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With the uncertainty of 2020 in the proverbial rearview, many business owners and entrepreneurs are reassessing their commercial real estate needs as more employees work from home and more consumers are staying in their vehicles. 

Melissa Lal, president of Larsen Baker, LLC, said she expects many changes in the local restaurant and retail industries as drive-thru eateries seem to be one of the big winners during the pandemic. 

“The big story of 2021 will be drive-thrus...everyone wants a drive-thru these days. You’ll see freestanding buildings pop up in all the big-box parking lots,” Lal said. “WalMart, Lowe’s, Home Depot, you name it, they’re all looking to sell off prime parcels in their parking lots to the active drive-thru businesses like Raising Canes or Starbucks.”

Lal also predicts rent for new construction to increase as a result of logistic impacts and supply chain issues brought on by COVID-19 and increased demand for new homes throughout the nation. She also said to expect favorite mall retail staples like Sephora, Foot Locker and Old Navy to begin expanding into stand-alone buildings as traditional shopping center formats decline. Lal noted that prime-located retail real estate will become more valuable across Pima County as older and not-so-well located retail space will suffer as a result. 

“The best corners in Tucson right now are Oracle and Ina, Irvington and I-19, Skyline and Campbell, Swan and Sunrise, Cortaro and I-10, and Broadway and Craycroft,” Lal said. “We can only expect these corners to continue to get stronger in 2021.”

To commercial property owners, Lal recommends considering selling due to historically low-interest rates, potential political changes and an influx of California buyers. 

“My advice to any commercial property owner would be that selling now may be advantageous,” Lal said. “Interest rates are crazy low and a new political administration may make changes that could negatively affect property values, like getting rid of the 1031 Exchange.”

A 1031 Exchange allows a seller to avoid paying capital gains when selling an investment property and reinvesting the proceeds into similar properties of equal or greater value. 

 

Sales 

Vault at Houghton Road, LLC purchased 10.80 acres of vacant industrial land located at the southeast corner of Golf Links Road and Houghton Road in Tucson, from Tucson Electric Power Company for $690,000. Brandon Rodgers, SIOR, CCIM, Principal, and Molly Mary Gilbert, with Cushman & Wakefield | PICOR, represented the seller in this transaction. Denise Nunez with NAI Horizon, Phoenix, represented the buyer.

 Olavaquero, LLC purchased Lee Street Mobile Home Park, a 12-space multifamily property located at 4344 E. Lee St. in Tucson. The manufactured housing facility was purchased from Arivaca Group, LLC for $460,000. Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented the buyer in this transaction. Thomas De Sollar with Arizona First Properties, LLC, represented the seller.

 M.A.V. Roofing, LLC purchased a 5,000-square-foot industrial building located at 3640 S. Campbell Ave. in Tucson, from The Strauss Revocable Living Trust for $400,000. Paul Hooker, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented the seller in this transaction.

Terry Dahlstrom of VOLK Company represented Steamroller LLC in the sale of a 7,800 square foot retail center located at 1785 W. Valencia Road to The Wright-Pantano LLC for a purchase price of $3,544,000. The center is adjacent to Fry’s in the Valencia Marketplace shopping center, and is occupied by Go Wireless, Pizza Patron, Nationwide Vision and Great Clips.

Terry Dahlstrom of VOLK Company represented the purchaser, 8500 Evergreen Way, LLC, in the purchase of approximately 35,284 square feet of land with approximately 5,244 square feet of building improvements formerly occupied by Bank of America and located at 8500 Evergreen Way, Everett, Washington for a purchase price of $750,000. The seller was represented by Skyline Properties.

Jeramy Price of VOLK Company represented the purchaser, 2130 N. Kolb, LLC, in the purchase of approximately 10,913 square feet of land with approximately 784 square feet of building improvements located at 2130 North Kolb Road from Ent-Kolb LLC for a purchase price of $200,000.

Jeramy Price and Kevin Volk of VOLK Company handled the sale of approximately 42,405 square feet of land at 8601 East Golf Links Road, on the southeast corner of Golf Links and Pantano, from Commerce Bank of Arizona, Inc. to ONETEN REI 2, LLC. The purchase price for the property was $190,000.

Kevin Volk of VOLK Company represented the seller, Barrio 276 LLC, in the sale of a partial interest in 6,515 square feet of land with approximately 5,800 square feet of building improvements located at 276 South Park Avenue for a purchase price of $187,500.

Jeramy Price and Joey Castillo of VOLK Company represented the tenant, Smokin Moe’s, LLC, in the lease of approximately 1,200 square feet of space located at 3553 South 12th Avenue within Plaza Azteca from NAI Investments, Inc. for use as a smoke shop. The landlord was represented by Denisse Angulo of Cushman and Wakefield | PICOR.

VOLK Company agents Jeramy Price, Joey Castillo and Leah Bogen handled a lease between Jorgen and Cynthia Hansen Revocable Trust et al as landlord and Sugar Me Love, LLC as tenant for approximately 1,910 square feet at 3640 East Fort Lowell Road. The tenant will use the space for naturopathic health services.

Rick Borane of VOLK Company represented the tenant, Titan Laboratories LLC, in a lease with RAGA LLC as landlord for approximately 5,200 square feet at 2175 East Valencia Road #185 within the Valencia Business Park for use as a testing laboratory. The landlord was represented by PICOR.

VOLK Company agents Brenna Lacey, Jeramy Price and Joey Castillo represented the landlord, SCG-Northpointe, LLC, in a lease with Iron Doors Arizona, LLC as a tenant for approximately 1,200 square feet at 6741 North Thornydale, Suite 131 within NorthPointe Village.

