Welcome to the Southern Arizona Chapter
The Southern Arizona CCIM Chapter is a group of 150 members focusing in commercial real estate. Our membership included commercial real estate owner, brokers, appraisers, lenders, architects, engineers, escrow and title professionals, and many other related professionals. The chapter is focused on delivering value to its members through providing professional networking, education, market information, community building, and deal making opportunities.
Senate votes to renew terrorism insurance
Published: Jul 22, 2014
The Senate voted 93-4 Thursday to extend a terrorism insurance program that business groups say provides a critical backstop in the event of a catastrophic attack.
The bill would extend the program, which was created in the aftermath of the Sept. 11, 2001, attacks, for seven years.
“Our economy is greatly affected by [the program],” Sen. Charles Schumer (D-N.Y.) said ahead of the vote. “If we were to not renew the terrorism insurance program, we will lose jobs.”
Republican Sens. Tom Coburn (Okla.), Pat Roberts (Kan.), Jeff Sessions (Ala.) and Marco Rubio (Fla.) voted against the bill.
The fight over the terrorism insurance now shifts to the House, where Republicans are divided over whether the program should be changed to shift more of the financial risk to insurers.
The Terrorism Risk Insurance Act (TRIA) will expire at the end of the year unless Congress acts.
Renewal of the program is of particular importance for New York, where insurance costs skyrocketed for skyscrapers after 9/11, and other major cities with tourist attractions and stadiums that could be terrorist targets.
“I remember the dark days right after 9/11,” Schumer said. “The uncertainty that we faced in the immediate aftermath was that there would be no rebuilding.”
Supporters of the program say it provides certainty for cities to invest and build in high-risk projects, and argue the market for insurance would freeze up without it because terrorist threats are so difficult predict.
Critics question those claims and say the private market should be able to handle insuring against terrorism threats without government support.
In the House, Republicans are struggling to rally support around a five-year extension of the program passed by the House Financial Services Committee in June. That bill advanced on a partisan vote, and Democrats criticized several changes House Republicans wanted to make to the program.
Specifically, Democrats criticized the House bill for drawing a distinction between nuclear, biological, chemical or radiological attacks and other forms of terrorism. The latter attacks would face a higher threshold of damage before government support kicks in — damages would have to exceed $500 million in those attacks, as opposed to $100 million for more extreme events.
Major business groups have mounted a strong push to get TRIA extended with as few changes as possible, and Democrats, and some Republicans friendly to business or in high-profile areas, have pushed for a clean bill.
The Senate bill makes a few minor changes to the program. Currently, the federal government covers 85 percent of insurers’ losses, but the new version would increase the insurers' co-pay to 20 percent, phased in over five years.
The Senate version also increases the mandatory recoupment threshold from $27.5 billion to $37.5 billion, meaning if an insurers’ losses are less than $37.5 billion, the government is required to recoup its payments.
Sen. Mike Crapo (R-Idaho), a lead sponsor of the bill, said the legislation strikes a balance between federal and private sector investments in order to protect taxpayer dollars.
The Senate considered four amendments to the bill before final passage:
• Sen. Jeff Flake’s (R-Ariz.) amendment establishes an Advisory Committee on Risk-Sharing Mechanisms to reduce dependency on the federal government and get more private capital investments. That amendment passed on a 97-0 vote.
• Sen. David Vitter’s (R-La.) amendment requires the Federal Reserve Board of Governors to have a member that has previous experience in community banking. His amendment passed by voice vote.
• Sen. Jon Tester’s (D-Mont.) amendment creates a National Association of Registered Agents and Brokers to issue licenses to allow brokers to operate outside the state they are registered. He said it would streamline the system by creating a national standard. It passed by voice-vote.
• Sen. Tom Coburn’s (R-Okla.) amendment would allow the Treasury secretary to extend the deadline up to 10 years for recouping loss premiums if they total more than $1 billion. Schumer said the amendment violated the pay-go rule and greatly increased the cost of the bill. Schumer raised a budget point of order on the amendment and Coburn failed to get the 60 votes needed to waive the budget point of order.
Read more: http://thehill.com/policy/finance/212566-senate-approves-extension-of-terrorism-insurance#.U8lrUJKN6Bw.email#ixzz38D6mOrVU
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CCIM Institute Launches New Course
Published: Apr 17, 2014
CCIM Institute Launches New Course
Foundations for Success in Commercial Real Estate provides an introductory look at key investment real estate concepts.
April 15, 2014 (Chicago) – Approximately 30 industry professionals participated in the pilot offering of the CCIM Institute’s new Ward Center for Real Estate Studies course, Foundations for Success in Commercial Real Estate. Held in the CCIM Institute’s Chicago headquarters office, the two-day course has been designed to reach a broad audience of industry professionals, including commercial brokers, residential agents, and allied professionals who work in real estate, such as lawyers, lenders, and CPAs; institutional-level real estate professionals; and graduates of university real estate programs.
The Foundations course serves as an introduction to commercial real estate investment and the decision-making processes for buying, selling, and financing investment real estate. The course also emphasizes the skills and knowledge required for a successful career in the industry.
“It’s designed to help professionals understand how the business works and to answer a few questions for them,” says Mark Polon, CCIM, founder of Polon Consulting, a CCIM senior instructor, and director of CCIM Institute’s Ward Center for Real Estate Studies. “Am I cut out for this business? Do I have the requisite skills to be in this business? What knowledge do I need? And once acquired, how do I go about inserting myself in the business?”
