FOR SALE OFFICE FORMER NORTHCENTRAL UNIVERSITY HEADQUARTERS 10000 E. University Drive Prescott Valley, AZ 86314 PRESENTED BY: ART RULLO Advisor 480.626.0181 art.rullo@svn.com AZ #SA53/04/00 000 DAVID LANEY Executive Director 480.719.2496 david.laney@svn.com AZ #BR629946000 DAVID BENZING Advisor 480.626.0173 david.benzing@svn.com AZ #SA656274000 PROPERTY HIGHLIGHTS Three (3) story class "A" office building constructed in 2005 Nearly 50 acres for future expansion for sale off for residential /commercial development Owner willing to finance/jv with buyer on future development of the property State of the art data center with CAT 6 wiring throughout building. Redundant power & fire suppression systems
DISCLAIMER The material contained in this Offering 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 Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering 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 Offering 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 Offering 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 final, 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 officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer 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 Offering Brochure or making an offer 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 offer, 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.
TABLE OF CONTENTS 1. PROPERTY INFORMATION 4 Executive Summary 5 Property Overview 6 2. LOCATION INFORMATION 7 Location Maps 8 3. FINANCIAL ANALYSIS 9 Financial Summary 10 Income & Expenses 11 Floor Plans 12 4. DEMOGRAPHICS 13 Demographics Report 14 Demographics Map 15 5. ADDITIONAL INFORMATION 16 Town of Prescott Valley Information 17 Yavapai County Information 18 Additional Photos 19
1 PROPERTY INFORMATION
SECTION 1 PROPERTY INFORMATION Executive Summary SALE OVERVIEWVIEW SALE PRICE: $10,299,000 PROFORMA CAP RATE: 10.06% PROFORMA NOI: $1,036,488 LOT SIZE: BUILDING SIZE: BUILDING CLASS: CEILING HEIGHT: +/-49.31 Acres +/- 54,552 SF A 12.0 FT YEAR BUILT: 2005 ZONING: MARKET: SUB MARKET: PL (Public Land PAD) Northcentral Arizona Prescott Valley PROPERTY DESCRIPTION Formerly the headquarters for a national on-line education company, this vacant class "A" three story office building built is immediately available for sale. Perfect for an owner/user or a "value add" opportunity for an investor. The building sits on nearly 50 acres allowing for possible future expansion. Constructed in 2005, the building offers a flexible space layout as well as a state of the art data center with backup generator and fire suppression. CAT 6 fiber voice and data throughout the building. The building has 2 elevators, several private offices, bullpen areas, conference rooms, restrooms and break rooms on each floor. The 3rd floor currently has an executive suite complete with a fireplace, private offices, conference rooms, restrooms and an exterior observation deck. The Seller would consider providing the financing or joint venturing with qualified prospective buyers desiring to expand into a multi-building campus on the site. All serious offers will be considered. CROSS STREETS: University & N. Sheridan Ln. 5
SECTION 1 PROPERTY INFORMATION Property Overview Physical Description Property Name: Former On-Line Northcentral University Campus Property Type: Office Building APN: 402-14-239B Lot Size: +/- 49.31 AC Building Size: +/- 54,552 SF Building Class: A Zoning: PL (Public Land PAD) Parking Spaces: 205 Parking Ratio: 3.75/1000 sq ft Cross Streets: University & N. Sheridan Ln. Construction Year Built: 2005 Construction Type: Existing Number of Stories: 3 Average Floor Size: +/- 18,184 SF Foundation: Concrete Slab Parking Type: 205 Surface parking spaces and 2 vehicle parking inside 1st floor of building Interior Finish Walls: Finished drywall and tile Ceilings: Suspended ceiling tiles Floor Coverings: Tile and commercial carpeting Restrooms: 6 Corridors: Tile 6
2 LOCATION INFORMATION
SECTION 2 LOCATION INFORMATION Location Maps 8
3 FINANCIAL ANALYSIS
SECTION 3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEWVIEW PROFORMA ORMA (FULL YEAR AFTER LEASE UP) Price $10,299,000 Price per SF $188.79 CAP Rate 10.1% Cash-on-Cash Return (yr 1) 24.16 % Total Return (yr 1) $691,597 Debt Coverage Ratio 2.47 OPERATING DATA PROFORMA ORMA (FULL YEAR AFTER LEASE UP) Gross Scheduled Income $1,036,488 Other Income $210,000 Total Scheduled Income $1,246,488 Vacancy Cost $0 Gross Income $1,246,488 Operating Expenses $210,000 Net Operating Income $1,036,488 Pre-Tax Cash Flow $616,181 FINANCING DATA PROFORMA ORMA (FULL YEAR AFTER LEASE UP) Down Payment $2,550,000 Loan Amount $5,950,000 Debt Service $420,307 Debt Service Monthly $35,025 Principal Reduction (yr 1) $75,416 10
