The retail sub-sector is showing some real signs of life. For investors, it could finally be time to bet on that beleaguered strip mall. After getting trounced during The Great Recession, the retail real estate space spent much of the last two years floundering with the retail sub-sector seeming to have been left behind. However, things are finally turning around for the market as evidenced by these three deals.

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[mepr-show rules=”58038″]A Wienerschnitzel property at 3460 N Oracle Rd in Tucson sold to Sam Third, LLC of Tucson (Steven Mar, managing member) for $330,000 all-cash. The 600 square foot building was built for Wienschnitzel in 1967. The seller was an individual from San Marino, CA. The transaction was handled principal-to-principal without broker representation.

Wienerschnitzel is an American fast food chain founded in 1961 (as “Der Wienerschnitzel”) that specializes in hot dogs. Wienerschnitzel locations are found in California, Texas, Arizona, Colorado, Illinois, Louisiana, New Mexico, Nevada, Utah, and Washington state. There is also a store in Guam.

The Eegee’s property at 3806 E Grant Road in Tucson sold for $792,363 to an investment group out of Jenkintown, PA. The 2,423 square foot building (built 1990) is one of 23 locations for the Tucson restaurant chain that specialize in, among other things, signature frozen fruit drinks.

A strip retail center at 5760-5764 E Broadway Blvd. in Tucson sold for $429,000 ($66 PSF). The buyer was IST Investments, LLC of Tucson (Abdulla Yilmaz, member) and the seller Harose Realty Investment Company of Tucson (Theodore Direnfeld, President). The retail center sold with two tenants, Stuart Cooper Jewelers and Dee’s Shoes. The center had 1,500 square feet vacant from a downsizing by the jewelry store. The property is located across the street from the retail center being razed for a new Longhorn Steakhouse.

Financing was handled by Wells Fargo.

Gary Best and John Hamner of Keller Williams of Southern Arizona in Tucson handled the sale and are also leasing the available space. Best and Hamner can be reached at (520) 615-8400.

Sale date on 3460 N Oracle Road was 8/22/2013. APN: 106-03-132C. $330,000 all cash. Seller was Todd Nathan Weber of San Marino, CA.

Sale date on 3806 E Grant Rd was 89/2013. APN: 122-16-3570 & 3580. Buyer paid all cash. The seller was CNL APF Partners, LP of Scottsdale, AZ.

Sale date on 5760-5764 E Broadway Blvd was 7/31/2013. APN: 128-03-003A. Buyer put $177,075 down and financed the balance conventionally.
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As has been reported, the new Walmart at El Con Mall will have its Grand Opening Sept 11th, where it will employ 280 people, and may soon be able to also sell beer and wine. The Tucson City Council voted unanimously Tuesday evening to approve a request for the big box store to have a series 10 liquor license. The request now goes to the state liquor board meeting Thursday in Phoenix. Liquor License Application –  Walmart Supercenter #3884, 3435 E. Broadway Boulevard (Ward 6) Tucson. To see our full story of Aug 7, 2013 click here.

On March 19, 2013, after considering the referenced liquor license application and hearing related testimony and protests, the Mayor and Council unanimously disapproved of the requested license. The matter then proceeded to the Arizona State Liquor Board, which conducted a lengthy hearing on July 11, 2013 where the state liquor board also denied Walmart’s application for a liquor license at this location.

Following this Order, representatives from Walmart and from nearby Homeowners’ Associations (Colonia Solana, El Encanto) engaged in discussions and hashed out an agreement that would resolve issues that prompted opposition and protests to the license application.

The negotiations between Walmart and the Neighborhood Associations were successful, and on September 6th, the parties executed an agreement that includes the following terms:

1. Walmart shall limit the hours that it will be open to the public from 6:00 a.m. to 11:00 p.m., with certain exceptions (the store will be open continuously on Thanksgiving through the subsequent Saturday; and will be open until midnight from that Sunday through New Year’s Day).

2. Walmart will not apply for a series 9 liquor application (which would allow sale of all liquors, rather than just beer and wine) for at least 2 years following the “Grand Opening” of the store (scheduled for September 11, 2013).

3. Walmart will not sell firearms or ammunition at this store while it holds a liquor license of any series at this location.

4. The Associations will submit letters to the Liquor Board withdrawing their opposition and protests to the issuance of the series 10 liquor license application.

5. The Associations will attempt to secure the withdrawal of protests filed by individual persons who are not members of those Associations.

The agreement is conditional upon the Board’s reversal of the Order denying the license application. The state liquor board is scheduled to hear the Request for Rehearing at their next meeting on Thursday, September 12, 2013 in Phoenix.

Sabino Canyon Properties, LLC of Tucson (Bob Gugino, managing member) sold 5.91 acres of vacant land at the southwest corner of Sabino Canyon and River Road to Alta Vista Communities of Tucson (Roger Karber, managing member) for $1.4 million ($5.55 PSF). Members of the joint venture selling the property had owned it for 35-years prior to the sale.

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[mepr-show rules=”58038″]The property was approved for zoning from SR to CR-4 on July 2 by the Pima County Board in 5-0 unanimous vote, the final hurtle for a development of a 53-unit detached SFR rental community on this site.

The buyer, Roger Karber, and founder of Aerie Development, a local builder of luxury rental homes told us that the community ‘Aerie at Sabino & River’ will be exclusively 2- and 3-bedroom homes, ranging in size from 965 to 1,244 sq. ft., and include Aerie’s signature amenities such as elegant granite counter tops, ten foot ceilings, and stainless steel kitchens. All homes have private yards and a community pool and Jacuzzi.

Another Aerie rental community, Aerie at Tanque Verde, recently sold for a record price of $146,000 per unit  for a multifamily development. See July 19^th story on Aerie Tanque Verde sale here.

Mike Carlier and Jim Vincent of the Carlier Company in Tucson and Mike Ebert of Trident Commercial Real Estate in Tucson handled the transaction for the buyer.

Karber can be reached at (520) 977-5456. Carlier and Vincent are at (520) 529-3800. Ebert should be contacted at (520) 320-9311. [/mepr-show]

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[ismember]Sale date was 8/12/2013. Exact sale price was $1,428,010, all cash deal.  Escrow time was 5-6 months pending rezoning and final plan approval. There was opposition from the neighbors that was overcome after rezoning did not pass in May. Buyer has an additional parcel in escrow nearby that is being replatted from 196-units to 150-units for development services. [/ismember]