OPENING SEPTEMBER 20, 2017

Transcription

1 174 West Highway 287 Florence, AZ OPENING SEPTEMBER 20, 2017 CAPITAL MARKETS INVESTMENT PROPERTIES

2 FLORENCE HIGH SCHOOL SITE PLAN NOT TO SCALE CONTACT US ANDREW K. FOSBERG Senior Vice President VINCENT W. FEMIANO Vice President DYLAN A. BROWN Sales Assistant

3 TABLE OF CONTENTS EXECUTIVE SUMMARY...4 Investment Opportunity Asset Profile Financial Summary Investment Highlights Location Overview Demographics Tenant Profile Lease Abstract Return Schedule Floor Plan Aerials MARKET OVERVIEW...12 Florence Market Overview Pinal County Overview 2017 CBRE, Inc. All Rights Reserved.

4 Executive SUMMARY INVESTMENT OPPORTUNITY CBRE Investment Properties has been retained by the owner on an exclusive basis with respect to the disposition of a brand new, single-tenant medical office building fully leased to Sun Life Family Health Center located at 174 West Highway 287 in the heart of Florence, Arizona (the Property ). This ±12,182 square foot build-to-suit medical office building opens in September 2017 and consists of a rare 12-year NNN lease featuring ±2.70% annual rental increases, including throughout the tenant s two (2), five-year option periods. Sun Life Family Health Center, a not-for-profit healthcare organization, is Pinal County s largest provider of primary healthcare services with 14 locations throughout the county serving over 41,000 patients. The Sun Life Family Health Center organization is a Health Center Program grantee under 42 U.S.C 254b and deemed a Public Health Service employee for its mission helping the underserved populations of Pinal County. This Class-A build-to-suit medical office facility was designed specifically for Sun Life Family Health Center and features a drive-thru pharmacy for their growing Florence patient base. The Property presents an excellent opportunity for an investor to purchase a brand new, single-tenant medical office building fully leased to Pinal County s largest healthcare organization on a 12-year NNN lease featuring attractive annual rental increases and located in the heart of Florence, Arizona. Page 4

5 ASSET PROFILE ADDRESS LOCATION BUILDING SIZE 174 West Highway 287 Florence, AZ NWC Highway 287 & Campbell Avenue ±12,182 SF OCCUPANCY 100% Executive SUMMARY TENANT Sun Life Family Health Center YEAR BUILT 2017 LEASE TYPE DESCRIPTION Triple Net (NNN) Freestanding Medical Office Building FLOORS One (1) DRIVE-THRU PARCEL NUMBER PARCEL SIZE PARKING COUNTY ZONING Yes (Pharmacy Drive-Thru) R ±2.396 Acres 6.6 per 1,000 sq. ft. Pinal C-2, Town of Florence FINANCIAL SUMMARY PRICE $4,175,000 NET OPERATING INCOME $292,368 CAP RATE 7.00% Page 5

6 Executive SUMMARY INVESTMENT HIGHLIGHTS The Property is 100% leased to Sun Life Family Health Center on a 12-year NNN lease. Attractive ±2.70% annual rental increases, including throughout the tenant s two (2), five-year option periods. Sun Life Family Health Center is Pinal County s largest provider of primary healthcare services. Rare absolute triple-net (NNN) medical office investment opportunity. Sun Life Family Health Center has 14 locations serving over 41,000 patients throughout the county. Highly trafficked central location with approximately 48,968 residents living within a 10-mile radius (Source: Esri). Brand new, Class-A medical office building developed in 2017 as a build-to-suit facility for Sun Life Family Health Center. Surface parking is provided at a ratio of ±6.6 per 1,000 square feet. The Property features a drive-thru pharmacy. Excellent access and visibility from Highway 287, the major highway connecting the Town of Florence with Interstate-10 and the Phoenix/Tucson metropolitan areas. Medical Office has recently been characterized as the new recession resistant property category according to a new article by National Real Estate Investor magazine. The Property is located adjacent to: Fresenius Kidney Care, GreenTree Inn & Suites (90 guest rooms), Family Dollar and Burger King. Page 6

