Hillary Davis, Inside Tucson Business
The iconic Broadway Village shopping center is celebrating the big seven-five with a new organic supermarket.
Natural Grocers is set to occupy a roughly 15,000 square-foot anchor space in the historic midtown landmark when it opens later this year. Broadway Village’s big birthday celebration will likely coincide with the grocery’s opening.
Pioneering local real estate developers Helen and John Murphey built the plaza in 1939 at the southwest corner of Broadway and Country Club, at that time the outskirts of Tucson. The Murpheys enlisted the architectural talents of their frequent collaborator Josias Joesler, who used Spanish Colonial Mission Revival forms to invoke a Mexican village square.
Broadway Village, in addition to becoming an enduring and charming example of Tucson architecture, was also at the forefront of the anchored shopping center concept in the United States. Its original anchor tenant was the Broadway Village Market, known for its freshly butchered meats and fish. An adjacent drug store with soda fountain was known for serving Green River sodas and cowboy burgers.
Natural Grocers, which broke into the Tucson market this month with a store at Broadway and Kolb, is part of the Colorado-based Vitamin Cottage chain. Natural Grocers plans four stores for the Tucson market over the next 18 months.
More residential sales in December
Total residential sales volume and unit sales bounced back in December.
According to the latest data from the Tucson Association of Realtors Multiple Listing Service, total unit sales climbed to 1,076 and sales volume hit about $220.6 million last month. In November, 917 sales combined for about $189.7 million, making for month-over-month increases of about 16 and 17 percent, respectively.
The median sales price stayed the same, at $165,000.
Inventory slipped a little, with total active listings dropping from 5,820 to 5,577 from month to month. But the inventory was about 8 percent higher year over year— in December 2013, 5,150 homes were on the market.
Permits surge in
advance of new
impact fees
Homebuilders snapped up permits before the City of Tucson resumed collecting impact fees on Dec. 23, pulling a whopping 167 last month before the reprieve ended.
In her latest Southern Arizona Housing Market Letter, Ginger Kneup from Bright Future Real Estate Research said a volume like this hasn’t been seen in the city since the end of 2006.
The 357 single-family home permits pulled in the city during the Aug. 1-Dec. 22 fee holiday are nearly three times the volume that sales trends would indicate, and would have been worth more than $2.6 million to the city had the builders pulled them under the new fee schedule.
Permit activity in all other area municipalities was on trend, she added.
The reprieve came about after the city missed its Aug. 1 deadline to comply with a new state law requiring an overhaul of municipal impact fee programs, halting its ability to collect the funds until it could come in line with the new rules.
Municipalities charge developers fees to help offset the expected impact that new homes and businesses can put on infrastructure and services, such as roads and police. The first phase of the city’s new schedule, effective for 18 months, calls for impact fees ranging from $5,738 to $7,455 per home, depending on location. On July 1, 2016, they will increase to the full rate of $6,591 to $10,326. This doesn’t take into account administrative and permit fees, which add about $2,500 to each home’s total.
City officials probably see “lost revenue,” but the break might have given builders the confidence to move ahead with some projects that would have sat on the shelf until demand strengthened, Kneup argued. Also, the break allowed many small, local builders to pick up one-off infill lots.
“It is my belief that the positive outweighs the ‘lost’ revenue to the City and gave home builders the opportunity to open up affordable new home options that may not have otherwise been possible,” she wrote.
Permit volume for the year closed out at 2,284, a slight increase over 2013’s 2,250.
Specialized team
negotiates
El Conquistador sale
Hospitality specialists from CBRE offices around the country negotiated the recent $15 million sale of Oro Valley’s Hilton El Conquistador Golf & Tennis Resort and the El Conquistador Country Club to Tucson-based developer HSL Properties.
The CBRE Hotels’ team that negotiated the transaction on behalf of the seller, New York City-based MetLife, consisted of Jerry Hawkins in Tucson; S. Douglas Henkel in Norfolk, Virginia; Lewis C. Miller in Atlanta.; Andy Wimsatt in Washington, D.C. and Jeff Woolson in Carlsbad, California. CBRE Hotels is a specialized advisory group within CBRE of more than 150 hospitality professionals located in 37 offices across the globe.