Through a case-study approach, students in the course create a marketing strategy both for themselves and the asset they choose to represent. In addition, the course introduces participants to demographic analysis using CCIM’s STDB demographics and mapping online platform and other technology tools that are integral to success in today’s commercial real estate market.
Starting in June, CCIM chapters and other sponsors will begin offering the new Foundations for Success in Commercial Real Estate course as a two-day live presentation. “Chapters can invite a broad range of participants, hold a networking event on the first evening of the course, and expose students to the profession, the designation, chapter members, and the CCIM education process,” Polon says.
The course will also be available to university real estate programs, along with brokerage franchises, corporations, and related real estate organizations in a range of online and live presentation formats. “The course will showcase the designation and promote it to a wider range of professionals,” Polon says.
Learn more about Foundations for Success in Commercial Real Estate and CCIM’s Ward Center for Real Estate Studies.
# # #
About the CCIM Institute
For more than 40 years, the Chicago-based CCIM Institute (www.ccim.com) has conferred the Certified Commercial Investment Member (CCIM) designation to commercial real estate and allied professionals through an extensive curriculum of 160 classroom hours and professional experiential requirements. The CCIM curriculum was redesigned in 2010 to reflect changing student demographics and real estate brokerage services, growth in international markets, new technologies, and new delivery models. The core curriculum addresses financial analysis, market analysis, user decision analysis, investment analysis, and negotiation—the cornerstones of commercial investment real estate.
An affiliate of the National Association of Realtors®, the CCIM Institute also provides members with powerful technology tools including the Site To Do Business, an online site analysis and demographics resource.
Currently, there are nearly 10,000 CCIMs in 1,000 U.S. markets and 31 additional countries, with another 3,000 practitioners pursuing the designation, making the institute the governing body of one of the largest commercial real estate networks in the world.
Title Security and First American Title Will Merge
Published: Apr 07, 2014
Title Security and First American Title Will Merge Companies in Tucson, Green Valley
FOR IMMEDIATE RELEASE
TUCSON, ARIZ.---(April 4, 2014)---Title Security Agency of Arizona announced today the signing of a joint venture agreement to form a new company with First American Title Company’s Tucson and Green Valley Divisions. Title Security Agency’s wholly owned subsidiary, Landmark Title Assurance Agency – Tucson Division, will also become part of the new company.
The new locally owned and managed company will be called Title Security Agency, LLC, and provide title insurance and settlement services, trust, and local account servicing to customers participating in all types of Southern Arizona real estate transactions.
“By merging these market leaders, we have created a stronger company that can better serve the real estate community in Tucson, Green Valley and Casa Grande,” said Vivian Boggie, President and Chief Executive Officer of Title Security Agency, LLC.
Bruce Jacobs, Vice President and County Manager of First American Title Company’s Tucson Division, will serve as Executive Vice President and Chief Operating Officer of the new company. "We’re delighted by the opportunity to combine our talent and expertise with Title Security, a company known for its integrity, entrepreneurship and solid commitment to the real estate community," said Jacobs.
Based in Tucson, Title Security Agency, LLC will employ 170 workers, have 20 offices, and provide its customers greater financial strength and more advanced tools and technologies. The company will continue offering continuing education for realtors through First American Title’s Eagle University.
The transaction is expected to close by May 1, 2014, subject to customary closing conditions and regulatory reviews.
About Title Security Agency, LLC
Founded in 1972, Title Security Agency of Arizona has grown to become the largest, independently owned and operated escrow settlement and title agency in Southern Arizona with more than 170 employees and 20 offices. Services include: escrow settlement and title insurance services, real property research, account servicing and trust services for all types of real estate transactions. The company was built on a philosophy of integrity and excellence, entrepreneurial spirit, innovation, and compassion for its clients, employees and community. For information, visit www.titlesecurity.com.
About First American Title
First American Title Company is a subsidiary of First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions to participants in real estate transactions, which traces its heritage back to 1889. More information can be found at www.firstam.com.
7 Key Rules About 1031 Exchanges -- Before They're
Published: Mar 11, 2014
A 1031 exchange, also called a like-kind exchange or a Starker, is a swap of one business or investment asset for another. Do it right, and there is no tax. You change the form of your investment without cashing out or paying tax. And like a 401(k), that allows it to continue to grow tax-deferred.
There’s no limit on how many times you can do a 1031. You can roll over the gain from one piece of investment real estate to another, then another and another. You may have a profit on each swap, but you avoid tax until you actually sell for cash. But be careful and do it right.
La Grande - 1113 Adams
La Grande – 1113 Adams (Photo credit: Wikipedia)
There’s a proposal in Congress to repeal this storied provision. Although repeal is not likely in the short term, if you’re considering a 1031 or are just curious, here are key rules you should know.
Investment, Not Personal. 1031 is for investment and business property, not personal. You can’t swap your primary residence for another. But some exchanges of personal property (say a painting) can qualify. Can you convert your personal residence to “investment” and then do a 1031? Maybe. I’ll cover this in a separate post soon.
Like-kind is Broad. “Like-kind” doesn’t mean what you think it means. You can exchange an apartment building for raw land, a ranch for a strip mall. The rules are surprisingly liberal.
Delayed Exchanges are OK. Classically, an exchange is a simple swap of one property for another between two people. But the odds of finding someone with the exact property you want, who wants the exact property you have, are slim. For that reason, the vast majority of exchanges are delayed, three party, or “Starker” exchanges (named for the first tax case that allowed them).
In a delayed exchange, you need a middleman who holds the cash after you “sell” your property. The middleman, usually a qualified intermediary, then buys the replacement property for you using the escrowed cash. Subject to time limits below, this three-party exchange is treated as a swap.
