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E X E C U T I V E S U M M A R Y - 1

GLENDALECROSSING

WATC H D RO N E V I D EO

https://vimeo.com/368328462

2 - G l E n d A l E C R o S S I n G

© 2019 CBRE, Inc. All Rights Reserved.

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 acknowledgement 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 represent 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. PMStudio_october2019

Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE.


TABLE OF

CONTENTS

CONTACTS

ONE | Executive Summary

TWO | Property Overview

THREE | Financial Analysis

FOUR | Tenant Overview

FIVE | Location Overview

SIX | Demographics

STEVE JULIUS

602 735 5216 [email protected]

JESSE GOLDSMITH 602 735 5217 [email protected]

CHASE DORSETT602 735 5513 [email protected]


ONE

EXECUTIVE

SUMMARY


EXECUTIVE SUMMARYPROPERTY NAME Glendale Crossing

PROPERTY TYPE Retail Strip Center

PROPERTY ADDRESS 8345 W. Glendale Ave., Glendale, AZ 85305

INTERSECTION SWC Glendale Ave & 83rd Ave.

LIST PRICE $3,027,000

PRICE PER SF $383.80

CAP RATE 6.50%

NOI $196,744

PARCEL 102-03-629

BUILDING SIZE (SF) ±7,887

OCCUPANCY 100%

YEAR BUILT 2002

LOT SIZE (SF) ±57,185

LOT SIZE (ACRES) ±1.31

ZONING SC

LEGAL OWNERSHIP lIon llC


TWO

PROPERTY

OVERVIEW


PROPERTY OVERVIEW

Glendale Crossings is a 100% occupied neighborhood strip retail center in Glendale (Phoenix), Arizona. There are 6 tenants, all on NNN leases with several years of remaining term. Many of these tenants have been in occupancy at this location since the building was con-structed, 17 years ago. It’s an excellent mix of national credit tenants and beloved local businesses.

The location is the southwest corner of 83rd Avenue & Glendale Avenue in the City of Glendale (part of the Phoenix MSA). Sharing the corner is a Walgreens and a McDonald’s, which serve as the ‘anchors’ to the center, bringing additional traffic. Behind the center is a Tots Unlimited Day Care and there is a full-sized Circle K gas/convenience store along 83rd.

There is very limited retail shop-space competition in this trade area. There is only one similar center in all four directions, within about a 1.5-mile radius of the center. Approximately one mile to the west is State Farm Stadium (NFL-Cardinals), Gila River Arena (NHL-Coyotes, and dozens of concerts/special events per year), Westgate Entertainment District, Cabela’s, hotels and a large outlet mall.

The West Valley of metro Phoenix has been getting a lot of attention for its growth. This includes “Catania” just completed in 2017 with 77 homes, and over 150 new homes immediately across the street from Glendale Crossing. Garden Grove is 80% built-out and Positano is putting in streets now (see map on PG 9). This will bring new consumer demand to these already highly successful, thriving businesses.

P R o P E R T Y o V E R V I E W - 9

Not to ScaleSource: ADOT 2018

LA FAMILIA

BELLE’S NAILS

GLE

ND

ALE

AV

E. ::

±22

,998

VPD

1 0 - G l E n d A l E C R o S S I n G

INVESTMENT HIGHLIGHTS

Highlights

100% Leased Stable investment leased to a mix of national and favored local businesses. Corporate little Caesar’s, corporate Subway, Maricopa Ambulance, la Familia Mexican Restaurant, Alesha donuts.

Great Remaining NNN Lease TermsAll leases have 3 years or more remaining. They are all full nnn leases, and all but one have annual increases.

Amazing Tenant History Two tenants have been here for 17 years, since the center was developed (Subway and Belle nails), two have been here for 7 years (little Caesar’s and la Familia), Alesha for 3 years. And although Maricopa Ambulance is new, they have to be here, per their contract with the City of Glendale.

High-Visibility, Full Frontage on GlendaleWith approximately 23,000 vpd and no obstructions, daily drivers can easily see and recognize this center, with easy ingress/egress.Source: AdoT 2018

Growing Residential Area There are 811 new homes either planned or under construction in a 1.25-mile radius, including 2 subdivisions actively underway, directly across the street (Garden Grove 82 homes and Positano 54 homes). This in addition to “Catania”, just completed 77 homes in 2017 within walking distance.

Limited Retail CompetitionIn the surrounding nine intersections, there is only one competing retail center. While there are 2 other shopping centers in this region, one is Westgate with $45+ rents, one is the Target-anchored Peoria Crossing with $30+ rents, and are not considered directly comparable.

