Representative photo NET LEASE INVESTMENTS

Transcription

1 Proposed Elevation NEW TWO-TENANT BUILDING OFFERING MEMORANDUM PHOENIX, ARIZONA Representative photo NET LEASE INVESTMENTS EXCLUSIVELY OFFERED BY: CHRIS HOLLENBECK AZ Lic #SA SHANE CARTER AZ Lic #SA

2 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS New two-tenant retail investment opportunity featuring O'Reilly Auto Parts and Rent-A-Center. Property completely renovated in Property is located at the NWC of 19th Avenue and Buckeye Road in Phoenix, AZ. Limited landlord responsibilities. O'Reilly Auto Parts (NYSE: ORLY) signed a brand new 15 year lease. High population density of 335,000 in 5 mile radius. Rent-A-Center (NYSE: RCII) signed a 5 year lease with a 4.5% increase at the beginning of their option period. O'Reilly large format location which is mission critical to service a large amount of commercial auto shops. Rent set at below market rents. Both tenants are corporate leases. Numerous automotive services in trade area. Adjacent to the I-17 freeway. Ideal demographics for existing tenants. ADDRESS LOCATION BUILDING SIZE TENANTS PRICING SUMMARY PRICE: $3,219,610 CAP RATE: 6.00% NOI: $193, PROPERTY SUMMARY 1928 West Buckeye Road Phoenix, AZ W/NWC 19th Ave. & Buckeye Rd. Phoenix, AZ ±14,477 SF O'Reilly's & Rent-A-Center (Corporate Leases) OCCUPANCY 100% YEAR BUILT Renovated (2018) LEASE TYPE DESCRIPTION PARCEL NUMBER PARCEL SIZE COUNTY ZONING Double Net (NN) Two-Tenant Freestanding B ±1 AC Maricopa C-3 City of Phoenix 1

3 EXECUTIVE SUMMARY LEASE ABSTRACTS TENANTS NAME O'REILLY AUTO ENTERPRISES, LLC DBA O'REILLY AUTOPARTS TENANTS NAME RENT-A-CENTER WEST, INC. DBA RENT-A-CENTER SUITE/ADDRESS 1928 W BUCKEYE RD SUITE/ADDRESS 1926 W BUCKEYE RD RENTABLE SF 11,524 SF RENTABLE SF 2,953 SF LEASE TYPE NN LEASE TYPE NN ORIGINAL LEASE TERM 15 YEARS ORIGINAL LEASE TERM 5 YEARS LEASE TERM REMAINING 15 YEARS LEASE TERM REMAINING 3 YEARS LEASE COMMENCEMENT DATE JUNE 2018* LEASE EXPIRATION DATE JUNE 2033* CURRENT ANNUAL RENT $159, LEASE COMMENCEMENT DATE JAN 1, 2017 LEASE EXPIRATION DATE DEC 31, 2021 CURRENT ANNUAL RENT $33, RENT INCREASES 6% INCREASE YEAR 11 AND EVERY 5 YEARS IN THE OPTION PERIOD RENT INCREASES 4.5% IN OPTION PERIOD OPTIONS TO RENEW FOUR (4), FIVE-YEAR OPTION PERIOD OPTIONS TO RENEW ONE (1), FIVE-YEAR OPTION TENANT OBLIGATIONS TENANT SHALL PAY THEIR PRO RATA SHARE OF ALL OPERATING EXPENSES INCURRED AT THE PROPERTY, EXCEPT THOSE LISTED AS LANDLORD OBLIGATIONS TENANT OBLIGATIONS TENANT SHALL PAY THEIR PRO RATA SHARE OF ALL OPERATING EXPENSES INCURRED AT THE PROPERTY, EXCEPT THOSE LISTED AS LANDLORD OBLIGATIONS LANDLORD OBLIGATIONS LANDLORD SHALL MAINTAIN ROOF, STRUCTURE, AND PARKING LOT LANDLORD OBLIGATIONS LANDLORD SHALL MAINTAIN ROOF, STRUCTURE, AND PARKING LOT TAXES AND INSURANCE TENANT SHALL PAY THEIR PRO RATA SHARE OF PROPERTY TAXES AND INSURANCE TAXES AND INSURANCE TENANT SHALL PAY THEIR PRO RATA SHARE OF PROPERTY TAXES AND INSURANCE TENANT'S PROPORTIONATE SHARE 80% TENANT'S PROPORTIONATE SHARE 20% PARKING 50 SPACES AND 2 HANDICAPPED SPACES PARKING 50 SPACES AND 2 HANDICAPPED SPACES *ESTIMATED 2

