6-14-07 Fledman Mall Properties, a publicly traded company, has retained FBR to find a buyer because it has failed to match industry benchmark returns. Feldman Mall Properties owns the foothills Mall here in Tucson, as well as several other Malls around the country. Feldman reported it's financial results late, citing a lack of proper staff and a material weakness in financial controls. In my opinion, accounting issue's are a red flag. However, Feldman has been around along time and this maybe a bump in the road.
6-7-7 The Biosphere 2, located just north of Tucson, has sold for $50 million. The seller spent $200 million for the project. Pima County approved the property for the development of 1553 homes, a 200 room hotel resort and a 200 acre commercially designated space where the campus is now.
5-18-07 Pima County closed on the 22 story B of A building in downtown Tucson, Arizona. The closing price $24.1 million or approximately $125.00 per square foot . An occupancy rate of 82.5% was reported at the time of sale. I think Pima County came out ahead on this deal, plus they can consolidate offices to one location.
In northeast Tucson a 6,820 square foot free standing retail building in Colonial Verde Shopping Center recently sold for $1.48 million or $218 per square foot.
5-10-07 A Seattle firm buys La Reserve Villas for $28.7 million or $119,400 per unit. The seller a Canadian firm bought the property in December 2005 for $30.1 million and planned a condo conversion. They dropped their condo conversion plans due to a sluggish condo market. OCH!!
5-4-07 The 55,338 square foot former Albertson's, at 10805 N. Oracle Road just sold for $7.2 million, or $130 a square foot.
The US industrial market got off to a weak start in the first quarter of this year with the vacancy rate ticking up 10 basis points to 8.8% from the fourth quarter of last year. Much of the weakness was in the sector's flex product. The warehouse sector recorded positive net absorption of 18 million square feet.
4-28-07 A Chicago Developer recently acquired 38 acres in Tucson at the northwest corner of Shannon and Cortaro Farms Roads.The purchase price of $18 million equals about $473,700 per acre. The land includes a turn key condo project with entitlements, impact fees and permits for a high density intensive use with approval for 500 condo units in 35 buildings.
4-19-07 Research Corporation Technologies sold 101 N. Wilmot Road in Tucson for $18.5 million, or approximately $189 per square foot. The six story building totals 98,000 square feet, and was built in 1980. The new owner is an investment group called 101 N. Wilmot LLC.
4-13-07 A California LLC just purchased 6360-6370 N. Campbell for $15.5 million, or $410 per square foot. The property was built in 2004, has 37739 square feet and is 100% occupied. Current Tenants include CVS Pharmacy, Fleming's and Starbucks.
4-4-7 A Houston based retail REIT sold a portfolio of neighborhood centers in Tucson, Arizona. The portfolio includes Oracle Crossings a 253,000 square foot shopping center that sold for $47.4 million, Entrada de Oro Shopping Center with 88,000 square feet sold for $18.5 million, Oracle Wetmore Shopping Center will have 286,000 square feet and sold for $69 million, The Shoppes at Bears Path has 42,900 square feet and sold for $9.3 million and Madera Village with 96,700 square feet sold for $17.3 million.
3-30-07 NBC Telemundo Phoenix, Inc. leased 6,694 square feet of office space at 5151 E. Broadway. Previously, Telemundo had been located at 2919 E. Broadway, leaving space available at that building.
Sam Levitz Furniture Co. leased the warehouse at 1625 S. Euclid Ave. in Tucson, Arizona. The company will occupy the entire 42,880 square foot building. It has two loading docks and two drive in bays with an 18 foot clear height. The building sits on a 1.5 acre fenced lot.
3-21-07 I predict rising vacancies and softening demand for 2007 in the office and industrial space.Tenants are not filling old space and the construction of new space is increasing. It's a flight to quality, leaving the class B & C buildings with higher vacancies.
3-17-07 This past week the Federal Reserve's survey of economic conditions was released, it indicated a generally strong commercial real estate market, however, the word robust didn't appear. The Federal Reserve Beige Book is a monthly survey of economic conditions. What's interesting about the Federal Reserve is it isn't Federal and there aren't any reserves.
2-21-07 A 8,442 square foot office shell at 7636 N. Oracle Road just sold for $1.44 million, or $170 per square foot. The buyer is National Future Benefits Inc. from Scottsdale. This will be their second location in Arizona.
2-16-07 Tucson Medical Center "TMC" Holdings sold El Dorado Hospital for $41.5 million or approximately $223 a square foot.
2-12-07 Tucson, Arizona office complex Skyline Esplanade Office Condos just sold three buildings totaling 28,274 square feet. The sale price of $10.2 million equals $361 per square foot. These buildings are class A and the location is north central which is a superior choice location.
2-9-07 UK retailer Tesco will debut first new format stores here in the US. They will roll out the first 10,000 square foot " Fresh & Easy neighborhood market " stores in Phoenix, Arizona. Market research shows a demand for a return to the neighborhood stores. Tesco is the world's fourth largest retailer with 2,800 stores and 370,000 employees.
2-3-07 Tucson metro reached the million person mark a few months ago, that will bring new franchises and other companies to Tucson.
A client asked me this week about parking spaces allowed at office buildings.The number of parking spaces for office buildings usually runs about 3-4 cars per 1,000 square feet of space you lease. This item will be covered in the lease.
1-26-07 Tucson flex buildings total 97,000 SF at Exchange Place sold for $7.35 million or $76 per square foot.. The Exchange Place is located at 1870 W. Prince Road and was built in 1983.
The 110,000 square foot Colonia Verde Shopping Center sold for $192.00 per square foot, or $21 million.
The 95,542 square foot Ventana Village Shopping Center sold for $246.00 per square foot, or $23.5 million.
The Historic Westward Look Resort sold for $31 million, or $127,000 per room. What a deal.
1-21-07 Retail rents steadily have risen over the last several years as the retail vacancy rate has been dropping. The end of last year shows an average cost for retail space at $18.00 per square foot. Many new centers are around the $30.00 per square foot range. The average retail vacancy rate is 7.00% with the northwest area around 5.00%.
The Shops at Courtyard Center located at 6380 E. Grant Road has approximately 12,000 square feet and just sold for $4.9 million, making the square foot cost in the $400 range.