The office building at 5102 E Pima Street in Tucson sold for $420,000 ($105 PSF) in a sale leaseback transaction to a private investor, Alexandra Siegal of Steamboat Springs, CO. The seller was Vast Commercial Real Estate of Tucson under an affiliate One Eighty Three Investment Group, LLC (Jon O’Shea and Rob Fischrup, principals).

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[mepr-show rules=”58038″]The 3,986 square foot building was fully occupied by two tenants when it sold, the seller Vast Commercial and Tool Force One. Vast will continue to occupy their portion of the building that includes the second floor in a sale leaseback agreement with the buyer.

The transaction was the buyer’s upleg in a 1031 exchange, who recently also purchased the Southwest Professional Plaza offices at 2122-2224 N Craycroft Road in Tucson for $2.2 million in which Vast represented the seller. For full story on Southwest Professional Plaza sale click here.

The property was built in 1974 and had undergone a complete renovation prior to the purchase. The seller bought the property in March 2012 to owner occupy.

Loui Antonucci of Keller Williams in Steamboat Springs, CO represented the buyer and Jon O’Shea of Vast Commercial Real Estate was self-represented in the transaction.

O’Shea can be contacted at (520) 780-4743. Antonucci can be reached at (970-871-1960.[/mepr-show]

[ismember]Sale date was 8/26/2013. Escrow was 2 weeks.  Property sold at a 9% cap rate.[/ismember]

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Pima Professional Plaza at 5700 E Pima Street, at Craycroft and Pima in Tucson, sold in a receivership sale for[mepr-show rules=”58038″]$1.9 million ($95 PSF) with some seller concessions. The investor is a local investment group put together by Eddy Chernecki of Tucson. Eileen Lewis of Cushman & Wakefield / Picor was  receiver for the seller, Hamilton-East Pima, LLC of California and the lender in the transaction.

The 20,041 sq. ft. medical complex (built 1978) on 2.23 acres was 50% occupied by four high quality medical groups with upside potential in new leasing when it sold. The center offers convenient medical space near Tucson Medical Center and other Eastside hospitals as well as financial district.

The highly visible property features easy access from Pima Street and ample parking for clients and patients. Many of the suites had recently undergone extensive interior renovations.

Healthcare practitioners readily anticipate the significant increase in demand for medical services expected over the next decade. Shifting demographics and new heath care legislation are expected to expand the patient base. As a result, job creation in the healthcare field is expected to mirror the increased demand in the industry. In response to this growth, the Urban Land Institute estimates the demand for medical office buildings (MOBs) will increase 19% by 2019. The recent spike in demand for quality medical space in the region is indicative of that trend.

We continue to see a flight to quality within the medical office market as practices seek to upgrade facilities and increase efficiency. The healthcare industry is working to meet the demand of a rapidly changing environment and companies are getting creative and more resourceful.

Andrew Sternberg, Specialist in Professional and Medical Office Services with Oxford Realty Advisors in Tucson represented the seller in the transaction. Rob Fischrup and Jon O’Shea, Principals, Specialized in Investment Sales and Acquisitions at Vast Real Estate Solutions in Tucson represented the investor.

For additional information, Fischrup and O’Shea should be contacted at (520) 624-9400. Sternberg can be reached at (520) 232-0200.[/mepr-show]

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[ismember]Sale date was 8/1/2013. Net sale price was $1,550,000 after $350,000 was held back in escrow to be paid by seller for deferred maintenance. Buyer paid $475,000 down and obtained new financing for the balance. Escrow time was reported to be 60 days. Property sold with an approximate NOI of $100,000, a 6.45% cap rate based on income at time of sale and property 50% vacant. Asking base lease rate was reported at $16/SF/ modified gross [/ismember]

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Alexandra Siegal of Colorado purchased the Southwest Professional Plaza at 2122 – 2224 N Craycoft Road in Tucson for[mepr-show rules=”58038″]$2.2 million ($84 PSF) from 2222 Craycroft, LLC of Tucson (Eddy Chernecki, managing member). The 26,258 sq. ft. in six buildings were constructed from 1967 to 1972 and sold 86% occupied with softer medical tenants.

According to public records, tenants included Standard Insurance & Realty, Immune Recovery & Wellness, Patient Care Advocates, New Path Natural Healing, Providers Direct, Nails Naturally by Joyce, Personaleyes Prosthetics, Better Bodies PT, Arizona Naturopathic Physicians, IBC Business Solutions, La Frontera Arizona, Presidio Counseling, and Southwest Ambulance or Tucson as well as professional practices such as Dr. Richard Stag, DDS, Dr. Ross Burton, DDS and David Hancock, DC.

The property was in good condition when it sold with recently completed tenant improvements.

Jon O’Shea of Vast Commercial Real Estate in Tucson represented the seller. Loui Antonucci of Keller Williams in Steamboat Springs, CO represented the investor.

Vast Commercial Real Estate has been retained for property management and leasing by the new owner.

O’Shea should be contacted at (520) 780-4743. Antonucci can be reached at (970) 871-1960.[/mepr-show]

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[ismember]Market time for sale was 2 months with a 70-day closing. Seller reported property sold with no deferred maintenance. Property sold with a GSI of $380,741 and NOI of $200,000 and sold at a 9% cap rate. Average lease rate was $14.50 / SF / MG. [/ismember]