The Rio Nuevo Board voted unanimously Tuesday, Jan. 24 to direct its executive officers and counsel to negotiate and bring back to the board a final development agreement for what could be one of downtown Tucson’s tallest buildings.
Todd Freed, vice president of construction for JE Dunn Construction, told the board at last month’s regular meeting that the potentially 300-foot-tall building that JE Dunn proposes to build on the parking lot at Broadway and Sixth Avenue could contain 250,000 square feet of office space, 40,000 square feet of retail space and parking for 500 to 600 cars.
It will be the first Class A building to be built downtown since the Tucson Electric Power building across Broadway from the parking lot, Freed said.
The project is expected to cost $110 million, and will generate 1,250 new jobs and $2.2 million annually in sales tax, he said.
“We always hoped there’d be someone like you out there,” Rio Nuevo Chairman Fletcher McCusker said to Freed.
McCusker called the proposal “an extraordinary plan,” but explained that the Rio Nuevo Board was using a government procurement process to develop the parking lot, and that unless and until a final agreement is executed, the deal will not be done.
The board issued a request for proposals last year, and the JE Dunn proposal was ranked highest. The board will work with JE Dunn, Pima County and the City of Tucson to craft a final development agreement. Until then, however, McCusker said “we are announcing a proposal,” not a project.
JE Dunn was founded in Kansas City, Missouri, in 1924 and has done business in Tucson for many years, Freed said, including work with Tucson Medical Center and the University of Arizona.
The board also approved the last phase of Sundt Construction’s construction of Caterpillar’s Tucson Mining Center and payment to Sundt of $8.5 million. The center is expected to open in the first quarter of 2019. McCusker congratulated Sundt for carrying out the project “under budget and on time.”
McCusker announced at the meeting that a bill has been introduced in the Arizona House to extend beyond 2025 the term during which the Rio Nuevo District receives state sales tax funds for the purpose of downtown and district development. He said House Bill 2456 would be assigned to a House committee, and he encouraged those in attendance to contact their legislators and encourage their support of the bill.
Sales and Leases
Panthera Pavilions, LLC purchased 14,425 square feet of land and 8,055 square foot building located at 1030 N. Alvernon Way for $700,000 from CS&Z Holdings, Inc. Rick Borane of Volk Company represented the buyer.
Discount Warehouse expanded to a 5,835 square foot space at 4501 E. 22nd St. under landlord RRN, Inc. Jeramy Price of Volk Company represented the tenant. Brandon Rodgers of PICOR Commercial Real Estate represented the landlord.
New Hope of Arizona, Inc. leased approximately 3,300 square feet of office space located at 2224 N. Craycroft Road, Ste. 109 from Alexandra Siegal. Michael Gross of Tucson Realty & Trust Co. represented the landlord. Aubrey Finkelstein and Jon O’Shea of Vast Commercial Real Estate Solutions represented the tenant.
Core Campus Management, LLC leased 1,306 square feet at 733-735 N. Fourth Ave from 733-745 N. 4th Avenue Associates dba: Univfourth Associates. Debbie Heslop, CCIM, of Volk Company represented the tenant. Greg Furrier of PICOR represented the landlord. The tenant intends to use the space for a leasing office and model apartment for HUB 3, its newest student housing tower at Speedway and Tyndall.
SEPP Properties, LLC purchased 1,000 square feet of office space at 2292 W. Magee Road from JPC Magee Property, LLC. Andrew Cordova of Long Realty represented the buyer. Bruce Suppes of CBRE represented the seller.
Inspired Fitness, LLC leased 2,256 square feet of office space at 100 N. Stone Ave. in the Pioneer Building from Holualoa Pioneer, LLC. Michael Coretz of Commercial Real Estate Group of Tucson represented the tenant. David Volk and Bruce Suppes of CBRE represented the landlord.
Reflexology, LLC leased 1,200 square feet at Rincon Plaza, located at the southwest corner of Golf Links and Harrison and is anchored by Safeway and Walgreens, from D and D Properties Group Management, LLC. Jeramy Price of Volk Company handled the transaction.
FirstService Residential Adds Barcelona Manor Association, Inc. to Tucson Portfolio
FirstService Residential, Arizona’s leading HOA management company, has been awarded the management contract for Barcelona Manor Association.
Barcelona Manor is a condominium community consisting of 240 units located near the intersection of West Orange Grove and North Oracle Road. FirstService Residential assumed management of the property on January 1, 2018.
“The board of directors for Barcelona Manor selected FirstService Residential as their community management partner based on our decades of professional management experience and because of the depth of resources that their established community needs,” said Rich Orduno, vice president of FirstService Residential. “Originally built in the 1960s, Barcelona Manor will benefit from our experience in capital improvements and strategic financial planning that will bring this community into the 21st century and increase home values.”