ŌLiv Tucson Welcomes First Residents
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SEPTEMBER 2020
ōLiv Tucson Welcomes
First Residents
The Multifamily Issue
The development team of Core Spaces and Up Campus, along full access to on-site outdoor dining and grilling area, two rooftop
with the Marshall Foundation, are delighted to announce that ōLiv sundecks with pool, hot tub and city skyline views, a yoga room,
Tucson, a brand-new luxury tanning salon, clubroom, indoor
14-story mixed-use building spa with steam room and sauna
anchoring the Main Gate and secure bike storage.
Square redevelopment project, Designed for multi-
recently opened its doors to its generational living, each of the
first residents. ōLiv Tucson is a ōLiv Tucson’s 243 units offers
mixed-use project featuring 243 flexible, modern layouts with
units, over 4,000 square feet of contemporary high-end finishes,
retail space, a full complement such as wood-style flooring,
of luxury lifestyle amenities custom-designed furniture and
and parking nestled around roller blinds, in-unit laundry,
a walkable public plaza at the insulated interior walls,
heart of the Main Gate Square quartz countertops, premium
entertainment and shopping appliances, designer cabinetry
district. Located on the Sun featuring architectural lighting
Link Streetcar route at the and large operable windows with
intersection of N. Park Avenue energy-efficient double-pane
and E. University Boulevard, glass. All units feature a high-end
these innovative apartments technology package including
offer residents convenience to a Smart TV in the living room,
the exciting cultural offerings full Wi-Fi access and data ports
of the historic West University in kitchen and bedrooms and
neighborhood, in addition to Bluetooth showerhead speakers.
easy access to greater Tucson. Free high-speed Wi-Fi is also
The ōLiv Tucson is part of a portfolio of award-winning available throughout the building and a business center provides
hospitality-inspired housing projects developed by Core Spaces 24-hour access to fully loaded Mac and PC computers and printers.
(parent company of Core Tucson Main Gate, LLC). Core Spaces The units at ōLiv offer a variety of floorplans, ranging from
specializes in developing properties with progressive design and studio, 2-bedroom co-living style, to 4-bedroom apartments and
unrivaled customer service. Residents benefit from community- townhomes. Residents may also opt for the 14th-floor Penthouse or
inspired design and thoughtful amenities chosen to encourage 13th-floor Oasis floorplans, which feature additional luxury fixtures
holistic lifestyles designed to help them succeed in their personal, and finishes, such as an oversized rain showerhead and upgraded
academic and professional goals. Residents can mingle poolside, 60” Smart TV. Monthly rents range from $1,459/month for a studio
practice yoga, work out in the gym and meet for coffee. Core Spaces’ apartment to $4,260/month for a 4-bedroom unit.
developments also feature social programming, which provides Intended to be “generational assets,” Core Space’s buildings take
residents further opportunities to connect with each other and their into account the difficulty in ensuring the future relevancy of today’s
communities through volunteer partnerships in the neighborhood. developments, as lifestyle and aesthetic preferences will certainly
The ōLiv Tucson differentiates itself from other multi-family evolve. Core Spaces meets this challenge by designing buildings
buildings in the West University vicinity by the incredible variety with a varied unit mix that appeals to different lifestyle preferences
and quality of amenities offered at this price point. Residents have continued on page 2
cover story continued: ōLIV TUCSON WELCOMES
CONTENTS FIRST RESIDENTS » by Andrew Wiedner
SEPTEMBER 2020 incredible amenity for the Tucson
community. The boutique hotel
The Multifamily Issue includes meeting and event space,
1–2............................ Cover Story a ground floor café and a stunning
3.......................... Second Quarter rooftop bar with unparalleled views of
Multifamily Update the UA campus, Tucson’s skyline and
4–7............Top Commercial Sales
the Catalina Mountains.
The Main Gate Square project
8................. Top Residential Sales
represents a reinvestment of almost
9............ NexMetro Communities: $200 million on behalf of the Marshall
Single Family Rental Foundation and its redevelopment
Market Innovators partners. The Main Gate Square’s
10.. Tucson City Council Approves retail, hotel and office square footage
Annexation and Rezoning for is 1,632,200, of which ōLiv Tucson
Rental Home Community represents 427,070 square feet. A variety
11–15........................Market Place of restaurants featuring global cuisines
16.......................Are Prices Really occupy the retail space, including
Coming Down for community favorites Bacio Italiano,
Apartment Construction? Gentle Bens, The Dutch Eatery & Refuge
17............. Five Points Area Sees
and Kababeque Indian Grill. Shopping
New Innovative
options include Urban Outfitters, CVS
Apartment Projects
and a wide selection of locally owned
boutiques and services, such as Sanctity
18–22.............Multifamily Projects
Tattoo, Posner’s Art Store and Fox in
23........................ Editor’s Insights a Box escape room adventures. The
second Arizona location of the Toronto-
based game & cafe chain, Snakes &
Lattes, is currently under construction
at 988 E. University Boulevard and is
Board Member: scheduled to open sometime this fall.
• Downtown Tucson Partnership
• Metropolitan Pima Alliance
• Pima County Real Estate
Research Council at a wide array of price points. The flexible spaces
Member: allow residents to both gather and find private space Andrew Wiedner is Chief Acquisitions Officer for Core
• Tucson Airport Authority and adjust when their needs change. By serving the Spaces and is responsible for identifying and evaluating
• Tucson Association of Realtors broader community and diversifying the product new development and acquisition opportunities
• SAHBA offering, Core Spaces is well-positioned to meet for the company. His role includes site selection,
future changes while avoiding overexposure to any due diligence, analyzing the company’s investment
particular unit type or lifestyle trend. strategy, and managing debt and equity relationships.