The El Conquistador asset is situated on two separate parcels totaling roughly 383 acres. HSL plans about $16 million in rehabilitation and capital improvements on the hotel portion of the property, with work to take place over the next 12 to 18 months. HSL has also started the process to split off the resort’s country club and 45 holes of golf to the Town of Oro Valley. HSL hopes to finalize that sale by March 1, although local residents have initiated a referendum petition drive that could potentially halt the sale. (Organizers turned in signatures on Jan. 15; signatures hadn’t been verified as of press time.)
Originally built as a Sheraton Resort in 1982, the property was Tucson’s first major resort with more than 250 rooms on the original 121-acre site. It became affiliated with Hilton in 2003. Additionally, the property includes approximately 18 acres of developable land on Oracle Road.
SALES & LEASES
5505 Nogales, LLC purchased an 81,094 square-foot industrial building at 5505 S. Nogales Highway from We Valoroso Holding Corp. for $2,800,000. Ron Zimmerman with Cushman & Wakefield | PICOR represented the seller.
Presson Corporation purchased a 33,082 square-foot multi-tenant industrial building at 4650 S. Coach Drive from 3430 Sunrise, LLC for $2,050,000. Rob Glaser, SIOR, CCIM with Cushman & Wakefield | PICOR represented the buyer. Jon O’Shea with Vast Real Estate Solutions represented the seller.
Pasadera Behavioral Health Network purchased the former campus of Arizona’s Children Association at 2700 and 2820 S. 8th Ave. in South Tucson for $2,025,000. The property consists of nine buildings with residential, clinical, academic and administrative facilities. Pasadera will consolidate numerous programs at the site. Tom Knox, SIOR with Cushman & Wakefield | PICOR and Bob Kaplan with Marcus & Millichap in Denver represented the buyer.
Pacific Southwest District of the Wesleyan Church (Christian Faith Fellowship) purchased a 21,806 square-foot church at 1900 N. Country Club Road from Catalina Baptist Church for $1,700,000. Rob Tomlinson with Cushman & Wakefield | PICOR represented the seller. John Ash with CBRE Tucson represented the buyer.
La Playa Caliente, LLC, with Desert Hope Lutheran Church as Assignee, purchased the property located at 7474 E. Speedway Blvd. from TM Building & Development, Inc. for $750,000. The property consists of an approximately 8,000 square-foot building on approximately 4 acres of land. Michael Gross and Terry Lavery, CCIM of Tucson Realty & Trust Co. represented the seller. Rob Tomlinson with Cushman & Wakefield | PICOR represented the buyer.
Iglesia De Cristo purchased a 6,000 square-foot church at 333, 345, 359 E. Roger Road from Greater Tucson Casas Adobes Post 10188 Veterans of Foreign Wars for $473,000. Rob Tomlinson with Cushman & Wakefield | PICOR represented the buyer. Bob Baker of Sonoran Ventures represented the seller.
SLE Properties, LLC purchased a 6,598 square-foot industrial building at 2475 and 2501 N. Jackrabbit Ave. from Pasadera Behavioral Health Network for $220,000. Paul Hooker with Cushman & Wakefield | PICOR represented the seller.
Kenneth Swanson, Inc. purchased 7,280 square feet at 1951 N. Wilmot Road, Building 2, from Carnes Properties, LLC. Andrew D. Sternberg and Robert J. Nolan of Oxford Realty Advisors handled the transaction.
Premier Van Lines International Inc. leased 6,600 square feet at 3765 E. 43rd Place from JDLH Investments, LLC. Russell W. Hall, SIOR, GSCS and Stephen D. Cohen with Cushman & Wakefield | PICOR handled the transaction.
Assurance Relocation Systems, LLC leased 4,000 square feet at 506 E. 25th St. from Rich Rodgers Investment, Inc. Brandon Rodgers, CCIM with Cushman & Wakefield | PICOR represented the landlord. Ryan McGregor with KW Commercial represented the tenant.
ManTech International leased 3,240 square feet at 400 W. Fry Blvd., Suites 12 and 13, in Sierra Vista from Mission Hill Management. Russell W. Hall, SIOR, GSCS and Stephen D. Cohen with Cushman & Wakefield | PICOR and Malcolm Marshall with Cushman & Wakefield in Washington, D.C., represented the tenant.
The Independent Distillery leased 2,478 square feet at 30 S. Arizona Ave., a part of the new Gibson Court in downtown Tucson, from Gibson Family, LLC. Tom Knox, SIOR with Cushman & Wakefield | PICOR represented the landlord.
