CBRE has completed the sale of the ReCommunity Recycling Center located at 3780 E. Ajo Way in Tucson, Ariz.
The asset commanded a sale price of $7 million.
Mike Sandahl, David Blanchette, CCIM and Wyatt Campbell in CBRE’s Tucson office negotiated the transaction on behalf the buyer, a joint venture of three Alaska-based partnerships and the seller, Delaware-based Olyver Land, LLC.
“This was a unique opportunity for an investor to purchase a stable asset with a high-quality tenant in a rapidly growing industry,” said Sandahl. “ReCommunity is an industry leader in recycling, offering “green” solutions for the betterment of the communities they serve.”
The sale included 53,783 square feet of warehouse space, and 5,258 square feet of office space on 7.1 acres.
The property is wholly leased and operated by ReCommunity Holdings, Inc. ReCommunity, which has a long-term lease at the property, is the nation’s largest pure play recycler.
In early 2012, development began on the raw land at the southwest corner of Alvernon and Ajo to construct the 59,000 square-foot, build-to-suit complex for ReCommunity, which holds the sole recycling contract for the City of Tucson. The state-of-the-art facility began operating just months later in June of 2012.
“The sale of the ReCommunity Material Recovery Facility is a real Tucson development success story,” said Blanchette, who provided site selection services and represented Olyver Land in the initial purchase of the land in 2012. “The predecessor of ReCommunity was announced as the winning recycling contract in the summer of 2011. That gave developers just seven short months to develop the raw land into the 53,000 square foot Industrial complex you see today. The City of Tucson, Pima County and Barker Morrissey Contracting worked tirelessly to deliver the project to ReCommunity on time in June of 2012. Tucson now has one of the most modern and efficient recycling facilities in the country, which will serve southern Arizona for many years to come.”
ReCommunity also operates recycling and recovery facilities in Phoenix and Scottsdale. The company has a total of 36 facilities operating in 13 states across the country.