TUCSON, Ariz. – CBRE announced the $31.15 million sale of a 426-unit multifamily portfolio consisting of one- and two-bedroom casitas in 28 communities across the greater Tucson area.

CBRE’s Tucson capital markets team comprised of brokerage, debt and equity and appraisal services all contributed to the transaction. The buyer, HZ One, LLC, a Tucson-based venture led by Chris Kemmerly, Marcel Dabdoub and Ike Isaacson, plans to brand the portfolio as San Xavier Casitas.

CBRE’s Capital Markets Debt & Structured Finance team, Tim Prouty, Kevin Prouty and Theresa Witz, secured a debt package consisting of 12 separate loans – eight standalone loans and four grouped loans – originating from the Freddie Mac Small Balance Loan program.

“The portfolio’s expansive presence across the Tucson metro provided stability and ultimately helped secure the financing,” said CBRE’s Tim Prouty. “The added flexibility offered by the Small Balance Loan program was crucial to a successful structuring of the debt.”

The loan package was the largest single Small Balance Loan financing completed by CBRE and Freddie Mac since the program began nearly two years ago.

Byron Bridges with CBRE Valuation & Advisory Services in Tucson led the team’s appraisal services.

For additional information, Isaacson can be reached at 520.777.4089 and Prouty should be contacted at 520.323.5123.

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[mepr-show rules=”58038″]Sale date: 3/15/2018. Sale price: $31,148,700. Document #2018-0740846. (324) APNs Seller: Hazen Townhomes, Brent Hazen, manager.[/mepr-show]

TUCSON, Arizona — The Saint Augustine Diocese School at 415 S 6^th Avenue in Tucson sold to an investment group comprised of Marcel Dabdoub and Ron Schwabe for $1.5 million ($95 PSF).

The two-story building, known as the Diocese School Building, is a contributory historic building that closed as a school 10-years ago and has been vacant for about 5 years.

The buyers, major developers in Downtown Tucson, purchased the vacant property to rehab into 30 residential units with retail on the ground floor. The 15,736-square-foot building, built in 1948, will be renovated into two-thirds residential use, 18 loft units upstairs and one-third retail.  The 1.37 infill acres is platted for four 4-plexes which will add an additional 16-units and a two-level parking structure on the large lot.

“Retail on ground level was tenant inspired by a Phoenix restaurant / bar owner,” Schwabe said.  “Retail space downtown is in very high demand these days.”

The seller, Saint Augustine Cathedral Roman Catholic Parish, was represented by Pat Welchert with Cushman & Wakefield | Picor at time of sale, and now with Alpha Commercial Real Estate Service in Tucson.

Welchert can be reached at 520.360.9394, for more information.

To learn more, see RED Comp #4685.

Another Dabdoub and Schwabe investment group bought the former Wig-O-Rama building at 98-112 E Congress Street Downtown Tucson for $950,000 ($89 PSF).

The 10,630-square-foot two-story building was built in 1915 on a 9,900-square-foot lot at Congress and Scott Avenue. The building was vacant at time of sale. There are five tenant spaces currently that buyers plans to split one space for six tenants.

Although Schwabe wasn’t ready to announce any tenant names, he said there’s plenty of demand downtown, and several restaurants have shown an interest in this space. “We could lease these spaces quickly, but we’re trying to create a synergy between the tenants there,” Schwabe said. “We’re currently talking to The Loft Cinema to do a one screen trial here.”

Kristy Kelley with Long Realty represented the sellers, Suk Hoo and Myung Soo Kim. Schwabe with Peach Properties in Tucson represented the investors in both transactions.

For additional information, Kelley should be contacted at 520.299.2201 and Schwabe is at 520.798.3331.

To learn more, see RED Comp #4665.

TUCSON, Arizona — Developers Ron Schwabe and Marcel Dabdoub purchased the historic Gus Taylor building at 128 East Congress in Tucson for $850,000 ($124 PSF). Vacant at time of sale, the 6,875-square-foot, 2-story with mezzanine building, built in 1916, sits adjacent to the former Chicago Music Store. The first and second floors of the two buildings were once open and connected.

The building was owned by the same property owner as the Chicago Music Store who sold it several years ago to a recording studio operation, St. Ceceilia Studios, that has since closed and offered the building to Schwabe and Dabdoub.

The ground floor had been renovated as a recording studio, with new electrical and plumbing installed as part of the remodel.

The developers also own the Chicago Music store that is under redevelopment next door with redevelopment assistance from the Rio Nuevo District for 25% of the final project value based on appraisal at completion.

Buyer plans to convert the ground floor at 128 E Congress into a Bar/Restaurant concept for lease and the upstairs into offices.

At its January meeting, the Rio Nuevo Board approved an additional $650,000 for the developers who have already begun remaking the downtown Chicago Music Store into a retail center. Being located within the Tax Incremental Financing District, the board expects to be repaid through increased sale taxes generated by the new retail and pays nothing for the project until the retail is complete and producing revenue.

The board had previously approved $1.4 million for the Chicago Store redevelopment with the same terms and this was in addition for the extended project. The Chicago Music Store building is being gutted and retrofitted for retail and Schwabe expects some stores may be open there by fall.

“Retail is the final piece to the downtown puzzle which began almost a decade ago,” Schwabe said. First came the nightlife followed by housing. Now we have nearly 2,000 housing units under construction or planned downtown and retail is the final piece.

For more information, Schwabe can be reached at 520.798.3331 ext. 110.

To learn more, see RED Comp #4582.