Tucson Lease Report – June 28 – July 2, 2021

Highlighted this week is a 2,584-square-foot retail property lease handled by Molly Mary Gilbert and Ryan McGregor, with Cushman & Wakefield | PICOR,

The following leases have been submitted to the Real Estate Daily News for the Tucson Lease Report from June 28-July 2, 2021.

RETAIL – 2530 – 2538 E. BROADWAY BLVD., TUCSON, 85716 – Central Submarket
CADC, LLC leased 2,584-square-feet of retail space from LLJ Holdings, LLLP, located in Broadway Midtown Courtyard Plaza, 2530-2538 E. Broadway Blvd., in Tucson. Molly Mary Gilbert and Ryan McGregor, with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

OFFICE – 1925 W. ORANGE GROVE, TUCSON, 85704 – Northwest Submarket
Amerita, Inc. leased 2,365-square-feet of office space located at Orange Grove Medical Plaza located at 1925 W. Orange Grove. Andrew Sternberg and Phil Skillings with NAI Horizon represented the landlord and Tim Healy with CBRE Tucson represented the tenant in this transaction.

OFFICE – 2910 N. SWAN RD., TUCSON, 85712 – Northeast Submarket
Kestra Private Wealth Services, LLC leased 2,226-square-feet of office space located at Plaza Palomino located at 2910 N. Swan Road. Andrew Sternberg, Phil Skillings and Ben Craney with NAI Horizon represented the landlord and Rick Kleiner with PICOR represented the tenant in this transaction.

RETAIL – 2015 N FORBES BLVD., TUCSON, 85745 – West Submarket
Star Bible Fellowship leased 1,920-square-feet of space at Broadbent Business Center, 2015 N. Forbes Blvd., Suite 110 in Tucson, from Forbes Tucson LLC. Robert C. Glaser, SIOR, CCIM, Principal and Industrial Specialist with Cushman & Wakefield | PICOR, handled this transaction.

RETAIL – 7966 N. ORACLE RD., TUCSON, 85704 – Northwest Submarket
HPS Incorporated (DBA: The UPS Store) leased 1,400-square-feet of retail space located at 7966 N. Oracle Road in Tucson, from Roseville Tucson, LLC. Rob Tomlinson, Principal, and Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction. Jesse Peron with CBRE, Tucson, represented the landlord.

RETAIL – 3924 W. INA RD., TUCSON, 85741 – Northeast Submarket
Cold Blooded Exotics, LLC. leased 980-square-feet of retail space at Embassy Plaza located at 3924 W. Ina. Ben Craney, Jayme Fabe and Sam Nalli with NAI Horizon handled this transaction. [mepr-show rules=”58038″]Asking lease rate: $18.50 SF/YR (Ask) NNN[/mepr-show]

OFFICE – 1661 N. SWAN RD., TUCSON, 85712 – Northeast Submarket
Eden Home Health of Sierra Vista, LLC leased 875-square-feet of office space from DHS Property Investments, LLP, located in The Smart Building, 1661 N. Swan Rd., Suite 208 in Tucson. Thomas J. Nieman, Principal, and Ryan McGregor, Office Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Karen Farrell with Venture West Real Estate Services, LLC, represented the tenant. [mepr-show rules=”58038″]Asking lease rate: $18.00 SF/YR (Ask) Full Service[/mepr-show]

Submit sales and lease to REDailyNews@outlook.com



16-Unit Complex in Phoenix’s Central Corridor Trades for $134,375/Unit

Phoenix, Arizona – New Devonshire Apartments, a cozy garden-style 16-unit complex located just off the I-17 and Devonshire Avenue, sold today for $2,150,000, $134,375 per unit, or $191 per square foot. Zack Mishkin of ORION Investment Real Estate and Davide Pio of BCRE represented the Buyer in the transaction, RPM Investments Q/I for Peggy Cramer and Christopher Hanson, Co-Trustees of the Cramer Hanson Trust, UAD 6/10/16. Chris Hanson is a California buyer perfecting a 1031 exchange. The Seller was SOLOAN INC. led by Benjamin Laborde, and he was represented by Ryan Ash and Mike Woodrick of Newmark Knight Frank.

New Devonshire Apartments consists of 16 units, all constructed in 1964. The property was 93% occupied at the close of escrow. This low density community is situated on a 1.13 acre lot, boasting some of the largest open courtyards in the neighborhood. The community consists of a balanced unit mix of 8 one bedrooms and 8 two bedrooms; all units have f ront and back entrances and covered parking.