Designating Replacement Property. There are two timing rules you must observe for a delayed exchange. Once the sale of your property closes, the intermediary receives the cash. Within 45 days, you must specify the property you want to acquire in writing to the intermediary. You can designate three properties so long as you eventually close on one of them. Alternatively, you can designate more properties if you come within certain valuation tests.
Close Within Six Months. Once you designate, you must close on the new property within 180 days of the sale of the old. Start counting when the sale of your property closes. The 45 days and 180 days run concurrently. Designate replacement property within 45 days, and you have 135 days left to close on the replacement property.
Cash is Taxed. If have cash left over, the intermediary pays it to you at the end of the 180 days. That cash is called “boot” and is taxed, generally as a capital gain.
Beware Mortgages. You must consider mortgage loans or other debt on the property you relinquish, and any debt on the replacement property you acquire. If you don’t receive cash back but your liability goes down, that too will be treated as income just like cash.
CCIM First Chapter Meeting of the Year with speake
Published: Jan 24, 2014
The CCIM Chapter of Southern Arizona held is first meeting of the year to a sold out crowd at Tucson Association Of Realtors. The many new members and sponsors who have joined for 2014 were recognized and the new committee leaders. James Robertson, CCIM with Realty Executives, the 2014 President, recognized the many achievements of last year’s president, David Blanchette, CCIM with CBRE by awarding a plaque for his service.
The featured speaker at the luncheon was Tucson City Council Ward 6 member, Steve Kozachik, recently re-elected to his second term.
The atmosphere in the room of commercial real estate professionals was one of anticipation to hear of progress being made at the City for improved business opportunities and jobs. Kozachik spoke of the great momentum that has begun in the Tucson Downtown core. “With $60-80 million in vertical construction, the new improved working relationship between the City and Rio Nuevo, $30 million improvements at the University of Arizona’s McKale Center all adds up to a positive momentum for the new year,” according to Kozachik.
Kozachik is hopeful the state legislature will also get on-board with the City for film making incentives this year. Tucson recently incentivized film making with a 75% tax rebate in an effort to lure filmmakers back to Tucson, and are providing other incentives for film production. The incentive will be given to films with a production cost of at least $2 million and include a free rent discount on City-owned or City-operated property (such as the Tucson Convention Center, owned by Rio Nuevo). Kozachik is hoping there will be sequels and perhaps a TV pilot for the film Hot Bath and a Stiff Drink that was filmed here in January 2012 and brought $2.5 million to the economy.
The other major goal for Kozachik is for the City to get behind expansion of commerce with Mexico, expanding direct flights to Hermosillo, MX for tourists. The Port of Tucson was mentioned, having recently received a $5 million grant. See full story here: The Port of Tucson where rail meets the road
Kozachik’s final goal for 2014 is to get the City’s fiscal house in order, with many long term debt obligations such as the City pension fund and the modern street car coming due, Kozachik believes the employee compensation increase recently agreed by the Mayor and Council will be revisited in budget discussions.
To a question from the audience asking that if there was “institutionalized mismanagement at the City, and what was being done about it,” Kozachik expressed his own disappointment in the decision that resulted in the loss of vendor spaces at the Spring 4th Avenue Street Fair due to streetcars testing and a drainage improvement project by the Army Corp of Engineers and Pima County Flood Control District. Kozachik’s response was, “City management needs to play better together and that he would continue to make headlines and publicly expose the Council’s decisions to get better decisions.” For more details, read the City Memorandum on 4th Avenue Street Fair here: 4th Avenue Street Fair Memo dated 1/10/2014
The City’s stated opposition to the Rosemont Mine was questioned, and whether or not there had been any polling done on Rosemont to determine the will of the people. Kozachik was unaware of any polls on this issue, but added the City is no longer a part of the decision making on Rosemont Mine, since Rosemont has already been accepted for their water permit.
When asked about the status of the RTA Broadway Corridor widening project, voted in 2006 to widen roadway to six-lane arterial, plus two dedicated bus lanes, and sidewalks from Euclid Ave. to Country Club Road, clearing an additional 150', to the north of the current road, to be added to the roadway. Kozachik is not in favor of the Broadway widening project and said, “The design was based on 1987 traffic studies which projected significant growth in traffic along Broadway that hasn’t materialized.” Since 2012, there has been a Citizen Task Force formed to study the project. This task force is about 6-months away for conclusion and then it will go back to the City and RTA for a decision.
The CCIM Chapter of Southern Arizona’s next monthly meeting will be the much anticipated Annual Forecast Meeting to be held at the University Marriott on February 11, 2014.
CCIM Southern Arizona Chapter Awarded Community En
Published: Jan 24, 2014
The Metropolitan Pima Alliance (MPA) honored the CCIM Southern Arizona Chapter with the prestigious Community Engagement Award recently. MPA is a land use, real estate and economic development advocacy organization that supports and encourages positive, and collaborative processes in Pima County, and is a community leader in finding common ground between members of the development community with those in the public sector.
This year the CCIM Southern Arizona Chapter was awarded the special Community Engagement Award for its work as a founding member of the Pima County Metal Watch Task Force which resulted in a public relations program being designed to educate businesses, property owners, law enforcement, municipalities and legislators to the multi-million dollar metal theft problem. Jason Wong, CCIM, with Red Point Development of Tucson, and who initiated the task force, accepted the award on behalf of the local CCIM chapter.
