The following commercial leases were reported to the Real Estate Daily News for the Tucson Lease Report from October 19 thru 23, 2015.

OFFICE – 6740 S. TUCSON BLVD., TUCSON
Arizona Department of Economic Security has leased 53,250-square-feet of office space at 6740 S. Tucson Boulevard from HSL TI Building Properties LLC. The tenant was self-represented. The landlord was represented by Bill DiVito and Jesse Blum with CBRE’s Tucson office.

INDUSTRIAL – 2165 N. FORBES BLVD., TUCSON
Sahuaro Seed and Feed, LLC leased 17,022-square-feet at 2165 N. Forbes Blvd., Suite 101 in Tucson from Forbes Tucson, LLC.  Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, handled the transaction. [mepr-show rules=”58038″]Asking lease rate: $0.55 SF/MO Modified Gross; Tenant Phone: 520.747.3635[/mepr-show]

RETAIL – 9620 E. 22^nd ST., TUCSON
Ulta Salon, Cosmetics, and Fragrance, Inc. leased 10,000-square-feet at 9620 E. 22^nd Street in Tucson. The space is located within Old Spanish Trail Marketplace at the southeast corner of 22^nd Street and Harrison Road. The shopping center is anchored by Ross, Bed Bath & Beyond, Petco, OfficeMax, and Kirklands. Rick Borane of Volk Company represented the landlord, ATT-OST Marketplace LLC and Stores Investments Group, Inc. Neil Board of Western Retail Advisors represented the Tenant. [mepr-show rules=”58038″]Tenant Phone: 520.575.5067[/mepr-show]

INDUSTRIAL – 3655 N. ROMERO RD., TUCSON
Cactus Auto Company, Inc. leased 8,820-square-feet at 3655 N. Romero Rd. in Tucson from Primero Properties, LLC.  Cactus Auto will expand their RV operation to the site.  Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord and George Hayduke with Westar Mortgage & Realty Corporation, represented the tenant in this transaction. [mepr-show rules=”58038″]Tenant Phone: 520.888.0910[/mepr-show]

OFFICE – 3430 E. SUNRISE DRIVE, TUCSON
Duffield, Miller, Young, Adamson, and Alfred PC have leased 6,926-square-feet of office space at 3430 E Sunrise Drive from United Insurance Company of America. The tenant was self-represented. David Volk with CBRE’s Tucson office represented the landlord. [mepr-show rules=”58038″]Asking lease rate: $20.00 SF/YR Full Service; Tenant Phone: 520.792.1181[/mepr-show]

INDUSTRIAL – 3757 E. 43 Pl., TUCSON
Fellers, Inc. leased 4,952-square-feet at 3757 E. 43^rd Pl. in Tucson from JDLH Investments, LLC.  Fellers is the world’s largest wrap supply company.  Russell W. Hall, SIOR, GSCS and Stephen D. Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord and Rob Glaser, SIOR, CCIM, Industrial Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction.

INDUSTRIAL – 1009 S. EUCLID AVE., TUCSON
Baker + Hesseldenz Design, Inc. leased 2,040-square-feet at 1009 S. Euclid Ave. in Tucson from Rich Rodgers South, Inc.  Jeff Zellet, Commercial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.47 – $0.70 SF/MO Modified Gross; Tenant Phone: 520.760.0037[/mepr-show]

OFFICE – 5700 PIMA ST., TUCSON
The Center for Life Skills Development has leased 1,512-square-feet of expanded office space at 5700 Pima Street from 2222 Craycroft, LLC. The landlord was represented by Aubrey Finkelstein with VAST Commercial. The tenant was represented by Bruce Suppes with CBRE’s Tucson office.[mepr-show rules=”58038″] Asking lease rate: $16.00 SF/YR Modified Gross[/mepr-show]

OFFICE – 100 N. STONE AVE., TUCSON
Jesus L. Montoya Araiza has leased 1,333-square-feet of office space at 100 N. Stone Avenue from Holualoa Pioneer, LLC. The tenant was self-represented. The landlord was represented by Bruce Suppes and David Volk with CBRE’s Tucson office. [mepr-show rules=”58038″]Asking lease rate: $17.00 SF/YR Full Service[/mepr-show]

