MESA, ARIZ. – Augusta Ranch Marketplace, an 80,247-square-foot shopping center in Mesa, has sold to an undisclosed investor for $14 million. The center is located at 9931 E. Baseline Road. It is anchored by Bashas’ grocery store. Other notable tenants include Great Clips, Sylvan Learning Center, Geno’s Pizza and Fat Willy’s Family Sports Grill. The center was built between 2005 and 2006. The acquisition included an adjacent developable pad. The seller was Shopoff Realty Investments.
TUCSON, ARIZ. – ReCommunity Recycling Center, a 59,000-square-foot, built-to-suit complex in Tucson, has sold to a joint venture composed of three Alaska-based partnerships for $7 million. The complex is located at 3780 E. Ajo Way. It contains 53,783 square feet of warehouse space and 5,258 square feet of office space. The property is wholly leased and operated by ReCommunity Holdings. ReCommunity is the nation’s largest pure-play recycler. It also operates recycling and recovery facilities in Phoenix and Scottsdale. The company has a total of 36 facilities operating in 13 states across the country. Mike Sandahl, David Blanchette and Wyatt Campbell in CBRE’s Tucson office represented both the buyer and seller, Olyver Land LLC, in this transaction.
SCOTTSDALE, ARIZ. – Canyon Village, a mixed-use office project in Scottsdale has sold to Laurus Corp. for $18.7 million. The Class A project is located at 18801, 18835, 18867 and 18899 N. Thompson Peak Parkway. It is situated within the 8,800-acre, master-planned DC Ranch at the base of the McDowell Mountains. Canyon Village is primarily composed of office tenants, but also includes high-end medical office, retail and restaurant users like Ciao Wine Bar & Bistro and the Village Health Club’s hot yoga studio. It was 75.9 percent occupied at the time of sale. The seller, Canyon Village LLC, an entity of DMB, was represented by JLL’s Dennis Desmond and Brian Ackerman. DMB’s Michael Burke and T.A. Shover also participated in this sale, as did Alfred Hackbarth of SRS Real Estate Partners and JLL’s John Bonnell and Brett Abramson.
SCOTTSDALE, ARIZ. — Velocis Partners has purchased Camelback Square, a 174,917-square-foot office building in Scottsdale, for $42.3 million. The center is located at 6991 East Camelback Road. The three-story office building was 92 percent occupied at the time of sale. Notable tenants at the building include ZocDoc, Regus, Ashton Woods, Echo Global Logistics, Digital Airstrike and Mastro’s City Hall Steakhouse. The property is situated near Scottsdale Fashion Square and the Scottsdale Waterfront. This is Velocis’ first Phoenix-based acquisition. Velocis also received an acquisition loan totaling $26.5 million. The loan was arranged by Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart of CBRE’s Capital Markets’ Debt and Structured Finance team. It was provided by JP Morgan Chase. CBRE’s Barry Gabel, Chris Marchildon, Kevin Shannon, Ken White and Paul Jones represented Velocis and the seller, a joint venture between Lincoln Property Company and Oaktree Capital, in this transaction.
GILBERT, ARIZ. – Saint Xavier University opened a new recruiting center in Gilbert. The center is located at 119 North Gilbert Road. It will allow the university to attract future students to its new Gilbert campus, which will open this fall. The building is still under construction, though students have begun online classes through the new university outpost.
PHOENIX – Twin City Hardware has leased 25,960 square feet of industrial space in Phoenix. The space is located at 5670 S. 40th Street. The hardware company signed a five-year lease. The space is owned by Arizona Industrial Properties. Twin City Hardware was represented by Mike Ciosek and Eric Bell of Voit.
TUCSON, ARIZ. — GRI Investors has acquired Casas Adobes Plaza, a 91,318-square-foot shopping center in Tucson, for $46 million. The center is located at the southwest corner of Ina and Oracle roads. Casas Adobes is anchored by a new Whole Foods that opened this past August. Other notable tenants include Starbucks, Chipotle, Pei Wei Asian Diner, Jos. A. Bank, Chico’s, Sauce, Loop Jean Company and a Wildflower restaurant. GRI Investors was represented by Jan Fincham and Patrick Dempsey of Lee & Associates in Phoenix. The seller was Casas Adobes Plaza LLC.
FLAGSTAFF, ARIZ. – The 100-unit Table Rock Apartments in Flagstaff has sold to Red Rock Investment Management for $14.3 million. The community is located at 3400 S. Lake Mary Road. It was built in 1998. The seller, Virtu Investments, was represented by Jim Crews and Brett Polachek of Cushman & Wakefield.
TEMPE, ARIZ. – A pair of free-standing, single-tenant buildings in Tempe that are triple-net leased to Target and US Bank have sold to Rosebud Tempe One LLC for $11.9 million. The properties are located at the northeast corner of McClintock Drive and Baseline Road. Target has occupied this space since 1988. Major employers in the area include Intel, Arizona State University and Maricopa Community Colleges. Acquisition financing was arranged by CBRE’s Geoffrey Harris. Joseph Compagno of the same firm represented both the buyer and seller, Hudson Retail Center LLC, in this transaction.
Before raising the curtain on 2015, it is important to understand how the stage has been set. The Phoenix industrial sector continues to build for changes in the market. Local and national developers delivered 6.3 million square feet of speculative industrial warehousing in the market last year, primarily due to big box projects. While most of these projects were in the Southwest Phoenix submarket, we have seen construction in the Sky Harbor and Southeast Valley submarkets as well. The national economy continues to improve slowly, and while activity levels during the numerous projects have been steady, closed deals for large blocks of space continue to be elusive. Although net absorption was positive by the end of last year, lease transaction volumes were mostly in the 50,000 to 200,000 square feet range. This prompted developers to modify their efforts by offering to divide their big boxes to accommodate partial building tenants, where prior expectations were geared toward single-tenant, full-building occupancy. There were still several big box projects under construction by the end of last year. This includes projects by Wentworth Properties, Trammel Crow/Clarion Partners, Conor Commercial, Hillwood and several other projects in shovel-ready position. Those ready to break ground include Prologis, …