushman & Wakefield / Picor Commercial Real Estate of Tucson represented the landlord. Fred Seger of Fred Seger & Associates of Tucson represented the tenant.

RETAIL – 1730 WEST AJO WAY, TUCSON
TnT Fashion is opening its third location at 1730 West Ajo Way in Park View Plaza, at Mission and Ajo Way, where it leased 4,800 sq. ft. from Park View Plaza, Inc. Rick Volk of Volk Company in Tucson handled the transaction.

OFFICE – 1640 E RIVER RD, STE 208, TUCSON
Movement Mortgage, a Virginia based company, leased 3,926 sq. ft. at Mesquite Corporate Center, 1640 E River Road, Suite 208, in Tucson. Movement Mortgage, formerly New American Mortgage, is a privately held mortgage bank established in 2008. It was named by Inc. Magazine as the fastest growing mortgage bank in the country for 2012.

Tom Nieman of Cushman & Wakefield / Picor Commercial Real Estate represented the landlord, George Caughman. Gary Best of Keller Williams Southern Arizona represented the tenant.

OFFICE – 4811 E GRANT RD, STE 261, TUCSON
Arizona Institute of Urology leased 2,983 sq. ft. office space at the Crossroads Festival, 4811 E Grant Rd, Ste 261, at the northeast corner of Swan and Grant Roads in Tucson. The landlord, Larsen Baker, was represented in-house by Andy Seleznov and Melissa Lal. James Robertson of Realty Executives Tucson Elite represented the tenant.

Did we miss something?  To submit sales and leases email REDailyNews@outlook.com

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Since third quarter 2012, investors nationally have continued to exhibit a strong appetite for multifamily properties, a fact borne out by the sales in Pima County for first quarter 2013. From Jan 1 – March 29th, almost a third (28%) of all commercial sales in Pima County were for multifamily properties, from duplexes to larger complexes, it seems that investors are preferring Class-B and Class-C multifamily properties over other commercial real estate investments.

The Ranch at Star Pass student housing complex with 1020-beds in 336-units student sold for[mepr-show rules=”58038″]$26 million (25,500 per bed) see full story of March 5th at:
https://realestatedaily-news.com.previewdns.com/national-student-housing-groups-posture-for-ua-students-business/

The 364-units at Raintree Apartments at 6450 E Golf Links sold for $9.25 million, or $25,400 per unit as reported March 13th. See complete story at: https://realestatedaily-news.com.previewdns.com/raintree-apartments-sells-for-9-25-million/

Valencia Hills Apartments LLC of Reno, NV (Ernest Tschannen) transferred the 112-units at Tierra Hills Apartment, 3550 W Valencia, Tucson 85746 to National Safe Harbor of Tempe as part of a 1031 reverse exchange for $2.8 million, or $25,000 per unit. Danny Lee and Neil Sherman of Sperry Van Ness of Phoenix represented the seller.

Desert Atriums LLC of Tucson (Patrick Delaney) purchased the 37-unit Desert Atriums Apartments at 8750 E Cooper Street, Tucson 85710 in an REO sale from Washington Federal for $1.2 million, or $33,800 per unit with new financing. The 28,872 sq. ft. property on one acre was built in 1972. Neil Sherman of Sperry Van Ness in Phoenix represented the bank and Tony Reed of Long Realty in Tucson represented the investor.

JCAZ LLC of Tucson (Stephen & Jon Offerman) paid cash for the 35-unit Anandale Apartment complex at 5601 E 5th Street, Tucson 85711 from Mahalo Commercial Properties 10 LLC of Tucson (Celeschito Sapalo) for $902,424 or about $25,800 per unit. The 34,068 sq. ft. complex on 1.4 acres was constructed n 1970. Bob Kaplan and Allan Mendelsberg with Cushman & Wakefield / Picor Commercial Real Estate of Tucson handled the transaction.

A 4,079 sq. ft. main house and three guest houses with 2,976 additional sq. ft. on 5.25 acres in Casas Adobes at 1685 W Ina Road, Tucson 85704 was purchased by Kelly McGinnis of Tucson for $505,000 from Joseph P Lenihan with seller financing. The 7,055 sq. ft. property was constructed from 1946 to 1960. There were no brokers involved in this transaction.

Tajinder Singh and Inder Preeticaur of Oro Valley sold the 47-unit Primavera Apartments, newly rebranded, Mi Casita, at 252 W Valencia Rd, Tucson 85706 to Valencia Tucson LLC (Megan Saputo) of San Diego for $700,000, or $14,900 per unit. The 2-story complex with 30,104 sq. ft. in 3-buildings is on 1.51 acres, built in 1961. Justin Lanne of Newmark Grubb Knight Frank of Tucson handled the transaction.