SECTION 3 FINANCIAL ANALYSIS Income & Expenses INCOME SUMMARY PROFORMA ORMA (FULL YEAR AFTER LEASE UP) Rental Income @ $19/sq ft NNN $1,036,488 Pass Thru CAM Reimbursables $210,000 GROSS INCOME $1,246,488 EXPENSE SUMMARY PROFORMA ORMA (FULL YEAR AFTER LEASE UP) Maintenance & Repairs $48,000 Insurance $48,000 Property Taxes $96,000 Landscaping/Snow Removal $18,000 GROSS EXPENSES $210,000 NET OPERATING INCOME $1,036,488 11
SECTION 3 FINANCIAL ANALYSIS Floor Plans 12
4 DEMOGRAPHICS
SECTION 4 DEMOGRAPHICS Demographics Report 3 MILES 10 MILES 20 MILES Total households 8,207 24,796 60,968 Total persons per hh 2.6 2.5 2.4 Average hh income $47,609 $52,925 $57,879 Average house value $201,133 $220,295 $256,657 3 MILES 10 MILES 20 MILES Total population 21,039 62,327 143,959 Median age 40.5 42.1 47.2 Median age (male) 38.7 40.5 45.9 Median age (female) 42.8 44.4 48.6 * Demographic data derived from 2010 US Census 14
SECTION 4 DEMOGRAPHICS Demographics Map POPULATION 3 MILES 10 MILES 20 MILES TOTAL POPULATION 21,039 62,327 143,959 MEDIAN AGE 40.5 42.1 47.2 MEDIAN AGE (MALE) 38.7 40.5 45.9 MEDIAN AGE (FEMALE) 42.8 44.4 48.6 HOUSEHOLDS & INCOME 3 MILES 10 MILES 20 MILES TOTAL HOUSEHOLDS 8,207 24,796 60,968 # OF PERSONS PER HH 2.6 2.5 2.4 AVERAGE HH INCOME $47,609 $52,925 $57,879 AVERAGE HOUSE VALUE $201,133 $220,295 $256,657 15
5 ADDITIONAL INFORMATION
SECTION 5 ADDITIONAL INFORMATION Town Of Prescott Valley Information Prescott Valley, AZ Founded: 1966 Incorporated: 1978 Elevation: 5,100 feet (4 mild seasons) Approx. distance to: Phoenix 87 miles Tucson 186 miles Flagstaff 89 miles Ernst A. Love Field Airport 12 miles Phoenix Skyharbor International Airport 95 miles Interstate 17 25 miles Interstate 40 85 miles Town of Prescott Valley Highlights It would be difficult to find a more dynamic community in north-central Arizona than Prescott Valley. Just under 45 years old, Prescott Valley's current population is about 45,500 residents, a 93% increase since the 2000 Census. The quad-city region, comprised of Prescott Valley, Prescott, Chino Valley, and Dewey-Humboldt, is home to approximately 135,000 residents and a workforce of approximately 62,000 people. Over the past five years, more than 1 million square feet of commercial space was added to the Town with national retailers such as Walmart, Dick's Sporting Goods, TJ Maxx and Sprout's Farmer's Market leading the charge. The Town of Prescott Valley is determined to continue creating new opportunities for our present and future residents and businesses while preserving our small-town friendly atmosphere. In recent years the following businesses have made Prescott Valley their home: Lockheed Martin, Ace Hardware Distribution, M&I Home Products, Superior Industries, Prescott Aerospace and Printpak Inc. 17
SECTION 5 ADDITIONAL INFORMATION Yavapai County Information Yavapai County County Economic & Business Climate The heart of Yavapai County's economy is primarily located in Prescott, Prescott Valley and Chino Valley. A diverse array of industries provides employment opportunities. Some of the key industries include a growing healthcare, airspace including an Emory Riddle campus, a variety of educational institutions ranging from pre-k to higher education, financial services/banking, growing presence of national credit retail businesses, real estate, light manufacturing and the ongoing growth in the region's tourism activities. Yavapai County is located in North Central Arizona in the high desert at an elevation of approximately 5,000 ft. The County is 8,091 total sq. miles and has a population of nearly 223,000 as of 2015. About 25% of the County's total land is privately held and the remaining 75% is public land. The Federal government : US Forest Service, US Bureau of Land Management, US Indian Affairs and National Park Service owns 50% of the County's land. The remaining 25% of the County's public land is owned by the State of Arizona as a state land trust. The City of Prescott currently serves as the Yavapai County seat. Since 2000, Yavapai County has experienced a population growth of nearly 33%. In recent years several national publications have ranked Yavapai County/Prescott as one of the most desirable US retirement locations. The influx of new residents has led to an increase in real estate values and demand for housing. 18
SECTION 5 ADDITIONAL INFORMATION Additional Photos 19