Nearly an acre of what is now a parking lot in downtown Tucson will one day become a Class A office tower, and the project is one step closer to breaking ground after the Pima County Board of Supervisors voted Jan. 8 to approve a lease purchase agreement with the Rio Nuevo Multipurpose Facilities District.
The parcel is located at 75 E. Broadway, and Rio Nuevo is working with a developer who intends to construct an office building which would include parking and ground-level retail shops, restaurants and entertainment.
According to Pima County, the building will be the first addition of Class A multi-user office space in the downtown area in 30 years. The agreement involves a partnership between the county, Rio Nuevo and developer J.E. Dunn. Rio Nuevo will purchase the property from the county for the appraised value of $2.7 million once the construction of the site is complete, and will rent the property from the county for $189,000 per year while construction is underway.
J.E. Dunn and Rio Nuevo have reached an agreement for the developer to build a minimum of 150,000 square feet of office space up to 250,000 square feet, plus a 350-space parking garage. The ground floor and part of the alley between Congress and Broadway is expected to be a mix of retail shops, restaurants and entertainment venues.
“Having a multi-use facility of this quality is an important component of our continuing quest to attract to the region companies offering high-wage jobs,” said County Administrator Chuck Huckelberry in a memorandum to the Board of Supervisors about the agreement. “With hundreds of housing units being built downtown, it is important to add quality office space for a balanced community in order to attract the millennial workforce, just as Caterpillar and Hexagon Mining are doing. Developing county-owned properties for high-wage employment and returning them to the tax base are two of the key components of the county’s Economic Development Plan.”
Sales and Leases
Avery Commercial Small C, LLC purchased a 7,725-square-foot retail building at 9630 N. Oracle Road from Boulder Oro Valley, LLC for $2,400,000. Rob Tomlinson with Cushman & Wakefield | PICOR represented the buyer. Debbie Heslop with Volk Company represented the seller.
Signal Healthcare, LLC purchased a 4,168-square-foot medical office building at 4566 N. First Ave., Ste. 100 from Rose & Friedman Investments, LLC for $750,000. Rick Kleiner, MBA, with Cushman & Wakefield | PICOR, represented the seller. Kathleen Morgan with Newmark Knight Frank represented the buyer
Charles E. Nichols and Jane L. Nichols purchased a 5,160-square-foot industrial building at 3231 - 3237 E. Michigan St. from Michigan St., LLC for $395,000. Ron Zimmerman with Cushman & Wakefield | PICOR represented both parties.
Mark Wright and Mary Lou Wright purchased a 6,312-square-foot industrial building at 6625 N. Sandario Road from Picture Rocks Volunteer Fire District for $270,000. Ron Zimmerman and Ryan McGregor with Cushman & Wakefield | PICOR represented both parties in.
EGN, LLC purchased a 1.92 acre parcel at 2916 and 2924 E. Bilby Road from Rion, Inc. for $240,000. Russ Hall, SIOR, GSCS and Steve Cohen with Cushman & Wakefield | PICOR represented the buyer. Eric Hutchens with Hutch Companies, LLC represented the seller.
XO Windows, LLC renewed its lease for 12,000 square feet at 750 E. Ohio St., Ste. 1,3 and 4 from Ohio Street Building No. 2 Ltd., LLLP. Rob Glaser, SIOR, CCIM represented the landlord and Russ Hall, SIOR, GSCS and Steve Cohen, represented the tenant. All three work for Cushman & Wakefield | PICOR.
Creative Customs AZ, LLC leased 2,151 square feet in Midpoint Business Plaza, located at 3921 E. 29th St., Ste. 310 from Presson Midpoint, LLC. Rob Glaser, SIOR, CCIM, and Paul Hooker with Cushman & Wakefield | PICOR represented the landlord.
The University of Arizona leased 2,240 square feet at Shoppes at Bears Path, 8892 E. Tanque Verde Road for an office for the Mount Lemon Observatory. Dave Dutson with NAI Horizon represented the landlord.
RBC Capital Markets, LLC leased a 10,991-square-foot office space located at 3430 E. Sunrise Drive, Ste. 250. Dave Volk with CBRE’s Tucson office represented the landlord. Rick Kleiner of Cushman & Wakefield | Picor represented the tenant.
Rolfe Family Law, PLC renewed its lease for a 2,006-square-foot office space located at 2500 N. Tucson Blvd., Ste. 120 from AEH Investors V, LLC and PMH Investors V, LLC. David Montijo and Damian Wilkinson of CBRE’s Tucson office handled the transaction.
Arizona Exotic Animal Hospital, LLC leased a 4,800-square-foot space located at 4951 E. Grant Road, #103 from Crossroads East Shopping Center. Nancy McClure of CBRE’s Tucson office represented the landlord.
Boston-based STAG Industrial recently purchased Palo Verde Industrial, a 129,047-square-foot building located at located at 6161 S. Palo Verde Road. Cushman & Wakefield announced the sale on behalf of Dallas-based Colony Industrial.
Northwest Healthcare planning eastside hospital
Northwest Healthcare recently announced the development of a 70-bed hospital near Houghton Road and Old Spanish Trail as part of its “No Boundaries” strategy to increase access points to quality healthcare services for Tucson and surrounding communities.
While the company recently announced its intentions, the plan is contingent upon approval by the Tucson’s City Council and closing on the land purchase.
The eastside hospital follows an announcement last May when Northwest announced plans to build an 18-bed neighborhood hospital and medical offices facility in Sahuarita that will open in early 2020.
“We stepped outside of our ‘northwest’ footprint more than eight years ago when we opened an urgent care in Green Valley,” said Kevin Stockton, Regional President and Market CEO for Northwest Healthcare, in a release. “Since then, our commitment to deliver quality care at convenient access points throughout Pima County has not wavered. We have long wanted to provide acute care services for residents on the east side of Tucson. With the success of our freestanding emergency room and physician clinics in Vail, this new hospital is a logical and very exciting next step.”
According to Northwest, the eastside hospital will offer a “broad range of services designed to keep residents close to home.” Expected services will include an emergency room, cardiac cath lab, comprehensive surgical services, labor and delivery including a NICU, outpatient imaging and a medical office building housing primary care, orthopedics, cardiology and OB/GYN.
Northwest Healthcare already includes Northwest Medical Center, Oro Valley Hospital, Northwest Emergency Centers in Vail and Marana, five Northwest Urgent Care locations, The Women’s Center at Northwest, Northwest Allied Physicians, Northwest Cardiology, Northwest Tucson Surgery Center, Tucson Surgery Center and Center for Pain Management.