3719 n. oracle rd, tucson, az€¦ · along with low cost for doing business. tucson is known for...
TRANSCRIPT
3719 N. Oracle Rd, Tucson, AZ
Affiliated Business Disclosure
CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
Confidentiality Agreement
Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
Disclaimer
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not repre-sent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
© 2019 CBRE, Inc. All Rights Reserved.
INVESTMENT HIGHLIGHTS AREA OVERVIEW PROPERTY OVERVIEW TENANT OVERVIEW FINANCIALS
1 3 4 5 7
N. ORACLE ROAD
TUCSON MALLAnchor Tenants: Dillard’s, Macy’s, Sears, Defy,
Forever 21, Dick’s Sporting Goods 154 Retail Stores
Tucson Auto Mall
N
61,000 VPD
PAG (2012)
N
INVESTMENT SUMMARY OFFERING PRICE OCCUPANCY
2019 NOI
RENT INCREASES
CAP RATE (2019)
LEASE EXPIRATION
TOTAL BUILDING AREA
TOTAL LAND AREA
INVESTMENT HIGHLIGHTS » 100% occupied, corporate NNN Lease with Boot Barn
(NYSE: “Boot”)
» Boot Barn (formerly Western Wearhouse) has been operating in this location since 1985.
» Store sales $1.27 million (2017-Source: Esri)
» Building interior renovated by Boot Barn in 2013.
» Regional Retail Hub - location in the Tucson Mall regional retail hub.
» Store size is Boot Barn’s current prototype size.
100%
1
±14,000*
±20,246 SF*
BOOT BARN / 3719 N. ORACLE ROAD / Tucson, Arizona
$1,750,000
$129,171.85Present–1/31/21:The greater of 2% or CPI on an annual basis.
02-01-21–01/31/26: 3% annual
7.4%
1/31/2026
PARKING SPACES Cross-parking spaces with shopping center.
*according to the Lease.
INVESTMENT HIGHLIGHTS (continued)
2
» Debt-Free – Boot Barn is marketed free and clear of existing financing
» Oracle Road is a state highway that traverses N/S from downtown CBD past Tucson Mall and other retail/office beyond Oro Valley to outskirts of the state
» Close to Interstate-10 from Prince Road, this location is convenient to a wide trade area, including affluent shoppers from Mexico
» Nationally-recognized brand with some 218 stores in 31 states
TEN MILE REGIONAL TRADE AREA DEMOGRAPHICS
2018 Estimated Populatiion 2023 Projected Population
Growth 2018-2023 Projected
2018 Estimated Median Age
2018 Estimated Households
2018 EstimatedAverage HH Income
639,949
659,766
0.61%
36.9
260,195
$65,887
Source: Esri, 2018
Area Overview
3
Tucson Tucson is the second largest metropolitan area in Arizona with over one million residents and serves as an anchor to business located in the Southern Arizona corridor. Tucson offers its community an outstanding quality of life, along with low cost for doing business. Tucson is known for an innovative manufacturing industry in a variety of different sectors such as biotech, aerospace, healthcare, defense, optics, solar, information technology and water. Just 60 miles from the Mexico border with high-capacity border and transportation infrastructure, Tucson is the best option for companies doing business in the United States.
Southern Arizona can be compared to some of the most affordable markets west of the Mississippi which allows Tucson a competitive edge compared to other markets in the west. With Cost of Living Index at 97.1 (source: ACCRA Cost of Living Index, 2014), Tucson locals can enjoy a high-quality lifestyle that is far less expensive than other comparable markets like Las Vegas, Denver and San Diego.
The structure for tax in Arizona allows it to be business-friendly as well as competitive, along with worker’s compensation and unemployment insurance being one of the lowest in the United States. Factors such as decreasing individual tax burden and low flat-rate corporate tax allow Arizona to gain a competitive advantage.