The Metal Watch Task Force has been a community wide effort at the forefront of the battle on copper and metal theft. With more than a dozen organizations and local governments united, the Metal Watch Task Force has over 100 active participants with the goal of mitigating, preventing and combatting the negative economic and personal impact copper theft has on our community. Here’s some stats on metal theft in our area:
• Tucson – 216 reported metal thefts Jan-May 2012
• Tucson – $2 million in reported DAMAGES
• 14 area parks and recreation facilities
• Tucson Water backflow assemblies, water box covers
• Phoenix – over 3,000 AC units stolen last year (2011)
• Phoenix – Damage from metal theft totaled over $30 Million
• State wide damages over $120 million
• U.S. Dept of Energy estimates copper theft costs $1 Billion a year
Within 12 months of organizing this task force, legislation was passed imposing stricter reporting and bookkeeping requirements for recyclers and stiffer penalties added with three new laws passed at the state legislature:
HB 2262: Requires scrap metal dealers to register with the Arizona Department of Public Safety and review information on stolen scrap metal DPS shares via a website.
SB 1107: Expands the definition of theft to include ferrous and non-ferrous metals.
HB 2386: Modified the definition of criminal damage to include tampering with a public utility to obtain scrap metal.
CCIM was launched in 1954 as the Investment Property Exchange and Taxation amid a very different world of commercial real estate, today’s CCIM has evolved along with the industry. Its designees, which now number more than 15,000 globally, have brought the institute’s combination of course mastery and practical application to disciplines ranging from brokerage to lending, and more recently community advocacy. The CCIM Southern Arizona Chapter is a group of approximately 150 members locally.
Truly Nolen Buys 'The Springs at William Centre' f
Published: Jan 24, 2014
Truly Nolen (Truly) of Tucson has purchased The Springs at William Centre located at 432 - 442 South Williams Blvd in Tucson for $2.55 million ($92 PSF). The property consists of three buildings with an aggregate 27,646-square-feet (built 1987 & 1989) on 3.88 acres. Included with the sale was also three finished pads.
And yes, there really is a Truly Nolen we discovered. His actual birth name is Truly David Nolen. In 1955, following his father's footsteps from Florida, Truly opened his first pest control company in Tucson, Arizona, license #1-A was issued by the state for all pest control categories. During the next 59 years, the business has expanded and today Truly Nolen has more than 80 corporate branch offices in Arizona, California, Florida, Nevada, New Mexico, Texas and Utah and grosses over $100 million in revenue in the US. The company also has independently owned and operated franchises in an ever-growing number of states and territories including Kentucky, Georgia, New Jersey, Canada, and Puerto Rico, totaling 58 countries.
Truly’s training for technicians and administration has been taking place in Phoenix at a location owned by the company. But, with the purchase of The Springs at William Centre, the Tucson-based company plans to bring its training back from Phoenix. The property was about 75% vacant at time of sale, so Truly will occupy 434 S Williams Blvd while constructing an additional 10,000-square-foot building next door and letting the leases run out in the remainder of the buildings.
“Eventually, the four building will become a Truly campus, complete with mall area and pavilions for the several hundred of technicians and administrative students who will pass through each year,” Bob Hartley, Vice-President at Truly Nolen told us. “It a five-year projection before being fully completed.”
The Marriot Courtyard at Williams Centre next door and restaurants anxiously await the opening of the Truly campus.
Lloyd Construction is handling all aspects of the new construction.
Mark Irvin, CCIM, and Janine Irvin, CCIM, of Mark Irvin Commercial Real Estate Services in Tucson represented the seller, Gregory and Susan Melanson Trust of La Quinta, CA. Greg Boccarda, CCIM, of Boccardo Realty represented Truly Nolen in the transaction.
River Center Sells for $24.8 Million â?? First Tucso
Published: Jan 24, 2014
First Washington Realty, Inc., through its Global Retail Investors, LLC joint venture, purchased River Center at River and Craycroft in Tucson for $24.8 million ($212 PSF). The 117,000-square-foot retail center had been owned and operated by Larsen Baker, LLC of Tucson for 14-years and was 100% leased at time of sale.
The four-anchor center (built 1986) includes PetCo, Whole Foods, Pima County Library, and Walgreen’s on a separate pad (not part of sale). There are also five restaurants, offices and a Pilates studio.
First Washington is currently a partner with California Public Employees' Retirement System ("CalPERS"), the largest public pension fund in the United States, in a venture called Global Retail Investors, LLC, an investment entity that owns and operates approximately 90 retail property investments nationwide.
Global Retail also owns Lincoln Village at 6200-6300 North Scottsdale Road in Scottsdale, AZ, however this is its first venture into the Tucson market. First Washington is a privately owned real estate investment, advisory and management company which specializes in the acquisition, ownership, financing, and management of neighborhood and community shopping centers located in densely populated areas throughout the United States. The Company endeavors to make sound, long-term investments for its own account and on behalf of its joint venture partners such as Global Retail Investors, in what it believes to be well-located, intrinsically valuable, income producing real estate.
First Washington is wholly owned by its principals, who have specialized in the ownership and operation of shopping center portfolios for over 30 years. The Company employs the same individuals as senior executives who were instrumental in the formation and operation of First Washington Realty Trust, Inc., a publicly-held real estate investment trust which traded on the New York Stock Exchange until February 2001, at which time its portfolio was sold.
Andy Seleznov, CCIM and Melissa Lal, CCIM of Larsen Baker in Tucson represented the seller, Larsen Baker. Patrick Dempsey and Jan Fincham of Lee & Associates in Phoenix represented the buyer.
