Secures $1.7 million for East Valley single-tenant building

PHOENIX, Arizona – On behalf of SimonCRE, the Phoenix office of JLL has completed the sale of a stand-alone retail/restaurant building in Mesa, Arizona that is fully occupied by Black Rock Coffee Bar. The transaction represents the first sale of a Black Rock-occupied building since the coffee franchise entered the Phoenix market in 2016. Black Rock Coffee remains the building’s primary tenant.

JLL Senior Vice Presidents Peter Bauman, Tivon Moffitt and Tyson Switzenberg, and Senior Managing Director Dennis Desmond represented the building developer and owner, SimonCRE, and the property buyer, The Emas Family Trust, in the $1.7 million transaction.

“SimonCRE develops phenomenal product and this building – which is the first single-tenant, build-to-suit Black Rock Coffee location constructed in Arizona – was no exception,” said Bauman. “The listing received an extreme amount of interest from the private capital market before it was sold in a 1031 exchange. Its new owner has a strong history in net lease Arizona properties and understands the value of this asset.”

“Having a great tenant like Black Rock Coffee and a location within such a strong trade area made this a tremendous investment opportunity,” said Joshua Simon, CEO and Founder of SimonCRE. “We were thrilled to be a part of this project and be a part of Black Rock Coffee’s expansion in Arizona.”

The free-standing Black Rock Coffee building is a custom build-to-suit space featuring indoor and outdoor seating and a drive through. Scottsdale-based SimonCRE completed the project in February of this year. Black Rock Coffee took occupancy in March.

A full-service commercial real estate developer, SimonCRE specializes in ground-up development, build-to-suits and redevelopment projects across the United States. Its Mesa Black Rock Coffee building is located at 1440 S. Higley Rd., within a Lowe’s-anchored retail center and situated immediately south of the US 60 in Mesa, Arizona. The site offers a hard, signalized corner with monument signage, high traffic counts and strong demographics.

“Phoenix represents a major growth market for Black Rock,” said Switzenberg, who since 2016 has completed multiple Phoenix-area leases for the Black Rock Coffee concept. “Our communities have responded well to each new location, and that has Black Rock on a steady search for more Valley site opportunities.”

Based in Portland, Oregon, Black Rock Coffee Bar operates more than 53 company-owned and franchise stores in Arizona, California, Idaho, Oregon and Washington, and coming soon to Colorado. Each Black Rock Coffee Bar serves single origin coffee roasted in small batches and medium to dark blends, as well as local pastries, smoothies, drinks for kids, juices and blended coffee drinks.

PHOENIX, Arizona —Lee & Associates Arizona announced today that the Fincham Dempsey Team has arranged the sale of the Tuft & Needle Corporate Headquarters and retail showroom building for $8.73 million. Jan Fincham and Patrick Dempsey facilitated the transaction on behalf of the seller, SimonCRE Chisum III, an entity of Scottsdale-based developer SimonCRE. The buyer, Retail Realty Fund was represented by Property Group International.

Located in Downtown Phoenix at 701 N. Grand Ave., the 36,000-square-foot historic building was originally constructed in 1917 and served as home to the O.S. Stapley hardware store, which closed in 1962. The building was later used as an appliance store, industrial repair and car shop before being shuttered and then brought back to life most recently as a retail showroom and office space.

The property was purchased in 2012 by SimonCRE, and was renovated as an adaptive re-use creative office space for the headquarters of Tuft & Needle, a Phoenix-based e-commerce and manufacturing company founded by Daehee Park and John-Thomas Marino.

“The Tuft & Needle building was attractive to the investor because of the quality adaptive re-use renovation by SimonCRE, the stability of a long-term lease to nationally recognized tenant Tuft & Needle, and the location in the heart of the vibrant Downtown Phoenix Redevelopment Area,” said Fincham.

This was just one of several properties that SimonCRE owns in the area. The developer also owns a 5,000-square-foot redevelopment project adjacent to Tuft & Needle, and recently closed on the 8,800-square-foot former Paper Heart Gallery at Grand Avenue and Polk Street.

“This sale really shows the strength of the Grand Avenue District and the demand in the area,” said Joshua Simon, Founder and CEO of SimonCRE. “We’re hoping that this district begins to emerge as a vibrant hub similar to Roosevelt Row.”

Between 2004 and 2017 more than $5 billion of private and public capital was invested in Downtown Phoenix, creating a vibrant urban core with a revitalizing live-work-play environment that attracts about six million visitors to the area’s arts, sports, cultural, hospitality and entertainment venues each year.

SCOTTSDALE, ARIZONA – Scottsdale-based developer SimonCRE purchased a 4.69-acre property, consisting of three retail buildings, at the northwest corner of Gilbert Road and Southern Avenue in Mesa, Arizona. The property includes a 36,241-square-foot former gym, a 3,660-square-foot Banner Urgent Care, and a 5,658-square-foot multi-tenant building housing Judd’s Orthodontic and Fiiz Drinks. SimonCRE purchased the property for $6,580,000.

The Scottsdale-based developer plans on investing well over $1 million renovating the 36,241-square-foot big box space for future tenant Aspire Fitness.

In addition to the Mesa location, Aspire Fitness is entering Phoenix with two more showcase stores – one at the northeast corner of Ray Road and Rural Road in Chandler, and another at 10160 N. 67th Avenue in Peoria.

The Denver-based company has locations in seven states and prides itself on being at the head of the curve while always pushing forward and adapting to the latest concepts in the ever-changing fitness industry. Aspire truly believes the industry is just scratching the surface of what it can and will become, and offers bar none the most advanced and diverse health clubs in the marketplace.

Etched throughout each facility, customers will find the words ” Aspire for Greatness “. “We understand that means something different for every customer,” says Nick Cohn, Aspire’s Director of Development. “That’s why we build a facility for literally everyone.”

Aspire offers basketball courts, a pool, functional areas, and turf tracks for athletes, while also offering a cardio theater, vast machine circuits for novices, a women’s-only strength area, and an array of classes. Aspire wants to help everyone in the community fit in and hopes to help those with a busy schedule still attain their fitness goals, which is why their facilities are open 24/7 and offer childcare.

Aspire has a customer friendly membership with dues starting at just $10/month. It offers month-to-month options and partners with local businesses to offer large corporate wellness programs.

The redevelopment of the new Mesa location is scheduled to be completed by early 2018.

“This has been an amazing opportunity to work with Aspire Fitness on this project and we’ve been able to build a strong partnership with a great company,” says Joshua Simon, Founder and CEO of SimonCRE. “And I think this also shows that big box retail isn’t dead, despite all of the rumblings. There are users that see these vacancies as opportunities.”

The property is located at a busy retail intersection in Mesa and just across the street from Santa Fe Square, which includes Target, Joann Fabrics, Bealls Outlet, 99 Cents Only, and more.

Zach Pace of Phoenix Commercial Advisors represented the seller in the transaction, and Jared Lively of Rein & Grossoehme represented SimonCRE.