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On Monday, May 24, Texas-based building supplier Builders FirstSource announced it entered into an agreement to acquire Cornerstone Building Alliance (also known only as Alliance), the largest independently operated supplier of building materials in Arizona. Builders FirstSource, a Fortune 500 company, is purchasing Alliance for approximately $400 million, subject to certain closing adjustments.

Alliance primarily serves the greater Phoenix, Tucson, and Prescott Valley areas, and operates a Tucson office, the Arizona Builders’ Alliance, on South Country Club Road. According to Builders FirstSource, Alliance reported trailing 12 month sales of approximately $330 million as of April 2021.

“This acquisition is aligned with our strategy of investing organically and through [mergers and acquisitions], to shift our portfolio toward high-value and faster-growth categories. Alliance’s service area represents the third largest single-family market and includes the fastest growing county, Maricopa, in the country,” said Builders FirstSource president and CEO Dave Flitman. “Alliance’s geographic footprint represents an excellent strategic fit, with a limited overlap of our existing geographic coverage that enables us to expand our product lines across various end markets... We are excited to welcome the over 300 hundred Alliance team members to the Builders FirstSource family.”

Alliance offers distribution of premium building materials throughout the highest-growth regions of Arizona. It also serves as an advisor for leading contractors across single-family, multi-family, and commercial end markets.

“We have grown this business into an industry leader and joining the Builders FirstSource family is a clear win for all stakeholders, representing the next chapter in Alliance’s successful journey,” said True Carr, managing partner of Alliance. “We are thrilled to continue to provide exceptional products and services to our customers as part of Builders FirstSource.”

 

SALES

 

Serenity Holdings III, LLC purchased 31,471 square feet of office space located at 4555 and 4585 E. Speedway Blvd., and 1111, 1145, 1201, 1209, 1217 1225, 1231 N. Venice Ave. in Tucson. The Brown Mackie College Campus was purchased from Eugene Pamfiloff and Erena Pamfiloff for $3,650,000. Cushman & Wakefield | PICOR handled this transaction. Thomas J. Nieman, Principal, and Office Specialist represented the seller; Paul Hooker, Principal, and Industrial Specialist, represented the buyer. 

 

Dias Revocable Trust, LLC purchased an 11,339-square-foot industrial building located at 4955 N. Shamrock Place in Tucson. The office/manufacturing property was purchased from Kash Property Management, Inc., for $1,375,000. Robert C. Glaser, SIOR, CCIM, and Paul Hooker, Principals, and Industrial Specialists with Cushman & Wakefield | PICOR, represented the seller in this transaction. Mark Irvin with Mark Irvin Commercial Real Estate Services, LLC, represented the buyer. 

 

TAC13 Investments, LLC purchased a 17,360-square-foot industrial building located at 3512 and 3520 S. Dodge Blvd. in Tucson. The flex, light manufacturing property was purchased from Gerald A. and Irma Schuchardt for $1,352,000. Stephen D. Cohen, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction. Alan Moore with Chapman Lindsey Commercial Real Estate Services, represented the buyer. 

 

Shakin Mendelsohn 2004 Trust purchased 9,250 square feet of multifamily space located at 3521 N. Flowing Wells Road in Tucson. Flowing Wells Apartments, a 14-unit property, was purchased from AZDA, LLC for $1,080,000. Allan Mendelsberg, Principal and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction. 

 

Equilibrium Villas, LLC purchased 5,880 square feet of multifamily space located at 2432 N. Balboa Ave. in Tucson. Balboa Apartments, a 14-unit property, was purchased from Tuzona One, A Family Trust, for $700,000. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction. 

 

Serrato Corporation purchased a 4,865-square-foot office building, located at 3443 E. Fort Lowell Road in Tucson, from 3443 Ft. Lowell, LLC for $585,000. Richard M. Kleiner, MBA, Principal, and Office Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction. 

 

TLC Solar Ventures, LLC purchased 5,862 square feet of industrial space located in Silverlake Industrial Park, 945 W. Silverlake Road in Tucson. The industrial property was purchased from Silverlake Properties, LLC for $510,000. Net Zero Solar will occupy the 5,862 square foot office/warehouse building for their solar contracting operation. Stephen D. Cohen, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction. Mike Hennessy with Burris, Hennessy & Co., represented the seller. 

 

Equilibrium QOZB II D, LLC purchased 10,500 square feet of retail space located in downtown Tucson, in the Historic Fourth Avenue District.  The four locations, 600, 602, 604 and 606 N. 4th Ave., were purchased from Ten Fifteen Two and Four Partnership for $465,000. Cushman & Wakefield | PICOR handled this transaction. Greg Furrier, Retail Specialist, represented the seller; Allan Mendelsberg and Conrad Martinez, Multifamily Specialists, represented the buyer. 

 

Tin Cup Properties, LLC purchased 6,400 square feet of industrial space located at 500 E. 29th St. in Tucson. The commercial property was purchased from Helen L. Cooke for $401,000. Ron Zimmerman, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented the buyer in this transaction. Timothy Bathen with Arizona Acquisition Strategies, represented.

 

DavRiCO, LLC purchased 1.66 acres of commercial land located at 3901 and 3941 S. Kolb Road in Tucson. The vacant land parcel was purchased from Kolb Boneyard, LLC for $145,000. Ron Zimmerman, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction. Julian Willetts and John Hamner, CCIM, with RE/MAX Excalibur, represented the buyer. 

 

LEASES

 

Brenna Lacey of VOLK Company represented Macarthur Tucson, LLC in the sale of an approximately 24,260 square foot building located at 345 East Toole to Moreno Valley Gateway, LLC for a purchase price of $4,600,000.

 

CGI Federal, Inc. renewed their lease with 1510na, LLC for 50,000 square feet of office space located in Gateway Business Park, 7333 E. Rosewood St. in Tucson. Greg Furrier, Principal, and Retail Specialist with Cushman & Wakefield | PICOR, represented the tenant in this transaction. 

  

 United Healthcare Services, Inc. leased 17,967 square feet of retail space from Grant / Swan Center, LLC, located at 4730 E. Grant Rd, in Tucson. Greg Furrier and Dave Hammack, Principals, and Retail Specialists with Cushman & Wakefield | PICOR, represented the landlord in this transaction. Timothy Hurley with Kidder Mathews, represented the tenant. 

 

City Electric Supply Company leased 10,000 square feet of industrial space from Tin Cup Properties, LLC, located in Research