Ross Inks Deal At 191,000-SF Campbell Plaza

Tenants impacted by the Ross deal include ACE Hardware, Alvernon Optical and PostNet. To accommodate the clothing retailer, ACE signed a new lease for 16,904 square feet elsewhere in the center, while Alvernon Optical will relocate to 2,838 square feet at the south end-cap. PostNet will also shift its 1,325-square-foot space elsewhere in the center, which is at 2802-2990 N. Campbell Ave. The quoted lease rate for space is $18 per square foot, triple net.

Nancy McClure, first vice president with CB Richard Ellis' Tucson office says the tenants were very cooperative and patient throughout the negotiation process. McClure, who represented center owners Holualoa Arizona of Tucson and Phoenix-based Pacific Ridge Properties, says the first goal is to build out ACE's space, and permits are in hand to begin that work. "Then we'll start on the Ross build-out," she comments. "Ross should be able to move in there by late 2009, or early 2010 at the latest."

The Campbell location will be Ross' ninth store in the area. McClure tells GlobeSt.com that the Pleasanton, CA-based retailer liked Campbell Plaza because of the demographics. "They thought it would be a good location because of its proximity to University of Arizona students," she tells GlobeSt.com. "Plus this is surrounded by established neighborhoods." Ross was represented by Jayme Fabe of Bourn Partners in Tucson. CBRE associate Shannon Murphy teamed with McClure on behalf of the center's owners.

Ross is the second anchor tenant to sign in 2008. Staples Inc. signed a lease for 20,388 square feet last June, making Campbell Plaza its first Tucson location. The Framingham, MA-based office supply company will open in the center during mid-2009.

McClure says the owners are "happily surprised" with what is going on in the 1970s retail center. The center's location, combined with the $5 million in renovation dollars the owners are funneling into the asset, is making it attractive to potential tenants.

Furthermore, "we figured we'd look at Campbell Plaza not as it is, but what it could be," McClure comments. Rather than having a lot of shop space with smaller tenants as the center had in the past, the owners agreed to add to the mix of anchor tenants which include Albertsons and Hollywood Video. "We put that idea out there," she says. "That's how we were successful with Staples. Then Ross ended up looking at their sales model for the location, and realized it would be totally viable for them."