Hermitage No-Kill Cat Shelter to Open Thrift Store
Published: Jan 24, 2014
Hermitage No-Kill Cat Shelter has leased a 2,000-square-foot retail space at 4613 East Speedway in Tucson for its new Hermitage Thrift Store & More. The new store, located in the Sprouts shopping plaza, is scheduled to open February 8th.
Tucson has been the proud home of the Hermitage Cat Shelter for over 48-years as the first “no-kill” shelter in Arizona. Hermitage is both an adoption facility and long-term sanctuary for felines who are “adoption-challenged” due to FIV and other types of chronic health issues. The shelter is located at 5278 East 21st Street in Tucson.
All proceeds from the thrift store will go to benefit the 200 plus cats who call the Hermitage No-Kill Cat Shelter home. In addition to clothes, electronics, books and other gently used items, The Hermitage is looking for donations of household items for the store including:
o Plastic Bags
o Shelving units
o Garbage Bags
o Display cases
o Calculators (with tape)
o Clothes racks
“We are also looking for volunteers to help set up the store, price items, sort clothes and help clean,” Lee Bucyk, Executive Director at Hermitage told us. Opening a store is a big job, but with the enthusiasm and support of the community for the project, the Thrift Store will become a success and help to care for Hermitage's numerous dependents.
If you could consider volunteering or could donate any of these items, please come by the shelter at 5278 East 21st Street, or make arrangements for pick up by calling the shelter at (520) 571-7839.
Mark Biery, CCIM, with Prudential Foothills Commercial Real Estate handled the lease transaction for tenant and landlord, Roso, LLC of Sherman Oaks, CA. And as the part the deal, Biery negotiated a beautiful little gray kitten by the name of Colette for himself to take home.
The Hermitage is a 501 (c ) (3) corporation and all items are tax deductible to the fullest extent of the law. For more information visit them at www.hermitagecatshelter.org or please email their volunteer coordinator email@example.com or store manager firstname.lastname@example.org to adopt, get involved and help this wonderful organization.
Medical Office Activity in Northwest Tucson
Published: Jan 24, 2014
The medical office building occupied by Northwest Allied Physcians Group at 7370 North La Cholla Blvd in Northwest Tucson sold for $840,000 ($238.50 PSF) to Ftita, LLC of Tucson (Jay Jester, managing member). The 3,522 square-foot building (built 2007) was fully occupied by a group of physicians, located in the La Cholla Corporate Center, near Northwest Medical Center.
Rob Glaser, SIOR, CCIM, with Cushman & Wakefield | Picor of Tucson represented the investor, while Jordan Simon with Venture West of Tucson represented the seller, Shakaz, LLC of Tucson (Patricia Carter, principal).
In a separate transaction, OVFP Building, LLC of Tucson (Dr Robin Rash, MD) is constructing a new 5,015 square-foot medical office building for a family practice location at 1862-1866 Innovation Park Drive in Oro Valley. The 9,134 square foot pad in Innovation Park was purchased for $441,320 as a built-to-suite by the seller, a Venture West affiliate, Innovation Corporate Center, LLC should have final cost at $1.2 million and be move-in ready by November 2014.
Jordan Simon of Venture West represented the seller while David Montijo, First Vice-President of CRE in Tucson represented the buyer in the transaction.
To reach Glaser directly call (520) 546-2707. Montijo can be contacted at (520) 323.5136 and Simon is at (520) 722.9292 for more information.
JOHN DEERE DEALERSHIP COMING TO MARANA
Published: Jan 24, 2014
Huron Farm Management, LLP of Avondale, AZ (Rob Rosztoczy, vice-president) purchased 6.3 acres, or 274,428-square-feet, for $576.100 ($2.10 PSF) at Tiffany Loop and Interstate-10, with highway frontage at Continental Ranch in Marana. The buyer intends to build an 8,100-square-foot John Deere dealership on the site, dba Arizona Machinery. This will be the 25th location for the company that is anticipated to open this Summer 2014.
Arizona Machinery is a family-owned business, founded in 1947 by Fred Elder and Jim Deaderick, and had its start as the John Deere and Caterpillar dealer for most of the state of Arizona. In 1959, after being diagnosed with cancer, Deaderick began selling off the business. Elder retained the John Deere franchise for agricultural equipment and John Deere's new emerging line of construction equipment in Maricopa County. Elder's company, which kept the Arizona Machinery name, continued the growth it had begun in the 1940's, and built a reputation for unbeatable parts and service to match the quality of its John Deere products.
In 1975, shortly after Fred Elder passed away, his son-in-law Ferenc Rosztoczy took over management of the company. A Hungarian immigrant who is a physical chemist by education, Rosztoczy came into the business with no working knowledge of the farm implement business. His firm hand and intelligent direction guided the company for over 30 years through both the booms and the busts of the local agricultural industry.
Rosztoczy recognized the need to diversify the company's interests so the company could continue to grow as the area's cotton farms gradually gave way to residential subdivisions. In 1979, the company picked up John Deere's "consumer products" line of equipment, which included machines from residential lawn mowers to compact tractors and commercial mowers to maintain large areas of turf. In 1986, John Deere rewarded Arizona Machinery's quality performance with one of the nation's first golf and turf distributorships. Throughout his tenure, Arizona Machinery Co. operated out of three stores located in Avondale, Buckeye and Chandler.
In the late 1990's, the transition began to the next generation. Tom Rosztoczy, Ferenc's oldest son, has been the president and general manager for Arizona Machinery since 1998. Ferenc's two other sons also work for the family business. Rob serves as vice president and corporate sales manager, and Teddy is the Golf Sales Manager for our operations in the southwestern U.S.