As Core Spaces emphasizes the well-being Prior to joining Core Spaces, Andrew spent 13 years
of residents, health and safety must always be top sourcing debt and equity for a broad-reaching client
priority. However, this year has required extra base, ranging from small family shops to billion-dollar
precaution and new solutions such as rolling pension funds. In his mortgage banking role, Andrew
out contact-free procedures allowing for staff to arranged more than $3
Subscribe maintain the high level of personalization and billion of financing for all
service yet keeps both staff and tenants safe. property types, including
Subscribe online at
Through an innovative partnership with office buildings, shopping
www.trendreportaz.com Graduate Hotels, this mixed-use project also centers, student housing
features the newly built 165-room Graduate developments, single-
For Quotes on Corporate Tucson, scheduled to accept reservations starting tenant buildings, hotels,
Subscriptions and October 1, 2020. Dubbed the “Desert Retreat industrial warehouses, and
Advertising Programs, in Wildcat Country”, the Graduate Tucson is an land development.
Contact Lucinda Smedley
at 520-603-2175 or
lucinda@trendreportaz.com 2 trendreportaz.com | september20
and government unemployment benefits set to end in the near term, expect a slight decrease in
and government unemployment benefits set to end in the near term, expect a slight decrease in
property value due to the commensurate rise in delinquencies. For the remainder of the summer,
S E C O N D Q U A R T E R property
M Uexpect
LT
valueIdue
FA M
to the
transaction I LY U Prise
commensurate
volume to decrease D inAT
slightly andE
delinquencies.
then pick
For the remainder of the summer,
back up shortly after
schools open.
expect transaction volume to decrease slightly and then pick back up shortly after schools open.
» per
Sale Price Allan Mendelsberg and Conrad Martinez
byUnit
Sale Price per Unit
Price Per Unit
$70,000 Price Per Unit
A mid the COVID-19 pandemic, more than 11,000 $70,000
$50,000
businesses in Arizona and 1,300 in Tucson received economic relief
from the federal government. While Arizona posted one of the sharpest $50,000
unemployment drops in the country in May, it increased in June from 9%
$30,000
and Northwest Tucso
to 10%. On a positive note, The University of Arizona reopened with a $30,000$10,000
mixture of online and in-person classes on August 24th and Lendingtree. 2016 2017 2018posted vacancy rates
2019 2020
com named Tucson the “number one” searched market for “homes for $10,000 2016 2017
Price Per Unit
2018 2019 2020
sale” during the pandemic in the U.S. YTD sales price per unit is $60,821.
Summing up statistics
Sale Price Per Unit. YTD sales price per unit is $60,821.
Price Per Unit
Overall Vacancy & Effective Rent
COVID Update YTD sales price per unit is $60,821.
With COVID-19 cases on the rise in Arizona, the Governor’s new $900
above. The average s 8%
Overall Vacancy & Effective Rent
Executive Order temporarily closed bars, indoor gyms, indoor movie $850
$800
sold was 1986. On a 7%
theaters, and water parks. These operations are paused through July 27th. 8%
monthly gross apartm
$900 7%
$750
As of August 17th, Pima County reported approximately 19,500 cases, $850 $700
6% 7%
nearly 8,000 more cases than the beginning of July. Governor Ducey
quarter. This represen
$800 $650
signed an executive order delaying in-person instruction in schools to $750 $600
6% 7%
August 17th; however, many Tucson school districts stated they would $700 $550 5%
6%
only offer online instruction for the foreseeable future. $500
The rental market con
$650
5%
$450 6%
$600
$400 4%
Property & Transaction Updates
minimal rental growth
$550 2016 2017 2018 2019 2020 Q2 5%
Effective Rent, Monthly Avg. Vacancy Rate
While many other markets struggled during the pandemic, Tucson’s $500
5%
Overall Vacancy & Effective Rent
market remained stable. Transactions and escrow periods experienced $450
delays with lending and appraisals taking longer. Rent collections have $400 2016 2017
high, with the limited w
2018 2019 2020 Q2
4%
housing opportunities
Effective Rent, Monthly Avg. Vacancy Rate
remained consistent through July at nearly 90% collections on average waive reserves for taxes insurance and replacement reserves currently.
market-wide. With unemployment benefits being extended in the state, Credit: Kevin Prouty—Commercial Mortgage Broker
delinquencies and rent collections are expected to remain stable as a result.
The eviction moratorium was set to end July 23rd, but by government Outlook
2017 in the broader T
mandate, the moratorium has been extended through October 31st.
Tenants are now required to provide information and proof of hardships
region.
Going forward, if collections and financing options continue
to be stable, Tucson’s apartment market will remain a strong seller’s
related to COVID-19 to receive the eviction protection. market with significant outside investor demand. With eviction
moratorium and government unemployment benefits set to end
Supply (Inventory) vs. Demand (Investors) in the near term, expect a slight decrease in property value due to
With these complex and unpredictable times, supply has remained the commensurate rise in delinquencies. For the remainder of the
low while demand has remained high. Many investors have left other summer, expect transaction volume to decrease slightly and then
markets where volatility is high and come to Tucson where the market pick back up shortly after schools open.
fundamentals are more stable and investments are perceived as safer.
Many owners have been inquiring about pricing analysis to see their Allan Mendelsberg joined Cushman &
properties’ value during this time but are hesitant to make any moves Wakefield | PICOR in October of 2009. Allan
in the market with the uncertain future ahead. Those in 1031 exchanges concentrates on multifamily investments but
during COVID-19 have been put in difficult situations as inventory also helps clients with manufactured housing
remains low and only slight price adjustments have been made in the and triple net(NNN) investments. Allan’s (I have requested this excel file
Tucson market. clients range from small private investor Allan Mendelsberg – you have
to largeREITS. Allan continues to rank
Financing as one of Southern Arizona’s most active
Financing agencies are still extremely active for Multi-Family loans multifamily brokers. He can be reached at
in the $1-$10 range. LTV is ranging between 70%-75%. Interest rates for amendelsberg@picor.com.