TUCSON TOP EMPLOYERS Rank Employer # of Employees
1
2
3
4
5
6
7
8
9
University of Arizona 13,160
Raytheon Missile Systems 10,625
Banner - University Medical Center
Davis-Monthan Air Force Base 10,630
Freeport-McMoran Copper & Gold
7,060
Tucson Unified School District 6,770
U.S. Customs and Border Protection
6,210
Walmart
5,739
Pima County
5,500
5,530
Source: Arizona COG/MPO Employee Database 2018
Tenant Overview
4
www.bootbarn.com
Boot Barn together with its subsidiaries operates as the nation’s leading retailer of western and work-related footwear, and apparel for the whole family. The now publicly-traded company was founded in 1978 by Ken Meany and has over 218 stores in 31 states. The store carries premium brands like Wrangler, Ariat, Montana Silversmith and many more, holding more than 8,000 styles of jeans, shirts, belts, hats, boots and jewelry.
Ownership:
Employees:
Locations:
Headquarters:
Boot Barn Holdings, Inc, (NYSE: “BOOT”) A Delaware corporation
1,200
218 Stores in 31 states
Irvine, CA
4
Property Overview Location
Site
Land Area
Building Area
Access Zoning
Traffic Counts
Parcel
Boot Barn 3719 N. Oracle RoadTucson, AZ 85705
The property is located on the west side of N. Oracle Road north of Prince Road in the City of Tucson, County of Pima, State of Arizona, in the Northview Shopping Center co-anchored with Peps Boys and Harbor Freight.
The property is approximately 0.46 acres or 20,246* SF of land area.
The property totals approx-imately 14,000* SF of net rentable area. Building built in 1985, renovated in 2013.
Access points include two (2) entrances off Oracle Road and two (2) entrances from Simmons Road.
Per the City of Tucson the site is currently zoned as C-2.
The assessor parcel number is 106-05-143A.
Parcel Map
ORACLE ROAD N
N. Oracle Road.......61,000 vpd
5
W. Prince Road.......38,659 vpd
* according to lease
SIM
MO
NS
ROA
D
DOWNTOWN TUCSON ± 4 MILES ± 4 MILES
N
N. O
RACLE ROAD
W. PRINCE RD
SUBJECT
NOT A PART
± 16,472 SF
NOT A PART OF
NOT A PART OF
SIMMONS RD
OR
AC
LE R
D
NO
T A PA
RT O
F
Nails & More
Northview Shopping Center
6
N
LEASE ABSTRACT
7
TENANT:
PREMISES:
DATE OF LEASE:
COMMENCEMENT DATE:
LEASE EXPIRATION:
RENEWAL OPTIONS:
RENT/YR:
PERMITTED USE:
REAL ESTATE TAXES:
COMMON AREA EXPENSES:
INSURANCE:
UTILITIES:
REPAIRS AND MAINTENANCE:
BOOT BARN
3719 N. Oracle Rd, Tucson, AZ 85705
August 31, 2005
February 1, 2006
January 31, 2026
BUILDING SIZE: 14,000 SF (per the lease - includes under canopy walk areas)
$129,171.85 - Base rent Present–1/31/21: The Rent increases the greater of 2% or CPI on an annual basis. 02/01/21–01/31/26: 3% annual increases
Retail sale of merchandise typical of a Boot Barn store.
$24,717.44 (2018) - for the Premises- paid directly to Pima Country by Boot Barn. Tenant to pay its pro rate share of property taxes for the Center.Tenant to pay its pro-rate share (35%) of Landlord’s cost and Center cost of maintaining the Common Area. 2018 estimated share is $26,111.65. Tenant to maintain commercial general liability of not less than $500,000 for bodily injury or death, no less than $1,000,000 for any one accident and no less than $50,000 for property damage.
Tenant pays direct to utilities
TENANT ASSIGNMENT ANDSUBLETTING: Tenant may, with previous written constant of Landlord sublease or assign this lease.
BOOT BARN / 3719 N. ORACLE ROAD / Tucson, Arizona
Tenant to maintain Premises in good condition and repair
One (1) five (5) year option
