NorthStar Healthcare Income, through its affiliate Watermark La Cholla Owner, LLC, acquired The Fountains at La Cholla for $69.9 million ($173,000 per unit) as part of a $640 million portfolio for 15 properties in 11 states.

The Fountains at 2001 West Rudasill Road in Tucson consists of 404-units, 241,466-square-feet in 17 buildings on 9.49 acres located in the Northwest submarket of Tucson, near Northwest Medical Center. A continuing care retirement community (CCRC), the property has various living options, including independent living, casitas’ living, assisted living and memory care.

NorthStar Healthcare Income Inc., a public, non-traded real estate investment trust (REIT) purchased 15 CCRCs from subsidiaries of Fountains Senior Living Holdings, LLC, in a deal totaling approximately $640 million.

National senior living operator, Watermark Retirement Communities Inc., will continue as the day-to-day operator of the CCRCs.

With more than 35 communities in 20 states, Watermark is the operating partner of Tucson-based acquisition, finance, design and development firm, The Freshwater Group.

The portfolio consists of six entrance-fee CCRCs and nine rental CCRCs, totaling 3,637 units. Of the total units, about 65% are rental properties and 35% are entrance fee properties, with 23 being contracted life estate units.

As part of the same portfolio, The Watermark, a Philadelphia retirement community in the Logan Square neighborhood of Philadelphia, a 420,000-square-foot building that has a mix of living options with 464-units also sold for $62.25 million, according to the Philadelphia Business Journal.

NorthStar will lease the entrance fee properties to affiliates of The Freshwater Group Inc., pursuant to a master net lease. These rental properties will be held under a RIDEA structure, with NorthStar owning 97% and Freshwater owning 3% of the joint venture. Under the joint venture agreement, NorthStar will manage and control the joint venture’s business and affairs, with Freshwater’s consent on certain major decisions.

NorthStar financed the deal with seven-year debt at a fixed interest rate of 3.92%, which is equal to approximately 64% of the portfolio’s purchase price. The parties entered into the purchase agreement in late February, and NorthStar’s $20 million deposit toward the purchase became non-refundable as of April 9, according to the Form 8-K.

Prior to this, NorthStar Healthcare Income Inc. owned a portfolio of 20 investments, including 16 equity investments with a total cost of $942.7 million and four debt investments with a principal amount of $145.9 million, as of Feb. 6, 2015. On that date, NorthStar issued a prospectus and announced an offering of up to $500 million in shares of common stock to the public at $10.20 per share in a primary offering. An additional $200 million in shares were offered at $9.69 per share.

With a focus on originating, acquiring and managing the assets of equity and debt investments in health care real estate, NorthStar Healthcare Income is a wholly-owned broker-dealer subsidiary of NorthStar Asset Management Group Inc. (NYSE: NSAM).

Another arm of NSAM, NorthStar Realty Finance Corp. (NYSE: NRF), recently acquired an $875 million portfolio of 32 independent living communities from an affiliate of Holiday Retirement.

And in one of the biggest seniors housing deals of 2014, NorthStar Realty Finance Corp. announced a $1.05 billion acquisition involving more than 8,500 beds in 43 mostly private-pay senior housing communities and 37 skilled nursing facilities. That deal was a joint venture with private investment firm Formation Capital LLC and global investment house Safanad.

Information source on the portfolio details was found in Senior Housing News. Read the full story here.

For additional information, login and reference RED Comp #2984.

[mepr-show rules=”58038″]Sale date: 6/2/2015. Public records show buyer paid $2,186,629 down on the Fountains at La Cholla. APN: 102-13-012C.[/mepr-show]

Arizona Ironwood, LLC of Tucson (Robert Bradley, owner) purchased the former Desert Garden Nursery and Cafe at 11011 E Tanque Verde Road in Tucson for $287,500 ($160 PSF). The Company needed expansion room for its specialized market serving mostly out of state and European customers with exotic wood products specialized for wood working.

The new retail space offers the opportunity for the company to get closer to the community, and offer only more items with a variety of wood working classes to the public. With over 27 years of wood working experience, the company has set the standard for the finest quality and rarest burl blanks and will maintain 2000 types of unique items at its new location including Arizona Desert Ironwood and Stabilized woods.

The founder and President, Robert Bradley, has been milling exotic woods since 1988. He began his career at Desert Hardwood Industries in Vail, AZ while completing his Bachelors degree at the University of Arizona and UOP, and Masters Degree at Thunderbird School of Global Management. Robert worked as a chemical engineer for MARS Technologies and has experience with various stabilizing methods.

Jack Marek with Tucson Arizona Real Estate in Tucson represented the seller, Mesquite Sunset Properties, LLC of Tucson (Ira Sra, manager) and Rosemary Lacy with Long Realty in Tucson represented the buyer.

For additional information, Marek can be contacted at 520.795.2500 and Lacy can be reached at 520.577.7400. To learn more about this transaction, login to see RED Comp #2894.

Arizona Ironwood can also be called at 520.647.3453 and on its website https://shop.arizonaironwood.com/ to learn more about this unique Tucson business.

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The former Maria’s Café at 3530-3538 S 6^th Avenue in Tucson sold to Lucatero Enterprise, LLC of Tucson (Rosa Lucatero, manager) for $220,000 ($38 PSF). The 3,730-square-foot restaurant (built 1955) and also a rental house (built 1958) are located on a 26,146-square-foot lot in front of the Southern Arizona VA Health Care Complex. The new restaurant will be owner operated as Carnitas Layoca.

