1. CBRE Hotels announced that it has arranged the sale of a 159-room Radisson Hotel located in Chandler to a California-based private partnership for an undisclosed price. Granite Hospitality of Phoenix has taken over operations of the hotel. CBRE Hotels’ Jennifer Bergamo, VP in Phoenix, and Larry Kaplan and Mark Darrington, SVPs in Denver, represented the institutional seller in this transaction.
2. The Peoria Unified School District will take over the building adjacent to one of its high schools that for 17 years housed the Arizona Challenger Space Center. To acquire the building, the district will swap two vacant lots — one on 75th Avenue near Greenway Road and one near 89th and Orangewood avenues, across the street from the Raymond Kellis High School. Together, the 1.5 acres of district land is valued at $4M. The Challenger building was appraised at $4.4M.
3. A 53.5KSF industrial building at 619 N. Cooper Rd., Gilbert, sold for $384M. Pete Batschelet, with Lee & Associates Arizona, represented the buyer, Cooper Property, LLC. Jim Passey with Passey Realty & Investments, represented the seller, GMW Enterprises, Inc. The new buyer, Arizona Auto Parts, will use the facility for auto dismantling and recycling of automotive parts.
4. CBRE has completed the sale of a new Pei Wei ground-lease located at 10450 North 28th Dr. in a dense infill area of Phoenix. The 3.1KSF property is home to Pei Wei’s new prototype restaurant. The restaurant commanded a sale price of $2.8M, which equates to a market leading 4.76 percent cap rate. Andrew K. Fosberg and Joseph R. Compagno with CBRE’s Phoenix office represented the seller, SWC 28th And Peoria Investors, LLC, an affiliate of Arizona-based A & C Properties, Inc.
5. Galaxy Theatres has leased the 50KSF space previously occupied by Bashas’ on the SWC of Broadway and Houghton Road, Tucson. A $1.6M building permit was issued for the construction of more than 20 VIP lounges and auditoriums featuring IMAX films.
6. Varsity Tutors has announced that it is significantly expanding its sales and customer support team and footprint in the Phoenix area. The Phoenix office of JLL has completed a new lease that will relocate the company from its current Scottsdale location to 40KSF within Rio2100 in Tempe for a national sales and customer support center. JLL’s Ryan Bartos and Kyle Seeger represented Varsity Tutors in the lease transaction. JLL’s Project and Development Services team will direct all tenant improvements.
7. NAI Horizon negotiated a long-term lease for Varsity Tavern at 501 S. Mill Ave., in Tempe. The NAI retail properties team of Shelby Tworek, Chris Gerow, Gabe Ortega and Patrick Anthon represented the tenant, Ipsum Creative LLC of Tempe, in the transaction totaling $2.641M. Varsity Tavern will occupy the second and third floors of the retail property. It will take nearly 11KSF with 3.4KSF of patio space.
8. JUMP! Family Entertainment Center leased 14KSF at 5120 S. Julian Dr., Suite 108 in Tucson, from Intergalactic, Inc., dba Bookmans Entertainment Exchange. Russell W. Hall and Stephen D. Cohen, Industrial Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Esther Empens with Tierra Antigua Realty, LLC represented the tenant.