10 year loans are typically ranging between 3.5%-4%. We recently have
Conrad Martinez joined Cushman &
started to see from Freddie Mac small balance loan rates a little below
Wakefield | PICOR’s multifamily brokerage
3.5%. Life companies have not been as aggressive on rates and will likely
team in October 2019. Martinez is a graduate
be more aggressive going forward, but it is believed the 3.5% range for
of New Mexico State University with a major in
small balance loans is stable.
marketing and a minor in the PGA of America
Underwriting has been more on the conservative side with a focus
on collections since the pandemic. However, if collections are supported
Allan Mendelsberg is
Professional Golf Management Program. He
can be reached at cmartinez@picor.com.
then underwriting will not change much. Lenders are also less likely to clients with manufactu
family
Conradbrokerage team
Martinez joined Cushm
september20 | trendreportaz.com 3 of New M
Martinez is a graduate
Southern ArizonaGolf
of America Professional mos
M
T O P C O M M E R C I A L S A L E S
» July 2020
Phoenix Investor Buys The Vintage Apartments for $15.4 Million
Phoenix, Arizona based Rincon Partners (Kirk McAllaster Jr., President), paid $15,400,000 for The Sale:
Vintage Apartments located at 8225 E Speedway Blvd. The seller was Charles Harris. The Vintage $15,400,000;
Apartments was built in 1981, sits on 6.2 acres, and contains 204 units comprised of one- , and two- $75,490/Unit
bedroom units with an average unit size of 547 SF. The property previously sold in July 2015 for
$9,750,000. 7/9/2020 Size:
204 Units
Buyer: Rincon Partners; Berkadia Real Estate Advisors, Clint Wadlund/Art Wadlund (520) 299-7200
Seller: Charles Harris; Taylor Street Advisors, Brian Trantzki (602) 603-1000
Chicago Investor Buys Wilmot Medical Building for $11.5 Million
Chicago, Illinois based MBRE Healthcare, through their affiliate AP MP, paid $11,550,000 for the Sale:
medical building located at 535 N Wilmot Rd. The seller was the Schomac Group In. (Dennis Winans, $11,550,000;
Principal). This medical building was built in 1991 and sits on 3.71 acres. This was an all cash transaction. $292/SF
Banner Health occupies the medical building and has a long term lease in place for another 10 years.
7/7/2020 Size:
Buyer: MBRE Healthcare (312) 726-1700 39,577 SF
Seller: Schomac Group Inc.; NAI Horizon - Tucson Branch, Justin Lanne & Andrew Sternberg
(520) 326-2200
Tucson Investors Buys Beach Fleischman Office Building for $10.65 Million
Tucson, Arizona based HSL TW River Road LLC, through their affiliates HSL Properties (Omar Sale:
Mireles, CEO) & Town West Realty (Jim Horvath, CEO), paid $10,650,000 for the office building $10,650,000;
located at 1985 E River Rd. The seller was Campbell Avenue Group LLC (David Cohen, President). $250/SF
This office building was built in 2004, sits on 2.62 acres, and was 100% occupied at the time of sale.
7/1/2020 Size:
42,536 SF
Buyer: HSL RW River Road LLC., Omar Mireles & Jim Horvath
Seller: Campbell Avenue Group LLC., David Cohen
Richmond American Homes Buys Star Valley Lots for $7.1 Million
Richmond American Homes, Tucson Division, paid $7,134,600 for 138 finished lots, 47 x 115, in Block Sale:
7 of Star Valley. The seller was GAC Star Valley. The community will be open for sales in 2Q 2021. $7,134,600;
7/17/2020 $51,700/Lot
Buyer: Richmond American Homes, Michael Del Castillo Size:
Seller: GAC Star Valley; Land Advisors Org, Will White and John Carroll (520) 514-7454 138 Lots
Lennar Homes Buys Star Valley Lots for $6.4 Million
Lennar Homes, Tucson Division, paid $6,400,000 for 130 lots, 45 x 110, in Block 4 in Star Valley. The Sale:
seller was GAC Star Valley. The community will be open for sales in 2Q 2021. 7/30/2020 $6,400,000;
$49,500/Lot
Buyer: Lennar Homes, Kevin Tarbox
Seller: GAC Star Valley; Land Advisors Org, Will White and John Carroll (520) 514-7454 Size:
130 Lots
Tucson Investor Buys Wasko Modern Apartments for $5.275 Million
Tucson, Arizona based Donald Harner paid $5,275,000 for the Wasko Modern Apartments located at Sale:
2302 E Fort Lowell Rd. The seller was Brandon Matheson. The Wasko Modern apartments were built $5,275,000;
in 1973, sits on 1.29 acres, and contains 38 units comprised of one and two bedroom units with an $138,815/Unit
average unit size of 797 SF. 7/16/2020
Size:
Buyer: Donald Harner; Cushman & Wakefield|PICOR, Conrad Martinez & Allan Mendelsberg 38 Units
(520) 748-7100
Seller: Brandon Matheson; Cushman & Wakefield|PICOR, Allan Mendelsberg & Conrad Martinez
(520) 748-7100
4 trendreportaz.com | september20
T O P C O M M E R C I A L S A L E S
» July 2020
California Investor Buys Midtown Raising Cane’s Fast Food Building for $5 Million
Thousand Oaks, California based 2604 East Speedway Boulevard LLC (Charles Zigman, Member) paid Sale:
$5,000,000 for the Raising Cane’s located at 2604 E Speedway Blvd. The seller was Nesher Investments $5,000,000;
LLC. This Raising Cane’s was built in 2019 and sits on 0.7 acres. This property includes an absolute $1,329/SF
triple-net reverse build-to-suit lease with almost 20 years remaining on the lease term and 10% rental
increases every five years. 7/15/2020 Size:
3,760 SF
Buyer: 2604 East Speedway Boulevard LLC (818) 429-6964