7 LOCATION OVERVIEW Sun Life Family Health Center is a one story medical office building located at 174 West Highway 287 in Florence, Arizona, approximately 60 miles southeast of Phoenix and 70 miles northeast of Tucson. The Property is located directly off Highway 287 boasting significant frontage in the heart of Florence, a town of nearly 200,000 (in a ±20-mile radius). The Property is easily accessible for the entire county being situated on Highway 287, the major east-west highway, connecting the Florence trade area with Interstate-10 and the Phoenix and Tucson metropolitan areas. Additionally, the Property is positioned just south of Florence High School boasting great surrounding amenities such as: Fresenius Kidney Care, Family Dollar, Holiday Inn Express (90 guest rooms), and Burger King, among many others. Just to the northeast of the Property, Main Street starts its way from north to south, encompassing many restaurants along the road including: Old Pueblo, LB Cantina, Jalapenos, and Subway. This brand new medical office building is located less than 3 miles from Pinal County Superior Court, McFarland State Historic Park, Arizona State Prison Complex, Pinal County Historical Museum, and Windmill Winery all major employers for the Town of Florence. DEMOGRAPHICS 1 MILE RADIUS 3 MILE RADIUS 10 MILE RADIUS 2017 POPULATION 2,637 15,884 48, POPULATION 2,770 16,053 55,301 GROWTH % 0.21% 2.46% 2017 AVERAGE HOUSEHOLD INCOME 2017 AVERAGE HOME VALUE $50,164 $52,191 $55,944 $104,501 $107,118 $149, MEDIAN AGE Source: Claritas Executive SUMMARY Page 7

8 Executive SUMMARY TENANT PROFILE SUN LIFE FAMILY HEALTH CENTER Sun Life Family Health Center is a nonprofit organization and has been the largest provider of primary healthcare services in Pinal County the last 40 years. Sun Life provides its services to over 41,000 patients in Southern Arizona with approximately 36% being children. Sun Life has approximately 14 locations throughout the state and serves both insured and uninsured patients within Pinal County. Sun Life Family Health Center provides healthcare related services in the following areas: family practice, dentistry, women s health, pediatrics, diabetes education and more. Sun Life is one of only two health centers in the state to achieve and maintain the accreditation by the Joint Commission on Accreditation of Healthcare Organizations. Sun Life Family Health Center is a Health Center Program grantee under 42 U.S.C. 254b, and a deemed Public Health Service employee under 42 U.S.C. 233(g)- (n). They are considered to be the gold standard for quality healthcare services throughout Pinal County. SUNLIFEFAMILYHEALTH.ORG LEASE ABSTRACT TENANT SUN LIFE FAMILY HEALTH CENTER, INC. SUITE/ADDRESS 174 West Highway 287 RENTABLE SF ±12,182 SF LEASE TYPE Triple-Net (NNN) LEASE TERM 12 Years LEASE TERM REMAINING 12 Years LEASE EXECUTION DATE 8/5/2016 RENT COMMENCEMENT DATE 10/23/2017 LEASE EXPIRATION DATE 8/31/2029 CURRENT ANNUAL BASE RENT $292, RENT INCREASES ±2.68% % OPTIONS TO RENEW Two (2), five-year options COMMON AREAS Tenant responsible for Common Areas, including any repairs and/or replacement. ROOF & STRUCTURE Tenant maintains and repairs. TAXES AND INSURANCE Tenant responsible Page 8 RETURN SCHEDULE YEAR ANNUAL RENT PSF NOI RENTAL GROWTH CAP RATE RETURN YEAR 1 $24.00 $292, % YEAR 2 $24.65 $300, % 7.19% YEAR 3 $25.31 $308, % 7.39% YEAR 4 $25.99 $316, % 7.58% YEAR 5 $26.69 $325, % 7.79% YEAR 6 $27.41 $333, % 8.00% YEAR 7 $28.15 $342, % 8.21% YEAR 8 $28.91 $352, % 8.44% YEAR 9 $29.70 $361, % 8.67% YEAR 10 $30,50 $371, % 8.90% YEAR 11 $31.32 $381, % 9.14% YEAR 12 $32.17 $391, % 9.39%

9 FLOOR PLAN FACP Executive SUMMARY not to scale Page 9

10 Executive SUMMARY Redding Sacramento San Francisco Reno NEVADA Humboldt-Toiyabe National Forest Salt Lake City Sandy Provo UTAH Grand Junction Fort Collins Denver COLORADO Colorado Springs Pueblo San Jose Fresno CALIFORNIA Death Valley National Park Las Vegas S. George Bakersfield Santa Fe Albuquerque Los Angeles Anaheim Long Beach San Diego Tijuana Mexicali ARIZONA Phoenix Mesa FLORENCE Tucson Gila National Forest NEW MEXICO Las Cruces Nogales not to scale Page 10