Seeing that opportunities for further growth within the company's Arizona territory would be limited, Tom has overseen the company's acquisition of additional John Deere dealerships outside of Arizona. The company's first venture outside of Arizona occurred in 1997 with the acquisition of EZ Equipment, a small John Deere dealership located in the San Diego area. In 2002, Arizona Machinery acquired ownership of AA Equipment, a larger dealership operating out of eastern Los Angeles County. In recent years, the two southern California stores established two additional stores, one in Indio specializing in golf & turf, and the other in El Cajon, a location which sells John Deere products and a full line of trailer parts. Subsequently, AA Equipment added a location in Las Vegas, Nevada. Together, these five stores were consolidated into the AA Equipment organization, which sells primarily the lawn & garden, commercial and golf & turf lines of John Deere.
Greg Wexler of Wexler & Associates represented the seller, Continental Ranch Development of Tucson and Walter Unger, CCIM, of West USA Realty in Scottsdale represented the buyer.
Arizona Machinery can be reached at (623) 936.7131. Wexler should be contacted at (520) 744.8500 ext. 101 and Unger is at (602) 942.1410.
CCIMâ??s 23rd Annual Pima County CRE Market Forecast
Published: Jan 24, 2014
The last quarter of 2013 for the commercial real estate investment market set the pace and tone for 2014, according to recent data collected from CCIM members nationwide. The local Southern Arizona CCIM Chapter will be giving their predictions on February 11th at the 2014 Market Forecast to be held at the University Marriott. There local commercial real estate brokers, lenders and appraisers specializing in the office, retail, multifamily, land and industrial and financing sectors will offer thoughts, insights and opinion for 2014.
This year’s keynote speaker will be the Honorable Jonathan Rothchild, Mayor of the City or Tucson.
Continuing a local CCIM tradition, two more of Tucson’s Commercial Real Estate Legends will be honored. Jim Marian and George Larsen founded the tradition to give special recognition to the pioneers, visionaries, contributors, gamblers and risk takers who have helped shape our local market. This year’s inductees into Tucson Legends will be John and Helen Murphey, along with David and George Mehl.
Go here to register for the Feb 11th Forecast Meeting Registration.
Nationally, nearly 60 percent of CCIM Institute's membership indicated they experienced more transactions in 4Q13 than the same period the prior year, in the organization's 4Q13 Quarterly Market Trends report.
The report, which features data collected from CCIM members nationwide and is conducted in conjunction with the National Association of Realtors®, also shows that 61 percent of respondents received more serious inquiries related to buying commercial real estate. Property sectors that saw the most deal activity included:
• Hospitality: 75 percent of CCIM's saw an increase in deals with hospitality properties
• Office: 64 percent of CCIM's saw greater deal flow in the office sector
• Industrial and Multifamily: 56 percent of members who work with industrial and apartment properties saw a rise in deals
• Retail: 51 percent of CCIM's in the retail sector saw an increased deal volume
Higher rents were also reported with 48 percent of CCIM's indicating they are observing higher rental rates across all property types over the same period last year, and 35 percent of members experienced similar rents year over year. Almost half (45 percent) of respondents expect rents and prices to move together in the next one to three years with 23 percent predicting rent growth will outpace price growth and 32 percent indicating the opposite, with prices expected to outperform rents.
Tucson real estate: Sales and leases
Published: Apr 16, 2013
Modern Court Properties LLC purchased 6,400 square feet at 1621 W. Modern Court from Tessman LLC for $485,000. Hooker, of Picor, represented the buyer. Ron Zimmerman of Newmark Grubb Knight Frank represented the seller.
• JV Metals LLC leased 14,278 square feet at 420 E. Columbia Drive from Plastic and Metal Parts Inc. Brandon Rodgers and Pat Welchert of Picor handled the transaction.
• Arizona Institute of Urology leased 2,983 square feet at Crossroads Festival, on the northeast corner of Grant and Swan roads. Andy Seleznov and Melissa Lal of Larsen Baker represented the landlord, Larsen Baker. James Robertson of Realty Executive International represented the tenant.
• Brandon L. Schilling leased 2,784 square feet at 230 E. 27th St. Zimmerman of Newmark Grubb Knight Frank represented the landlord, Tin Cup Properties.
Tucson real estate: Sales and leases
Published: Feb 28, 2013
ParMerica leased 10,686 square feet at 3700 E. Columbia St., Suite 100, from Holualoa Columbia Industrial LLC. Rob Glaser of Picor Commercial Real Estate Services represented the landlord. Michael England of Cresa Dallas represented the tenant.
Rafael Furniture leased 3,025 square feet at 750 E. 46th St. from Rich Rodgers Investment Inc. Brandon Rodgers of Picor Commercial Real Estate Services handled the transaction.
Royalty Renovations LLC leased 1,185 square feet at 1646 S. Research Loop, No. 130, from Eastside Center LLC. Dave Gallaher of Tucson Industrial Realty represented the landlord.
Long Tail Treasures LLC leased 1,021 square feet at 1634 S. Research Loop, Suite 110, from Eastside Center LLC. Dave Gallaher of Tucson Industrial Realty represented the landlord, and Jean Barclay of Oxford Realty Advisors represented the tenant.