Council Street, LLC leased 924 square feet at 14 S. Arizona Ave., also part of the new Gibson Court, from Gibson Family, LLC. Council Street will open an upscale bar and lounge to be called High Wire. Tom Knox, SIOR with Cushman & Wakefield | PICOR, represented the landlord.
Encourage Arizona, LLC leased 1,200 square feet at 4500 E. Speedway Blvd., Suite 56 from Presson Midway, LLC. Rob Glaser, SIOR, CCIM and Paul Hooker with Cushman & Wakefield | PICOR handled the transaction.
ALTA Land Survey, Inc. leased 902 square feet at 5930 E. Pima St., Suite 130 from 5930 E. Pima, Inc. Jeff Zellet with Cushman & Wakefield | PICOR represented the landlord. Carl Mickler and Liane Wong with Centra Realty represented the tenant.
Act Fast Delivery of Tucson, Inc. leased 1,376 square feet at 3865 E. 34th St., Suite 106 from A & P Investments. Rob Glaser, SIOR, CCIM with Cushman & Wakefield | PICOR handled the transaction.
Carpenter Hazelwood Delgado & Bolen, PLC leased 2,534 square feet at 333 N. Wilmot Road, Suite 180 from National Bank of Arizona. Michael Gross of Tucson Realty & Trust Co. represented the landlord. David Volk of CBRE Tucson represented the tenant.
Southwest Contractor’s Supplies, Inc. leased 1,347 square feet at 6303 E. Tanque Verde Road, Suite 240 from Mark D. Brinton Family Trust. Michael Gross of Tucson Realty & Trust Co. represented the landlord.
Shoshana Elkins leased 1,068 square feet at 2055 N. Kolb Road, Suite 121 from KRP, LLC. Tari Auletta, CCIM and Doug Richardson of Tucson Realty & Trust Co. represented the landlord.
NCS Pearson, Inc. leased 25,000 square feet formerly occupied by American Home Furnishings at 4690 N. Oracle Road in the Tucson Galleria. Greg Furrier with Cushman & Wakefield | PICOR represented the landlord. Patrick Darcy with Tucson Realty & Trust Co. represented the tenant.
Titan Auto Insurance of New Mexico, Inc. leased 1,365 square feet at 3021 E. Speedway Blvd. from Mahoney Family, LLP. Greg Furrier with Cushman & Wakefield | PICOR represented the landlord.
Déjà Vu Too Antiques and Collectibles leased 1,320 square feet in Placita del Norte Shopping Center at 5827 N. Oracle Road from PDN Property, LP. Greg Furrier with Cushman & Wakefield | PICOR represented the landlord. Michael Lamonge with Realty Executives Tucson Elite represented the tenant.
Edward D. Jones & Co. leased 866 square feet in the Walmart Neighborhood Market shopping center at 110 S. Camino Seco Road from JMK Family Properties. Greg Furrier, Aaron LaPrise, Rob Tomlinson and Jeff Zellet with Cushman & Wakefield | PICOR handled the transaction.
The Vapor Zone Smokeless leased 600 square feet in the Safeway Shopping Center at 9420 E. Golf Links Road from D and D Properties, LLC. Greg Furrier and Jeff Zellet with Cushman & Wakefield | PICOR handled the transaction.
Shahida Parides, LLC leased 1,600 square feet at 4500 E. Speedway Blvd., Suite 13 from Presson Midway, LLC. Rob Glaser, SIOR, CCIM and Paul Hooker with Cushman & Wakefield | PICOR handled the transaction.
Pronto Food Services LLC, dba G Pizza, leased 1,200 square feet at 7950 E. Broadway Blvd. from Pantano/Broadway, LLC. Denisse Angulo with Cushman & Wakefield | PICOR represented the tenant.
Mark and Bonnie Olson, dba Goldline Fine Jewelers, leased 1,338 square feet within Placita Del Oracle Shopping Center at 6001 N. Oracle Road from PP Two Inc. Dave Hammack of Volk Company represented the landlord.
Green Electronic Solutions, LLC leased 4,615 square feet at 1540 E. Wieding Road from Joe Middendorf. Jeff Zellet with Cushman & Wakefield | PICOR represented the tenant. Tim Burris with Burris, Hennessy & Co. represented the landlord.
Congresswoman Martha McSally leased 1,400 square feet at 4400 E. Broadway Blvd., Suite 510 from 4400 Broadway, LLC. Michael Gross of Tucson Realty & Trust Co. represented the landlord.