TUCSON—ORION Investment Real Estate completed the sale of Paloma Village Center in Tucson. The 37,739-square-foot center sold for $17.2 million to HRA Paloma LP, a commercial real estate entity affiliated with Hannay Realty Advisors based in Phoenix.
The national tenants occupying Paloma Village Center include Fleming's, CVS Pharmacy, Starbucks and Verizon Wireless. Paloma Village Center is a well-positioned class A property located in the Catalina Foothills and is part of a 12.9 acre mixed-use development that also includes a 120-room flagship Embassy Suites Hotel, which was not included in this sale.
The buyer in the transaction was represented by Andrew Harrison of ORION Investment Real Estate based in Scottsdale. The California-based seller was represented by Matthew Lyons at The Hogan Group in Scottsdale.
Paloma Village Center has a history of high occupancy due to its tremendous visibility and signage, limited retail competition and high income demographics in the surrounding area. Seventy-one percent of the rent roll are original tenants when the project was developed in 2004. The heavy draw to the intersection is the 250,000-square-foot La Encantada outdoor specialty mall featuring luxury retailers and restaurants such as: The Apple Store, Tommy Bahama, Lululemon Athletica, Coach, Tiffany & Co, Williams-Sonoma, Pottery Barn, Louis Vuitton, and more.
ORION's vice president Andrew Harrison tells GlobeSt.com, “Paloma Village Center is at one of the best intersections in the city; there is a waiting list to get into the center. This high profile property represents a generational opportunity in a submarket where properties rarely trade. The buyer was drawn to the stable tenant roster and high barriers to entry.”
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