CCIM Forecast 2013
Published: Feb 25, 2013
Herder and Marshall are honored as real estate legends
More than 90 years ago, Louise Foucar Marshall developed Tucson’s first “suburban” shopping center next to the University of Arizona. The college professor-turned-developer also acquired apartments and ironically, as Tucson is building Sun Link, shares in a failed 1902 streetcar venture that was to link the campus with downtown.
Her business acumen and philanthropy grew to the point that she established the Marshall Charitable Foundation in 1930.
“I have the greatest job in the world, to carry forward Mrs. Marshall’s legacy because real estate people who give their money away have a different mentality than those who sell their buildings after five years. It’s a totally different type of climate to work in, a marvelous experience,” said Jane McCollum, general manager of the foundation.
Marshall and developer Pete Herder, owner of the Herder Companies, were honored as Legends of Real Estate by the Certified Commercial Investment Member (CCIM) Southern Arizona Chapter on Feb. 12.
In 1900, Marshall became the first woman professor at the UA and was later named chair of the Language Department. In 1904, she married Thomas Marshall and resigned her professorships to concentrate on real estate.
In 1922, she developed Tucson’s first suburban shopping center, today known as Main Gate Square on University Boulevard. It is “the centerpiece of her legacy,” said McCollum, with more than 350,000 square feet of retail and office space, and the Marriott Tucson University Park Hotel, 880 E. Second St.
Marshall died in 1956 with no heirs and left most of her wealth to her foundation. Led today by a board of directors, McCollum accepted the award on its behalf. The foundation donates 5 percent of its net worth annually to UA scholarships and other local causes, gifts that total more than $18 million.
“She was a savvy business woman. She left a legacy that continues to this day,” said McCollum. “She is a perfect person to be honored as a legend in real estate.”
Herder, a third-generation builder, made his way to Tucson in the 1960s at the urging of friend Fred Fickett. (Fickett Middle School, part of Booth Fickett Magnet School, is named after him.) While at a Rose Bowl game in California, Fickett told Herder that Tucson would be a great place for him to work and live.
“That’s how we came here from Denver and it’s been a wonderful experience with a lot of wonderful people. And I do like the warm weather,” laughed Herder.
Herder built his first house in Flecha Caida in the Catalina Foothills off Swan Road north of River Road.
“John Bender, a legend in his own right, sold me a lot for $5,000 at no interest. He said I could pay him when I sold the home. That’s how I got started,” Herder said.
That house sold for $36,500 and Herder built 50 other homes in the area. Bender, who with Leonard Savage also developed Skyline Country Club, made the same deal there with Herder who built 40 homes in that area at the north end of Swan Road. Herder has built more than 5,000 homes in the Tucson region and about 20,000 homes in Arizona, Colorado and California.
His first office project was a small building across from El Con Mall on East Broadway for Catalina Savings and Loan. His favorite commercial development is St. Philip’s Plaza at the southeast corner of Campbell Avenue and River Road. He also developed Butterfield Business Park, north of Valencia Road between Palo Verde Road and Alvernon Way near Tucson International Airport, and “about 35 of those traditional gray, slump-block buildings you see all over town.”
Herder’s influence reaches far beyond Arizona. He was president of the National Association of Home Builders (NAHB), based in Washington, D.C., and a member of President Ronald Reagan’s Commission on Housing.
As head of NAHB, he also worked to develop construction management programs in 24 universities across the country.
“That was one of my favorite things at NAHB. In a way, it was an extension of my love of coaching football and wrestling. I’ve always enjoyed working with young people,” said Herder, who coached those two sports after college.
Over the decades, Herder worked with several U.S. presidents on housing issues. Reagan was his favorite.
“The reason is his character,” Herder said. “The first time I met him, he looked me straight in the eye, never looked over my shoulder to see who else was in the room.”
Contact Roger Yohem at email@example.com or (520) 295-4254.
Tucson real estate: Sales and leases
Published: Feb 08, 2013
• Independent Courier has leased 10,000 square feet at 845 E. Ohio St., Suite 107, from Ashland Group. Brandon Rodgers of Picor Commercial Real Estate Services handled the transaction.
Tucson real estate: Sales and leases
Published: Jan 15, 2013
Youth On Their Own has purchased a 4,800-square-foot office building at 1660 N. Alvernon Way. Bruce A. Suppes and Ian Stuart of CBRE represented the seller, P&J Enterprises LLC of Tucson, in negotiating the $597,500 sale. The tenant was represented by Mark Irvin of Mark Irvin Commercial Real Estate.
GAP Ministries Inc. has leased 25,000 square feet in the Keenan Commerce Center, 2861 N. Flowing Wells Road, from Keenan Investment Co. Gary Emerson of GRE Partners LLC represented the landlord, and John Hamner of Keller Williams represented the tenant.
RAM-Enterprises leased 3,900 square feet of warehouse space at 4353 E. Tennessee St. from Tennessee St. LLC. Dave Gallaher of Tucson Industrial Realty represented the landlord, and Robert Delaney of CBRE represented the tenant.
Tucson real estate: Sales and leases
Published: Dec 19, 2012
• Euro Design Systems Inc. leased 15,625 square feet at 2560 N. Huachuca Drive from Legacy Business Properties LLC. Rob Glaser with Picor Commercial Real Estate Services represented the tenant. John Wilson and Mike Hennessy of Burris, Hennessy and Co. represented the landlord.
• Southern Arizona Glassworks Inc. leased 5,268 square feet at 3880 S. Palo Verde, Suite 401 and 402, from Palo Verde Trust Partners. Rob Glaser and Paul Hooker with Picor Commercial Real Estate Services represented the landlord. Fletcher Perry of Colliers International represented the tenant.