Well-Maintained BuildingIn 2019, the exterior of the building was painted and the parking lot was resealed and striped. The center has great, welcoming curb appeal to both tenants and shoppers.

Low Interest Rate MarketToday’s lending rates are near 4.0%, which gives this center great positive cash flow.

P R o P E R T Y o V E R V I E W - 1 1

83R

D AVE.

NORTHERN AVE.

GLENDALE AVE.

91ST AV

E.

8

7

6

5

4

3

21

910

1 District at Zanjero385 Future Condos

Garden Grove by Taylor Morrison82 Future Homes

Positano by K. Hovnanian56 Future Homes

Rovey Farms Estateds43 Future Homes

Orangewood Terrace51 Future Homes

8.24 Acres Owned by RightstarFinancial, based out of PV, AZ

Westgate Village71 Future Homes

Orangewood Ranch43 Future Homes

11

Northern Ridge Estates53 Future Homes

Northern Place27 Future HomesCatania77 Completed Homes in 2017.

811 TOTAL FUTURE HOMES

Westgate Village129 UnitsBuilt 2018

Summerly at Zanjero 344 UnitsBuilt 2019

2

3

4

5

6

8

7

10

9 12

CURRENT & FUTURE HOMES NEARBY

NOT TO SCALEBETHANY HOME RD.

11

13

13

12

GLENDALECROSSING

83R

D AV

E.

NORTHERN AVE.

GLENDALE AVE.

91 ST AV

E.

LIMITED COMPETING RETAIL NEARBY

NOT TO SCALEBETHANY HOME RD.

NORETAIL

NORETAIL

NORETAIL

NORETAIL

NORETAIL

1 2

3

4

1 2 3 4

GLENDALECROSSING

NORETAIL

Park Northern: Class A fashion, restaurant and entertainment center. $35+ rents, not comparable to subject.

Peoria Crossing: Target and Ross-anchored shop-ping center with several pads. Latest shop con-struction achieved $35+ rents, not comparable to subject.

Only 1 center here, next to Walmart Neighbor-hood grocery. Limited visibility, a couple vacant suites, $18 rents, compa-rable to subject.

Westgate: Best in Class entertainment destina-tion with outlet stores, movie theatre, hotels, restaurants and retailers. $45+ rents, not compa-rable to subject.


THREE

FINANCIAL

ANALYSIS

F I n A n C I A l A n A lY S I S - 1 5

PRICING INCOME & ANALYSIS

SUMMARY ACTUALList Price: $3,027,000 Current CAP Rate: 6.50%

Occupancy: 100%

Rentable Square Feet: ±7,887

Price per Square Foot: $383.80

SUMMARY ACTUALGross Revenue

Base Rental Revenue $196,744 $24.95

Reimbursement Revenue $57,970 $7.35

Year End CAM Rec $1,401 $0.18

Total Gross Revenue $256,115 $32.47

Expenses (2019 Budget)

Utilities $7,980 $1.01

Janitorial $1,760 $0.22

Maintenance $17,620 $2.23

Management $7,320 $0.93

Property Taxes $23,191 $2.94

Insurance $1,500 $0.19

Total Operating Expenses $(59,371) $(7.53)

Net Operating Income $196,744 $24.95

You are solely responsible for independently verifying the information in this Memorandum. AnY RElIAnCE on IT IS SolElY AT YoUR oWn RISK.


SUITE TENANT NAME ±SF % OF

SPACEMONTHLY

RENTANNUAL

RENTRENT

PER SFTYPE OF

LEASEEST.

MONTHLY NNN

EST. ANNUAL

NNN

ANNUAL NNN PSF

LEASE BEGIN

LEASE END

INCREASE DATES

INCREASE AMOUNTS

INCREASE

RENT COMMENTS

101 Subway

1,307 16.6% $2,880.89 $34,571 $26.45 NNN $800.54 $9,606 $7.35 6/1/11 8/31/22 Sep-2019 3% $2,967.32 Tenant Since

2002

Sep-2020 3% $3,056.34

Sep-2021 3% $3,148.03

102 Belle Nails 1,295 16.4% $2,374.17 $28,490 $22.00 NNN $793.19 $9,518 $7.35 7/1/15 8/31/25 Jul-2019 $1.00 $2,374.17 Tenant Since

2002

Jul-2020 $1.00 $2,482.08

Jul-2021 $1.00 $2,590.00

Jul-2022 3% $2,667.70

Jul-2023 3% $2,747.56

Jul-2024 3% $2,830.65

103 Little Caesars 1,295 16.4% $2,417.33 $29,008 $22.40 NNN $793.19 $9,518 $7.35 11/12/12 1/31/23 None None NoneCorporate

Lease. Tenant Since 2012

104 Maricopa Ambulance 1,295 16.4% $2,805.83 $33,670 $26.00 NNN $793.19 $9,518 $7.35 3/13/19 5/31/22 Apr-2020 3% $2,890.00Must be at this

location per city contract.