OFFICE – 1668 S. RESEARCH LOOP, TUCSON
Southwest Associates, LLC, dba Meridian Surveying & Development, leased 1,200-square-feet of office space at 1668 S. Research Loop, Suite 522 in Tucson from Foothills Business Ventures, LLC. Isaac Figueroa, Office Specialist with Cushman & Wakefield | PICOR, represented the tenant and Gary Emerson with GRE Partners, LLC, represented the landlord in this transaction. [mepr-show rules=”58038″]Asking lease rate: $0.55 – $0.90 SF/MO Modified Gross; Tenant Phone: 520.325.6990[/mepr-show]

RETAIL – 410 N. TOOLE AVE., TUCSON
Laura Tanzer, LLC, doing business as Ateller, has leased 1,012-square-feet of retail space at 410 N. Toole Ave from City of Tucson. The tenant was represented by Kent Simpson from Tierra Antigua. The landlord was represented by Buzz Isaacson with CBRE’s Tucson office.

OFFICE – 7650 E. BROADWAY BLVD., TUCSON
E-Corp has leased 944-square-feet of office space at 7650 Broadway Boulevard from AZ State Retirement System. The tenant was self-represented. The landlord was represented by Bruce Suppes with CBRE’s Tucson office. [mepr-show rules=”58038″]Asking lease rate: $15.00 SF/YR Modified Gross; Tenant Phone: 520.334.4067[/mepr-show]

OFFICE – 5501 N. SWAN RD., TUCSON
Julia Miller Pilates, LLC, leased approximately 750-square-feet of office space located at 5501 N. Swan Road, Suite 215, Tucson, Arizona, from DaVinci Plaza, LLC.  Michael Gross and Doug Richardson of Tucson Realty & Trust Co. represented the Landlord in the transaction. [mepr-show rules=”58038″]Asking lease rate: $18.00 SF/YR Full Service; Tenant Phone: 520.869.5258[/mepr-show]

RETAIL – 3940 E. GRANT RD., TUCSON
Super Nails leased 675-square-feet in the Fry’s Shopping Center at 3940 E. Grant Rd. in Tucson from Grant and Alvernon Realty Trust.  Greg Furrier, Retail Specialist with Cushman & Wakefield | PICOR, handled this transaction.

OFFICE – 2001 ORANGE GROVE RD., TUCSON
Tula Wellness has leased 500-square-feet of medical office space at 2001 Orange Grove Road from HTA-Tucson Medical Office, LLC. The tenant was self-represented. Dave Montijo with CBRE’s Tucson office represented the landlord. [mepr-show rules=”58038″]Tenant Phone: 520.577.1129[/mepr-show]

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Cushman & Wakefield | Picor Multifamily Market Snapshot Q1 is reporting positive absorption and growth in all the important statistical categories for the Tucson multifamily market. Tucson apartments vacancy rates (averaging 8.5%) and average rents ($10.56 PSF) continue to see positive gains, while Tucson continues to generate significant investor interest due to low interest rates and high cap rates averaging 8% and more. To see the full Q1 2015 multifamily report CLICK HERE.

In the first week of May, nine transactions with an aggregate of 220 units totaling $5.88 million have been transacted with many brokers reporting ‘multiple offers’ being received and ‘high interest’ repeatedly for ‘value-add’ properties.

The following sales took place from April 30 to May 7^th scattered throughout most of the area submarkets.

EASTERN SUBMARKET
Investors from Burbank, California (Erlinda & Ameline Laking,members) purchased the Monterey Gardens Apartments at 1039 N Alamo Avenue in Tucson for $2 million ($37,736 per unit / $47 PSF) The 53 unit apartment community built in 1970, is located in the Wilmot Desert Estates. Large floor plans (20) 675-square-foot 1-bedroom units, (24) 950-square-feet 2-bedroom units and (8) 3-bedrooms. Recent capital improvements include exterior paint, landscaping, roof, resurfaced parking lot and new plumbing and power transformer installed. The majority of the units were recently remodeled. Amenities include a pool. David Walsh of Realty Executives Tucson Elite handled the transaction and should be reached at 520.591.1736 to learn more. Also see RED Comp #2861 for additional information.

