CBRE’s Philip D. Voorhees, Jimmy Slusher and Sean Heitzler in Newport Beach, Calif. along with Nancy McClure in Tucson represented the local private sellers. The La Jolla, Calif.-based exchange buyer was represented by Maha Odeh-Arnold of Zeal Property Group in San Diego.
The property, located at 4500-4594 E. Broadway Boulevard, is a mixed-use center consisting of 50,005 square feet of retail and 2nd floor office space. The seller had purchased the project in the early 2000’s and redeveloped it with new interiors, exterior façade and a new high-profile pad on the corner.
The transaction included the assumption of an existing loan from Ohio National Life Insurance Company for approximately $2.23 million, producing a 43.6% loan-to-value at a 4.75% interest rate, fully amortizing and due in January 2035. The assumption was facilitated by CBRE Loan Services, Inc. out of Houston, the correspondent servicing the Life Company loan since inception.
“The assumption process was smoother than typical, particularly during COVID, completed in less than 45-days from application,” said Slusher. “This was thanks in part to an experienced purchaser, organized seller and CBRE’s loan servicing team working in conjunction with all parties.”
Midstar Plaza’s 20 retail tenants include a collection of local restaurants, including Opa’s Best, Polish Kitchen, CI Chu’s Mongolian Barbeque, a coffee shop, children’s boutique, hair and nail salons, an Irish dance studio, among others. The 17 co-work style office tenants include Lendmark Financial Services, Shumaker Wengren LCC and U.S. Government military recruiting offices.
“Over time, the ownership successfully curated a tenant mix of national, regional and local businesses, enabling the center to enjoy stabilized occupancy even during COVID,” said McClure, the leasing agent for the property. “Midstar’s location on Tucson’s prime retail and corporate office corridor, Broadway Boulevard, exposes the center to high traffic counts and a continual customer flow looking for unique restaurant offerings, merchandise and services.” McClure added, “The property has also proudly served as a midtown location for the U.S. military recruiting offices for over a decade.”