Q2 2012 Tucson, Arizona Retail Property Sales Analysis

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Q2 2012 Tucson, Arizona Retail Property Sales Analysis


Sales remain slow. The completion of four transactions for a combined total of $15.1 million during the first quarter of 2012 was followed by no sales meeting Reis’ criteria the quarter after. The average selling price for first quarter deals, meanwhile, was high at $386 psf. The 12-month rolling mean cap rate as of mid-year was 5.3%, down from 7.4% a year prior.

A major sale. Since the quarter ended, DDR Corporation spent $125 million to acquire “ownership rights” to the 709,811-square-foot Tucson Spectrum, GlobeSt.com reported in August. An affiliate of the Barclay Group (based in Phoenix) and Canadian company Creswin Properties Inc. were the sellers. “This transaction is the culmination of over a decade of meticulous planning and development,” stated a Barclay executive in a press release. “The Tucson Spectrum is one of the largest and most successful open-air retail power shopping centers in the Western United States and serves Tucson, Southern Arizona, and Northern Mexico,” stated an executive with Lee & Associates in a separate release. Tenants include Target, Home Depot, Ross, PetSmart, Marshalls, Michaels, J.C. Penney, Best Buy, Old Navy, Bed Bath & Beyond, Harkins Theatres, and LA Fitness Center. Also in August, Business Wire reported at the time, Phillips Edison–ARC Shopping Center REIT Inc. closed on its acquisition of the Sprouts-anchored, 83,612-square-foot, 94.0%-occupied Broadway Plaza shopping center. The Sprouts lease expires in 2023.