Seller: Nesher Investments LLC; Marcus & Millichap, Zachary House, Mark Ruble & Christopher
Lind (602) 687-6700
California Investor buys Eastside Acacia Hills Apartments for $5 Million
San Diego, California based George William Sousa Trust paid $5,000,000 for the Acacia Hills apartments Sale:
located at 9170 E Golf Links Rd. The seller was Acacia Hills Apartments LLC. Acacia Hills apartments $5,000,000;
was built in 1986, sits on 2.04 acres, and contains 64-units comprised of one- , and two-bedroom units $78,125/Unit
with an average unit size of 540 SF. 7/16/2020
Size:
Buyer: George William Sousa Trust (619) 269-3469
64 Units
Seller: Acacia Hills Apartments LLC; Berkadia Real Estates Advisors, Art Wadlund/Clint Wadlund (520)
299-7200
Meritage Homes Buys Star Valley Lots for $4.7 Million
Meritage Homes, Tucson Division, paid $7,134,600 for 107 finished lots, 40 x 115, in Block 4 of Star Sale:
Valley. The seller was GAC Star Valley. The community will be open for sales in 2Q 2021. 7/17/2020 $4,708,000;
$44,000/Lot
Buyer: Meritage Homes, Lisa Hoskin
Size:
Seller: GAC Star Valley; Land Advisors Org, Will White and John Carroll (520) 514-7454
107 Lots
New York Investor Buys Westside Apartment Building for $4.6 Million
1335 W. Saint Mary’s, LLC (Damon Giglio, member) paid $4,625,000 for the Colonia de Tucson Sale:
located at 1335 W St Marys Rd. The seller was 19Tuc Jak Properties, LP. Colonia de Tucson apartments $4,625,000;
was built in 1983, sits on 2.46 acres, and contains 84-units comprised of one- , and two-bedroom units $55,059/Unit
with an average unit size of 574 SF. THe property was 92% occupied at time of sale. The property
previously sold in January 2016 for $3,045,000. 7/31/2020 Size:
84 Units
Buyer: Damon Giglio; Cushman & Wakefield|PICOR, Allan Mendelsberg & Conrad Martinez
(520) 748-7100
Seller: Norman Kaderlan (512) 338-1201
Scottsdale Investor Buys 7 Four on Stone Apartments for $4.3 Million
Scottsdale based 7 Four on Stone Apartments, LLC paid $4,300,000 for the 7 Four on Stone apartments Sale:
located at 3450 N Stone Ave. The seller was Bakerson Real Estate Capital Management through their $4,300,000;
affiliate 7 Four on Stone by Bakerson, LLC. 7 Four on Stone was built in 1975, sits on 2.11 acres, and $58,108/Unit
contains 74 units comprised of studio, one- , and two-bedroom units with an average unit size of 670 SF.
The property was 85% occupied at the time of sale. 7/23/2020 Size:
74 Units
Buyer: Cushman & Wakefield|PICOR, Allan Mendelsberg & Conrad Martinez (520) 748-7100
Seller: Bakerson Real Estate Capital Management; Cushman & Wakefield|PICOR, Allan
Mendelsberg & Conrad Martinez (520) 748-7100
Richmond American Homes Buys Gladden Farms Lots for $4.2 Million
Richmond American Homes, Tucson Division, paid $4,195,000 for 69 finished lots, 60 x 120, in Block Sale:
30 of Gladden Farms. The seller was Crown West Land Group. The community will be open for sales $4,195,200;
in 2Q 2021. 7/20/2020 $60,800/lot
Buyer: Richmond American Homes, Michael Del Castillo Size:
Seller: Crown West Land Group; Land Advisors Org, Will White and John Carroll (520) 514-7454 69 lots
september20 | trendreportaz.com 5
T O P C O M M E R C I A L S A L E S
» July 2020
Florida Investor Buys Eastside Walgreens Drug Store for $4.1 Million
Coral Gables, Florida based SRMM Investment LLC, (Sergio Mirana Mayans, Manager) paid Sale:
$4,100,000 for the Walgreens Drug Store located at 5480 E 22nd St. The seller was Shapiro Family $4,100,000;
Tucson LLC (Jacob Shapiro, Manager). This Walgreens store was built in 2004 and sits on 1.32 acre. $282/SF
The absolute triple net leased property had 9 years remaining on its lease term. The property previously
sold in September 2004 for $5,485,000. 7/17/2020 Size:
14,560 SF
Buyer: SRMM Investment LLC, Sergio Mirana Mayans
Seller: Jacob Shapiro; Marcus & Millichap, Mark Ruble, Christopher Lind & Jamie Medress (602)
687-6700
Lennar Homes Buys Gladden Farms Lots for $6.4 Million
Lennar Homes, Tucson Division, paid $4,073,600 for 67 lots, 60 x 120, in Block 30 of Gladden Farms. Sale:
The seller was Crown West Land Group (Dean Wingert, VP). The community will be open for sales in $4,073,600;
2Q 2021. 7/20/2020 $60,800/Lot
Buyer: Lennar Homes, Kevin Tarbox Size:
Seller: Crown West Land Group; Land Advisors Org, Will White and John Carroll (520) 514-7454 67 Lots
Phoenix Investor Buys Marana Apartment Building for $4.06 Million
Phoenix, Arizona based Marana Owner LLC (Jeffrey Sherman, Manager) paid $4,065,000 for the Sale:
Marana Apartments located at 13387 N Lon Adams Rd. The seller was TMM Family Services, Inc. $4,065,000;
Marana Apartments was built in 2003, sits on 4.7 acres, and contains 80-units comprised of 1 - 3 $50,813/Unit
bedroom units with an average unit size of 1,028 SF. 7/1/2020
Size:
Buyer: Marana Owner LLC; Northmarq Capital, LLC., Trevor Koskovich, Jesse Hudson & Bill 80 Units
Hahn (602) 952-4044
Seller: TMM Family Services, Inc., Northmarq Capital, LLC., Trevor Koskovich, Jesse Hudson
& Bill Hahn (602) 952-4044
California Investor Buys Montclair Apartments for $3.95 Million
Sherman Oaks, California based Fast River, LLC., (Rashmi Nigam, Manager) paid $3,950,000 for the Sale:
Montclair Apartments located at 811 - 835 N Alvernon Way. The seller was ZFI, LLC and KMS Properties, $3,950,000;