CENTRAL SUBMARKET

Victoria Arms Apartments at 1518 E Hedrick Drive in Tucson sold to investors from Castle Rock, Colorado for $1.025 million ($40,800 per unit / $53 PSF). The single story, 25-unit complex, built 1975, has (24) 2-bedroom and one 1-bedroom apartment units. Amenities include individually fenced yards, a rental office on-site and lush landscaping. Mick Cluck, CCIM, with Coldwell Banker of Tucson represented the seller, Deep Water Investments of Reno, NV and said there was “high interest in the property from multiple buyers”. Cluck can be reached at 520.349.3533 to learn more. Jo Roberts with Long Realty in Tucson represented the investors in this 1031 exchange and should be contacted at 520.886.7500. Tucson Realty & Trust will be managing the property. Also see RED Comp #2874 for additional information.

DLGS JAK Properties of Phoenix (Pat Stoiak, manager) bought the Palo Verde Terrace Apartments at 3493 E Lind Road in Tucson for $750,000 ($14,423 per unit / $27 PSF) from Mental Health Resources. The 52-unit apartment complex was vacant and sold vacant with deferred maintenance. It was not on the market when sold. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor handled the transaction and can be reached at 520.546.2721 to learn more. Also see RED Comp #2871 for additional information.

Local investor, Stak Properties (Kristi Verdugo) purchased the 14-unit multifamily complex at 2620 N Stone Avenue in Tucson for $317,500 ($22,607 per unit / $42 PSF). Built in 1948, the property has six 1-bedroom apartments, and 8 freestanding casitas and was fully leased when it sold. Chuck Corriere with Keller Williams in Tucson represented the sellers, Milton & Lorna Nunn of Washington, and can be reached at 520.400.9811 to learn more. Arthur Verdugo III with Tierra Antigua represented the investors and is at 520.544.2335. See also RED Comp #2857 for additional information.

WESTERN SUBMARKET

With seven multiple offers, Wildcat Equities of Tucson (Brandon Matheson,member) purchased Mountain Shadows Apartments at 3053 W Anklam Road in Tucson for $325,000 ($32,500 per unit / $51 PSF). A 10 unit complex, (7) 1-bedroom and (3) 2-bedroom units had the majority of the units upgraded with new kitchens and tile floors. Amenities included a swimming pool and laundry on property and each unit has spacious backyards and desert landscaping. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor handled the transaction and can be reached at 520.546.2721 to learn more. See also RED Comp #2869 for additional information.

NORTHEAST SUBMARKET
An affiliate of Equity Partners of Tucson bought the Monte Vista Apartments at 4001 & 4015 E Monte Vista Drive in Tucson for $650,000 ($20,313 per unit / $46 PSF). Built in 1978, the (32) Jr. 1-bedroom units have A/C, mature landscaping, pool, picnic area and laundry facilities on-site. The property sold 85% occupied. Tony Reed with Long Realty represented the seller, Jarbun Properties of Irvine, CA (Dean Rathburn, officer) and should be contacted at 520.918.5189 to learn more. Sofonias Astatke with Equalibrium Realty represented the buyers in this 1031 exchange. Astatke can be reached at 520.250.8977. See also RED Comp #2872 for additional information.

Tucson investors, Eric Layton and Eli Halif purchased Alernon Way Apartments at 2457 N Alvernon Way in Tucson for $157,500 ($17,500 per unit / $30 PSF) in an Estate Sale. The property consists of a 9 unit apartment complex near Alvernon Way & Grant Road, built in 1950. At time of sale 8 units were rented and one was vacant. Peter Canacakos of Long Realty in Tucson handled the transaction for seller, The Londer Trust of Tucson. Canacakos should be reached at 520.918.4831 to learn more. Also see RED Comp #2876 for additional information on this transaction.

