FOR SALE INDUSTRIAL CORPORATE MEDICAL DEVICE BUILDING 1395 Auto Drive Tempe, AZ 85284 PRESENTED BY: MICHAEL FINCH Senior Vice President 480.626.0219 michael.9nch@svn.com AZ #SA576104000 JEFF CLINE Senior Vice President 480.626.0210 je8.cline@svn.com AZ #SA650889000 DAVID LANEY Executive Director 480.626.0142 david.laney@svn.com AZ #BR629946000 PROPERTY HIGHLIGHTS New Five-Year National Tenant NNN Lease Renewal Class A+ OTce and Production Area Finishes Free Standing Building, 24' Ceiling Height Cap Rate 6.0% to 8.1% 3.82:1000 Parking Ratio(61 Spaces) Building is Fully Sprinkled and Well Maintained Year 6 pro forma resects a 8% cash on cash ROI; Year 10 IRR of 14%. Close to Support Retail and Restaurants Built In 1999; Overhead Door Access The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its
EXECUTIVE SUMMARY Executive Summary SALE OVERVIEWVIEW SALE PRICE: $3,600,000 NON-ADJUSED NOI: $216,000 NON-ADJUSTED CAP RATE 6% ADJUSTED NOI $290,762 ADJUSTED CAP RATE 8.1% LOT SIZE: BUILDING SIZE: GRADE LEVEL DOORS: 2 CEILING HEIGHT: 60,984 SF 16,000 SF 24.0 FT YEAR BUILT: 1999 ZONING: MARKET: SUB MARKET: GID Tempe Tempe Southwest Ind PROPERTY OVERVIEWVIEW SVN RealStar Advisors is pleased to oqer for sale the fee simple interest (land & building) in a freestanding, NNN lease single tenant, Flex / R & D / Industrial Property with Class A Rnishes, located in Tempe, AZ. The current national tenant has recently renewed a 5-year lease. Pending market conditions, the buyer has the opportunity to pro forma the 16,000 SF Class A asset return to a cash on cash return at year 6 of approximately 8% to 10% and a year 10 IRR of approximately 14% to 16%. Buyer has ability to use Cost Segregation to increase NOI to $279,316 in 1st Year, bringing a 7.75% Cap Rate. The current tenant also leases approximately 10,000 square feet of otce space in an adjacent building. The tenant has stated its intent to stay in the building, if that benerts the buyer, and to negotiate a new lease term. The current single tenant is a tenured company founded in 1996 with a world wide track record, over 25 years of documented studies, and the only company in the world providing the cranial technology services for infants born with plagiocephaly. This state of the art technology is imperative to ensuring a child s safety & comfort. The tenant provides the only device cleared by the U.S. Food & Drug Administration for such life saving treatments. The property is near the intersection of Elliot Road and Priest Drive in Tempe, Arizona. The subject property is part of the 258,000/SF Tempe Business Center. The property features grade level loading with an optional truck well. The I-10 freeway is less than a mile from the building. Sky Harbor International Airport is a ten minute drive from the property. There are numerous restaurants, hotels and retail stores located within a one mile radius of the subject property. A complete tax segregation report is included on page 9 & 10. The estimated cash Sow benert, or increase, ranges from a conservative $51,870 to an optimistic estimate of $74,762 annually (the optimistic estimate has been used in the adjusted NOI and Cap Rate calculations). CROSS STREETS: Elliot Rd & Priest Dr 2
REGIONAL MAP Regional Map 1395 Auto Drive 3
LOCATION MAPS Location Maps 4
SATELLITE MAP Satellite Map 5
RETAILER MAP MEDICAL DEVICE HQ / PRODUCTION BUILDING 16,000 SF TEMPE, AZ Retailer Map 6
INCOME & EXPENSES NNN Lease Income INCOME SUMMARY PER ANNUALLY UNIT GROSS INCOME $216,000 $216,000 TAX SEGREGATED ADJUSTED GROSS INCOME (OPTIMISTIC) EXPENSE SUMMARY $ 74,762 $290,762 PER UNIT GROSS EXPENSES $0 $0 NET OPERATING INCOME $216,000 $216,000 7
RENT ROLL NNN Rent Roll TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END ANNUALAL RENT % OF BUILDING PRICE PER SF/YR Cranial Technologies 16,000 1/1/2017 12/31/21 $216,000 100.0 $13.50 Totals/Averages 16,000 $216,000 $13.50 8
CUSTOM PAGE MEDICAL DEVICE HQ / PRODUCTION BUILDING 16,000 SF TEMPE, AZ Tax Segregation Report BeneRt Summary 9
CUSTOM PAGE MEDICAL DEVICE HQ / PRODUCTION BUILDING 16,000 SF TEMPE, AZ Tax Segregation Depreciation Comparison 10
DEMOGRAPHICS REPORT Tempe, AZ, Demographics Report 1 MILE 3 MILES 5 MILES Total households 3,279 41,943 100,698 Total persons per hh 2.5 2.5 2.6 Average hh income $85,487 $79,097 $80,466 Average house value $225,882 $276,266 $299,481 1 MILE 3 MILES 5 MILES Total population 8,089 103,660 257,813 Median age 35.0 35.0 34.1 Median age (male) 34.6 33.9 33.1 Median age (female) 35.0 35.6 34.9 * Demographic data derived from 2010 US Census 11
