“Multifamily buyers beginning to move their money from the Phoenix market to Tucson, capitalizing on higher cap rates and lower per unit acquisition costs”

Tucson, Arizona —  Colliers International in Greater Phoenix has negotiated the sale of two Tucson apartment complexes in transactions totaling $13+ million.  The properties were purchased by private investors and are part of a trend moving investment money to Tucson where cap rates and property prices are more appealing than metro Phoenix.

“Multifamily buyers are beginning to move their money from the Phoenix market to Tucson, capitalizing on higher cap rates and lower per unit acquisition costs,” says Trevor Koskovich, executive vice president with Colliers International in Greater Phoenix.

Koskovich, Bill Hahn, Jeff Sherman and Jesse Hudson negotiated the two multifamily transactions in the Tucson marketplace.

Dale Scheck of Deerfield, IL purchased Sherwood Gardens Apartments from MF Blue Valley Apartments, LLC of West Palm Beach, FL. for $7.54 million. The community at 6534 E. Stella Rd. is the third Tucson property acquired by Scheck.  Originally constructed in 1964, Sherwood Gardens consists of 24 single-level buildings totaling 180,395 square feet.  The community is comprised of 199 units ranging from 745-square-foot 1BR/1BA to 1,045-square-foot 3BR/1BA apartments.  The property is situated on 19.04 acres and includes 275 parking spaces.  Sherwood Gardens was 95 percent occupied at the time of the sale.

Sunpointe Gardens Apartments at 2727 N. Oracle Rd. was sold for $5.5 million.  George Lee and Michael Lee purchased the property from Ann Diaz of Tucson and Jack Tiano of Dana Point, CA. Sunpointe Garden Apartments features 165 units in eight buildings.  The two-story structures were built in 1978 and the property was 93 percent leased at the time of sale.  The property includes Studio, 1BR/1BA and 2BR/1BA units.  Community amenities include gated parking with 277 spaces, pool/spa, laundry facilities and a picnic area.

“Both of these multifamily properties offer opportunities for modernization that will provide revenue improvement to the investment,” says Hudson.  “They are well-built and well-leased communities and the strength of the Tucson marker rewards owners that improve older properties and reposition them.”

For more information, Koskovich can be reached at 602.222.5145, Hahn is at 602.222.5105, Sherman can be contacted at 602.222.5109, and Hudson should be reached at 602.222.5010.

To learn more, login and see RED Comp #4480 and RED Comp #4505.

[mepr-show rules=”58038″]Sunpointe Gardens – Sale date: 1/25/2017. Unit mix: Studios (56); 1-bedrooms (108) 2-bedroom (1). Property was 93% occupied at time of sale and sold at a 7% cap rate.

Sherwood Gardens – Sale date: 1/20/2017. Unit mix: one-bedrooms (30); two-bedrooms (110); three-bedrooms (59). Property was 95% occupied at time of sale and sold at an 8.5% cap rate. [/mepr-show]

Cushman & Wakefield Negotiates Sale of National Chicken Restaurant Chain

TUCSON, Arizona – Cushman & Wakefield sold the Raising Cane’s chicken restaurant, located at 6352 E. Broadway Boulevard in Tucson for $4.15 million ($1,148 PSF) to Leal 2002 Family Trust of California. This was a record low CAP rate for a Raising Cane’s sale in Arizona.

Cushman & Wakefield Senior Director Chris Hollenbeck represented the seller, Phoenix-based Eisenberg Company. Chris Rodriguez of Pacific Northwest represented the buyer.

The single-tenant property built in 2015, totaling 3,616-square-feet, is under a new, 20 year absolute NNN lease leased to Micatrotto Holdings DBA Raising Cane’s with 19-years remaining. The lease is backed by Micatrotto Restaurant Group (MRG), the largest franchisee for Raising Cane’s with over 25 locations in Arizona and Nevada.

“This was the first location for Raising Cane’s in Tucson and the location has blown away all expectations in terms of sales. Due to the high grossing location as well as the “main and main” real estate, this is an irreplaceable trophy asset in Tucson,” says Hollenbeck. It opened for business on August 28, 2015.

Located at the corner of Broadway Boulevard and Wilmot, the property is right in the heart of the Park Place Mall, one of the largest retail trade areas in Tucson. Surrounded by many national retailers located along Broadway Blvd. makes this an exceptional location.

For more information, Hollenbeck can be reached at 602.224.4475.

To learn more, login and see RED Comp #4472.

[mepr-show rules=”58038″]Sale date: 1/12/2017. Property sold at a 5.6% cap rate.[/mepr-show]

TUCSON, Arizona — Brenna Lacey of Volk Company represented La Jolla Verde Land Holdings, LLC in the sale of 17.7 acres of land at the southeast corner of Old Nogales Highway and Abrego Drive in Sahuarita, Arizona to FAE Holdings 461354R, LLC. The purchase price was $3.5 million ($4.54 PSF).

The new grocery anchored shopping center called The Crossing at Sahuarita is planned at the site, for a 2018 opening, to be developed by Wadsworth Development Group and Accelerated Development Services.

Sahuarita is located south of the Tohono O’odham Nation and abuts the north end of Green Valley, 15 miles south of Tucson. The population was 25,259 at the 2010 census. This growing retail hub across from Walmart Supercenter, Ross, Big Lots, Jo-Ann Fabrics, Petco, Wells Fargo, Walgreens, Bank of America, 99 Cent Only and other national retailers. All conveniently located near a full diamond interchange at I-19 and Duval Mine Road.

The groundbreaking and anchor announcement is expected in the next 60-days.

Darren Pitts of Velocity Retail Group in Phoenix represented the buyer in the sale transaction.

Brenna Lacey and Kevin Volk of Volk Company in Tucson and Velocity Retail Group’s Brian Gast, Dave Cheatham and Darren Pitts will handle leasing of the inline shops at the new center.

For additional information and for leasing, Lacey and Volk should be reached at 520.326.3200. Gast can be contacted at 602.682.8155, Cheatham at 602.682.6060 and Pitts is at 602.682.6050.

To learn more login or see RED Comp #4488.

[mepr-show rules=”58038″]Sale date: 1/23/2017. Rumor has it the anchor grocery store will be a Sprout’s Market[/mepr-show]