The Tucson Spectrum is now owned by DDR Corp. with its $80M ($80K/SF) purchase from Barclay Group. The 1M SF power center on W. Irvington Rd., near I-19 is 99 percent leased with only 52K SF space available along with several undeveloped pads. Primary tenants include Harkins Theaters, Target, Home Depot, J.C. Penney and Food City.
Crow Holdings, Dallas, paid $38M ($246/SF) for the 155K SF Scottsdale Horizons plaza at Frank Lloyd Wright Blvd. and Thompson Peak Pkwy., Scottsdale. Scotts Horizon Properties was the seller. Cassidy Turley BRE Commercial represented Crow and Phoenix Commercial Advisors handled the transaction for the seller.
San Ventura apartments, 3600 W. Ray Rd., Chandler, is the third apartment complex picked up by Baron Properties, Greenwood Village, Colo., $29.7M ($109K/unit) was paid to seller ColRich. CBRE was the broker in the transaction. Baron is reportedly seeking other properties in the market. Baron Properties picked up the 112-unit Santa Rosa apartments, 3425 E. Chandler Blvd., Phoenix, for $11.3M ($100K/unit) in December 2011.
Vista Montaña Apartments, 3225 E. Baseline Rd., Gilbert, was acquired by Acacia Capital Corp. for $28M ($82K/unit) from VM Associates Limited Partnership. The 341-unit apartment transaction was handled by CBRE and is Acacia’s 14th apartment purchase in the market.
SAFCO Capital acquired Palm Aire apartments, 624 N. 27th Ave., and Casa Verde apartments, 5454 W. Indian School Rd., in a $14.7M ($22K/unit) package deal. Apartment Realty Advisors represented the sellers in both deals. Palm Aire has 186 units and Casa Verde incorporates 488 apartments.
Village Diamante, 8050 N. 61st Ave., Glendale, sold for $6.7M ($97K/unit) to JHL Real Estate LLC, Scottsdale. The bank-owned property was held by First International Bank and Trust. Marcus & Millichap Real Estate Investment Services brokered the deal for buyer and seller.
More Canadian investment moves into the market with Dalfen America Corp., Montréal, purchasing Warner Commerce Park and Eastpoint Business Center. Dalfen acquired 86K SF in two mostly vacant Class A buildings from US Bank at 455 and 495 E. Warner Rd. Terms were not disclosed. C-III Asset Management sold the 62 percent occupied 77.2K SF at Eastpoint for $3.3M ($43/SF) to DAC. Cassidy-Turley BRE Commercial handled both of the sales.
In a sale-leaseback investment transaction, Bonakap Arizona LLC sold a 26K SF industrial building to Net Lease Holdings, St. Louis, Mo. for $2.7M ($103/SF). OSG Billing Services, owned by the seller, is the sole occupant of the 100 percent occupied building. Lee & Associates represented the buyer and seller.
Pima County has picked up its 18th downtown Tucson building with the $635K acquisition of the old HUD building, 160 N. Stone Ave. The county recently purchased 200 N. Stone Ave. as well. The new purchase will house court and constables now in leased space at La Placita. The neighboring building houses the county school superintendent.
Leasing and New Locations
The Veterans Benefits Administration is expanding its office space adding 25.4K SF on the 10th and 11th floors in City Square, 3838 N. Central Ave., Uptown Phoenix. The Class B office space is in a complex owned by Angelo, Gordon & Co. LP. Jones Lang LaSalle represented Parallel Capital, the building’s manager in the negotiations with the U.S. General Services Agency.
Peterson’s Ice Cream, a Chicago-based parlor, is opening its first non-Windy City location this fall in a portion of Silver Land Kachinas & Pottery, 7150 E. Fifth Ave., Old Town Scottsdale. Peterson’s is one of several new stores in the Fifth Avenue district. Other new tenants include:
- Fountain Hills Artists Gallery opening a co-op, On the Edge Gallery, in early September with about 40 artists represented in the former Scottsdale Fashion Market location, 7050 E. Fifth Ave.
- Next door, a new, but unnamed jewelry store plans to open shortly focusing on NFL player clients.
- Cactus Crossfit, 7038 E. Fifth Ave., recently expanded by 50 percent to 3,600 SF.
- Buffalo Collection at Scenic Mesa doubled the size of its store at 7044 E. Fifth Ave. selling rugs and buffalo leather furniture. It’s a branch of a store from Aspen, Colo.
Local pizza baker Humble Pie opens its first West Valley location this week at 83rd Ave. and Bell Rd., Peoria. Plans are afoot to open another pizzeria at 35th Ave. and Happy Valley Rd. in October joining three existing Phoenix stores and the original Scottsdale location.
Spring 2013 sees a new Dollar Tree opening in the West Valley. STS Real Estate Partners brokered by the lease for 10K SF in the Canyon Trails Towne Center, Cotton Ln. and Yuma Rd., Goodyear. Vestar is the center’s landlord.
Arizona’s largest used motorcycle dealer, Cycles, Skis and ATVs, known as CSA, is moving into new digs in Tucson. The dealer is upping space to an 18K SF building, 4649 E. 22nd St. at S. Swan Rd. The new space provides room to display upwards of 100 bikes, scooters and ATVs and a new line of all-terrain vehicles.
Industrial Metal Supply is opening a Tucson outlet at 3757 E. Columbia St., near Ajo Pkwy. and Alvernon Way. When the company’s sixth store opens in September, it will be the second Arizona outlet. The firm has a store in Phoenix and four locations in southern California.
Buffalo Corral Barbeque, also known as “BCB,” is now open next to Fort Huachuca in Sierra Vista, 23 N. Garden Ave. at Fry Blvd. The restaurant is owned by Tucson restaurateur John Foster, who is keeping his May’s Counter Chicken & Waffles in the Old Pueblo.
Jalapeno Poppers is headed south with a second store open in Pinetop-Lakeside, 1645 W. White Mountain Blvd. The four year old Holbrook eatery will offer its same menu for breakfast, lunch and dinner in Lakeside, but the local cooks will be permitted to improvise and add items for local diners.
Bourbon Jack’s Grill is opening in the former Art on Boston gallery space in downtown Chandler at the corner of Boston St. and Arizona Ave. The urban country restaurant and bar is in a 3.2K SF space between the Urban Tea Loft’s recently vacated space and Kokopelli Winery.
Bankruptcy and Foreclosures
Representatives from Mountain Shadows Resort holding companies MTS Land LLC and MTS Golf LLC, owned by Irvine, Calif.-based Crown Realty and Development Corp. made a couple of stops on July 20th—one to Paradise Valley city hall to apply for permits to construct a pair of luxury homes on top of the shuttered resort’s active golf course and the other to federal bankruptcy court. The resort has a redevelopment application pending with the town and is also insisting it has the right to develop in concert with a 20-year old development agreement executed by original owner J. W. Marriott Corp.