Investment Sale Dobson Medical On The Lake 2204 South Dobson Road - Mesa, AZ 85202
Table of Contents EXECUTIVE SUMMARY 3 Aerial Photography Investment Summary PROJECT OVERVIEW 5 TENANT SUMMARY 6 Tenant Profile Proforma Rent Roll MARKET OVERVIEW 9 Aerial Overview Mesa By The Numbers CONTACT Confidentiality Memorandum and Contact Information 11
Executive Summary Aerial 3 RD AV E ON ER BS DN DO LIN S W
Investment Summary Opportunity Highlights 4 The Property Dobson Medical On The Lake 2204 South Dobson Road Mesa, AZ 85202 Dobson Medical On The Lake is a prime Medical Investment Asset for anyone looking for that turn key product. With Renovations to the HVAC, lighting, landscaping, plumbing & mechanical infrastructure and interior suite renovations to every suite, Dobson Medical On The Lake is perfect immediate cash flow opportunity at 100% occupancy. Seven (7) new tenants provide a buyer with a diversified medical asset with stable leases ranging from 3-7 years in term. Each Tenant was carefully screened to provide a new buyer a strong asset that will perform for years to come with little to no additional capital improvements needed. All Tenants are on a Full Service net of Janitorial style lease which has provided them an aggressive alternative to the typical NNN lease for medical space in the market and made leasing at Dobson Medical on the Lake more appealing to medical professionals and will also provide a new buyer upside on rents moving forward. Additionally Dobson Medical On the Lake is strategically located 1 mile south of Banner Desert Medical Center and Cardon s Children s Hospital, ½ mile South of the US-60 Freeway and 1 Mile East of the 101 Freeway providing medical practitioners easy access to the Hospital and two major freeways. Banner Desert Medical Center is dedicated to a high-tech, high-touch philosophy of care that has helped them become the hospital of choice for East Valley communities for nearly 40 years. As one of the largest and most comprehensive facilities in Arizona, Banner Desert serves as a tertiary referral center for the East Valley of metropolitan Phoenix and treats the highest levels of acuity in the East Valley. They offer state-of-the-art technology in all departments, from their da Vinci surgical robots to their 3D cancer technology. Banner Desert also offers unique integrative therapies, from Dog Therapy, Music and Massage Therapy to The Oasis Spa, a hospital-based sanctuary offering a team of highly skilled, licensed practitioners who will assist you in reducing stress, renewing energy and restoring a sense of well-being. They are committed to providing their community with excellent patient care and are ranked as one of the top five hospitals in Phoenix, being recognized for eight high-performing specialties, according to U.S. News Best Regional Hospitals report. Pursuing an education can change a student s life in ways they could never imagine. In addition to obtaining a certificate or degree, MCC students gain the knowledge and skills needed to enter the workforce or transfer to a college or university. Their faculty instruct students in a way that allows them to learn how to learn, engage in critical thinking, and teach content students need to succeed. By coming to MCC students are investing in their future, and MCC is dedicated to helping them on their journey. The information contained herein has been obtained from various sources. We have no reason to doubt its accuracy; however, J & J Commercial Properties, Inc. has not verified such information and makes no guarantee, warranty or representation about such information. The prospective buyer or lessee should independently verify all dimensions, specifications, floor plans, and all information prior to the lease or purchase of the property. All offerings are subject to price change, prior sale, lease, or withdrawal from the market without prior notice. Effective: 09 14 17
Project Overview 2204 South Dobson Road - Mesa, AZ 5 EXECUTIVE SUMMARY Address: 2204 S. Dobson Road, Mesa, Arizona 85202 Offering: Multi-Tenant Office Building Sale Price: $3,105,070.66 ($188.85/SF) Actual NOI: $217,354.95 Total Square Feet: Approximately 16,442 rentable square feet Land Area: Approximately 55,886 square feet (±1.28 acres) Year Built: 1984 - Extensive Renovations, 2015-2017 Tax Parcel Number: 305-10-136 Zoning: C-2, City of Mesa Construction: Masonry, Steel and Cast-In-Place Concrete Parking: 78 Surface Spaces are Available; 14 Covered 5.5/1,000 Parking Ratio INVESTMENT HIGHLIGHTS Occupancy: 100% occupancy with 7 tenants. Capital Improvements: Over one half million dollars invested in major renovations, including HVAC, lighting, landscaping, patio, plumbing and mechanical infrastructures Cap Rate: In-place cap rate of 7.00% Rents: Rents are full service, net janitorial. Existing rents are at or below market rent allowing for security and growth in the future Frontage: Prominent street frontage and building along South Dobson Road Tenant Improvements: Extensive interior suite renovations to every unit at Class A standards The information contained herein has been obtained from various sources. We have no reason to doubt its accuracy; however, J & J Commercial Properties, Inc. has not verified such information and makes no guarantee, warranty or representation about such information. The prospective buyer or lessee should independently verify all dimensions, specifications, floor plans, and all information prior to the lease or purchase of the property. All offerings are subject to price change, prior sale, lease, or withdrawal from the market without prior notice. Effective: 09 14 17