Juan Teran, CCIM, with Chapman Lindsey Commercial Real Estate Services in Tucson represented the buyer in the transaction and Susan Ong with Broadstone Commercial Real Estate in Tucson represented the seller, Franklin and Margaret Gee Trust of San Francisco.

For more information, Teran can be reached at 520.747.4000 x 104 and Ong can be contacted at 520.623.8111. To learn more, login to see RED Comp #2952.

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Juan Teran, CCIM, also represented the seller, Hacienda De Sirupa, LLC of Tucson (Carlos Portillo, manager) in the sale of 234-248 E 22^nd Street in Tucson. The 9,500-square-foot retail space in two 4,500-square-foot buildings (built 1958 and 1968) on a 28,000-square-foot lot was vacant and sold for $182,500 ($19.21 PSF). La Buena 4^th LLC of Tucson (Ron Schwabe, manager) is the investor and plans to remodel the premises for lease.

The property is on a signalized corner at the SWC 22nd Street & 4th Avenue – high traffic and high population trade area. Formerly used as a restaurant and tortilla factory, the property can be demised to accommodate 3-4 separate tenants with frontage on 22nd Street and 4th Avenue.

For more information Teran should be contacted at Chapman Lindsey Commercial Real Estate Services at 520.747.4000 x 104 and Chris Sauer with Peach Properties who represented the buyer can be reached at 520.798.3331. To learn more, login to see RED Comp #2971.

Tucson apartment sales were persistent through May with over $110 million in aggregate sales represented in 2,543 units transferring in 32 transactions. Cap rates trended lower this month again and are hovering at 5% average on the thirteen 40+ unit apartments and higher at around 8% average on the nineteen smaller apartment units.

Tucson-based, Holualoa Companies sold Arcadia Park Apartments at 250 North Arcadia Avenue in Tucson for $17.53 million ($60,850 per unit). The 288-unit apartment complex is located in the eastside submarket of Tucson comprised of 15 two-story buildings and a clubhouse/leasing office, with approximately 224,000-square-feet under roof on 11.49 acres. The complex was 95 percent occupied at time of sale with a one- and two-bedroom unit mix.

The property had recently been updated with new balcony/patio fencing, paint and pool area improvements. Amenities include cable ready units, walk-in closets, extra storage, ceiling fans and vertical blinds. The all electric kitchens have pantries and are fully equipped with range/stove dishwasher, garbage disposal and frost free refrigerator.

Community amenities include lush, park-like mature landscaping with picnic areas, assigned covered parking, clubhouse, laundry facilities, on-site management, seasonally-heated pool and spa; all located near Davis Monthan Air Force Base, AOL, Pima Community College, Tucson College, shopping, dining and services.

The investor was APA228 Partners, LLC of Tucson (Edward Hansen, managing member) was represented by Michael Sandahl, Tyler Anderson, and Sean Cunningham with CBRE in Tucson and Phoenix who also represented the seller in the transaction.

To learn more Sandahl should be reached in the Tucson office at 520.323.5115; Anderson is at 602.735.5557 with Cunningham at 602.735.1740 in the CBRE Phoenix office.

For additional information log in and refer to RED Comp #2956.

In a separate multifamily transaction that closed the same day, The Place at Tierra Rica Apartments I & II, at 3201-3225 West Ina Road in Tucson, sold to an affiliate of Aspen Square Management of West Springfield, MA (Harold Grinspoon, CEO) for $14.25 million ($49,479 per unit).

The 288-units are split between two sister communities with separate addresses on 11.32 acres in the northwest submarket of Tucson. The property consists of 13 two-story buildings and a clubhouse / leasing office, with approximately 207,360-square-feet under roof. The unit mix consists of one- two- and three-bedroom units that were 85 percent occupied when it sold.

Property amenities include three pools, two spas, covered parking, picnic areas with mature landscaping, fully-equipped all electric kitchens, and patios / balconies.

Art and Clint Wadlund with Berkadia Real Estate Advisors in Tucson represented the sellers Tierra Rica Properties LLC and West Ina Road Properties LLC of Tucson (Nolan Rosall, member).

To learn more Art Wadlund should contacted at 520.299.7200 and Clint Wadlund is at 520.529.9206.

For additional information log in to reference RED Comp #2957.

Carbon Cabo LLC of Huntington Beach, CA purchased the Coronado Apartments located at 402 E 9^th Street in Tucson, from Coronado Apts. LLC of Tucson (Ken Silverman, manager) for $1.4 million ($33,333 per unit). The 42-unit property consists of an approximately 15,768-square-feet apartment building on an approximately 6,519-square-foot lot in the Central Tucson submarket. George H Amos III of Tucson Realty & Trust in Tucson represented the investor in this all cash transaction and seller was self-represented.

To learn more Amos can be reached at 520.577.7000.

For additional information log in and refer to RED Comp #2958.

Copper View Apartments at 2559 N Tucson Blvd. in Tucson was sold to an investment group, 2559 BBH LLC from Parker, Colorado for $1.025 million ($39,423 per unit). This 26-unit complex is a mixture of one- and two-bedroom units in a 15,502-square-foot building on a 29,544-square-foot lot in Central Tucson submarket.

Tony Reed with Long Realty of Tucson represented the seller, DLG Copper View LLC of Tucson (John De Lorenzo, manager) who bought the property in 2013. The investor was represented by Johanna Roberts also with Long Realty of Tucson.

To learn more Reed can be reached at 520.577-7400 and Roberts can be contacted at 520.404.8352.

For additional information see RED Comp #1311 for 2013 sale and #2962.