CHANDLER AIRPORT CENTER I

Transcription

1 ±90,911 SF Class A Office Building Value Add Investment Opportunity Capital Markets Office West Institutional Properties CHANDLER AIRPORT CENTER I 1850 E. Northrop Blvd Chandler, AZ

2 THE OFFERING CBRE, as exclusive advisor, is pleased to present the opportunity to acquire the fee simple interest in Chandler Airport Center I (the Property ), a Class A office building located in Chandler, Arizona. Totaling ± 90,911 square feet on ±6.9 acres of land, this 97% leased office property is occupied by a diverse mix of tenants including CDW (NASDAQ:CDW) and the world renowned Mayo Clinic (S&P: AA). These two tenants occupy over 60% of the rentable area. The Property features a weighted average remaining lease term of 2.9 years providing investors with highly compelling initial yields, paired with the upside opportunity to stabilize the rent roll. The Property s strong leasing history is the result of its strategic location with prominent visibility and immediate access to the Loop 202 Freeway, abundant nearby amenities and access to one of the largest and best educated labor force in the Metropolitan Phoenix area. Built in 2008, the Property s large, flexible floor plates, coupled with its strong ±6.0 per 1,000 SF parking ratio, enables the Property to attract tenants from all over Metropolitan Phoenix. Chandler Municipal Airport is located within ½ mile east of the Property, Downtown Chandler is located ±3.5 miles to the north, and Sky Harbor International Airport is located just ±20 miles northwest of the Property. Chandler Airport Center I is a compelling, value-add opportunity to acquire a high-quality, 97% leased Class A office asset with credible tenancy and leasing upside, at pricing significantly below estimated replacement cost. PROPERTY SUMMARY ADDRESS 1850 East Northrop Blvd, Chandler, Arizona SIZE ±90,911 NUMBER OF FLOORS 2 OCCUPANCY 97% WEIGHTED AVERAGE LEASE TERM 2.9 Years 2 LAND AREA ±6.9 acres (±300,639 SF) YEAR BUILT 2008 PARKING ±6.00/1000 ZONING PAD, City of Chandler PARCEL NUMBER

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4 INVESTMENT HIGHLIGHTS VALUE ADD OPPORTUNITY Developed by Opus, Chandler Airport Center I has been institutionally maintained since being delivered to the market in The Property is currently 97% leased with a weighted-average remaining lease term of 2.9 years. This offering provides investors with highly compelling initial yields, paired with the upside opportunity to stabilize the rent roll through renewing and extending CDW on a longer-term basis. CONVENIENT BUILDING ACCESS & EXCELLENT FREEWAY VISIBILITY Chandler Airport Center I is afforded more than 1800 feet of Loop 202 Freeway frontage. Nearly 140,000 vehicles pass by the Property per day. The Property has two points of driving access from Northrup Blvd and is just south of the full diamond interchange at Cooper Road. CHANDLER IS ONE OF THE STRONGEST SUBMARKETS IN THE REGION The submarket leads the entire valley in consecutive years of positive net absorption. The Chandler submarket has achieved positive year-end absorption every year dating back to It is the only submarket across the 25 metro Phoenix submarkets to boast that enviable honor. During that time, the submarket has averaged ±204,421 square feet of net absorption per year, and most recently finished 2017 with another strong year of ±316,678 square feet of positive net absorption. AMENITY RICH NEIGHBORHOOD Outstanding amenities surround the Property including nearly ±2 million SF of retail and restaurants within one mile. Chandler Fashion Center, the Southeast Valley s premier shopping destination with an upscale collection of more than ±2 million square feet and over 185 stores, and the up and coming downtown Gilbert areas, are both within a short 10-minute drive of the Property. There are numerous, upscale master planned housing developments located nearby the Property as well. Directly to the south sits the Chandler Municipal Airport, a public-use business airport and a base for charter, transport, and sightseeing excursions. The airport is home to world-class training institutions and with more than 200,000 takeoffs and landings in 2017, it is among the busiest general aviation airports in the nation. EDUCATED LABOR POOL The area surrounding Chandler Airport Center I is well-known for its high quality, well-educated work force. 75% of the residents within five miles of the Property have had some college education, about 51% have a bachelor s degree or higher, and over 71% of its residents work in white-collar jobs. Within a onemile radius, the average 2017 household income was $114,607, well above the Metro Phoenix average of $77,596. SOURCE: ESRI TECHNOLOGY DRIVEN LOCATION Located within the Silicon Desert, and minutes from the Price Road Corridor, Chandler Airport Center I is positioned in an area that specializes in research, technology, financial services, and high-tech manufacturing. Corporate neighbors within the Chandler submarket include Orbital ATK, Intel, NXP Semiconductors, Wells Fargo, Liberty Mutual Insurance, Amazon, GoDaddy, Edward Jones, Isagenix, Toyota Financial Services, GM Financial, and ebay among many others. Most recently, JPMorgan Chase announced they are bringing 4,000 jobs to the area and Intel is projected to invest $7 billion in facility enhancements with an additional 3,000 jobs, both of which are a tremendous indication of the health and strength of the submarket. 4 SOURCE: TRAFFICMETRIX