4 EXECUTIVE SUMMARY RENT ROLL TENANT SF % START END BEGIN MONTHLY ANNUAL PSF O'REILLY AUTO PARTS 11,524 80% JUN 2018* JUN 2033* JUN 2018 $13, $159, $13.87 JUN 2019 $13, $159, $13.87 JUN 2020 $13, $159, $13.87 JUN 2021 $13, $159, $13.87 JUN 2022 $13, $159, $13.87 JUN 2023 $13, $159, $13.87 JUN 2024 $13, $159, $13.87 JUN 2025 $13, $159, $13.87 JUN 2026 $13, $159, $13.87 JUN 2027 $13, $159, $13.87 JUN 2028 $14, $159, $13.87 JUN 2029 $14, $169, $14.71 JUN 2030 $14, $169, $14.71 JUN 2031 $14, $169, $14.71 JUN 2032 $14, $169, $14.71 TENANT HAS FOUR (4), FIVE (5) YEAR OPTION PERIODS TO RENEW FEATURING 6% INCREASES EVERY FIVE (5) YEARS IN THE OPTION PERIOD RENT-A-CENTER 2,953 20% JAN 2017 DEC 2021 JAN 2017 $2, $33, $11.28 JAN 2018 $2, $33, $11.28 JAN 2019 $2, $33, $11.28 JAN 2020 $2, $33, $11.28 JAN 2021 $2, $33, $11.28 TENANT HAS ONE (1), FIVE (5) YEAR OPTIONS PERIOD TO RENEW FEATURING A 4.5% INCREASE AT THE BEGINNING OF THE OPTION (YEAR 6) RENTABLE SF 14, % TOTALS $16, $193, $12.58 (AVG.) OCCUPIED 14, % VACANT 0 0% *ESTIMATED 3

5 EXECUTIVE SUMMARY FINANCIAL SUMMARY REVENUES Scheduled Base Rent $193, Operating Expense Reimbursement $35, EFFECTIVE GROSS REVENUE $228, EXPENSES Insurance $5, Real Estate Taxes $14, CAM $15, TOTAL EXPENSES $35, NET OPERATING INCOME $193, Cap Rate 6.00% PRICE $3,219,610 PPSF $ Representative photo Square Footage ±14,447 Representative photo 3

