Houghton Town Center Expands Footprint, Breaks Ground on 56K SF New Retail

Source: Real Estate Daily News

TUCSON, Ariz.— Ryan Companies US, Inc., Diamond Ventures, one of the leading real estate development and investment companies in the southwest, and elected officials gathered Thursday for the groundbreaking of a 56,000-square-foot new retail pad with three stores at Houghton Town Center: Ross Dress for Less®, T.J. Maxx® and Petco®.

Elected officials attending included City of Tucson Mayor Jonathan Rothschild, Ward 4 Council Member Shirley Scott, and newly-elected Pima County District 4 Supervisor Steve Christy.

Mayor Rothschild welcomed Ryan Companies and spoke proudly about some of the other new developments in the area. The recently completed Houghton Road widening project and the recently announced Raytheon expansion of 1,900 jobs nearby at the UA Tech Center. Also La Estancia, a 2,500-lot masterplan community at I-10 between Kolb Road and Wilmot Road, under development by Sunbelt Holdings, that opened last April with Meritage Homes under construction with 195-homes there.

Ross, T.J. Maxx and Petco will open by fall of 2017 at the 60+ acre community shopping center, at the southwest corner of Old Vail Road and Houghton, which caters to the residents of Rita Ranch, Vail and Corona de Tucson.  The three new stores will be next door to one another and directly east of the 99,000-square-foot Walmart Super Center that opened in 2013.

“We have partnered with Ryan to add these retailers to the development and we believe that it’s a win for all involved,” said Bill Kelley, CFO of Diamond Ventures. “The city of Tucson was very instrumental in getting this approved expeditiously, so that the development and construction timelines agreed to by Ryan could be met.”

Ryan is the owner, developer and general contractor of this $6 million retail project at Houghton Town Center in Southeast Tucson and purchased the 6.13 acres for $1.98 million ($7.39PSF).

Ryan Companies US, Inc. is a 3rd generation, family-owned national developer, designer, capital investment consultant, builder and real estate manager specializing in fully integrated solutions for over 75 years.

“Our team is eager to further enhance the amenities at Houghton Town Center and look forward to continued growth in Tucson,” said John Strittmatter, Chairman/Southwest, Ryan Companies US, Inc.

No brokers were involved in the land sale. Shannon Murphy in-house broker with Diamond Ventures represented the tenant in the transaction and should be reached at 520.577.0200.

To learn more, see RED Comps #4210 and 4386.




Sunbelt Celebrates Opening of La Estancia – New Masterplan Community in Tucson

John Graham
John Graham, CEO, Sunbelt Holdings

Privately owned, Sunbelt Holdings of Scottsdale, celebrated the opening of its La Estancia Community in Tucson Thursday, a 2,500-lot masterplan community at I-10 between Kolb Road and Wilmot Road in Tucson. First platted in 1999, and then dormant during the recession, the community has been revived after Sunbelt purchased it in 2013, completed the infrastructure, and put in amenities.

Executives from Sunbelt, John Graham, CEO, and Sean Walters, COO, along with Bob Bambauer, Senior Vice-President for Tucson developmentments, welcomed City dignitaries, builders, lenders, service and real estate professionals to the Grand Opening of La Estancia.

La estancia Splash Pad2
Splash Pad at La Estancia

With community amenities of a clubhouse with pool and splash park, playground, lawn and model homes under construction by Meritage as a backdrop, the program began with John Graham talking about Sunbelt’s success over 34-years in Phoenix and the pleasure it is for this first project to be opening in Tucson. Other Sunbelt communities in the Tucson region include Sendero Pass and Sycamore Canyon.

Tucson Mayor, Jonathan Rothschild, returned the welcome to Sunbelt into the community and spoke of the City’s strong growth since coming out of the economic downturn. According to Mayor Rothschild, there has been 700 SFR lots approved by Mayor and Council in the past four months, from December to March and building permits are up 79% year over year.

La Estancia had been planned and long awaited within the Tucson regional masterplan. It is in the top performing Vail school district and conveniently located to some of Tucson’s largest employers.

Councilmember Shirley Scott, who has been instrumental as liaison between Sunbelt and the City, also mentioned the size of her Ward 4 as being 100 square miles that continues to be developed. She welcomed Sunbelt officially and thanked it for its “time, effort and investment in God’s country” and then let the mountain views just speak for themselves.

Meritage Homes is the first builder with a foot in the door at La Estancia and plans to hold its grand opening on Saturday, April 16. Homes at La Estancia span from 1,612 to 2,917-square-feet with first phase pricing from the $170s to $270s with two series of home plans to choose from. Click here and Here to learn more.

Other partners Sunbelt wanted to thank included:

Municipal Partners
City of Tucson Planning & Development Services, City of Tucson Department of Transportation, Tucson Water, and Pima County Wastewater Reclamation

Utility Partners
Tucson Electric Power, Cox Communications, Southwest Gas, Gannon Consulting

Professional Services
WLB Group – Civil Engineering, CollectiV – Landscape Architecture and Theme, Amerson Surveying – Surveyor, Pattison Engineering – Geotechnical Engineers, The Planning Center – Planning Consultants, Paulus Architects – Building Architecture, CCMC – Homeowners Association Management

Contractors
Borderland Construction – Land Development Construction, Fyffe Masonry – Theme Walls, Caretaker Landscape and Tree Service – Landscape and Irrigation, WE O’Neil – Building Construction, Cimarron Circle – Pool and Splash Pad Construction. Christy Signs – Entry Monument and Signs, and Honey Homes – Common Area Sidewalks

Real Estate Partners
Land Advisors Organization, Landmark Title Services, and Meritage Homes




COT Amendment Approval for Possible Fry’s Marketplace at Houghton & 22nd Street

Frys-Food-Stores
Sample Fry’s Marketplace photo

The Mayor and Tucson City Council voted this week 6:1, with Councilman Steve Kozachik the sole dissenting vote, to approve an amendment to the Houghton East Neighborhood Plan that could allow for the development of a 124,000-square-foot Fry’s Marketplace at Houghton & 22nd on a 16-acre site at the northeast corner of South Houghton Road and East 22nd Street. The amendment allows for the building to be 26 feet tall, instead of the 20-feet limit stated in the original 1985 plan developed when the City annexed the area, a two-square mile area bounded by Speedway on the North, 22nd Street on the South, Houghton on the West and Tanque Verde / Melpomene Way on the East.