Brenna Lacey and Jeramy Price of VOLK Company and Chuck Wells of Kidder Matthews handled a lease between Cortaro Commercial JV, LLC as landlord and Tucson Clips, LLC as tenant for approximately 1,000 square feet of space located in the development at the northeast corner of Cortaro Farms Road and Interstate 10. The tenant will use the premises for a Great Clips salon.

 

Jeramy Price of VOLK Company handled a lease between ONETEN REI 2, LLC as Landlord and Geyer-Yunkherr, LLC as tenant for an approximately 800 square foot building to be constructed at 8601 East Golf Links Road.  

Dash Investments, LLC purchased Sierra Court Apartments, a 33,600-square-foot complex located at 270 W. Tacoma St. in Sierra Vista, AZ.  The 30-unit multifamily property located on 2.28 acres, was purchased from Sierra Court Group, LLC for $2,625,000.  Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented both parties in this transaction.

 North Forbes, LLC purchased a 40,130-square-foot, multi-tenant building located in the Broadbent Business Center, 2106 N. Forbes Blvd. in Tucson.  The industrial warehouse property located on 2.08 acres, was purchased from 2106 N. Forbes, LLC for $2,337,500.  Stephen D. Cohen, Principal, and Industrial Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.

 Joe Rose, LLC purchased 8,246 square feet of multifamily space in Monaco Condos, 1620 N. Wilmot Rd. in Tucson.  Units E256, F132, D264, D265, A327, A330, F234, F236, H110 and H210 were purchased from Murray Development Services, LLC for $710,000.  Allan Mendelsberg, Principal, and Conrad Martinez, Multifamily Specialists with Cushman & Wakefield | PICOR, represented the seller in this transaction. David Walsh with S.J. Fowler Real Estate, Inc., represented the buyer.

 

Leases

John Huey, d/b/a Affordable Auto Leather, leased 1,200 square feet of industrial space in Midway Business Center, 4500 E. Speedway Blvd., Suite 51 in Tucson, from Presson Midway, LLC.  Robert C. Glaser, SIOR, CCIM, and Paul Hooker, Principals and Industrial Specialists with Cushman & Wakefield | PICOR, handled this transaction.

 Smokin Moes, LLC leased 1,200 square feet of retail space in Plaza Azteca, 3553 S. 12th Ave., Suite 197 in Tucson, from NAI Investments, LLC. Cintya Denisse Angulo Garcia, Commercial Specialist with Cushman & Wakefield | PICOR represented the landlord in these transactions. Joseph Castillo with Volk Company, represented the tenant.

 The National Association for Hispanic Elderly (Asociación Nacional Por Personas Mayores) leased 1,200 square feet of industrial space in Gateway Industrial Park, 3710 S. Park Ave., Suite 702 in Tucson, from William Lee, LLC.  Ron Zimmerman, Principal and Industrial Specialist with Cushman & Wakefield | PICOR, represented the landlord in this transaction.

 Justin Millard leased 1,050 square feet of office space in Central Point Business Plaza, 3957 E. Speedway Blvd., Suite 206 in Tucson, from Central Point Tucson, LLC.  Molly Mary Gilbert, Office Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction. 

Fresh Smoke Shop leased 1,000 square feet of retail space in Lee Lee Plaza, 1980 W. Orange Grove Rd., Suite 130 in Tucson, from Pearland RJR, LLC.  Aaron LaPrise and Dave Hammack, Principals and Retail Specialists with Cushman & Wakefield | PICOR, handled this transaction.

 MCut Barbershop, leased 700 square feet of retail space in El Sol Shopping Center, 2914-2940 E. 22nd St., Suite 2924 in Tucson, from RRL, LLC.  Max Fisher, Industrial Specialist with Cushman & Wakefield | PICOR, handled this transaction.

 Screens Plus 2, LLC leased 697 square feet of retail space in Eastpoint Marketplace, 6964 E. 22nd St. in Tucson, from Eastpoint Marketplace Additional Investors, LLC. Greg Furrier, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented both parties in this transaction.

Hospitality Staffing Solutions, LLC leased 528 square feet of office space located at 4099 E. 22nd St., Suite 111 in Tucson, from Rinly R. Gecosala, MD, PC and Vidal Rilfa G. Living Trust.  Molly Mary Gilbert, Office Specialist with Cushman & Wakefield | PICOR, represented the landlord in this

transaction.

Dr. John Hartman and his wife, Yan Yan Sun, signed a lease for 909 square feet located at 13180 E. Colossal Cave Road, Suite 150, Vail, AZ in Old Vail Station. This mixed-use project is located south of the southeast corner of Colossal Cave Road and Mary Ann Cleveland Way in Vail, AZ. Dr. Hartman is a Naturopathic Physician, and his new practice will be a family practice with a specialty of intravenous chelation therapy for people who have been exposed to toxins, such as lead, mercury, and arsenic. Yan Yan is a licensed massage therapist and Reiki practitioner and will use these healing modalities as well as assisting Dr. Hartman as a consultant in Chinese herbal medicine.  

Taco Giro has signed a lease for 1,750 square feet located at 13160 E. Colossal Cave Road, Suite 100, Vail, AZ in Old Vail Station. This mixed-use project is located south of the southeast corner of Colossal Cave Road and Mary Ann Cleveland Way in Vail, AZ. Taco Giro is a family-owned business serving authentic Mexican food. This will be Taco Giro’s 6th Restaurant in the Tucson area and 8th restaurant in Arizona. The new restaurant is expected to open April 1, 2021.