6 EXECUTIVE SUMMARY TENANTS PROFILE O Reilly Auto Parts is one of the largest suppliers of auto parts, offering retail customers, jobbers, and professional installers the best combination of price and quality. They officially opened for business in The company history began in 1914, with Charles Francis O Reilly, who was working as a traveling salesman for Fred Campbell Auto Supply in St. Louis. By 1924, Charles had become familiar with the Springfield area, having traveled by train to sell auto parts throughout the territory. By 1932, he had become manager of Link Motor Supply in Springfield. One of his sons, Charles H. (Chub) O'Reilly, had also joined the company. Together they provided the leadership and management that made Link the predominant auto parts store in the area. In 1957, Link planned a reorganization, which would have included the retirement of 72-year-old Charles F. O'Reilly, and the transfer of C. H. O'Reilly to Kansas City. Since neither agreed with these plans, they made the decision to form their own company, O'Reilly Automotive, Inc. They opened for business on December 2, 1957 with one store and 13 employees at 403 Sherman in Springfield. O Reilly Auto Parts has since grown to 4,985 stores in 47 states and they continue to specialize in the sale of auto parts, tools, supplies, equipment, and accessories. TENANT HIGHLIGHTS $8.5 billion in revenue NYSE Stock Symbol: ORLY Market Cap of $22.62 billion Credit Rating: S&P BBB+ / Moody's Baa1 4,985 Locations 75,000 Employees Rent-A-Center stores offer name brand furniture, electronics, appliances, and computers through various adjustable rent to own agreements. This enables their customers to own their merchandise upon the conclusion of the previously determined rental period. Some other services Rent-A- Center provides is same-day delivery, 90 days same as cash, and an early purchase option. In addition, should the rented merchandise require repair during the rental period, Rent-A-Center will provide a substitute and repair the rental at no extra cost. Rent-A-Center is a simple and affordable way to furnish a home without incurring a continuing obligation and without needing access to credit. TENANT HIGHLIGHTS $3 billion in revenue NYSE Stock Symbol: RCII Market Cap of $608 million 20,000 Employees Over 3,000 locations in the United states, Canada, and Mexico. PROPOSED ELEVATION 2

7 AERIAL MAP PROPERTY OVERVIEW VICTOR S AUTO SERVICE JESSE S BODY SHOP JOE S AUTO SERVICE PAUL LAURENCE DUNBAR SCHOOL SANTIAGO AUTO REPAIR COPPERSTATE TRANSMISSIONS ASADERO LAS ADELITAS SITE DINER 50 SADDLE HORN BAR ARIZONA CARBURETOR & AUTO SERVICE AUTOFIT, INC. BUCKEYE ROAD W Y MARKET ALFRED F. GARCIA ELEMENTARY SCHOOL GILL S AUTO REPAIR ARIZONA AUTO PARTS RAY & BOB S TRUCK & TRAILER SALES *COMING SOON MARY MCLEOD BETHUNE SCHOOL 19TH AVE A-1 AUTO PARTS NEW FAMILY MARKET ARTHUR M. HAMILTON SCHOOL N 5

8 SITE PLAN PROPERTY OVERVIEW PARCEL LOTS SITE JESSE S BODY SHOP 19TH AVE AUTOFIT, INC. BUCKEYE RD 18,904 VPD RAY & BOB S TRUCK & TRAILER SALES *COMING SOON 18,863 VPD W Y MARKET No representation or warranty is made as to the accuracy of any aspect of this drawing. It is provided strictly for illustration purposes. 6

9 27TH AVE 67TH AVE 59TH AV E 27TH AVE DEMOGRAPHICS MARKET OVERVIEW G L E N L A K E S M U N I G O L F C O U R S E NORTHERN AVE GLENDALE AVE BETHANY HOME RD CAMELBACK RD MARYVALE MUNIC IPAL G O L F C O U R S E INDIAN SCHOOL RD 19TH AVE 7TH AVE CENTRAL AVE 7TH ST 16TH ST A R IZO N A B ILT MO R E G O L F C O U R S E CA ME LBAC K COR RIDO R 24 TH ST 32ND ST DENSLEY POPULATED TRADE AREA More than 335,005 residents within 5 miles with an average household income of $33,907 VA N BUREN ST BUCKEYE RD 51ST AVE LOWER BUCKEYE RD 43RD AVE 35 TH AV E VE T E R A N S M E M O R I A L C O L I SE U M 1 M I L E ^ MIDTOW N PH OEN IX DOWN TOW N PH OEN IX BUCKEYE RD THO MAS RD MCDOWELL RD WASHINGTON ST PHOE NIX SKY HARBO R INTL AIRPORT POPULATION GROWTH 1 MILE 3 MILE 5 MILE ,048 88, , ,178 97, , , , ,742 AVERAGE HH INCOME 3 M I L E S BROADWAY RD 1 MILE 3 MILE 5 MILE B O U G A IN VI L L E A G O L F C L U B 5 M I L E S SOUTHERN AVE BASELINE RD TH E L E G A C Y G O L F R E SO R T 2017 $19,389 $29,709 $33, $19,932 $32,604 $36,926 DOBBINS RD TH U N D E R B IR D C O U N T R Y C L UB 7