Tenant Summary 2204 South Dobson Road - Mesa, AZ 6 Bayless Integrated Healthcare is a leader in combining physical, social, mental and emotional health services at each of its clinics, including its fifth location, Bayless Integrated Healthcare, Dobson Ranch, in Mesa, Ariz. This new clinic features 6,000 square-feet of space dedicated to physical, social, mental and emotional health services. Bayless Integrated Healthcare, Dobson Ranch focuses on providing integrated care for adolescents and adults, but are able to provide services to all ages as necessary. Bayless invested more than $250,000 into this newest facility and, as a high-growth company is prepared for major, continued expansion around the Valley to fill the gaping void of primary care, behavioral health, addiction treatment, and integrated medicine. Bayless Integrated Healthcare was founded in 1982 by our founder, Dr. Michael Brad Bayless, as a ground-breaking model for mental healthcare delivery utilizing a multi-disciplinary team approach. Beginning in 2010, Justin Bayless became the second generation owner and has transformed the company into a comprehensive healthcare provider utilizing a proprietary process of integration to improve the patient experience. As a comprehensive service provider for all ages and socio-economic classes, Bayless provides family medicine, emotional and behavioral health, addiction treatment, and social healthcare services. Dr. Joseph Lindstrom, M.D. Dr. Lindstrom is Board Certified OB-GYN and has been practicing over 25 years. He attended Universidad Autónoma de Guadalajara Facultad de Medicina and completed his internship and Residency in Obstetrics and Gynecology at the Banner Good Samaritan Medical Center. Dr. Lindstrom is now currently affiliated with Banner Desert Medical Center in Mesa, Arizona. He speaks both English and Spanish fluently. The information contained herein has been obtained from various sources. We have no reason to doubt its accuracy; however, J & J Commercial Properties, Inc. has not verified such information and makes no guarantee, warranty or representation about such information. The prospective buyer or lessee should independently verify all dimensions, specifications, floor plans, and all information prior to the lease or purchase of the property. All offerings are subject to price change, prior sale, lease, or withdrawal from the market without prior notice. Effective: 09 14 17
Market Overview Aerial Overview 9 L A ST AL M E FI Recreated LOGO BEST BUY BASELINE ROAD BASELINE ROAD SITE DOBSON RANCH GOLF COURSE GUADALUPE ROAD ALMA SCHOOL ROAD MEDINA AVENUE GUADALUPE ROAD
Market Overview Mesa By The Numbers 10 MESA: QUICK FACTS With a population of nearly 500,000, Mesa is the 36 th largest city in the U.S., 3 rd largest in Arizona, and 2 nd largest in the Phoenix-Mesa metro area. Larger than Miami, Minneapolis, Atlanta and St. Louis, Mesa covers 138 square miles inside a 21-city region with a population of 4.4 million, projected to be 6 million by 2030. Year Incorporated 1883 Elevation 1,255 Cost of Living Index 96.8 Average High/Low Temperature 86 / 57 Median Age 35.7 Average Household Income $65,418 Number of Mesa Households 177,960 Rainfall and Sunshine Average yearly rainfall (inches) 9.29 Average yearly days of sunshine 301 more than San Diego or Miami Beach. POPULATION (Projected) Population 2016 2021 Mesa 475,274 506,663 Arizona 6,877,016 7,303,983 (Projected) Pop. Growth 1990-2000 2000-2010 2010-2020 Mesa 35.5% 16.6% 11.7% Arizona 40.0% 31.4% 11.1% Mesa Population by Age Age 2016 15-34 28% 35-54 23.5% 55-74 20% 75-85+ 7.3% Source: ESRI Community Analyst, 2016 EDUCATIONAL ATTAINMENT Within a 30-Minute Drive of Downtown Mesa 530,000+ professionals, 42.8% (age 25+) with an associate s degree or higher. Associate s Degree 8.5% Bachelor s Degree 21.6% Graduate s Degree 12.7% Source: ESRI Community Analyst, 2016 AVAILABLE LABOR FORCE Mesa Phx. Metro Labor Force 233,793 2,253,682 Unemployment Rate 4.1% 4.1% Within a 30-Minute Drive of Downtown Mesa Population 1,890,732 Households 733,131 Labor Force (16+) 893,426 Source: Bureau of Labor Statistics, ESRI Community Analyst, 2016 MESA S LARGE EMPLOYERS Banner Health System 9,573 The Boeing Company 