The property is block construction with pitched roofs and is individually metered with individual HVAC units and water heaters. New Devonshire is just a 5-minute commute to the Central Corridor, a vibrant infill location experiencing a residential revival that has led to unprecedented rental demand pushing to the West, directly into the New Devonshire neighborhood. This employment hub is home to over 53,000 employees.

Zack Mishkin commented on the transaction, “The New Devonshire Apartments possess all the makings of a great value-add opportunity. Many of the big ticket items had been updated or were in good shape, the 50/50 unit mix of 1’s and 2’s boasted large footprints, washers and dryers can be added to each unit and the community has a large interior courtyard that can be easily amenatized. It’s hard to find anything in the Phoenix MSA in decent shape for under $150,000 per unit so closing at under 135k/unit, the Buyer will be all-in with his acquisition and renovation cost at what this asset probably should have traded at.”



OPED: Rio Nuevo’s “Sunshine Mile” Urban Overlay District Thwarting Own Stated Goals

OPED by Greg Clark, former Co-Chair of Mile Neighborhood

TUCSON, ARIZONA — This Wednesday, July 7, 2021 the Tucson Mayor and City Council are set to consider an urban overlay district (UOD) rezoning proposal for the area known as the Sunshine Mile.

Unfortunately, many have not been following this overlay district, being advanced by Rio Nuevo, and some believe the goals have devolved into solely an historic preservation zone that does little to advance its own stated goals for economic development in the area.

Rio Nuevo and City staff claim the overlay is an effort to boost density, commercial activity, energy-efficient building practices, affordable housing, generate higher tax revenue, and support a zone of higher multi-use living that will sustain new modes of transportation and mass transit.

In fact, the UOD has blessed last year’s creation of the “Sunshine Mile Historic District,” and the overlay proposal now excludes its rezoning incentives to any project that would alter or demolish any structure that is eligible or contributing to an “historical” zone.  Rio Nuevo CEO, Fletcher McCusker has said that this keeps 120 buildings unavailable for any kind of development besides getting a change of use and some parking abatements. Even the areas that were to be available for new mid- and high-rise development (areas near Broadway & Euclid, Campbell/Kino) have been substantially curtailed in recent drafts.

The major East-West arterial in and out of downtown should be an area of commerce and business vibrancy.  It is to be a major 6-lane thoroughfare, which can accommodate higher residential and commercial density.  Tucson survives on tax revenue and Central Broadway provides a crucial opportunity to boost businesses and economic uses that would generate jobs, new commercial and residential spaces and revenue sources for Tucson.

Sadly however, rather than activate the potential for redevelopment, this UOD sets aside 2-bedroom residential bungalows and other old, functionally obsolete structures for “preservation”. Rather than creating a gateway to downtown, the Sunshine Mile overlay is gazing backwards and prioritizing historic petrification above all else.  The result will be a stretch of reliquary roadway similar to Speedway Blvd. between 1st and 4th Ave.: many small old buildings, barely any business.

We all know Tucson has some of the most restrictive historical preservation requirements found anyplace. Yet we were told the Sunshine Mile would support economic development.

It is concerning that while we public stakeholders were busy dealing with the pandemic, the Sunshine Mile District purpose was altered into a set of convoluted requirements to make development nearly impossible along this two-mile stretch. In June 2020, the stated primary purpose of the Sunshine Mile District was “economic development” but in December, the purpose was changed to read “economic vitality”. There’s a reason for this change and I think we all know what it is.

The proposal being considered Wednesday will be a lost opportunity if passed. It is not what the city needs from its major central corridor.

Fortunately, it can still be changed if the Mayor and Council decide to. I hope that others who agree will share their opinions with the Mayor and Council before the July 7 meeting, or attend the virtual city council meeting to let Council Members know how we citizens feel.

Members of the public may submit written comments on any items scheduled.  To do so, send an email to cityclerk@tucsonaz.gov.  The email should include the individual’s name, the agenda item for comment and be limited to no more than 500 words.  Comments must be received by no later than 5:00 p.m., Tuesday, July 6, 2021.

Individuals wishing to speak during call to the audience and/or the public hearing (subject to technological availability) will join the meeting via teleconference.  You must submit a written request to cityclerk@tucsonaz.gov.  The email should include your name, and the phone number you will use for the teleconference.  The phone # will be used to identify the individual when/if being called upon to speak.  Once your request to speak has been received by the City Clerk, you will be provided instructions on how to connect to the teleconference.

Requests to speak must be submitted no later than 12:00 p.m., Wednesday, July 7, 2021. Please join us.

Go to City Of Tucson link for agenda and to register for the Zoom meeting Wednesday July 7 scheduled at or about 5:30 PM.

The public can watch the live stream of this meeting here https://www.tucsonaz.gov/gov/mayor-and-council-live