Bill Alter of Rein & Grossoehme in Phoenix is pleased to announce the sale of Foothills Self Storage located at 4555 N. 1st Avenue in Tucson, Arizona. The sale closed on March 10, 2016 for $7.5 million, which represents approximately $120 per square-foot and at a high 5% cap rate.

The property was constructed in 1996 and consisted of about 62,770-square-feet net rentable area in 636 storage units plus a residence/office and a billboard on property with a long term lease. Occupancy at time of closing was about 95%.

The seller in the transaction was a group of investors/developers from Tucson. The property was purchased by The William Warren Group of Santa Monica, CA and will be re-branded as Stor-Qwest Self Storage.

This was Bill Alter’s 146th self-storage sale. For more information, contact Alter at 602.315.0771 or Bill@RGcre.com.

To learn more, see RED Comp #3725 and login for additional information.

[mepr-show rules=”58038″]Cap rate reported as 5.7%. Gross building area is 69,379 SF rentable area used here excludes residence and hallways from the storage buldings.[/mepr-show]

Bixby Bridge Capital through an affiliate, RCK Properties (Alfonso Bundoc, agent) in Los Angles, California bought the Walgreens investment property at 605 West Ajo Way in Tucson for $7.75 million ($538 PSF). The 14,418-square-foot Walgreens in South Tucson sits on 1.4 acre, built in 2003,  at the southwest corner of Ajo and 12^th Avenue in the South submarket of Tucson.

Bixby Bridge Capital, LLC is a private real estate investor and lender with a credit-focused, contrarian, and value-add investment philosophy. Where other investors require extensive due diligence periods, Bixby’s nimble team and flat hierarchy allows underwriting opportunities efficiently. Rather than having separate departments for acquisitions and asset management, each Bixby principal oversees the full life cycle of an investment.

Bixby’s funds are internal and always available, allowing Bixby to close quickly on an all-cash basis. While principally focused on the United States, Bixby has investments throughout the world and across myriad asset classes including industrial, office, hospitality, multi-family, marinas, residential lots, raw land, and retail. Originally formed in 1992, Bixby has offices in Northbrook, IL and Dallas, TX.

The seller was S&N Tucson, LLC of Franklin, Michigan.

The sale of this newer Walgreen is the second highest price fetched for a Walgreens in the past 12-months, and second only to Walgreens at 7111 East Golf Links Road in Tucson that sold on June 30, 2015 for $9.52 million ($618 PSF) in a 1031 Exchange.

Cap rates for these investments continue to hover around a 6.5% cap rate for the Tucson market.

For more information, Bixby can be reached at 847.313.6454.

To learn more, see RED Comp #3712.

After nearly 50 years at the same downtown address, the iconic Chicago Music Store at 130 E Congress Street in downtown Tucson has changed hands for $1.85 million ($77 PSF).

Chicago Music Store has moved to 45 South 6^th Avenue, continuing to do business in downtown Tucson as it has for nearly 100 years. This is the fourth location Chicago Music has occupied downtown since 1919. Making this move a continuation of a long history of the Chicago Music Store as one of Tucson’s oldest family-owned businesses in downtown.

The buyer, an affiliate of Peach Properties, is a well- known downtown developer (Ron Schwabe, manager) that has tentative plans to repurpose the building on Congress for multi-tenant use and is reviewing various architectural proposals for the building.

The historic, two-story, downtown building is approximately 24,000-square-feet with mezzanine, and constructed in 1916.

The buyer has also been awarded the joint redevelopment project with the City of Tucson, of the Ronstadt Transit Center across the street. See RED News November 19, 2015 for details.

Schwabe told us there has already been a lot of interest shown in a repurposed space by smaller tenants for a variety of uses that include restaurant, retail and office uses.

The seller, Chicago Store Properties, was represented by Buzz Isaacson with CBRE in Tucson.

For more information, Schwabe can be reached at 520.798.3331 and Isaacson should be contacted at 520.323.5151.

To learn more, see RED Comp #3697.