11 FLORENCE HIGH SCHOOL ±778 STUDENTS PHOENIX ±60 MILES THE CHURCH OF JESUS CHRIST OF LATTER DAY SAINTS TUCSON ±70 MILES

12 Market OVERVIEW FLORENCE MARKET OVERVIEW Florence is a full-service municipality town located approximately 60 miles southeast of Phoenix and 70 miles northeast of Tucson in the Sonoran Desert of Arizona. In 2016, the town of Florence had an estimated population of ±189,259 living within 20 miles of its city center and approximately ±25,536 residents living in the central area of town. Furthermore, the town of Florence is the county seat for Pinal County and is approximately a 45-minute drive away from the metropolitan areas of Phoenix and Tucson, the state s two largest cities based on population. The town of Florence is a proud home to a number of diverse employers. The industries of corrections (50%), government (27%), and education (16%) are the major employment drivers of the Florence economy. As the County Seat of Pinal County, Florence has a number of centralized government services, employment options and opportunities for growth for its residents. The corrections industry alone provides approximately 3,500 full-time employment opportunities for the residents of Florence. Moreover, as the County Seat of Pinal County, Florence is home to a number of local, county, state, and federal agencies which provide more than 3,000 full-time employment opportunities. These agencies include the Town of Florence, Pinal County, U.S. Immigration and Customs Enforcement, and the Arizona National Guard. The Gila River is an extrusive landmark that runs through the historical town. On the east side of Florence, the town provides fantastic scenic views of: Box Canyon, Martinez Canyon, and the old Silverbell Page 12

13 Mine, among others. The town of Florence was established in 1866 and has three large transportation corridors that pass-through Florence; State Route 287, State Route 79 and the Hunt Highway. Florence encompasses a total area of ±62.6 square miles and holds large tourism attractions each year positively impacting the city s regional economy. Some of these attractions include: McFarland State Historic Park, Pinal County Historical Society Museum, St. Anthony Monastery, Florence Aero Modelers and the Country Thunder Music Festival (the largest country music festival in the Southwest region of America). Market OVERVIEW Source: Town of Florence Page 13

14 Market OVERVIEW PINAL COUNTY OVERVIEW Pinal County is one of the fastest growing counties in the United States, with a current population of 396,200 and projections to grow to nearly 1.1 million residents by Pinal County offers unparalleled opportunities for domestic and international businesses across all economic sectors. Pinal County is situated at the center of the Sun Corridor a growing binational megapolitan region that begins in Central Arizona and extends south into Northern Mexico, encompassing a population of approximately 8.2 million residents. The favorable location, including many economic advantages and desirable amenities, places Pinal County at the heart of a powerful economic engine that will grow and prosper decades into the future. Its population is approximately 400,000, making it the third-most populous county in Arizona. Top Tourist Attractions z Old West Highway 60 z Picacho Peak State Park z Picacho Reservoir z Casa Grande Ruins National Monument z Skydive Arizona (world s largest skydiving drop-zone) z Columbia University s Biosphere II z Florence Historical District The county offers businesses one of the most modern and welldeveloped transportation systems in the United States serviced by: an inland port, interstate highways I-10 and I-8, two international airports, an expansive local freeway system and a rapid intermodal system serviced by Union Pacific. Businesses located in the county are able to access California and Mexico within a one-day turnaround trip. Historically an agricultural and mining driven economy, Pinal County has experienced a rapidly increasing concentration of businesses in the aerospace, unmanned aerial systems, biosciences, renewable energy, green technology and high-tech manufacturing industries. Operating costs for businesses in Pinal County are 40% lower than California. Some of the County s leading national and international blue chip employers include: Abbott Labs, Asarco, Monsanto Agriculture, Hexcel Corporation, and Walmart Distribution Center. Executive, professional, and technical workers thrive in Pinal County, and there are ample opportunities for their career advancement. Pinal County s population is growing, and is expected to increase from 396,200 in 2014 to more than double by 2045 to 1.1 million. Page 14

15 AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an Affiliate ) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the Property ), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s). CONFIDENTIALITY AGREEMENT Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property ( Owner ) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc. DISCLAIMER This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented as is without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/ or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. Photos herein are the property of their respective owners and 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. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. CONFIDENTIALITY Agreement Page 15

16 CONTACT US ANDREW K. FOSBERG Senior Vice President VINCENT W. FEMIANO Vice President DYLAN A. BROWN Sales Assistant