4,200 Mesa Community College 1,951 Empire Southwest 782 American Traffic Solutions 600 Salt River Project 592 ASU Polytechnic 560 Santander 503 Able Aerospace 500 Mountain Vista Medical Center 500 National General Lender Services 470 Source: MAG Employer Database, Dunn & Bradstreet, 2016 RECENT ANNOUNCEMENTS Niagara Bottling will be investing $76 million in a new 450,000 sq. ft. facility in Mesa creating 45 to 55 new jobs. DuPont Fabros Technology purchased an undeveloped 56.5 acre site in Mesa's Elliot Road Technology Corridor with plans to develop a data center campus with capacity for up to 1 million square feet. Dexcom opened a 216,000 sq. ft. medical technology manufacturing facility bringing 500 new jobs to Mesa in 2017. RANKINGS Economic Development Team of the Year Global Data Center Alliance, 2016 Mesa ranked Best Big City in the Southwest Money magazine, 2016 Arizona ranked #5 for workforce. CNBC, 2016 Arizona ranked 6 th best for business. Chief Executive magazine, 2016 The information contained herein has been obtained from various sources. We have no reason to doubt its accuracy; however, J & J Commercial Properties, Inc. has not verified such information and makes no guarantee, warranty or representation about such information. The prospective buyer or lessee should independently verify all dimensions, specifications, floor plans, and all information prior to the lease or purchase of the property. All offerings are subject to price change, prior sale, lease, or withdrawal from the market without prior notice. Effective: 09 14 17
Confidentiality Memorandum 2204 South Dobson Road - Mesa, AZ The information on Dobson Medical By The Lake ( Property ) provided by Commercial Properties, Inc. ( CPI ), may be used only by parties approved by CPI and the Owner. The property is privately offered and, by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to CPI, immediately upon request of CPI or the Owner and; (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of CPI. The information contained in this Offering Memorandum is confidential, furnished solely for review purposes by a prospective purchaser of the Property and is not to be used for any other purpose or made available to any other person without the expressed written consent of CPI. This information is presented to you for your analysis only to determine if you are interested in pursuing this investment opportunity as Principals. The material is based in part upon information supplied by the Owner and in part upon information obtained by CPI from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outlines of some of the provisions contained herein. No warranty or representation, expressed or implied, is made by the Owner, CPI, or any of their respective affiliates as to the accuracy or completeness of the information contained herein or as to engineering and environmental matters. Prospective purchasers should make their own projections and conclusions without reliance upon the material contained herein and conduct their own independent due diligence, including but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous materials on the property. The Owner expressly reserves the right, at its sole discretion, to reject any and all expressions of interest, or offers to purchase the Property and/or terminate discussions with any party at any time, with or without notice. The Owner shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Property, unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Owner and any conditions to the Owner s obligations thereunder have been satisfied or waived. CPI is not authorized to make any representations or agreements on behalf of the Owner. The terms and conditions set forth apply to the Offering Memorandum in its entirety. CPI, is acting as the exclusive Agent for the Owner in this transaction. It is important to understand that this confidential memorandum shall not be deemed a representation of the state of affairs of the property, or constitute an indication that there has been no change in the business or affairs of the property since the date of preparation of this memorandum. The information contained herein has been obtained from various sources. We have no reason to doubt its accuracy; however, J & J Commercial Properties, Inc. has not verified such information and makes no guarantee, warranty or representation about such information. The prospective buyer or lessee should independently verify all dimensions, specifications, floor plans, and all information prior to the lease or purchase of the property. All offerings are subject to price change, prior sale, lease, or withdrawal from the market without prior notice. Effective: 09 14 17 For More Information, Please Contact: Tyson Breinholt Partner / Associate Broker D: 480.966.7513 M: 602.315.7131 tbreinholt@cpiaz.com Shane McCormick Vice President D: 480.968.9618 M: 480.720.6250 smccormick@cpiaz.com