A Netherlands-based investment company has paid $33.1 million cash for Old Spanish Trail Marketplace, a 140,652-square-foot retail center southeast of East 22nd Street and Harrison Road.
The buyer, Allied Trading and Transacting Corporation, was apparently attracted to the strength of the national retail tenants at the retail center, according to Jan P. Fincham, a principal in the Phoenix office of Lee & Associates, a national commercial real estate provider who handled the sale on behalf of the sellers, Brown Tucson, LLC and W.M. Grace Development, along with Patrick A. Dempsey, also a principal in the Phoenix office.
 Old Spanish Trail Marketplace at East 22nd Street and Harrison Road. |
The retail center opened in April 2006 and is 98 percent leased. Tenants include Ross Dress for Less, Petco, Office Max, Party America, Famous Footwear and Jamba Juice.
Old Spanish Trail Marketplace is across the street from Old Spanish Trail Crossings, a 200,000-square-foot retail center anchored by Target Greatland.
"Clearly, in this market, an all-cash transaction makes the purchase much easier to execute," said Fincham.
Investor multifamily sales dip
Sales of multifamily housing complexes in Tucson were down more than 66 percent during the first three months of this year compared to a year ago. LoopNet.com, an online commercial real estate site, reports total dollar volume of the complexes during the first quarter of 2008 was $286 million, down from $857 million for the same quarter a year ago.
But capitalization rates - the ratio between the cash flow and the price paid for the property - climbed here over the past year and is better than the national average. Tucson’s cap was 6.8 percent for the quarter, up from 6.3 percent a year ago. The national rate is 6.4 percent.
The per-unit price of multifamily units in Tucson was $65,696 for the quarter, up slightly from $64,356 a year ago. But that is one-third less than the national average of $99,069.
The LoopNet data also showed a possible trend away from institutional and foreign ownership of multifamily units in the Tucson market. Of the units being sold during the quarter, 19 percent were sold by foreign and institutional owners. Nationally, just 8 percent of the units sold were sold by institutional or foreign owners. On the acquisition side, 31 percent of buyers were institutional or foreign, compared to 40 percent nationally.
Recent Tucsn market multifamily complex sales noted by LoopNet were:
• Chateau Sonata, 550 S. Camino Seco, a 114-unit complex sold in March for $6.4 million ($44,000 per unit).
• Tucson East, 8490 E. Old Spanish Trail, a 52-unit complex sold in March for $3.7 million ($71,000 per unit).
• Palace Apts, 3814 E. Fourth St, a 60-unit complex sold in January for $2.59 million ($43,000 per unit).
• Cornerstone, 3985 N. Stone Ave., a 230-unit complex sold in January for $9.85 million ($43,000 per unit).
Miramonte first to implement Marana’s ‘interesting look’ code
Tucson-based Miramonte Homes is the first builder to implement the Town of Marana’s code requiring new homes to be visually interesting and attractive. It also prohibits rows of protruding garages.
The new code is being applied to larger new homes Miramonte is building at The Estates at Gladden Farms, a 46-lot neighborhood in Phase III of a master-planned community.
The homes, ranging from 2,393 to 3,789 square feet, will be the largest built to date at Gladden Farms. They are on large lots of up to a quarter of an acre. Prices start at $298,900.
"One of the biggest goals of the new Residential Design Standards is to limit chains of protruding garages lining residential streetscapes," said Lisa Shafer, assistant planning director for the Town of Marana. "The new code allows the fronts of houses to give more visual appeal to neighborhoods by providing porches and courtyards for family and neighbor interaction."
Miramonte’s homes feature façade details and structural elements such as front porches, varied roof lines or side entry garages. They were designed specifically for Gladen Farms, according to Craig Campbell, president of Miramonte Homes.
The Miramonte model homes are expected to open in late spring. Information is available online at www.gladdenfarms.com or www.miramontehomes.com or call (520) 240-9803.
A 1,350-acre master-planned community, Gladden Farms will have about 3,500 homes when built out. Forest City Land Group is the managing partner and developer of the project.
Worth Noting
• Fastenal Co. leased 16,000 square feet at 4720 N. La Cholla Boulevard, Suites 108 and 109, from Northwest Plaza RP-II LLC. Patrick Welchert of Tucson Realty & Trust Co. represented the landlord. Casey Owen of 1st USA Commercial Properties represented the tenant.
• McDonald’s Corp. leased a pad for a restaurant at the southeast corner of Rancho Sahuarita and Sahuarita Boulevard from Rancho Sahuarita XX LLC. Brian Harpel of the Harpel Company represented the tenant. Aaron LaPrise of the Harpel Company represented the landlord.
• SW Pizza Inc. leased 7,010 square feet at Tucson Spectrum at Interstate 19 and Irvington Road from Barclay Group. The property is adjacent to Harkins Theatres and will be used for a Peter Piper Pizza. Brian Harpel of the Harpel Company Inc. represented the tenant.
• Ability Center Inc. leased 6,000 square feet at 4720 N. La Cholla Boulevard from Northwest Plaza RP-II LLC. Patrick Welchert of Tucson Realty & Trust Co. represented the landlord. Ian Hackett of Hackett Real Estate Solutions represented the tenant.
• Saigon Pho leased 1,805 square feet at 943 E University Blvd. in the Marshall Foundation’s Main Gate Square for a Vietnamese restaurant. Chuck Corriere of Long Realty Commercial represented the tenants, Quan Chu and Son Thu Tran. Tamara Williamson of Bourne Partners represented the Marshall Foundation.
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