10 AREA OVERVIEW PHOENIX is the capital, and largest city, of the state of Arizona as well as the county seat of Maricopa County. With 1,445,632 people (as of the 2010 U.S. Census), Phoenix is the most populous state capital in the United States, as well as the fifth most populous city nationwide. The Phoenix Metropolitan Statistical Area (MSA) (officially known as the Phoenix-Mesa-Glendale MSA), is one of 10 MSAs in Arizona, and is the 12th largest in the United States, with a total population of 4,574,351 according to the Census Bureau's 2015 population estimates. Consisting of parts of both Pinal and Maricopa counties, the Phoenix MSA accounts for 65.5% of the total population of the state of Arizona. The greater Phoenix area s sunny climate, vibrant lifestyle and prospering business community attract thousands of visitors, new residents and entrepreneurs annually. The nation s fifth-largest city, Phoenix continues to grow and remains a desirable destination for travelers and dreamers alike. The population growth rate of the Phoenix metro area has been nearly 4% per year for the past 40 years. While that growth rate slowed during the Great Recession, it has already begun to rebound. Phoenix is the cultural center of the Valley of the Sun, as well as the rest of Arizona. The Gateway Arch & Old Courthouse, Downtown St. Phoenix, Louis, MO AZ 28

11 AREA OVERVIEW A branch of the University of Arizona College of Medicine is located near ASU s downtown Phoenix campus. ASU is currently one of the largest public universities in the U.S., with a fall of 2017 student enrollment of nearly 72,000. There is also a small satellite campus for Northern Arizona University (based in Flagstaff) located in Phoenix. The Maricopa County Community College District includes ten community colleges and two skills centers throughout Maricopa County, providing adult education and job training. Phoenix College, part of the district, was founded in 1920 and is the oldest community college in Arizona and one of the oldest in the country. ECONOMY Phoenix is now the fifth-most-populated city in the United States and boasts one of its fastest-growing metropolitan areas. The city offers proximity to major population centers in the Southwest including Los Angeles, San Diego and Las Vegas, as well as strategic placement along the Mexico/North American Free Trade Agreement (NAFTA) corridor, which provides direct access to international trade and business opportunities. An international airport, major highways and railroads, and public transportation through light rail and bus service support the strength of the Greater Phoenix region s transportation infrastructure. Diversity is the strength of the economy and reflects the community-wide consensus for business development and quality job creation. The city provides an educated, qualified workforce. Companies are attracted to the Greater Phoenix region s low cost of doing business. Whether one pursues a career in the bioscience or technology fields, or desires to own and operate their own business, the Greater Phoenix region is a hotbed for job and business ownership opportunities. With over 57,000 employers in the Valley of the Sun, several major corporations call the region home. Housing prices are affordable with the median house price in Greater Phoenix around $233,700. The various corners of the Valley offer distinct vibes and perspectives for their residents. Each city offers something different, from the rising steel and glass of Phoenix to stylish Scottsdale and from active, rapidlygrowing Glendale to the East Valley communities of Tempe, Mesa, Gilbert and Queen Creek that offer a great work-life mix. From historic homes to new community developments, and from exciting urban living to active senior neighborhoods, the Greater Phoenix area truly has something for every lifestyle and taste Phoenix, AZ 9

12 OFFERING MEMORANDUM NET LEASE INVESTMENTS PHOENIX, ARIZONA EXCLUSIVELY OFFERED BY: CHRIS HOLLENBECK AZ Lic #SA SHANE CARTER Representative photo CONFIDENTIALITY & DISCLAIMER The information contained in this marketing brochure ( Materials ) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cushman & Wakefield ( Agent ). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/ properties ( Property ) for potential purchase. The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property. The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property. By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.