Op-Ed by Mark Irvin, CCIM, SIOR

Despite many requests, Rio Nuevo has chosen not to take a position, as a group, on the Broadway Widening.  Candidly, I am glad we chose that route.  The kitchen is already crowded with too many cooks.

Yes, many business and neighborhood groups including the “Sunshine Mile” supporters (a group that mysteriously appeared last year when these discussions started heating up) have reached out to us as a board and to many board members independently seeking our support to defeat the current 30% plan.

However, we have also heard from others with opposing views on why Rio Nuevo should take a differing position and urge the City to move forward on the 30% plan.

Some, including one elected official, have even suggested that Rio Nuevo provide some funding to rehab or move some of the buildings in question given this area is part of the Rio Nuevo TIF funding district.

To have some in the City, and elsewhere, suggest that Rio Nuevo should provide funding to restore old buildings, many with functional obsolescence and serious environmental issues, shows a lack of understanding of our mission.  To also suggest that these property owners along Broadway are looking for a taxpayer funded windfall is comical.  None of the property owners I have visited with want the City to do anything more than make a decision.  After 30 years, they are exhausted.

To be blunt, old buildings are not in and of themselves historic.  This, more than anything, seems to be the crux of the argument for those who do not like the recent compromises as are reflected in the compromised “30%” plan. Those neighbors would prefer a serpentine road design that would be narrowed down considerably and in many cases removing bus pullouts rather than doing what the voters approved.

The history on the Broadway widening has been going on since 1997 when the community approved the county bond package and that decision was further reinforced when the RTA plan, which included an eight-lane Broadway roadway, passed in 2006.  Now, despite a number of compromises, the empowered Citizen’s Task Force still wants more concessions.

During that same year when the RTA was approved (2006) Pima County also passed two other bond packages that were designed to finance the improvement of the emergency room at Kino Hospital and also to build a new psychiatric hospital on the Kino campus.  I served as Vice Chair and treasurer to those efforts and am proud to say that both projects were approved, have been completed and are serving our community.

Over ten years later, I am not sure we have gotten much closer to getting the Broadway Widening plan moving.   What has occurred is that the area has become a poster child of urban blight.  Our firm has chosen to not take real estate listings for sale or lease in this area as our experience over the past 30 years has shown that we are simply unable to sell properties in this section of Broadway given the uncertainty.   All of it was caused and is being reinforced by inaction from our City leaders.

When I stepped into the newly reconstituted Rio Nuevo board six years ago what I found is that the former city controlled board had plans for just about everything but very little to show for it.  Obviously much has changed downtown with new leadership on the board.  This section of Broadway is very much like this.  It has been studied over and over and perhaps even studied to death.  To make matters even more difficult and divisive the City appointed a Citizen Task Force who apparently felt it is their mission to design the road despite having no experience in this endeavor.

It has been about 30 years since the property owner’s on Broadway were placed in limbo.  Most had thriving businesses but, due to the uncertainty of the widening, few wanted to invest in their real estate not knowing if their property would be taken or not and who can blame them.  Ultimately blight set in.  Just drive the area and you will see vacant buildings many with chain link fencing or windows boarded up.  The homeless and drug users seem to enjoy their free use of these properties.

Obviously, this is a poor reflection on our community and damages the gateway into downtown Tucson.  These vacant buildings are also not contributing anything financially to the Rio Nuevo district.

Much has been made about traffic studies that were done 10 years ago and that perhaps we do not need to make these widening changes and should consider reducing the scope of the project.  After much discussion the Citizen Task Force made their recommendations and after much work by City engineers and other traffic experts the plan was modified to six lanes.  Although not perfect, it appears to be a reasonable compromise.

As anyone who has paid attention knows, downtown is very much on the rebound.  I would like to see our downtown continue to be a hotbed of energy and new development.  In fact, I would love to see the “downtown crane” become our new city bird.  Addressing the Broadway Widening is needed now and I encourage Mayor and Council to approve the 30% plan and get moving on this much needed roadway improvement.