DEMOGRAPHICS MAP Demographics Map POPULATION 1 MILE 3 MILES 5 MILES TOTAL POPULATION 8,089 103,660 257,813 MEDIAN AGE 35.0 35.0 34.1 MEDIAN AGE (MALE) 34.6 33.9 33.1 MEDIAN AGE (FEMALE) 35.0 35.6 34.9 HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES TOTAL HOUSEHOLDS 3,279 41,943 100,698 # OF PERSONS PER HH 2.5 2.5 2.6 AVERAGE HH INCOME $85,487 $79,097 $80,466 AVERAGE HOUSE VALUE $225,882 $276,266 $299,481 12
ADDITIONAL PHOTOS Class B OTce / Research / Flex Building 13
ADVISOR BIO CORPORATE MEDICAL DEVICE BUILDING 16,000 SF TEMPE, AZ SVN OTce & Industrial Group Michael Finch Senior Vice President SVN RealStar Advisors Michael Finch began his successful career over 10 years ago in Phoenix, Arizona. Mr. Finch was able to expand his expertise from commercial and sales and development. He has developed broad local and national relationships with the top ranked high density mid to large scale developers for Commercial Mixed Use & Multifamily Development. AZ #SA576104000 Phone: 480.626.0219 Cell: 480.797.9825 Email: michael.rnch@svn.com Address: 10789 N. 90th St. Suite 203 Scottsdale, AZ 85260 As markets shiued, Mr. Finch leveraged lender relationships formed in previous years, to plan and begin distressed real estate disposition. Michael was able to develop and grow these relationships to become an integral part of the acquisition and disposition team. Michael has developed and managed an extensive pipe line of lender owned assets, short sales, and portfolio note sales. Michael has continued to deliver value add deals for existing multifamily assets as well as several income producing segments to his growing client base. With an extensive national network, Mr. Finch has been successful and enjoys being an integral partner for client teams focused on large scale income producing portfolios which include existing multifamily, retail, otce, medical & hospitality assets. 14
ADVISOR BIO SVN OTce & Industrial Group JeQ Cline Senior Vice President SVN RealStar Advisors Mr. Cline has worked with top industry professionals and has personal advanced knowledge and experience in small to very large-scale commercial real estate brokerage, asset management, acquisition, Rnancing, development and construction segments. As a principal, Mr. Cline has completed approximately $2+ billion of commercial real estate property development and construction in most segments including approximately 22,000 multifamily units. AZ #SA650889000 Phone: 480.626.0210 Fax: 480.499.8395 Cell: 480.442.8395 Email: jeq.cline@svn.com Address: 10789 N. 90th St. Suite 203 Scottsdale, AZ 85260 Mr. Cline s specirc experience includes commercial real estate leadership in general management, team building and managing, corporate and construction Rnancing, business development, asset management, property management, development management, marketing, disposition of new construction projects including multi-family, hotel, otce, industrial and senior assisted living properties. JeQ s top executive and mid-management level combined with front-line experience across most segments of commercial real estate in retail / management operations, design and general contracting, development, Rnancing, property management and real estate brokerage. Over 38+ years, JeQ has established an expanding local and national network of industry leaders as partners, clients and associates. 15
DISCLAIMER The material contained in this OQering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this OQering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this OQering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This OQering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this OQering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any Rnal, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their otcers, employees, representatives, independent contractors or atliates, for the accuracy or completeness thereof. Recipients of this OQering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This OQering Brochure is a solicitation of interest only and is not an oqer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the OQering Brochure or making an oqer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an oqer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
PRESENTED BY: MICHAEL FINCH Senior Vice President 480.626.0219 michael.9nch@svn.com AZ #SA576104000 JEFF CLINE Senior Vice President 480.626.0210 je8.cline@svn.com AZ #SA650889000 DAVID LANEY Executive Director 480.626.0142 david.laney@svn.com AZ #SA576104000 All SVN O:ces Independently Owned & Operated 2014 All Right Reserved www.svn.com