TUCSON, AZ – Pier 1 Imports at 5919 East Broadway Blvd. in Tucson sold in a net lease sale for $3.782 million ($335 PSF) to a California investor, Barrett Associates of Castro Valley California (Kent Woodell, manager).

Pier 1 has operated at this location for 25 years, since 1990, and recently extended its lease thru May 2023.

The property benefits from its superb retail location immediately across the street from the Park Place Mall, a 1.1 million-square-foot General Growth Properties center with over 150 retail, restaurant and service tenants. Broadway Boulevard is a major east/west arterial in the trade area with over 53,000 cars per day, and more than 250,000 people in a 5-mile radius.

Nordstrom Rack will be opening (2016) nearby at the northeast corner of Broadway and Wilmot Road, joining Dick’s Sporting Goods, TJ Maxx, AT&T and Burger King.

Pier 1 also has great retail synergy with Peter Piper Pizza and Verizon, generating continuous traffic.

The corporate NNN lease with Pier 1 Imports (NYSE:PIR) which operates over 1,000 stores, has a market capitalization of approximately $333 million, 2015 revenue of $1.87 billion (5.3% sales growth in 2015), and a S&P rating of B+.

Nancy McClure with CBRE in Tucson and Philip Voorhees, Megan Wood and John Read with CBRE in Newport Beach California represented the seller, Burnham USA Equities of Newport Beach, CA

For additional information, McClure should be reached at 520.323.5117, and Voorhees is at 949.725.8521.

Login for additional information and to learn more see RED Comp #3994.

[mepr-show rules=”58038″]Property was 100% occupied with a NNN lease with Pier 1 Imports at time of sale and sold with an NOI of $299,105 and a 7.9% cap rate.[/mepr-show]

Seattle-based Nordstrom, Inc. (NYSE: JWN) announced Thursday plans to open Nordstrom Rack at Wilmot Plaza in Tucson, Arizona. The approximately 25,000-square-foot store is scheduled to open in spring 2016. The property is owned by BP Wilmot Plaza LLC, an affiliate of Bourn Companies LLC, a commercial real estate investment, development and services company based in Tucson, Arizona.

Nordstrom Rack will be joining fellow anchors TJ Maxx and Dick’s Sporting Goods in the redeveloped Wilmot Plaza shopping center, located at the northeast corner of Broadway Boulevard and Wilmot Road, near Park Place Mall. Wilmot Plaza will encompass approximately 140,000-square-feet of retail space when the 10-acre shopping center is fully redeveloped.

“We’re excited to offer our customers in Tucson another location to shop for the brands they love at great prices by adding a second Nordstrom Rack at Wilmot Plaza,” said Geevy Thomas, president of Nordstrom Rack. “We’re hopeful this will give new and existing customers a more convenient shopping experience.”

The new store will be the seventh Nordstrom Rack in Arizona, and the second in Tucson, joining Nordstrom Rack at The Corner which opened in 2011. Nordstrom also operates two full-line stores in Arizona, and began serving customers in 1998 at Fashion Square in Scottsdale.

Since its origination in 1990, Bourn Companies and its predecessors have completed over 4 million-square-feet of acquisitions and developments, specializing in corporate office buildings, retail shopping centers and unique multi-family residential and hospitality properties.

“We are thrilled to once again to be working with Nordstrom to bring a Rack store to Wilmot Plaza to serve the east half of the market and southern Arizona,” said Don Bourn, principal of Bourn Companies, LLC.

In a separate transaction, Bourn Companies through affiliate, BP Grant PAD Investors LLC, bought a 31,748-square-foot retail pad at 6572 E Grant Road in Tucson from Target Corporation for $640,000 ($20.16 PSF). The property is located at Grant and Tanque Verde and was excess land for Target. Bourn purchased it to pre-lease for either a single tenant built-to-suit ranging from 2,500 to 7,500-square-feet, or possibly a multi-tenant building up to a 7,500-square-foot footprint.

Alan Tanner and Brigham Stevens with Bourn Advisory Services in Tucson are handling the leasing for both properties and should be reached at 520.323.1005.

For additional information on these transactions, see RED Comp #1136 and RED Comp #3148.

BEACHWOOD, Ohio, DDR Corp. (NYSE: DDR) the owner and manager of 396 value-oriented shopping centers including Tucson Spectrum and representing 108-million-square-feet in 39 states and Puerto Rico announced Thursday the commencement of a multi-year proactive lease termination initiative aimed at recapturing high-quality anchor store locations across its portfolio.

Through this initiative, DDR is collaborating with retailers in the books, electronics, toys, office and traditional department store categories to right-size their real estate footprints by regaining control of locations in advance of natural lease expiration, where the Company can remerchandise its prime assets with market-share-winning tenants while realizing mark-to-market rental upside of 30-40%.

During the first phase of this initiative, DDR has identified 90 anchor locations, representing 3.3-million-square-feet of prime retail space that meet the Company’s criteria for accretive recapture. Of these leases, DDR has finalized terms to recapture 21 locations, representing 550,000-square-feet primarily located in Boston, Cleveland, Denver, Orlando, Phoenix, Raleigh and San Antonio.

“This initiative demonstrates our ability to create organic growth opportunities for our best-in-class retail partners regardless of current portfolio leased rate,” said Paul Freddo, senior executive vice president of leasing and development for DDR. “Recapturing below-market leases represents an incremental growth opportunity to upgrade asset-level merchandise mix and NOI growth profiles, while simultaneously expanding redevelopment opportunities that will further enhance the quality of our portfolio.”

Demand for new store growth from retailers such as Nordstrom Rack, Sprouts Farmers Market, Ulta, Whole Foods, Five Below, HomeGoods, Fresh Market, Marshalls, Trader Joe’s, White House Black Market, Gap Factory, Shoe Carnival, PetSmart and Carter’s represent a select group of merchants that DDR is in discussions with to backfill the recaptured locations. While 2014 will represent the initial period of acquisition, due to typical retailer black-out periods, the benefits of the remerchandising and mark-to-market opportunities will commence the second half of 2015.

The Company’s assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company.