Lets stop and think what has occurred downtown just since 2006 when the RTA was approved.  The city brought us the modern streetcar spurring a lot of new activity and redevelopment downtown.

The private sector bought us numerous student housing projects, a significant number of residential redevelopment, restaurants and other entertainment venues.

Rio Nuevo partnered with the private sector to break ground on the new AC Marriott Hotel.  This is the first hotel in downtown in over 50 years.   Many other new construction projects have been completed and others are in process.  So too have been the addition of many new restaurants and other entertainment options being added downtown

A recently renovated TCC arena by Rio Nuevo will also allow it to seek various venues that before it could not reach due to the outdated conditions there.  That issue has been addressed and significant new activity is starting to occur. To be blunt, the growth continues.  All will add traffic into and out of downtown.

Sitting at the City Council Meeting last week I was proud that both those for the widening and those against were given equal time and for the most part were very courteous to one another.  I was one of those selected and given a chance to address Mayor and Council.

I found it ironic that two of the three GPLETS the city approved that night were for downtown projects and pointed this out to the City in my comments.  All of these new developments will bring increased employment and housing opportunities to downtown.  They will also bring more traffic.

During my comments, I also pointed out to Mayor and Council that over the last 3 years Rio Nuevo has invested just over $19M downtown, which has generated $174M in new construction activity in the Central Business District.  All of this activity will generate additional traffic.

We also need to be mindful that as we continue to recover from the Great Depression more activity will be happening downtown.  All will generate more, not less, traffic.  Also, a newly improved Broadway will bring new development too.  What holds that area back is a lack of direction by the City of Tucson.  With that comes stagnation.

As I advised the City, and as I do for the casual reader here, my comments are mine alone and do not reflect those of the Rio Nuevo Board.  Rather, they are the result of my 30 years of experience working in commercial real estate in Tucson.  Most of that time I have had my office downtown or on the Broadway Corridor.  I travel this section of Broadway many times daily.  I have watched this area slowly sink into a ghetto like feeling place in our community over the years.  Delaying a decision will only further add to the these woes.

We only have one chance to get it right and that time is now.  No plan is perfect but this one is a realistic compromise.  Please join me in reaching out to Mayor and Council about this important issue and ask them to support the 30% plan.

Mark Irvin is a real estate broker – consultant who has been active in Tucson since the mid 80’s.  Besides being the longest tenured board member for Rio Nuevo, Mark has been active downtown during this time as well.  He holds professional designations as both a CCIM and SIOR.  In fact, he is the only office and medical specialist holding both designations. 

Mark is consistently ranked as one of the top real estate professionals in Tucson and before retiring from competition Mark won the CCIM annual real estate market forecast four times including back-to-back-to-back wins. 

 

 

 

 

 

 

Move signals company’s commitment to creating an innovative employee culture

Tucson, AZ – Sunquest Information Systems Inc. announced Monday plans to relocate their headquarters to 3300 E. Sunrise Drive., an office complex known as the former Muscular Dystrophy Association (MDA) building in the Tucson Foothills.

Sunquest Information Systems Inc. provides diagnostic and laboratory information systems to more than 1,700 laboratories. For the past 30 years, Sunquest has delivered solutions that optimize financial results, enhance efficiency and improve the quality of patient care. The company’s pathology-focused mission, outreach awareness and point of care solutions establish Sunquest as a leader in the healthcare technology industry. Headquartered in Tucson, Sunquest also has offices in the United Kingdom and India.

Sunquest expects the move to enhance its innovative culture and allow for its future growth.

The 3300 E. Sunrise office building is considered by many to be an architectural treasure. It was selected by Sunquest for its iconic design, open floor plan, and dramatic views of Tucson’s high desert landscape through floor-to-ceiling windows. The building’s aesthetics will foster employee collaboration and innovation, as well as become an inviting environment to host Sunquest’s international clientele.

