SEAN STUTZMAN ARI SPIRO PRINCIPAL PRESIDENT 480.634.8194 480.634.8596 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY LABCORPNNN NNN INVESTMENT INVESTMENT LABCORP IRONWOOD OFFICE SUITES - 9465 EAST IRONWOOD SQUARE DRIVE, SUITE 103, SCOTTSDALE, ARIZONA OFFERING MEMORANDUM ARI SPIRO SEAN STUTZMAN President T 480.634.8596 C 480.292.3697 Principal T 480.634.8194 C 480.363.4544
TABLE OF CONTENTS CONTENTS CONFIDENTIALITY & DISCLAIMER PROPERTY INFORMATION 3 LOCATION INFORMATION 8 DEMOGRAPHICS 14 All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws. ARI SPIRO President O: 480.634.8596 C: 480.292.3697 E: SEAN STUTZMAN Principal O: 480.634.8194 C: 480.363.4544 E: Page 2
Empty SEAN ARI SPIRO STUTZMAN text PRESIDENT PRINCIPAL 480.634.8596 480.634.8194 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY PROPERTY INFORMATION ARI SPIRO President T 480.634.8596 C 480.292.3697 SEAN STUTZMAN Principal T 480.634.8194 C 480.363.4544
EXECUTIVE SUMMARY PROPERTY SUMMARY Sale Price: $741,750 Cap Rate: 6.0% Lease Type: NNN Taxes (2016): $4,852.10 Building Size: 2,070 SF Year Built: 2004 Parcel Number: 217-53-952 Cross Streets: Ironwood Square Drive & 96th Street PROPERTY OVERVIEW Laboratory Corporation of America Holdings, LH (NYSE), more commonly known as LabCorp, is an American S&P 500 company headquartered in Burlington, North Carolina. This medical office condo has been 100% occupied by LabCorp since 2013 and they recently extended their lease for 5 years. LOCATION OVERVIEW The property is located within the Ironwood Office Suites medical complex which is adjacent to HonorHealth Scottsdale Shea Medical Center, a 433-bed hospital. This irreplaceable location is surrounded by dozens of medical practices, major retail amenities, and assisted living facilities with access to the Loop 101 Freeway, providing an easy connection to and from many suburbs of Phoenix. PROPERTY HIGHLIGHTS Corporate Lease with Laboratory Corporation of America Holdings, LH (NYSE) Located at the Epicenter of the North Scottsdale Medical Submarket (Cure Corridor) Minutes from Loop 101 Freeway and Shea Boulevard with ±190,000 VPD Located adjacent to HonorHealth Scottsdale Shea Medical Center Page 4
Absolute NNN Terms & Financials ABSOLUTE NNN TERMS & FINANCIALS Lease Origination Date: March 17 th 2008 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY IRONWOOD OFFICE SUITES - 9465 EAST IRONWOOD SQUARE DRIVE, SUITE 103, SCOTTSDALE, ARIZONA Lease Expiration Date: September 30, 2022 Net Operating Income and CAP Term Remaining: Guaranteed: Current Rent: Rental Increases: 5 Years Corporate Guarantee $44,505 Per Year, NNN July 1, 2018 - $45,540 NNN July 1, 2019 - $46,575 NNN July 1, 2020 - $47,610 NNN July 1, 2021 - $48,645 NNN July 2017 Forward NOI CAP Rate Year 1 $44,505 6.00% Year 2 $45,540 6.14% Year 3 $46,575 6.28% Year 4 $47,610 6.42% Year 5 $48,645 6.56% SCOTTSDALE, ARIZONA Page 5
TENANT PROFILE: LABCORP LabCorp LabCorp provides leading-edge medical laboratory tests and services through a national network of primary clinical laboratories and specialty testing laboratories. With scientific expertise in esoteric testing, genomics, and clinical and anatomic pathology, LabCorp processes tests on approximately 500,000 specimens each day, applying advances in medicine and science to laboratory testing. LabCorp operates a sophisticated laboratory network, with corporate headquarters in Burlington, NC, and more than 50,000 employees worldwide. LabCorp's clients include physician offices, hospitals, managed care organizations, and biotechnology and pharmaceutical companies. Laboratory Corporation of America Holdings is listed on the New York Stock Exchange (NYSE) under ticker symbol LH. COMPANY FACTS Headquarted in Burlington, NC Ticker Symbol: LH American S&P 500 Company Founded in 1978 50,000+ Employees Worldwide 220,000+ Clients in 60 Countries With roots going back more than 100 years, LabCorp has been dedicated to improving health and improving lives. LabCorp has grown organically and through targeted acquisitions that have added to its geographic and technological scope. Today, LabCorp is the world s leading health care diagnostics company. With net revenue in excess of $8.5 billion in 2015, LabCorp s 50,000-plus employees serve more than 220,000 clients in 60 countries and provide diagnostic, drug-development and technology-enabled solutions for more than 100 million patient encounters per year. It continues to strive every day to fulfill its mission: to improve health and improve lives. www.labcorp.com www.ironwoodofficesuites.com/about.php Page 6
