TUCSON, ARIZONA, January 10, 2023 -- Two properties recently sold for conversion to Behavioral Health Facilities: The Red Rock Inn at 1000 S. Freeway in Tucson sold for $2.63 million ($148.46 PSF) and 502 N Silverbell Road in Tucson sold for $925,000 ($82 PSF).
The 17,715-square-foot hotel was built in 1953 on .72 acres and has operated as a 42-room, Red Rock Inn Motel for years. The transaction closed December 27, 2022
The second property on Silverbell was previously a Behavioral Health Facility, Los Amigas Behavioral Health, in an 11,302-square-foot building, built in 1980, on 1.04 acres. The transaction closed December 23, 2022.
The buyer of both properties, Valley ALF Ventures of Goodyear, AZ, c/o Jarrett Duncan and Sergiu Lupescu, plan extensive renovations for both properties.
Focused housing for the most needy, Valley ALF Ventures is a real estate syndication firm that acquires and leases residential assisted living facilities such as behavioral health and senior care facilities. Its business plan includes: purchasing single-family homes that have been converted or have the potential to be converted to assisted living facilities; ensuring proper zoning and licensing is in place to operate the facility; sourcing qualified, experienced local operators looking to expand their business to a new location; leasing the facility to the operator on a 4-5 year lease with the option to purchase after year 3; exiting the property – either through the purchase option or refinancing of the existing loan.
These are the buyer’s first acquisitions in Tucson with a large Phoenix portfolio in place. Buyer expects it to take 3-4 months after plan approvals for renovations to be completed.
Rob Lamb with Long Realty represented the seller, LAXMI, Inc. c/o Richa Patel at 1000 S Freeway and Mark Biery, JD, CCIM with Berkshire Hathaway Commercial Real Estate represented the buyer.
Paul Hooker, SIOR, and Thomas J Nieman, Principals with Cushman & Wakefield | PICOR represented the seller of 502 N Silverbell Rd., CODAC Health, Recovery & Wellness.
More information on Valley ALF Ventures can be found at Valley ALF Ventures | Real Estate Syndication Firm.
To learn more, see RED Comp #10394 and #10396.