Cushman & Wakefield | PICOR Represents Largest Industrial Sale in Tucson at $165.75 Million
Cushman & Wakefield | PICOR, Southern Arizona’s leading commercial real estate firm, has announced the sale of a 14-property, 1.25 million square foot industrial portfolio in Tucson for $165,750,000, or approximately $133 per square foot.
The seller was Equus Capital Partners, through Pegasus Tucson Owner. The buyers are Catalyst Real Estate and New York-based Everview Partners.
The sale closed on Sept. 28. It is the largest commercial real estate sale by square footage in the Tucson MSA since 2007 and the largest industrial sale by price on record in the market.
Paul Hooker, SIOR, CCIM, Principal at C&W | PICOR, in conjunction with Cushman & Wakefield’s National Industrial Advisory Group (Will Strong, Michael Matchett, Madeline Warren, Molly Miller, and Jack Stamets), represented both the buyer and seller.
Known as the Tucson Shallow Bay Industrial Portfolio, the sale includes 85 buildings spread across established business parks. Shallow bay buildings are designed for smaller businesses and typically hold several tenants under one roof. The mix of warehouse, office, and flex space in these parks fits a wide range of operations, and at the time of sale the portfolio was 90% leased to 452 tenants, so no single occupant carries it. The parks sit along Tucson’s established industrial corridors, from Forbes Boulevard and Prince Road to Speedway Boulevard and East 29th Street.
The portfolio includes the following properties, with recorded sale prices:
Equus bought the portfolio in October 2021 from Reliance Management (Daryl Burton as Principal) as part of a larger $1.15 billion purchase of industrial properties across Tucson and Phoenix. The 14 Tucson parks traded for about $150 million at that time, according to Real Estate Daily News, which puts this sale roughly $15.75 million, or 10.5%, higher. That figure compares purchase prices only. It does not factor in improvements, income, or costs during Equus’ ownership.
C&W | PICOR has been involved with the portfolio through Equus for the past five years, but its history with the properties goes back more than two decades. It started when Robert C. Glaser, SIOR, CCIM, Principal and Industrial Specialist at C&W | PICOR, became a broker for Daryl Burton, who acquired and repositioned each individual asset throughout this time period.
Images courtesy Cushman & Wakefield | PICOR