Diamondhead Estates LLC (Robert and Henry Balsinger) bought 6-units at 2701-2703 E Copper Street, Tucson 85716 for $475,000, or $79,000 per unit, from John and Grazyna Stanek. The 6,659 sq. ft. was built in 1961 on a 23,000 sq. ft. lot.

A duplex at 245-247 E Blacklidge Dr, Tucson 85705 was sold by the Parcelluzzi Family LLC (Allan and Tina Parcelluzzi) to Preston Phillips, a former renter in the duplex for $475,000, or about $50,000 per unit and new FHA financing. The 1,602 sq. ft. building on a 6,098 sq. ft. lot was built in 1972. Aaron Fisher of Tierra Antigua handled the transaction.

Jerome Hallberg of Tucson bought the 12-unit Coronado Terrace apartments at 2428 N Fontana Ave, Tucson 85705 from Mindy Sonen of San Diego for $450,000, or $37,500 per unit with seller financing. The 9,263 sq. ft. single story building on 35,981 sq. ft. lot, constructed in 1982 was 92% occupied at time of sale. Mike Schulte of the Schulte Company represented the seller and Matt Tennyson of Keller Williams of Southern Arizona represented the buyer.

Roland Johnson of Florida sold two duplexes at 4440-4444 E Pima St, Tucson 85712 for $352,000, or $88,000 per unit to Vijaya Chada of Tucson. For complete story on February 21st, go to:
https://realestatedaily-news.com.previewdns.com/two-central-tucson-duplexes-sell-for-88000-per-unit/

The Gary Lee Fugua Trust of Portland, OR (Gary Fugua) sold a fourplex at 1650 E Adelaide Dr, Tucson 85719 for $325,000, or $81,250 per unit, to Russell and Caroline Duff. The single building with 3,689 sq. ft. is on a 20,038 sq. ft lot was built in 1998.

Justin & Andrea Hafner of Tucson bought 5-units at 2667 N Dodge Blvd, Tucson 85716 the Moghadam Family of Tucson for $190,000, or $38,000 per unit with a seller loan. The 2,749 sq. ft. in three buildings was built from 1945 to 1982 on a 17,898 sq. ft. lot.

Jesus Lopez Zavala bought 8-units in two separate transactions at 1201-1204 E Milton and 1233-1239 E Milton Road, Tucson 85706 for $181,500, or $22,690 per unit in a cash transaction. The two 2-story fourplexes are an aggregate of 6,960 sq. ft. built in 1981. Marsee Wilhems of the Marsee Wilhems Group with Re/Max Majestic of Tucson handled the transaction.

A fourplex at 420-430 E Delano Street, Tucson 85705 was purchased by Justin List of Tucson for $190,000, or $47,500 per unit from Hannelore McAdams of Tucson and private financing. The 2,532 sq. ft. in two buildings was built in 1964 and 1967 on a 15,720 sq. ft. lot. Don Knittel and David Guthrie of Coldwell Banker in Tucson represented the seller and David Aguilar of Keller Williams Southern Arizona represented the investor.

A triplex at 4729 E 2nd Street, Tucson 85711 was purchased by Kelli Alexander LLC (Kelli Alexander) of Tucson in an all-cash deal from Anna Burchard of Tucson for $172,000, or $57,300 per unit. The 2,448 sq. ft. building on a 10,454 sq. ft lot was built in 1959. James Robertson of Realty Executives Tucson Elite handled the transaction.

A duplex at 4055 E Lee St, Tucson 85712 was sold by Beverly Neblett of CA to Michael and Debra Rosko for $113,500, or $56,750 per unit using new conventional financing. The 1,650 sq. ft. building on a 6,282 sq. ft lot was built in 1982.

Ricardo and Christi Bermudez bought a triplex for $69,900, or $23,300 per unit from Deep Canyon LLC (Angus Maughan) with The 1,452 sq. ft. at 405-409 W Columbia, Tucson 85714 was constructed in 1953.

For more information, Sherman can be reached at (480) 425-5500. Reed is at (520) 918-5189. To contact Kaplan call (520) 546-2737 and Mendelsberg at (520) 546-2721. Lanne can be reached at (520) 321-3330. Schulte is at (520) 885-5900 and Tennyson is at (520) 615-8400. Knittel and Guthrie can be contacted at (520) 745-4545 and Aguilar at (520) 615-8400. Robertson should be reached at (520) 877-4940. Wilhems is at (520) 885-9000. Fisher can be reached at (520) 318-5290.

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