LLC (Ankist Zadeyan, Manager). The Montclair Apartments was built in 1958, sits on 1.57 acres, and $64,754/Unit
contains 61-units comprised of studio, one- , two- , and three-bedroom units with an average unit size of
623 SF. The property previously sold in January 2019 for $3.2 million. 7/9/2020 Size:
61 Units
Buyer: Fast River, LLC; Rashmi Nigam
Seller: Ankist Zadeyan; Cushman & Wakefield|PICOR, Allan Mendelsberg & Conrad Martinez
(520) 748-7100
Richmond American Homes Buys Catalina Lots for $3.6 Million
Richmond American Homes, Tucson Division, paid $3,600,000 for 40 finished lots, 36,000 square feet Sale:
in size, at High Mesa, located at Hawser Street and Columbus Boulevard in Catalina. The seller was C $3,600,000;
& S Land Investment Advisors LLC (Chris Sheafe, Manager). The community will be open for sales $90,000/Lot
in 2Q 2021. 7/31/2020
Size:
Buyer: Richmond American Homes 40 Lots
Seller: C & S Land Investment Advisors LLC; Land Advisors Org, Will White and John Carroll
(520) 514-7454
New York Investor Buys Oro Valley Country Club for $3.5 Million
New York, New York based Sculptor Real Estate, through its affiliate Oro Valley Owner LLC, (Steven Sale:
Orbuch, Manager) paid $3,500,000 for the Oro Valley Country Club clubhouse and golf course located $3,500,000;
at 300 W Greenock Dr. The seller was ClubCorp. The property previously sold in December 2014 for $198/SF
$2,900,000. 7/22/2020
Size:
Buyer: Sculptor Real Estate, Steven Orbuch (212) 790-0000 17,655 SF
Seller: ClubCorp (972) 243-6191
6 trendreportaz.com | september20
T O P C O M M E R C I A L S A L E S
» July 2020
Idaho Developer Buys Self Storage Site for $3.14 Million
Boise, Idaho based COMAR Investments, LLC, an affiliate of Braintree Properties LLC (Russ Criddle, Sale:
project manager) paid for $3,138,998 ($12.27 PSF) for the 5.875 acre self-storage site located at 9255 N. $3,138,998;
Oracle Road, northwest corner of Oracle and Calle Concordia. The seller was Oro Valley Self-Storage, $534,297/AC
LLC (Hank Amos, managing member). The seller, Oro Valley Self-Storage, purchased the land for
$2,106,618 from CCN Investments, LLC and Allergy Asthma Associates, P.C. Cash Balance Defined Size:
Benefit Plan, as part of a double escrow and had it rezoned from residential to Tech Park use with the 5.875 AC
Town of Oro Valley. It sold with a conceptual plan for a 1,000-unit self-storage facility according to
public records. 7/1/2020
Buyer: COMAR Investments, LLC
Seller: Oro Valley Self-Storage, LLC; Hank Amos (520) 577-7000
California Investor Buys Oro Valley Dutch Bros Retail Building for $2.12 Million
Monterey Park, California based Agatha Cha paid $2,120,000 for the Dutch Bros Coffee located at Sale:
9730 N Oracle Rd. The seller was Malcolm Berman. This Dutch Brothers was built in 2020 and sits on $2,120,000;
0.63 acres. 7/10/2020 $731/SF
Buyer: Agatha Cha; Marcus & Millichap, Armond Arvazyan (650) 391-1700 Size:
Seller: Malcolm Berman; Volk Company, Debbie Heslop (520) 326-3200 2,900 SF
Tucson Investor Buys Commercial Land for $1.7 Million
Tucson, Arizona based CCN Investments LLC, (Albert Moussa, Manager) paid $1,694,000 for the Sale:
commercial land located at 9265 N Oracle Rd. The seller was Araghan Zarafshar. This sale consisted of $1,694,000;
9.8 acres of commercial land. 7/10/2020 $139,309/AC
Buyer: CCN Investments LLC, Albert Moussa (520) 577-0491 Size:
Seller: Armaghan Zarafshar; Russ Lyon Sotheby’s International Realty, Bob Benedon (520) 742-1335 9.8 AC
Tucson Investor Buys Distribution Building for $1.5 Million
Tucson, Arizona based Robert & Laurie Glaser paid $1,525,000 for the distribution building located Sale:
at 3850 E 44th St. The seller was Elliot Loden. This distribution building was built in 1981 and sits on $1,525,000;
2.83 acres. 7/17/2020 $31/SF
Buyer: Robert & Laurie Glaser (520) 748-7100 Size:
Seller: Elliot Loden; Cushman & Wakefield|PICOR, Stephen Cohen (520) 748-7100 49,228 SF
California Investor Buys Dollar General for $1.5 Million
Valley Glen, California based Shachar Shabtay paid $1,521,428 for the Dollar General located at 9950 Sale:
S Nogales Hwy. The seller was GF Mueller Realty LLC. This Dollar General was built in 2014 and sits $1,521,428;
on 1.46 acres. 7/10/2020 167/SF
Buyer: Shachar Shabtay (818) 909-2666 Size:
Seller: GF Mueller Realty LLC., Schulte Company, Mike Schulte (520) 885-5900 9,100 SF
Tucson Investor Buys Meadow Park Apartments for $1.45 Million
Tucson, Arizona based Todd Bailey paid $1,450,000 for the Meadow Park apartments located at 1701 Sale:
N Park Ave. The seller was Chapel Haven, Inc. Meadow Park apartments was built in 1971, sits on 0.51 $1,450,000;
acres and contains 17-units comprised of one- , and two-bedroom units with an average unit size of 720 $85,294/Unit
SF. The property previously sold in January 2008 for $1,171,808. 7/14/2020
Size:
Buyer: Todd Bailey; Long Realty Company, Tony Reed (520) 888-8844 17 Units
Seller: Chapel Haven, Inc; Harvey Mordka Realty, William Mordka (520) 298-8500
september20 | trendreportaz.com 7
T O P R E S I D E N T I A L S A L E S
» July 2020
Tucson Resale Activity Summary Tucson Luxury Market Activity Summary
Active New Months Median Active Units Months' Median Sales Avg.
