Holualoa's Job Complete on 190,000-SF Campbell Plaza

TUCSON-When Holualoa Cos., operating under the name Camelback Corporate Center Joint Venture LLC recently closed on the $32 million sale of the 190,000-square-foot Campbell Plaza to Krausz Cos., the asset was vastly different from the one it acquired in 1998. CBRE's Mark Sandahl and Nancy McClure, who represented Holualoa in the transaction, tell GlobeSt.com that, during the late 1990s, the retail center at 2800 N. Campbell Ave was a shell of itself.

"It was primarily a grocery store and hardware store-anchored center, with a lot of vacant shop space," McClure comments. A great deal of the space was deep as well, at one point, Campbell Plaza was home to a double-screened AMC theater. After Holualoa came in and fixed it up, however, what remains are 6,500 square feet of retail space and approximately 12,000 square feet of office space.

But Sandahl points out that the beauty of the property, which came online during the 1960s, has been its ability to reinvent itself over the years. "It was a mini-mall when first developed," he notes. "It's been able to change so well because it's in such a good location near (University of Arizona) and the Foothills). It's a significant property."

So much so that, when Sandahl and McClure brought the asset to market, Campbell Plaza attracted a great deal of interest from private capital players, many from out of state. Sandahl says Krausz ended up with the property because it was well-funded and experienced.

Though Holualoa fixed up Campbell Plaza so it has a strong income stream, McClure and Sandahl indicate there is still plenty of upside for Krausz, including getting the office space leased up. "The new owners want to get that 6,500 square feet leased up quickly," McClure remarks. "They'll probably spend some money to bring it into the modern era, rather than ask a new tenant to occupy someone else's floorplan."