CBRE Announces $2.06 Million Sale of STNL BrakeMAX in Marana (Tucson), Ariz.

BrakeMAX, 6055 W. Jenna Nicole Ln., Marana

Phoenix, Arizona CBRE announced the sale of a single tenant net investment sale of a BrakeMAX in Marana (Tucson), Ariz. sold to a 1031 exchange buyer, 6055 Jenna Nicole, LLC, a private Tucson-based investor for the asking price of $2.06 million. ($377 PSF) in one of the first sales being reported in 2021.

CBRE’s Nancy McClure in Tucson, along with Philip D. Voorhees and Jimmy Slusher in Newport Beach, Calif. represented the local private seller. The buyer was represented by Danny Gardiner and Chad Tiedeman, Phoenix Commercial Advisors, Phoenix, AZ.

The property, located at 6055 W. Jenna Nicole Lane, consisting of a single use automotive service building of 5,464-square-feet that was built in 2003 for BrakeMAX.

BrakeMAX is a regional operation owned by a New York Private Equity group, Greenbriar Equity with 16 locations across greater Tucson.

“This property attracted a number of offers from highly-qualified buyers,” said McClure. “This commercial asset type is extremely attractive to high-net-worth individuals, family offices and other investors—especially those looking for necessity-oriented net lease properties like this one.  It is internet-proof and continued to operate during the pandemic.”

For more information, McClure should be reached at 520.323.5117.

To learn more, see RED Comp #8407.




Midtown Retail Center, Midstar Plaza in Tucson sells for $5.15 Million

TUCSON, ARIZONA — CBRE has announced Midstar Plaza in Tucson, Ariz. sold to LBM Investments, a private San Diego-based investor for $5.15 million ($102 PSF).

CBRE’s Philip D. Voorhees, Jimmy Slusher and Sean Heitzler in Newport Beach, Calif. along with Nancy McClure in Tucson represented the local private sellers. The La Jolla, Calif.-based exchange buyer was represented by Maha Odeh-Arnold of Zeal Property Group in San Diego.

The property, located at 4500-4594 E. Broadway Boulevard, is a mixed-use center consisting of 50,005-square-feet of retail and 2nd floor office space. The seller had purchased the project in the early 2000’s and redeveloped it with new interiors, exterior façade and a new high-profile pad on the corner.

The transaction included the assumption of an existing loan from Ohio National Life Insurance Company for approximately $2.23 million, producing a 43.6% loan-to-value at a 4.75% interest rate, fully amortizing and due in January 2035. The assumption was facilitated by CBRE Loan Services, Inc. out of Houston, the correspondent servicing the Life Company loan since inception.

“The assumption process was smoother than typical, particularly during COVID, completed in less than 45-days from application,” said Slusher. “This was thanks in part to an experienced purchaser, organized seller and CBRE’s loan servicing team working in conjunction with all parties.”

Midstar Plaza’s 20 retail tenants include a collection of local restaurants, including Opa’s Best, Polish Kitchen, CI Chu’s Mongolian Barbeque, a coffee shop, children’s boutique, hair and nail salons, an Irish dance studio, among others. The 17 co-work style office tenants include Lendmark Financial Services, Shumaker Wengren LCC and U.S. Government military recruiting offices.

“Over time, the ownership successfully curated a tenant mix of national, regional and local businesses, enabling the center to enjoy stabilized occupancy even during COVID,” said McClure, the leasing agent for the property. “Midstar’s location on Tucson’s prime retail and corporate office corridor, Broadway Boulevard, exposes the center to high traffic counts and a continual customer flow looking for unique restaurant offerings, merchandise and services.”  McClure added, “The property has also proudly served as a midtown location for the U.S. military recruiting offices for over a decade.”

To learn more, see RED Comp #8378.




Retail is not dead, boring retail is

By:  Nancy McClure, First Vice President, CBRE Tucson

Sensational headlines proclaiming the demise of physical retail have grabbed the attention of the public recently.  However, consumers are still making the majority of their purchases in brick and mortar stores.  Shoppers are looking for more than merchandise, they are looking for human experiences, connectivity, and the ability to touch and feel the product. The lines between where purchases are made has been blurred. Customers browse on-line and buy in-store; buy on-line and pick-up or return in-store; try on in-store and buy on-line. The rules have changed, and purchasing habits have transformed, as well.

The challenge for physical retail is to differentiate themselves, provide excellent customer service and interesting, relevant products.  The challenge for landlords is to create exceptional experiences, those that over-paid for properties are having difficulty pivoting to reduce rents and meet the market.  The science of retail is changing at warp-speed and everyone is working to keep up. Demographics, not e-commerce is the number one disruptor in retail.

Tucson is seeing many big box vacancies without the speed of traditional retailers looking to re-fill spaces.  There are other, non-traditional retail uses; entertainment, fitness, self-storage, medical that see vacancies as an opportunity to enter the market.  The addition of one of these often make centers more interesting and attract customers for more frequent visits. Unfortunately, leases often restrict uses other than true retail. Landlords have to work with their tenants or pay to allow for mixed uses.

One bright spot for Tucson over the past several years has been the attraction of new restaurant concepts; the right restaurant can act as new anchors for centers. That being said, one challenge restaurants face is the legislated increase in minimum wage and paid leave.  This financial pressure on local restauranteurs has caused closures.  Prime regional locations are always the target with eateries and bars. Tucson’s downtown has been a magnet for local restaurants to launch new concepts.

Arizona had one of the hottest tourism years on record and this bodes well for retail—restaurants, hotels, and storefronts are all winners when tourists come to town. Tucson’s proximity to the Mexican border makes it easy for Mexican tourists, business people, and investors to travel to the area and make major purchases. Retailers and restaurants, properly staffed, with bilingual signage gain loyal customers and word of mouth.  It’s the time to break away from traditional business models and choose to be remarkable to gain consumer attention.

For further information on Tucson’s Retail Market this quarter click here.

Nancy McClure specializes in representing local and national retailers in their expansion pursuits across the Tucson area and other key markets in southwest Arizona. With more than 31 years of professional experience, Nancy has extraordinary insight into Tucson’s unique retail landscape, cultivating strong relationships and earning clients’ trust along the way through her dedication and commitment to creating exceptional real estate solutions.