“Our employees are our greatest asset and they are dedicated to Sunquest’s mission to make healthcare smarter and patients safer. Selecting the 3300 E. Sunrise office as our corporate headquarters is an investment in our employees and our performance-oriented culture. It is also an investment in Tucson as the place that Sunquest will call home for years to come,” said Matthew Hawkins, president of Sunquest. “We will create a setting where our employees and clients will find the inspiration to innovate and collaborate.” The Company anticipates a move-in date of fall 2016.

Sunrise Campbell Investors, a Larsen Baker LLC sponsored partnership, bought the mostly vacant MDA building in April 2014. Larsen Baker, LLC is a Tucson based real estate brokerage, investment and development company that owns and manages a portfolio of over 2,400,000 sq. ft. of commercial properties in Southern Arizona.

Don Baker, principal at Larsen Baker said, “The decision to buy this 83,000-square-foot building was based on our faith in Tucson. Our city can compete for world-class high tech companies, and this building is a world class high tech office, right here in Tucson. We knew we would find a great tenant for it.” The Sunquest lease is one of the largest office lease transactions of the past few years.

Sunquest selected Seaver Franks Architects A.I.A. as its project design consultant. In the lease transaction, the landlord was represented by Andy Seleznov, CCIM, and Melissa Lal, CCIM of Larsen Baker,LLC. The tenant was represented locally by Mark Irvin, CCIM, of Mark Irvin Commercial Real Estate.

For related article see Five Significant Tucson Office Leases Just North of 162,000 SF

 

NOVA Financial & Insurance Services (NOVA), through an affiliate, 1630 E River, LLC (Jacob Kagele, manager) purchased the 8,339-square-foot office condominium it occupied at 1630 East River Road, at Mesquite Corporate Centre, in Tucson for $1.25 million ($150 PSF). The class-A office space, located at Campbell Ave and River was purchased by Nova after being a tenant for several years and the property became available for sale, listed by Roger Breckenridge of Long Realty in Tucson.

NOVA is a full service financial services company that believes a solid investment strategy must be developed individually for each client by focusing on their core goals and interests.

NOVA Financial & Insurance Services uses National Financial Services, LLC, a Fidelity Investments company as custodian. They are one of the largest providers of brokerage services nationally. National Financial Services LLC serviced over 18.5 million accounts representing $1.7 trillion in assets in 2008. NOVA Financial and Insurance Services’ partnership with National Financial Services ensures that our clients will receive the personalized investment attention they deserve coupled with the security of a stable, nationally recognized investment corporation.

Breckenridge represented the seller, A&B Ventures of Tucson in the transaction and Mark Irvin of Mark Irvin Commercial Real Estate represented the buyer.

To learn more Breckenridge should be reached at 520.918.5813. Irvin can be contacted at 520.620.1833

 

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In an unrelated transaction, the Food Conspiracy Cooperative decided to purchase the Hoff Building at 425 E 7^th Street and adjacent lots at 413 & 415 N 3^rd Avenue in Tucson for $650,000 ($100 PSF) instead of continuing to lease the property.

Since signing the lease on the 6,497-square-foot property at 425 E. 7^th Street a couple of years ago, the Coop had made many improvements to it, installing a new state-of-the-art kitchen, expanding the administrative offices, and set up a “Community Room” for classes, movies, lectures, and events. “Obtaining the property has been a tremendous boost to the Co-op,” according to a written statement, “enabling it to continue with the renovations by remodeling the store and giving it the facelift it deserves to meet the challenges and opportunities afforded by the growth of Downtown.”

In addition to the building, the Coop has built the Conspiracy Gardens on the lots purchased, the Co-op’s urban micro farm that provides fresh, local produce for sale and for use in the kitchen. With the help of a grant from the City it was able to set up a water harvesting program. Owning the Hoff Building will also make it easier to undertake other renovations and projects in the future, without having to negotiate with the owner for permission. Owning the property will help to meet future needs of the Coop.

Quentin Bryson of Quentin Bryson Realty in Tucson handled the transaction for seller, Hoff-7^th, LLC (Ann Lovell, manager) and the buyer.

To learn more Bryson can be reached at 520.780.0808.