Year Month Listings Units Sold Listings Supply Sales Price Avg. DOM Year Month Listings Sold Supply Price DOM Avg. CDOM
July 2,525 1,539 1,714 1.6 $233,000 36 July 138 7 20 $1,100,000 123 171
August 2,489 1,423 1,573 1.7 $230,000 36 August 128 8 16 $1,267,500 77 77
September 2,558 1,230 1,576 2.1 $239,575 36 September 146 14 10 $1,412,500 128 138
2019 2019
October 2,711 1,270 1,698 2.1 $239,900 36 October 149 6 25 $1,115,000 128 204
November 2,288 1,144 1,390 2.0 $232,000 34 November 152 4 38 $1,057,750 58 58
December 2,359 1,221 964 1.9 $241,500 37 December 159 13 12 $1,460,875 126 188
January 1,713 1,008 1,851 1.7 $235,250 38 January 179 11 16 $1,300,000 78 94
February 1,868 1,168 1,595 1.6 $245,000 42 February 138 8 17 $1,167,500 90 90
March 2,518 1,399 1,849 1.8 $248,250 36 March 135 13 10 $1,130,000 172 287
2020 April 2,282 1,168 1,329 2.0 $249,000 30 2020 April 121 6 20 $1,530,000 83 116
May 1,737 1,158 1,487 1.5 $240,700 30 May 122 7 17 $1,200,000 71 112
June 1,742 1,452 1,446 1.2 $250,538 36 June 113 15 8 $1,235,000 70 206
July 1,739 1,581 1,578 1.1 $257,500 34 July 109 16 7 $1,285,000 129 233
1 mo. change 0% 9% 9% -8% 3% -6% 1 mo. change -4% 7% -10% 4% 84% 13%
1 yr. change -31% 3% -8% -33% 11% -6% 1 yr. change -21% 129% -65% 17% 5% 36%
Source: TARMLS Source: TARMLS $1+ million Sales
Ventana Canyon Estates Home Sells for $2,692,000
Built in 2001, this 7,471 SF Santa Barbara style home is located on 0.64 acres in Ventana Sale:
Canyon Estates. Originally listed in July 2020 for $2,800,000, this home was on the MLS for a $2,692,000
total of 0 days under one listings. Under this listing, this home sold for 96% of its listing price
after 0 days on the market. 7/1/2020 Address:
6268 N Whaleback
Listing Agent: Susanne Grogan, Russ Lyon Sotheby's Int Realty
Place
Selling Agent: David Henry, Long Realty Company Tucson, AZ 85750
Oro Valley Home Sells for $2,675,000
Built in 1943, this 8,186 SF Hacienda style home is located on 4.56 acres in Linda Vista. Originally Sale:
listed in December 2017 for $3,285,000, this home was on the MLS for a total of 464 days under two $2,675,000
listings. Under this listing, this home sold for 96% of its listing price after 216 days on the market.
7/15/2020 Address:
630 W Calle
Listing Agent: Marta Harvey, Russ Lyon Sotheby's Int Realty Concordia
Selling Agent: Non-Member Tucson, AZ 85704
Canyon Pass at Dove Mountain Home Sells for $2,350,000
Built in 2015, this 5,826 SF Contemporary style home is located on 1.82 acres in the Canyon Pass Sale:
at Dove Mountain. Originally listed in November 2018 for $2,850,000, this home was on the MLS $2,350,000
for a total of 544 days under two listings. Under this listing, this home sold for 82% of its listing price Address:
after 362 days on the market. 7/28/2020 3980 W Cayton
Listing Agent: Oscar Ramirez, Long Realty Company Mountain Drive
Marana, AZ 85658
Selling Agent: Lisa Bayless, Long Realty Company
Tanque Verde Valley Home Sells for $2,250,000
Built in 1997, this 9,365 SF Mediterranean style home is located on 18.91 acres in Tanque Verde Sale:
Valley. Originally listed in April 2019 for $3,900,000, this home was on the MLS for a total of 280 $2,250,000
days under two listings. Under this listing, this home sold for 90% of its listing price after 10 days on Address:
the market. 7/15/2020 900 N Circle D Way
Listing Agent: Todd Thompson, Tierra Antigua Realty Tucson, AZ 85748
Selling Agent: Trish Schillizzi, Tierra Antigua Realty
Stone Canyon Home Sells for $1,725,000
Built in 2007, this 4,500 SF Mediterranean style home is located on 1.29 acres in Stone Canyon. Sale:
Originally listed in February 2017 for $1,995,000, this home was on the MLS for a total of 1,065 days $1,725,000
under three listings. Under this listing, this home sold for 93% of its listing price after 204 days on the Address:
market. 7/2/2020 462 W Tortolita
Listing Agent: Barbara Bardach, Long Realty Company Mountain Circle
Oro Valley, AZ 85755
Selling Agent: Barbara Bardach, Long Realty Company
8 trendreportaz.com | september20
N E X M E T R O C O M M U N I T I E S : S I N G L E FA M I LY R E N TA L
M A R K E T I N N O VAT O R S » by Josh Hartmann
C onsumers have fundamentally changed the
way they think about the American Dream, what they value,
and how they choose to live. NexMetro Communities’ Avilla Homes
neighborhoods reflect this consumer desire to have more than what
the traditional housing market offered in the past. Our Avilla single
family rental neighborhoods are the result of consumer demand,
and we are now in the fortunate position to have over two thousand
Avilla residents as a resource to understand our consumers’ wants
and needs. More and more, people want the freedom and flexibility
that comes from renting, and the privacy and independence they
get from living in a home. NexMetro offers a housing option that
combines the best of both worlds. Lifestyle and upscale finishes of
a home—with the flexibility of a lease—and no-hassle maintenance
free living with on-site professionally managed community.