• SMDSK Encanto, LLC purchased Encanto Plaza, at 3232, 3234, 3238, 3242, and 3244 E. Speedway, for $760,000. Debbie Heslop of Volk Company Commercial Real Estate represented the buyer. Brian Chang of Red Point Development represented the seller, Pacific Income Properties, LLC.
Tucson real estate: Sales and leases
Published: Dec 06, 2012
Charlie's Comic Books has leased 1,810 square feet in the Speedway Craycroft Plaza, on the southwest corner of Speedway and Craycroft Road. Andy Seleznov, director of leasing at Larsen Baker, handled the transaction. The store is scheduled to open in January.
Tucson real estate: Sales and leases
Published: Nov 28, 2012
JP Produce Distribution LLC leased 10,000 square feet at 3529 E. Golf Links Road from VCN LLC. Ron Zimmerman of Newmark Grubb Knight Frank handled the transaction.
McKee Construction & Remodeling LLC leased 1944 square feet at 2050 E. 19th St. from Commonwealth Electric Co. of the Midwest. Ron Zimmerman of Newmark Grubb Knight Frank handled the transaction.
Wearpro Inc. leased 1,500 square feet at 4855 N. Shamrock Place, Suite 101, from Shamrock Properties LLC. Brandon Rodgers of Picor Commercial Real Estate Services handled the transaction.
Tucson real estate: Sales and leases
Published: Nov 13, 2012
Plaza Bonita Family Mexican Restaurant signed a lease for the vacant restaurant building in the Madera Village Shopping Center on the northeast corner of Tanque Verde and Catalina Highway. The restaurant is scheduled to open in the first quarter of 2013. Craig Finfrock of Commercial Retail Advisors LLC represented the landlord. The restaurant was represented by independent broker Fred Wang.
Closed Transactions 11/6/2012
Published: Nov 07, 2012
• Canyon Health LLC has leased 1,300 square feet at Craycroft Plaza, just south of Speedway. The property will be a medical office specializing in pain management and related services. It is scheduled to open in December. The landlord, Larsen Baker, was represented by its director of leasing, Andy Seleznov.
• LM Investment Group LLC has bought the 10,584-square-foot building at 1201-1215 E. Broadway for $520,000. The property will become television studios and media offices for Spanish-speaking broadcast company Azteca America, which plans to relocate from its current site at 245 S. Plumer Ave. Nancy McClure of CBRE's Tucson office and Mark McCary in Minneapolis represented the seller, Target Commercial Interiors Inc. of Minneapolis. The buyer was represented by Jim Marian of Chapman Lindsay Commercial Real Estate Services.
New CCIM Designee- Steve Russell
Published: Nov 06, 2012
The Southern Arizona CCIM Chapter has recognized a chapter member who recently earned the Certified Commercial Investment Member (CCIM) designation from the CCIM Institute, one of the leading commercial real estate associations in the world.
Awarded the designation at the Institute’s business meetings in Las Vegas, Nevada, was Steve Russell, Larsen Baker. He was among 215 commercial real estate professionals who passed the CCIM Comprehensive Examination, the final component in the designation process. The CCIM designation is awarded upon successful completion of an intensive analytical curriculum and presentation of a portfolio of qualifying experience demonstrating concept mastery through real-world success. CCIMs are recognized experts in commercial real estate brokerage, leasing, asset management, valuation, and investment analysis.
PRESS RELEASE: CCIM Debbie Heslop Guest Speaker to
Published: Sep 27, 2012
On September 26th, Debbie Heslop, CCIM was the guest speaker for the University of Arizona’s T. J. Lundgren Center for Retailing entrepreneurship class. Debbie spoke on the topic of Site Selection and the superior skills CCIM professionals bring to the table. The students learned the importance of identifying its customer, competitors and delineating a trade area through analysis of demographic reports, business mapping and traffic counts.
The lecture was a stellar success and our Southern Arizona CCIM chapter has been invited back to provide additional lectures on lease rate structures, TI budgeting and financing. A big thank you goes to Martha Van Gelder, Director of the center, Professor Scott Hessell and Debbie Heslop CCIM for inspiring the minds of our future retail professionals.
Southern AZ CCIM Chapter and Ronald McDonald House
Published: May 11, 2012
Chefs for a Day!
The reviews are in!
We were voted FIVE STARS, by the Ronald McDonald House of Tucson, for the delicious, mouth watering meals and desserts created by our master chefs and sous chefs.
Many compliments were given out for our eclectic and tasty menu. Diners’ comments included: “the food is great”, “best meal ever”, “yummy lasagna”, “the chicken was delicious”, “the cookies are so good”, “this is asparagus” and “Wow, you guys do this for fun? Incredible”.
The guests of the Ronald McDonald House were left with FULL refrigerators of delicious food and the staff is greatly appreciative of our efforts. Their refrigerators were near empty and the parents coming back from the hospital late at night had little food to eat. Our meals relieved the parents from having to cook their own meal or go out for a meal after a long day at the hospital watching over their child. Our efforts provided a little happiness and eased the burden of having a child in the hospital.
The Ronald McDonald House gives out a special apron to an individual or group that provides a minimum of 10 meals in one year. The apron is embroidered with “Ronald McDonald House Charities Tucson”.
Our group, for the first time ever, was given the “Ronald McDonald House Apron” for delicious and outstanding meals!
A BIG Congratulations FOR OUR SOUTHERN ARIZONA CCIM CHAPTER and a big THANK YOU to all volunteers and donors in helping to make our Chef for a Day experience a wonderful and memorable event.