Dunbar Spring getting fresh investment

One of Tucson’s oldest neighborhoods — half of which was once a cemetery — is getting new attention.

Dunbar Spring’s southern edge was first mapped for construction in 1904 as an extension of downtown. Developers are hoping to renew the neighborhood’s appeal.

Axle LLC, made up of investors from Arizona and Sonora, recently bought an industrial building at 301 W. Fourth St. with plans to convert it into office space.

“We like this neighborhood,” said Hector Jimenez, of Central Barrio Development, which specializes in infill projects. “We believe in buying properties that can reactivate a neighborhood.”

Built in 1925, the 10,000-square-foot building once housed a distribution warehouse, a telephone company and a taxi service. It sold for $525,000.

Investors from Sonora are interested in downtown Tucson, especially as the peso’s valuation continues to be shaky, Jimenez said.

As of Wednesday, the dollar-to-Mexican peso exchange rate was 16.74, up from 13.62 one year ago.

Because of that, several investors from Mexico have put their money into downtown Tucson projects, which they consider stable, Jimenez said.

He was able to join that money with business partner Adam Lundquist’s Arizona investors for the purchase of the Fourth Street building.

Lundquist, managing partner at Southwest Urban Realty & Development, said he drove by several times before deciding to look inside.

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He was taken by the exposed ceiling trestles and the fact that building has not been “chopped up” by previous owners.

“I saw 10,000 square feet of opportunity,” Lundquist said.

The building is currently divided into two equal parts and the partners say it could remain that way, depending on tenant needs. There is also potential for loft space.

The structure is sound and the duo plan to spend about $200,000 in renovations, which will include reopening the original north-facing windows onto Fourth Street and sandblasting the walls to expose the original brick.

Jimenez said they plan to hold onto the property as an investment for at least two years.

They are already negotiating with prospective tenants, including some artists who have expressed interest in leasing half of the building. The property has room for at least 35 parking spots.

Once the building is turned over, the developers will begin the remodeling work and hope to have it move-in ready by spring.

The current occupant, Axle Transmission, will move out at the end of the month to consolidate its operations in Phoenix. The shop can be reached at 800-621-1052.

Anyone interested in seeing the Fourth Street building can email Lundquist at adam@swurban.com or Jimenez at hector@centralbarrio.com