Since the GFC, consumers are increasingly identifying
Avilla Lakeridge, Arlington TX
single family rental as a better option compared to conventional
apartments. And with the coronavirus requiring social distancing
and staying at home, the appeal of less dense, more spacious single- them, despite being in the midst of a pandemic. The incredible demand
family rental living is unmistakable. A private backyard, no shared is leading our growth, as we strategically expand into new markets.
walls and no shared hallways—with no mortgage. We have been the Our business plan has been as popular with our investors and
beneficiaries of this sea change and continue to see strong demand partners as it has been with our residents. The growth of NexMetro
in all of our markets. and our Avilla Homes neighborhoods has been exponential, the
Our residents are seeking a single-family rental lifestyle and have success of which is attributed to a strong financial platform, excellent
the wherewithal to buy, but are choosing to rent. They are renters operational processes, maintaining a disciplined business plan and
by choice. And the consumer is diverse, with different needs in their understanding our consumers. Many of our investors have been
life stage. Whether they want flexibility for job movement, in a life investing with us since our very first projects, and they appreciate the
stage transition (like divorce), or want to simplify their retirement— consistency of the platform and the transparency we provide them.
Avilla’s single family rental option has broad appeal. And with privacy, Similarly, we value our business partners who help us to design,
quality, convenience and luxury, these rental home neighborhoods build, and manage our Avilla Homes neighborhoods. We are loyal to
check off all the “must haves’ on consumers’ lists, affording them them, and we appreciate their loyalty to us.
the lifestyle they want, free from long-term commitments, financial What we see in SFR is a lot of runway. This is a reflection of
burdens and maintenance hassles. It all comes down to the ability to consumer demand that is seeking a new home lifestyle and is tired
have a place that rents like an apartment, and lives like a home. of the typical big box rental options. Innovative and responsive to
The single family sector of rental housing has enjoyed a today’s housing market demands, the key is building smart and
particularly dramatic rise in the past decade as one of the fastest- ushering in a new era of housing choices for today’s consumers.
growing segments of the U.S. housing market. As one of the nation’s
leading developers of single family detached leased housing, we
continue to see its considerable market strength. Single-family
rentals have outpaced the growth of both single-family for-sale and
multifamily housing in recent years—and it's predicted to keep
growing in the years ahead.
NexMetro has come a long way since we first worked with Josh E. Hartmann is CEO of NexMetro Communities and brings
Lucinda and the Real Estate Consulting Group in 2014 on our more than 20 years of real estate management and development
first institutional investment offering. Now with neighborhoods in experience to the position, having
Phoenix, Dallas, Denver and Tampa markets, we have more than worked with both private regional
5,300 homes in 35 projects that are completed or in development, developers and large public national
and an additional 1,200 in the pipeline (and more every day). We still homebuilders. He is responsible for
target prime suburban infill locations near employment, freeways the development and implementation
and other demand drivers as we take a very disciplined approach to of both short-and long-term company
site selection. In Phoenix, we continue to see opportunity in first ring strategies to ensure NexMetro's
and second ring suburban markets where we have had tremendous growth, effectiveness, sustainability
success historically. In fact, we are in the midst of two lease-ups in and overall investor return. He can be
west Phoenix, arguably the epicenter of Avilla-like developments. reached at josh@nexmetro.com.
The homes in this location are being leased as fast as we can deliver
september20 | trendreportaz.com 9
The general contractor is AF Sterling. Construction is expected to begin in January 2021.
T U C S O N C I T Y C O U N C I L A P P R O V E S A N N E X AT I O N A N D
R E Z O N I N G F O R R E N TA L H O M E C O M M U N I T Y » by Philip Aries
A t its meeting August 11th, the Tucson City Council
approved Annexation and rezoning for the first phase of Casita
Village on Catalina. The first phase of 126 single family rental homes
is scheduled to start construction in January 2021. The 12-acre site is
located off Catalina Highway, just north of Tanque Verde.
Casita Village on Catalina is being developed by an affiliate of
Saunders & Amos LLC. The principals of Saunders & Amos, LLC,
are long-time Tucsonans Kirk Saunders, Philip Amos, and Philip
Aries. All are native Tucsonans, they recognized the importance of
annexation and the value of being part of the City Tucson. Therefore,
they chose to annex this property. Mike Czechowski of the City of
Tucson spearheaded the annexation from the City’s side and helped
it track concurrently with the rezoning process. A rezoning from SR
and RX-1 to R-2 zoning was required for the project. The annexation
and rezoning were presented by Lexy Wellott of The Planning Center. own front porch, small back yard and covered parking.
Lexy worked closely with Vice Mayor Paul Cunningham’s office for The Built-for-rent housing industry began locally with Tucson
nearly one year, building community consensus which resulted in a Rental Homes. Roger Karber of Aerie Development started building
7–0 approval. its Avilla communities in 2010. Following the success of the Avilla
communities in Tucson, Phoenix-based NexMetro Communities
was formed and started building the Avilla communities in 2012 in
Phoenix and beyond.
Saunders Amos’ business plan is to build and hold 1,000 units
in the next 10 years.
Casita Village is perfect for a span of professional millennials,
move-up families/”life transition,” and empty-nesters. Most renters
are younger households tired of apartments but not ready or able
to buy a home. Equally there is demand from people who are
downsizing from owned single family but don’t want apartment
living. And the lock-and-leave convenience of renting is appealing
to all generational groups, particularly the Baby Boomers! Single-
family rental homes are incredibly attractive to consumers who seek
The site plan features a single gated entry from Catalina Highway. this unique lifestyle experience that combines the best of a detached
Casita Village on Catalina will include one-, two- and three-bedroom home and mortgage-free, maintenance-free living.
single-family residential homes. The Casita neighborhood will offer The general contractor is AF Sterling. Construction is expected
garages, covered parking areas and amenities such as a resort-style to begin in January 2021.
pool, outdoor grills, and open spaces.
The homes will include private backyards and front entries,
open floor plans, high ceilings, granite countertops, stainless steel
appliances and hard-surface flooring throughout. Every home will
include a full-sized washer & dryer.
Arizona is ground zero for this rapidly growing hybrid
rental housing product that is catching the attention of national
homebuilders.