Concerns voiced by the neighbors seemed to have all been addressed:

  • Elevation showing the six-foot increase would be minor change to any view obstruction,
  • Using City’s own definition, roof height is determined from the flat of roof height, and not parapet height.
  • The Fry’s store at 22nd & Harrison that will be relocated will have a $3 million budget to repurpose as needed.
  • The necessity for the additional 6 feet lies in the fact that Fry’s needs a mezzanine for offices. To minimize the height elevation, the developer is proposing a declining elevation from 26 feet to 22 feet in construction.
  • The two grocery stores that were recently vacant have both been re-occupied; first, the Safeway at Broadway & Houghton was sold back to Safeway from Haggen and will be re-opened, and second, the former Basha’s at this same corner has been repurposed to an upscale movie theater concept with restaurant and bar included,  recently leased by Craig Finfrock of Commercial Retail Advisors.

Even with approval of the changes for the proposed site, Brentwood Development still needs to go through the rezoning process before it can build the shopping center, which also includes a gas station and two smaller retail buildings. It has already been eleven months since the public meetings started with the neighborhood and individual home owners; rezoning will be at least another 9-months and probably more before the rezoning is approved or possibly denied.

Everyone wants a Fry’s Marketplace nearby to shop, or one would think, as evidenced by more than 100 people attending the council meeting Tuesday night for this agenda item. Mayor Rothschild counted speaker cards as 38 speakers in favor, and 17 speakers opposing the amendment. Neighbors living within doors of each other met there, one in favor, one opposed, as they voiced opinions for 90 minutes.

At issue it became clear is amending a 30-year-old neighborhood plan document. The Eastside Neighborhood Plan states that it is appropriate for this corner to be used for commercial uses and allows C-1 zoning with a height restriction of 20 feet. There has already been precedence set that approved an increased building height of Walgreens at the northeast corner of Broadway and Houghton to 35 feet.

Comprehensive planning which dictates public policy in terms of transportation, utilities, land use, recreation and housing typically encompasses a large geographic area to cover a long-term time horizon. But no comprehensive plan should be intended for three decades without modifications.

Plan Tucson is updated every 10-years by Arizona Statute, to reflect changing priorities of the community as they evolve physically, economically and socially over a decade. But not neighborhood plans that apparently never have to be updated, only amended when progress runs into opposition.

When a conflict between the City Plan, approved by voters last in 2013, and a neighborhood plan arises, which has higher authority? You would think the obvious answer is the City Plan, however this wasn’t apparent at the meeting this week.

As Plan Tucson states: ‘City government plays an important role in determining the business climate. Economic Development Strategic Priorities, as adopted by the Mayor and Council in early 2013 include Business Recruitment, Retention and Expansion, as well as Investment in Key Commercial Areas’. It appears a new Fry’s store and retail center that brings 300 jobs, 175 new jobs, would meet such a stated economic goal for the City.

As pointed out by one passionate union member, ‘these are good union jobs being brought to the community, Fry’s is a good company to work for’.

As so often is the case at these public hearings, many speaking against the project were residents from outside the boundaries of the neighborhood. Councilwoman, Shirley Scott noted that some of the people opposing the project live inside the buffer zone for the Saguaro National Forest, the property being amended is well outside this one-mile buffer zone.

Linda Morales with The Planning Center, who represents the developer, had this to say the next day, “We are very excited and encouraged by the vote of the City Council for the neighborhood plan amendment. As evidenced in the public hearing, there are many people in the area who are excited about the project, which will serve nearby neighborhoods with shops, restaurants and a Fry’s Marketplace. This was just the first step in the public process.  The next step is to rezone the property, where we will be working with city staff, neighbors, Saguaro National Park representatives and other interested parties to craft a plan that our community can be proud of.  Our hope and expectation is that those who have concerns will be willing to have a productive conversation with the project team as we move forward.”

Finrock also had this to say, “We would also like to thank those of you who took the time to come and help support this project. We know how precious your time is and greatly appreciate your time and support. It is clear to us one very important reason we were successful at this plan amendment hearing is because so many supporters came to the hearing to speak in support of the project. We know this process is far from finished and hope that we can count on your continued support. It is important for people in business and our industry in particular, to support each other so that Tucson can grow, prosper, and overcome its negative image as a community that is unfriendly to businesses.”

Councilman Paul Cunningham, after noting his surprise with the large number of supporters at the meeting, motioned to approve the amendment but told the developers, “It’s far from a done deal.” This project is in Councilman Cunningham’s Ward 2.

We shall continue to follow the progress of this project for our readers and urge a quick resolution for the greater benefit of the neighbors in Houghton Eastside Neighborhood and Tucson at large, as well as the developer ready to invest $30 million into our community.

For plan amendment presentation by The Planning Center March 8, 2016 HENP amendment 3-8-2016

To view Houghton Eastside Neighborhood Plan, January 13, 2016, Pubic Hearing click here.

Elevation Fry's Houghton & 22nd
Photos show difference in view with 20 ft and 26 ft elevations for proposed building see the Planning Center HENP amendment 3-8-2016 for original photos