Caption 24 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY ADDITIONAL PHOTOS Page 7
Empty SEAN ARI SPIRO STUTZMAN text PRESIDENT PRINCIPAL 480.634.8596 480.634.8194 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY LOCATION INFORMATION ARI SPIRO President T 480.634.8596 C 480.292.3697 SEAN STUTZMAN Principal T 480.634.8194 C 480.363.4544
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SURROUNDING HOSPITAL HonorHealth HonorHealth is a non-profit, local provider, dedicated to the health and wellness of their communities. HonorHealth offers convenient access to healthcare with a large network of high-quality primary care and specialty physicians, as well as other healthcare providers. As leaders in personalized care, HonorHealth has nearly 150 years of combined experience serving communities in greater Phoenix through such programs as NOAH and Desert Mission. HonorHealth's integrated health system provides personalized, connected, quality care with innovative approaches to achieve superior clinical outcomes. Their wide range of services includes: Cardiac Care, Orthopedic Services, Cancer Care, a Research Institute, Emergency Services and Trauma Care, Maternity Services, Pediatric Services, Bariatric Weight Loss Surgery, Diabetes Management, Home Health Services, Neurosciences, Medical Imaging, Outpatient Services and more. HIGHLIGHTS Five Hospital Locations A Surgical Specialty Hospital and a Freestanding Emergency Center A Cancer Research Institute One of the five HonorHealth locations includes Scottsdale Shea Medical Center. Scottsdale Shea Medical Center has 433 beds, women's services, a dedicated pediatric emergency department, pediatric ICU, and a Level III neonatal ICU. The hospital also is known as a bariatric surgery center of excellence, total joint replacement center, and cardiology and oncology services. The Virginia G. Piper Cancer Center, accredited by the Commission on Cancer of the American College of Surgeons, is on the Shea campus and houses the HonorHealth Research Institute. Scottsdale Shea Medical Center is a certified Chest Pain Center and Heart Attack Center. The facility has earned Magnet designation, the highest national designation for excellence in nursing care. 3,200 Expert Physicians 3,400 Outstanding Nurses 3,100 Dedicated Volunteers 10,300 Employees www.honorhealth.com www.honorhealth.com/locations/hospitals/scottsdale-shea-medical-center Page 13
Empty SEAN ARI SPIRO STUTZMAN text PRESIDENT PRINCIPAL 480.634.8596 480.634.8194 AN OFFICE CONDOMINIUM INVESTMENT OPPORTUNITY DEMOGRAPHICS ARI SPIRO President T 480.634.8596 C 480.292.3697 SEAN STUTZMAN Principal T 480.634.8194 C 480.363.4544
DEMOGRAPHICS REPORT 1 MILE 3 MILES 5 MILES Total households 4,370 29,968 60,909 Total persons per hh 1.9 2.1 2.2 Average hh income $97,763 $109,807 $112,497 Average house value $467,279 $561,574 $579,999 1 MILE 3 MILES 5 MILES Total population 8,157 63,491 133,538 Median age 54.3 46.4 44.5 Median age (male) 54.1 45.9 43.9 Median age (female) 54.2 46.6 44.8 1 MILE 3 MILES 5 MILES Total population - White / % White 7,438 / 91.2% 58,050 / 91.4% 121,145 / 90.7% Total population - Black / % Black 254 / 3.1% 758 / 1.2% 1,808 / 1.4% Total population - Asian / % Asian 259 / 3.2% 2,748 / 4.3% 5,398 / 4.0% Total population - Hawaiian / % Hawaiian 2 / 0.0% 27 / 0.0% 63 / 0.0% Total population - Indian / % Indian 40 / 0.5% 542 / 0.9% 1,894 / 1.4% Total population - Other / % Other 48 / 0.6% 699 / 1.1% 1,613 / 1.2% Page 15
DEMOGRAPHICS MAP 1 Mile 3 Miles 5 Miles Total Population 8,157 63,491 133,538 Population Density 2,596 2,246 1,700 Median Age 54.3 46.4 44.5 Median Age (Male) 54.1 45.9 43.9 Median Age (Female) 54.2 46.6 44.8 Total Households 4,370 29,968 60,909 # of Persons Per HH 1.9 2.1 2.2 Average HH Income $97,763 $109,807 $112,497 Average House Value $467,279 $561,574 $579,999 Page 16
EXCLUSIVELY LISTED BY: ARI SPIRO President T 480.634.8596 C 480.292.3697 SEAN STUTZMAN Principal T 480.634.8194 C 480.363.4544 sale, lease or withdrawal without notice.