5 NOT TO SCALE CHANDLER AIRPORT CENTER I The Chandler submarket has experienced positive net absorption for the past 12 years. 5

6 Starbucks Jamba Juice Panda Express Chipotle Mexican Grill Subway Menchie s Frozen Yogurt Wingstop Wendy s Denny s Texas Roadhouse Chili s Red Lobster Cafe Zupas Osaka Sushi Poke Hale Target Ross Pier1 Michael s Bank of America Carl s Jr El Pollo Loco Isagenix Corporate Headquarters Bank of America McDonald s Firehouse Subs Native New Yorker GILBERT RD Chandler Municipal Airport Jersey Mike s Sauce Pizza & Wine Tokyo Joe s Grabba Green Chick-fil-A In-N-Out Burger Olive Garden YC s Mongolian Grill Rubios Fresh Mexican Grill Cold Stone Creamery Panera Bread Harkins Movie Theatre Jimmy John s Del Taco Home Depot Burlington PetSmart Walmart COOPER RD GERMANN RD ±139,635 VPD SOURCE: TRAFFICMETRIX CHANDLER AIRPORT CENTER I NORTHRUP BLVD 6 NOT TO SCALE

7 OUTSTANDING AREA DEMOGRAPHICS WITHIN FIVE MILES OF THE PROPERTY 75% SOME COLLEGE EDUCATION 51% BACHELOR DEGREE OR HIGHER ADJACENT TO NEARLY ±2,000,000 SF OF RETAIL 34.9 MEDIAN AGE $114,467 AVERAGE HOUSEHOLD INCOME (COMPARED TO METRO PHOENIX $77,596) $335,607 AVERAGE HOUSING VALUE (COMPARED TO THE METRO PHOENIX $283,119) 279,799 POPULATION SOURCE: ESRI 7

8 CHANDLER AIRPORT CENTER I CONTACTS BARRY GABEL Executive Vice President barry.gabel@cbre.com CHRIS MARCHILDON Vice President chris.marchildon@cbre.com WILL MAST Vice President will.mast@cbre.com LEASING CONTACTS: DEBT & STRUCTURED FINANCE CONTACTS: JERRY ROBERTS Executive Managing Director jerry.roberts@cushwake.com PAT BOYLE Senior Associate pat.boyle@cushwake.com BRUCE FRANCIS Vice Chairman bruce.francis@cbre.com DANA SUMMERS Vice President dana.summers@cbre.com CAPITAL MARKETS OFFICE WESTERN U.S. DENVER Tim Richey Mike Winn Chad Flynn LOS ANGELES Todd Tydlaska Sean Sullivan Mike Longo ORANGE COUNTY Anthony DeLorenzo PHOENIX Barry Gabel Chris Marchildon Will Mast PORTLAND Trevor Kafoury Charles Safley SAN DIEGO Louay Alsadek Hunter Rowe SAN FRANCISCO Russell Ingrum Tyler Meyerdirk Seth McKinnon SEATTLE Tom Pehl SILLICON VALLEY Joe Moriarty Scott Prosser Jack DePuy DEBT & STRUCTURED FINANCE Bruce Francis Brad Zampa Val Achtemeier Mark McGovern Brady O Donnell 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners.