Intercontinental Buys 606,000 Sq. Ft. of Industrial Space in Tucson
Business Real Estate Weekly of Arizona
Tucson – A company formed by Intercontinental Real Estate Corp. in Boston Mass. (Peter Palandjian, Chairman) paid just under $46.213 million ($76.25 per foot) to buy 606,000 sq. ft. of industrial space located in Tucson. The seller was a company formed by the Muller Co. in Laguna Hills, Calif. (Jon Muller, Steve Muller, principals). The sale was brokered through Ryan Gallagher and Kelly Rohfeld of Grubb & Ellis/BRE Commercial in Newport Beach, Calif., and Stephen Cohen and Russ Hall of PICOR Commercial Real Estate Services in Tucson. Records show the buyer was U.S. REIF Tucson Commerce Center Arizona, LLC, and investment fund formed by Intercontinental. Capital One provided the financing for the acquisition. The investment was made at a 7.5 percent cap rate.
The six-building acquisition is comprised of two adjacent industrial parks: Tucson Commerce Center I – IV and Medina Business Park I & II. Tucson Commerce Park is comprised of four structures totaling 406,300 sq. ft. The buildings are located at 2929 E. Corona Toad, 6950-6955S. Country Club, 2900 E. Elvira Road and 3000 E. Elvira Road. The 14-acre project has four acres of land targeted for future development. The 14-acre Medina Business Park has two structures totaling 199,700 sq. ft. Those buildings are at 2201E. Medina Road and 2425 E. Medina Road. On the average, the properties are 90 percent occupied. The two buildings on Elvira Road both have more than 30,000 sq. ft. available for lease. Grubb & Ellis in Tucson has the leasing assignment. The industrial parks are located near Tucson International Airport and are in close proximity to Interstate 10 and Interstate 17.
The investment is the first in Arizona for Intercontinental Real Estate Corp. The company is interested in additional investment opportunities in Arizona…. that includes industrial, office and retail properties in the Valley. “The Phoenix area is definitely going to be a focus in the next couple of years,”says Thomas Taranto, Intercontinental’s director of acquisitions. The fund that acquired the Tucson properties is the fifth fund managed by the privately-held Intercontinental. To date, the open ended fund has invested about $600 million in buying 33 properties located across the U.S.
Intercontinental Real Estate Corp. is an SEC Registered Investment Adviser that manages private equity real estate investments and provides real estate services for domestic and international clients. Formed in Boston 45 years ago, Intercontinental has acquired, developed, managed, and owned more than $6 billion of real estate. That includes office, industrial, retail, apartment and assisted living properties located across the United States. Over the years, BREW has reported The Muller Co. buying and selling numerous office and industrial properties in Arizona. The Muller Co. still has an ownership interest in 2+ million sq. ft. of office, industrial and retail space in the Valley. The Muller Co. is looking to buy more office and multi-tenant industrial properties in the Phoenix area. Learn more from Taranto at (617) 782-2600. Jessica Levin is the contact at Intercontinental’s west coast office in Los Angeles…. (310) 772-0160. Reach the Mullers at (949) 460-5380. Call Gallagher and Rohfeld at (949) 608-2000. Talk to Cohen and Hall at (520) 748-7100.