Raytheon Tucson awarded $491 million contract for AMRAAM®
AMRAAM Missiles being moved (courtesy photo)
TUCSON, AZ — Raytheon Company (NYSE: RTN) is being awarded a fixed-price contract $491,478,068 for the Advanced Medium Range Air to Air Missile. The contract is for the production of the AMRAAM® missile and other AMRAAM system items, including the captive air training missile, common munitions bit/reprogramming equipment and non-developmental item airborne instrumentation unit.
AMRAAM is a combat-proven missile that demonstrates operational flexibility in both air-to-air and surface-launch scenarios and provides today’s military forces with enhanced operational capability, cost effectiveness and future growth options. Procured by 36 countries, the combat-proven AMRAAM® has been integrated on the F-15, F-16, F/A-18, F-22, Typhoon, Gripen, Tornado, Harrier, F-4 and the Joint Strike Fighter aircraft. It is also the baseline missile for the NATO-approved National Advanced Surface-to-Air Missile System.
The contract includes foreign military sales to Korea, Oman, Singapore and Thailand.
Work will be performed in Raytheon Tucson and is expected to be completed by February 2017.
Wrap-Up of Tucson Q3 Multifamily Sales Total $5.2 Million
Swan Court, 1425 N Swan Rd, Tucson
The following multifamily sales represent a final wrap-up of third quarter 2014 transactions:
NORTHEAST SUBMARKET
Tony Apollini of Santa Rosa, CA purchased Swan Court, a 23-unit apartment complex at 1425 N Swan Road in Tucson for $845,000 ($36,739 per unit). The 20,685-square-feet community (built 1957) is comprised of 9-one bedrooms and 14-two bedroom/2 bath units with 640-square-feet and 930-square-feet floor plans, located on 1.58 acres at Swan and Fairmount Street. Allan Mendelsberg, Investment Specialist with Cushman & Wakefield | Picor represented the seller, the Gould Family Properties (Amy Gould) of Charlotte, NC. Bob Phelps with Bob Phelps Realty represented the investor in the transaction.
CENTRAL SUBMARKET Jarret Reidhead and company, Group Dwelling of Tucson purchased 6-units at 638-642 East Lester Street in Tucson for $900,000 ($150,000 per unit). The 9,072-square-foot property in three buildings (built 2008) consists of 4-four bedroom/ 2 baths and 2-three-bedroom/2 bath units with two vacant at time of sale. The seller, Larry Potter of Keller Williams of Southern Arizona was self-represented as was Jarrett Reidhead with Tucson Integrity Realty.
Arroyo Casitas with 15 freestanding casitas at 2511-2515 N Edith and 3233-3255 E Water Street in Tucson sold for $560,000 ($37,333 per unit). The 15-units, all two-bedrooms, total 11,478-square-feet were built 1959 – 1985 and are situated on 1.06 acres. The seller was Arroyo Partners (Thomas Allen) of Tucson and the buyer, 3233 Water Investors, LLC (Ryan Johnson) of Tucson.
Mountain View Apartments at 1337-1341 E Allen Road in Tucson sold for $1.5 million ($44,118 per unit). The 34-unit, two-story complex is 26,166-square-feet (built 1972) and located on 2.16 acres near Campbell Avenue on Allen Road. The investor was Karen Mason and company, The Spoke, LLC of Half Moon Bay, CA and the seller was Melanie Morrison of MEB Management Services of Tucson who handled the transaction.
El Sol Apartments at 2115 N Oracle Road sold for $525,000 ($32,813 per unit) to Gap Ministries. The 16-unit, 7,400-square-feet complex (built 1983) was fully renovated in 2006 and sold in a short sale. It is located on .8 acres at Oracle and Flores Street in Tucson. Rocky Biel of Realty Executives Tucson Elite handled the transaction.
Dan Hollingsworth of Anchorage, AK purchased the 10-unit Bermuda Condominiums at 3331 E Bermuda Street in Tucson for $880,000 ($88,000 per unit). This 8,610-square-feet property (built 2008) comprises all two-bedroom units on .82 acres on Bermuda, east of Country Club. Each unit has individual parcel number to give flexibility for future demand. Douglas Trudeau of Tierra Antigua Realty represented the seller, Innovative Custom Homes & Design, Inc. of Tucson.
TUCSON – Cushman & Wakefield | Picor is reporting multifamily third quarter of 2014 continued to report historic progress in absorption and vacancy figures.
Tucson absorbed 618 units in the third quarter of the year. The vacancy rate dropped 0.8% to 8.2%. These two indicators continue to improve in the marketplace mainly due to the declining average rent in Tucson.
The net rents for the Tucson market dropped $3 per unit to an average rent of $636 per unit and $0.87 per square foot (without utilities) in Metropolitan Tucson. The highest average rent found in the Oro Valley/Catalina submarket at an average of $849 per unit. South Central Tucson experienced a decrease of $31 over the previous quarter.
A lack of job growth within the Tucson region has resulted in minimal rental gains over the last few years. Despite an emphasis on attracting new employers to Tucson; there has been minimal success and a slower economic recovery compared to other markets.
Improvement in the overall market slowed from previous quarters, but most of the indicators remained positive. Management companies report increases in net operating incomes (NOIs) from previous quarters but echo the inability to push rents in most submarkets.
Two significant companies, a logistics operation and a call center, have short – listed Tucson as their location of choice. These companies would bring over 1,000 new jobs to the market place. One or more of these announcements would be a welcome catalyst to help kick start the road to meaningful recovery and economic growth.
Tucson continues to be a desirable destination for many investors. The third quarter experienced an increase in out–of-state exchange buyers looking to enter the market place.
Year-to-date sales is 2,537 units with a total sales volume of $89 million with an average price per unit of $38,136 per unit and $59.85 per square foot. There continues to be a high number of local properties in need of stabilization due to the lack of rental growth and varied vacancy numbers throughout the year.