SOUTHERN SUBMARKET
Local investors (Gabriel Reina, member) purchased the Elvira Apartments at 320-326 E Elvira in Tucson for $230,000 ($17,692 per unit / $26 PSF) in a recent REO sale. The distressed property with thirteen units consisted mostly of two-bedrooms and sold with deferred maintenance. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor represented the seller and Eddie Watters with Realty Executives Tucson Elite represented the investors. Mendelsberg can be reached at 520.546.2721 to learn more and Watters is at 520.877.4940. For additional information see RED Comp #2889.

Green Valley investors, Apero Properties (Mark & Kimberly Schmidt) bought the 12-unit multifamily complex at 351 and 401 W Apero Drive in Green Valley for $420,000 ($35,000 per unit / $49 PSF). The property consists of 12 apartment units, in four buildings built in 1966 and 1979. The seller was also from Green Valley, The Heinemann Family Trust ( Kenneth Heinemann, trustee). For additional information see RED Comp #2826.

The Federal Aviation Administration (FAA) on Tuesday issued permits to use drones to monitor crops and photograph properties for sale, marking the first time permission has been granted to companies involved in agriculture and real estate.

The two exemptions to-date on the current ban for commercial drone flights were granted to Advanced Aviation Solutions in Star, Idaho, for “crop scouting,” and Doug Trudeau with Tierra Antigua Realty in Tucson.

Trudeau’s exemption authorizes him to fly a Phantom 2 Vision+ quadcopter to “enhance academic community awareness and augment real estate listing videos,” the FAA said.

Real estate companies have been eager to gain permission for drone use to photograph and make videos of pricey properties, making this a landmark decision for the real estate industry and Southern Arizona.

We asked Trudeau what it took to reach this milestone and what exactly was involved in getting to be first in the country to achieve FAA exemption to operate a drone for real estate use.

Trudeau says he first began using a 1.7-pound drone in late 2013, but stopped when the FAA warned, in June 2014, that real estate agents using a drone to capture footage of a home is a “commercial use”, and therefore prohibited. So Trudeau contacted the FAA and began the process for an exemption.

“The whole thing took 177 days in what is normally a 120-days, and cost a few thousand dollars,” Trudeau told us. “The largest cost was in time.”

Much of the credit for seeing it through Trudeau attributes to Tucson-based AUV Fight Services located at Tucson International Airport where he has been training for his own private FAA pilot license.

For the time being, Trudeau’s Phantom 2 Vision+ quadcopter will need to be flown by someone with a valid pilot license. The FAA permit requires drone operations to include both a ground “pilot” and an “observer”. The pilot must have at least an FAA private pilot license and a current medical certificate, and must keep the drone within line of sight of the operator at all times.

Since the announcement Tuesday, Trudeau has had several offers from Tucson pilots ready to help. He has also been invited to speak at the UAS Commercialization Industry Conference in Washington, DC and contacted by the National Association of Realtors as they plan to print an update on drones for all Realtors as soon as next week.

“This is a milestone breakthrough for the technology and our region. Most people don’t know much about this technology or the commercial applications, so all eyes will be on Southern Arizona now,” Rafael Gaytan, President of AUV Flight Services said.

The Association for Unmanned Vehicles Systems International (AUVSI) has been predicting the impact of commercial applications of drones for some time. Its Economic Impact of Unmanned Aircraft Systems Integration in the United States report printed shows the economic benefit of UAS integration. AUVSI’s findings predict that within the first three years of integration more than 70,000 jobs will be created in the United States with an economic impact of more than $13.6 billion. The benefits grow through 2025 when they foresee more than 100,000 jobs created and an economic impact of $82 billion.

While the AUVSI projects more than 100,000 new jobs by 2025, they also go on to say it will be states that create favorable regulatory and business environments for the industry and the technology that will likely siphon jobs away from those states that do not.

The Report is also broken down by state and the Economic Impact projected for Arizona shows 2,800 new jobs projected in 2015.  To view the full report click here: New Economic Impact Report Full