1031 Doctor™ doing a LoopNet Review of 3155 N Alvernon Way in Tucson Arizona. The Red flags on this deal hit me right off the bat!
You have to know that one day in the near future this deal, and all deals for the matter, will be vacated by the tenant, it’s not if but when. For this deal in Tucson Arizona there is a large lot across the street that could cause this to happen sooner than later if Maverick, or one of the Modern high-end concepts, went in. Eventually this lease with Circle K will end and you always have to assume the worst unless it’s a 25-year deal with Mc Donalds. In this case, the minute I looked at the aerial view I could see that the frontage on the major traffic side of the deal was limited and flagged over in the back to house the C store and unless you were able to acquire the two structures on that side of the property line you will have a serious problem on your hand when the tenant leaves. I also think that asking price and caprate are too high for this deal and this location being in a lower income area. Those two issues both functional and economic are the reason I value this deal @ $1,500,000 and would grade it as a B- to C+ The tenant has been there for a long time and the improvements have been fully depreciated. I would have to do a deeper dive to really verify the situation but those are my initial thoughts just from a quick LoopNet review of the deal.
https://www.copperworlddaz.comTucson is a great place to invest, and the area is doing extremely well with aerospace and mining leading the way! the largest copper mine in the country is in the area and obviously those two factors are extremely important.
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