Big publicly traded homebuilders such as Horsham,
Pennsylvania-based Toll Brothers and Scottsdale-based Taylor
Morrison Homes have entered the market, while an array of smaller
Philip Aries is Director of Acquisitions
builders is also jumping in.
for Saunders & Amos LLC where he
Built in a community setting, the residential properties are
is responsible for all aspects of the
single story and detached but are rented out like an apartment, with
development of their single-family
average monthly rents that are aligned with A+ apartment projects.
rental home portfolio. Prior to his
However, compared with apartment living, renters don’t have to
current role, he was Director of Real
worry about climbing stairs, feet stomping above their heads or loud
Estate for Park Corporation. He can be
music blaring on the other side of the wall. Each rental home has its
reached at paries@saundersamos.com.
10 trendreportaz.com | september20 Philip Aries is Director of Acquisition
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CONSTRUCTION? » by David Ollanik
T his is the rumor circulating nationwide and while it
is true for some commodity pricing, others are rising and
Arizona unemployment rates in the construction market are still
This caused a $150/sf construction proforma in 2016 to be recast at
$190–$210/sf in 2019 and early 2020.
The glimmer of hope here has come in the form of lower interest
historically low. rates. Some investors are now working their proformas at rates below
Per the report issued by the Arizona Office of Economic 2%. This lowers the debt service thus allowing the absorption of the
Opportunity in July of 2020, Arizona has an overall unemployment higher costs of construction and in some instances has saved some
rate that has risen 5.1% while the construction sector has risen only projects from a NO-GO decision.
2% over last year’s rates. Where will we be in the future? Let’s look at what has happened
Lumber prices are on the rise again. As of June 2020, prices for in 2020. COVID, wildfires in California consuming over 1 Million
lumber futures were 50% higher than they were in mid-March of this acres, tariffs, a double hurricane hitting the gulf this week, and
year but in context, this is still 50% of where the market was in May uncertain political climate with an election occurring in less than
of 2018. Lumber is a major component of many of the multi-family three months. I can tell you that I am cautiously optimistic as the
projects you see going on around the City. This spike is attributable to clients I interface with on a daily and weekly basis are moving
both Lumber tariffs on Canadian lumber as well as lower production forward with planned developments that will push our backlog into
The glimmer of hope here has come in the form of lower interest rates. Some investors are now working
at the mills due to COVID-related shutdowns. 2022. On the other hand, I see some indications in the market that
their proformas at rates below 2%. This lowers the debt service thus allowing the absorption of the
Steel is another option for a building structure, and while tariffs firms
higher costsare lookingand
of construction toinfill
some backlog holes
instances has savedcreated
some projectsbyfromproject
a NO-GO delays
decision.or
and plant shutdowns have been plaguing that industry the lack cancellations. If the postponement and cancellation trends continue
Where will we be in the future? Let’s look at what has happened in 2020. COVID, wildfires in California
of overall demand has caused a 27% reduction in structural steel there over
consuming will1 be some
Million acres,downward
tariffs, a double trend
hurricanein overall
hitting construction
the gulf pricing
this week, and uncertain
political climate with an election occurring in less than three months. I can tell you that I am cautiously
framing components over the last 12 months. as competition will heat up and create a sense of urgency to
optimistic as the clients I interface with on a daily and weekly basis are moving forward with planned
secure
One strategy now being employed on our projects is a work in that
developments advance of backlog
will push our a predicted double-dip
into 2022. On the other hand,inflation. I am not
I see some indications in thean
market that firms are looking to fill backlog holes created by project delays or cancellations. If the
transition to a concrete structure. Depending on the overall design economist and I think by definition as a builder I am
postponement and cancellation trends continue there will be some downward trend in overall
forced to be an
of the buildings, owners can have a concrete structure framed construction pricing as competition will heat up and create a sense of urgency to secure work in next
eternal optimist, so I believe the market will hold steady for the advance
of a predicted double-dip inflation. I am not an economist and I think by definition as a builder I am
building for a surprisingly small premium to a wood-frame building. year assuming the double-dip does not come. If you plan to develop
forced to be an eternal optimist, so I believe the market will hold steady for the next year assuming the
For a “build and hold” investor this offers long term benefits as they apartments,
double-dip I would
does not come. If you suggest youapartments,
plan to develop pick your architect
I would suggest youandpickbuilder and
your architect
will enjoy much better sound insulation, less shifting and settling, andthen
builderwork
and then work collaborativelyas
collaboratively asaa team
team ononstrategies to keepto
strategies your project
keep withinproject
your the
budget.
and an overall level of quality that is much higher than their wood- within the budget.
framed competitors.
In Tucson, we have recommended to our clients and their
architects the use of light gauge metal stud framing for the exterior
wall system and interior framing. Over the last 20 years, the number
of local commercial wood framing subcontractors has dwindled to
a few. This was due to competitive pressure from other markets, the Construction Site A
retirement of key personnel, and the risk-reward proposition of this
trade in general. The overall lack of local qualified trade partners in
the wood frame category is offset by the relatively high number of
commercial light gauge framing and drywall companies.
At Sundt, we prefer to hire locally at every single opportunity.
Due to the overall project size of a typical apartment complex
these days, the number of qualified local trade partners that can
successfully complete the opportunities on time and within budget
is limited. We are constantly looking for creative ways to engage the
local subcontracting community to enhance the local participation
in our projects. In the past, we have paired up smaller local
subcontractors with larger firms either local or within the state to
David Ollanik is the Project Director
help secure a competitive advantage for our owners while promoting
for Sundt Construction’s Tucson
local involvement.
Office. He has 31 years of experience
The biggest challenge we have seen so far relative to the
in the construction industry. David is
affordability of market-rate apartments is the escalation that occurred
a University of Arizona graduate and
between 2016–2019. This has sent many a proforma into the trash
is actively involved in many service
can. Pricing used prior to the purchase of the land, based on the
organizations in Southern Arizona
market in 2015–2016 when pricing was relatively inexpensive, was
including serving on the board of the
quickly outdated as the commercial construction volume in Tucson
Metropolitan Pima Alliance. He can
ballooned over 60% over the next two years. Escalation for 2017–
be reached at deollanik@sundt.com.
2019 was in the 10–12% per year range vs the normal 2–3% range.
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