An affiliate of Los Angeles-based, Decurion Corp. (Michael Forman, CEO) bought the Tucson West office building at 333 East Wetmore Road in Tucson for $26.5 million ($186 PSF). The seller was WCCP Tucson West, LLC, an affiliate of West Coast Capital Partners (William Metzler, manager) with offices in Scottsdale and Torrance, CA.

The seller, WCCP, purchased the 142,148-square-foot Class A building in April 2013 for $16.4 million in a value-add transaction when the property was 80% leased and sold it 96% leased.

The 5-story building has been ENERGY STAR certified since 2010 with an energy performance score of 93. Following new adjustments through ENERGY STAR in 2011, the property has a performance score of 84, saving the building’s owners an estimated $20,000 in annual energy costs.

New tenants in the building are Tucson Orthopedic Institute that consolidated into the new TMC wing into an 11,400-square-feet office space used for its administrative office. Tucson Orthopedic Institute has three locations in the Tucson metro area. Mark Irvin with Mark Irvin Commercial Real Estate Services represented the tenant. Phil Skillings with NAI Horizon represented itself, the landlord.

Cenpatico of Arizona, Inc. also subleased 52,008-square-feet (the fifth and sixth floors) from Jacobs Engineering Group, Inc. Rick Kleiner, MBA, Stephen D. Cohen, and Russell W. Hall, SIOR, GSCS, with Cushman & Wakefield | PICOR and Eric Olofson with Cushman & Wakefield of California, represented Jacobs. Dean Cotlow with Cotlow Company, represented Cenpatico.

And several smaller leases and subleases went to Cross Country Mortgage, Brown & Caldwell and Crown West Realty.

This was the second highest office transaction in the Tucson market for 2015, surpassed only by the One South Church Street 22-story tower that sold for $32 million in October, followed by the Coventry Health Care Building at 3535 E Valencia that sold for $21.6 million in July.

Phil Skillings with NAI Horizon in Tucson, a partner in the selling entity, will continue on as leasing agent at Tucson West for the new owner.

Skillings can be reached at 520.326.2200 for more information.

To learn more about these transactions, see RED Comps #3507, #3146 and #3319.

Orange Grove Medical Center, a 40,782 total square foot multi-tenant office building, sold for $3 million ($73.56 PSF). The property is located on the southeast corner of Orange Grove Road and La Cholla Boulevard in Tucson. Constructed in 1988, the medical center sits on fee ground at the Northwest Medical Center Campus and was approximately 51% occupied at close of escrow.

The property was sold by a $2.5 billion publicly traded healthcare REIT, HR Acquisition | Corporation, a subsidiary of Healthcare Realty Trust, Inc. Principals Scott Douglass and William Metzler with SOD Brookside LLC, WRM Brookside LLC, and PVP Investments LLC/West Coast Capital Partners purchased the property. West Coast Capital Partners (WCCP) is a privately held commercial real estate investment firm founded in 1993. They have offices in Los Angeles, CA and Scottsdale, AZ. WCCP has acquired, repositioned and disposed of over $1 billion in commercial assets in Southern California, and the Phoenix, Tucson and Las Vegas Metro Areas.

Braxton Glass, Vice President at ORION Investment Real Estate, negotiated the transaction. Glass stated, “The Orange Grove Medical Center acquisition aligns ideally with West Coast Capital’s core strength of repositioning underperforming office and medical office assets. It also represents the firm’s third acquisition at the Northwest Medical Center Campus. The firm acquired Desert Life Medical Plaza and La Cholla Medical Center in 2004 and 2005 respectively, and then completed the successful disposition of both assets to Healthcare Trust of America in 2007 upon stabilization.”

To learn more see RED Comp #3300.