HIGH-TRAFFIC LA FITNESS ANCHORED VALUE-ADD INVESTMENT OPPORTUNITY IN GLENDALE, ARIZONA GLENDALE GALLERIA Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., licensed with the Arizona Department of Financial Institutions, License Number CMB-0938500, Branch License CMBBR-0121909.
PROPERTY SUMMARY ADDRESS RENTABLE BUILDING AREA: 5800 West Peoria Avenue Glendale, Arizona 85302 119,525 SF YEAR OF COMPLETION: 1989 / Renov. 2016 OCCUPANCY: 83.1% SITE AREA: PARKING: 12.06 Acres 459 Parking Spaces (3.84 : 1,000 SF) THE OPPORTUNITY HFF, as exclusive advisor, is pleased to present the outstanding opportunity to acquire the fee simple interest in the recently renovated Glendale Galleria (the Property ), a 119,525 squarefoot retail center located in Glendale, Arizona. The Property is 83% leased and anchored by a brand new LA Fitness, providing great upside potential to lease-up the remaining available suites with a strong long-term anchor in-place. The Center has numerous other nationally recognized tenants such as Subway, Sears Outlet, and TitleMax, while being shadow anchored by The Home Depot. In addition, the Property is ideally located on the highly trafficked intersection of Peoria Avenue and 59th Avenue, exposing the Property to approximately 60,000 vehicles on a daily basis. NOTABLE TENANTS TENANT % of GLA SF EXP RENT PSF/YR LA FITNESS 31.0% 37,000 SF Nov-26 $15.50 SEARS OUTLET 17.6% 20,990 SF Jan-19 $7.38 GYMNASTICS ACADEMY 12.8% 15,244 SF May-22 $10.50 TITLEMAX 4.7% 5,600 SF Jul-18 $10.61 SUBWAY 1.0% 1,200 SF Jan-20 $25.43 GYMNASTICS ACADEMY 2
TENANT ROSTER GYMNASTICS ACADEMY SUITE TENANT SF % GLA 57TH DR W SAGUARO DR 02 AVAILABLE 2,270 1.9% 03 TAILOR SHOP 805 0.7% 04 THE GREAT SPA 1,635 1.4% 05 AVAILABLE 850 0.7% 06 AVAILABLE 973 0.8% 07 ECHO ME 805 0.7% 08 AVAILABLE 1,007 0.8% 09 SUBWAY 1,200 1.0% 10A GYMNASTICS ACADEMY 15,244 12.8% 10 LA FITNESS 37,000 31.0% 11 AVAILABLE 1,356 1.1% 12 ONE STOP NUTRITION 1,470 1.2% 13 AVAILABLE 1,300 1.1% 59TH AVENUE (±28,000 VPD) 59TH AVE FS7 02 03 04 05 06 07 08 09 10A 10 13 14 15 1617 18 11 12 19 20 21 FS3 22 23 24 26 25 57TH AVE FS2 14 LADY JANE'S HAIRCUTS FOR MEN 1,300 1.1% PEORIA AVE 15 BEST NAILS & SPA 1,307 1.1% PEORIA AVENUE (±31,000 VPD) 16 AVAILABLE 1,024 0.9% 17 AVAILABLE 805 0.7% 18 UCELO MARTIAL ARTS 2,061 1.7% 58TH DR N 57TH AVE 19 NINO'S PIZZERIA 2,801 2.3% 20 AVAILABLE 3,404 2.8% 21 SEARS OUTLET 20,990 17.6% 22 AVAILABLE 2,880 2.4% 23 AVAILABLE 1,920 1.6% 24 AVAILABLE 1,200 1.0% 25 SOLECITO SERVICES 977 0.8% 26 AVAILABLE 1,260 1.1% FS2 LIFEPRINTS CHILDCARE 5,064 4.2% FS3 TITLEMAX 5,600 4.7% FS7 LENNY'S BURGERS 1,017 0.9% TOTAL AVAILABLE SF 20,249 16.9% TOTAL OCCUPIED SF 99,276 83.1% TOTAL OVERALL SF 119,525 100.0% 3
DEMOGRAPHICS 1-Mile 3-Mile 5-Mile POPULATION 16,562 150,532 421,948 DOWNTOWN PHOENIX 12-Mile Drive from Property NUMBER OF HOUSEHOLDS 6,072 55,753 153,502 AVERAGE HOUSEHOLD INCOME $71,291 $61,915 $58,587 U.S. ROUTE 60 3-Mile Drive from Property PEORIA AVENUE (±31,000 VPD) GLENDALE GALLERIA GLENDALE COMMUNITY COLLEGE 21,000+ Student Enrollment 59TH AVENUE (±28,000 VPD) N 4
INVESTMENT HIGHLIGHTS FOR GLENDALE GALLERIA NEW LONG-TERM ANCHOR LEASE WITH LA FITNESS: LA Fitness recently executed a long-term net lease for 10 years. This new long-term anchor tenant has already begun to spur additional leasing activity at Glendale Galleria, as tenants look to capitalize on the daily traffic drivers and bring synergy to the shopping center. ATTRACTIVE CASH-ON-CASH RETURNS WITH IMMEDIATE UPSIDE POTENTIAL: Currently 83% leased, Glendale Galleria offers investors attractive levered cash-on-cash returns of 12.3% over the first 3 years, with additional upside potential through the lease up of the remaining 17% of available space. HIGH TRAFFIC AND DENSE LOCATION: Located off the highly trafficked Peoria Avenue (±31,000 VPD) and 59th Avenue (±28,000 VPD), tenants at Glendale Galleria recognize high daily traffic counts and exposure to an incredibly dense population of over 150,000 people within a 3-mile radius. SEPARATELY PARCELED RETAIL PADS: Glendale Galleria includes three separately parceled retail pads on long-term leases which adds significant value by providing potential investors the ability to sell off parcels individually, lowering their overall cost basis. RECENTLY REDEVELOPED: The Property has undergone significant renovations in recent years, providing a considerable reduction in on-going capital reserves and an attractive façade to entice future tenants. UNENCUMBERED ASSET: Free and clear of existing financing, providing investors the opportunity to take advantage of historically low interest rates and enhanced leveraged returns. 5
GLENDALE GALLERIA INVESTMENT SALES ADVISORS: CJ OSBRINK 602.648.8715 cosbrink@hfflp.com CA Lic. #01900338 GLEB LVOVICH 949.798.4115 glvovich@hfflp.com CA Lic. #01496699 DEBT ADVISOR: BRAD MINER 602.648.8706 bminer@hfflp.com NICHOLAS RAY 602.648.8722 nray@hfflp.com REAL ESTATE ANALYSTS: MARK DEGIORGIO 949.798.4138 mdegiorgio@hfflp.com CA RE Lic. #02026853 RYAN FITZPATRICK Broker of Record AZ Lic# BR638745000 ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER HOUSTON INDIAOLIS LOS ANGELES MIAMI NEW JERSEY NEW YORK CITY ORANGE COUNTY ORLANDO PHILADELPHIA PHOENIX PITTSBURGH PORTLAND SAN DIEGO SAN FRANCISCO TAMPA WASHINGTON D.C. LONDON Holliday Fenoglio Fowler, L.P. ( HFF ) a licensed Arizona real estate broker. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. 2017 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. hfflp.com