Apr-2021 3% $2,976.71

105La Familia Mexican Rest.

1,295 16.4% $2,771.30 $33,256 $25.68 NNN $793.19 $9,518 $7.35 3/1/17 2/29/24 Mar-2020 3% $2,854.44Tenant Since

2012

Mar-2021 3% $2,940.07

Mar-2022 3% $3,028.27

Mar-2023 3% $3,119.12

106 Alesha Donuts 1,400 17.8% $2,823.33 $33,880 $24.20 NNN $857.50 $10,290 $7.35 1/15/17 6/30/24 Feb-2020 3% $2,908.03Highly Favored

Tenant, Well Known

Feb-2021 3% $2,995.27

Feb-2022 3% $3,085.13

Feb-2023 3% $3,177.68

TOTAL 7,887 100% $16,073 $192,874 $24.46 $4,831 $57,970 $7.35

OCCUPIED 7,887 100%

AVAILABLE 0 0%

RENT ROLL


F I n A n C I A l A n A lY S I S - 1 7

12 MONTH PROJECTION

SUITE TENANT NAME JAN-20 FEB-20 MAR-20 APR-20 MAY-20 JUN-20 JUL-20 AUG-20 SEP-20 OCT-20 NOV-20 DEC-20 TOTAL

101 Subway $2,880.89 $2,880.89 $2,880.89 $2,880.89 $2,880.89 $2,880.89 $2,880.89 $2,880.89 $3,056.34 $3,056.34 $3,056.34 $3,056.34 $35,272.46

102 Belle Nails $2,374.17 $2,374.17 $2,374.17 $2,374.17 $2,374.17 $2,374.17 $2,482.08 $2,482.08 $2,482.08 $2,482.08 $2,482.08 $2,482.08 $29,137.50

103 Little Caesars $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $2,417.33 $29,007.96

104 Maricopa Ambulance $2,805.83 $2,805.83 $2,805.83 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $2,890.00 $34,427.53

105La Familia Mexican Rest.

$2,771.30 $2,771.30 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $2,854.44 $34,086.99

106 Alesha Donuts $2,823.33 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $2,908.03 $34,811.66

TOTAL $196,744.11



FOUR

TENANT

OVERVIEW

T E n A n T o V E R V I E W - 1 9

TENANT OVERVIEW

SUBWAY

WEBSITE www.subway.com Subway is a worldwide restaurant franchise that specializes in made-to-order submarine sandwiches, wraps and salads at more than 44,600 franchised locations serving 7.5 million sandwiches a day. Founded 50 years ago, Subway remains a family-run business providing easy access to vegetables, detailed nutrition, dietary and healthy lifestyle information.

OWNERSHIP Private

NUMBER OF LOCATIONS 44,600

LITTLE CAESARS

WEBSITE www.littlecaesars.comlittle Caesar Enterprises Inc. is the third-largest pizza chain in the United States, behind Pizza Hut and domino’s Pizza. It operates and fran-chises pizza restaurants in the United States and internationally in Asia, the Middle East, Austra-lia, Canada, latin America and the Caribbean. The company was founded in 1959 and is based in detroit, Michigan, headquartered in the Fox Theatre building in downtown.

OWNERSHIP Private

NUMBER OF LOCATIONS 5,463

BELLE NAILS

WEBSITE www.facebook.com/Bellenail-sAZ

Belle nails is a nail salon specializing in acryl-ics, SnS, mani-pedi, gel & waxing.

OWNERSHIP Private

NUMBER OF LOCATIONS 1


TENANT OVERVIEW

MARICOPA AMBULANCE

WEBSITE www.priorityambulance.com/arizona/ Maricopa Ambulance is dedicated to providing

outstanding ambulance services to Maricopa County in Central Arizona. Maricopa Ambu-lance is a regional branch of Priority Ambu-lance, a national ambulance network. They won the City of Glendale contract in early 2019 and have dispatched 13 new ambulances to cover the 9-11 calls. They use this location as a staging point to cut down response times.

OWNERSHIP Private

NUMBER OF LOCATIONS Multiple

EL SABOR DE LA FAMILIA

WEBSITE n/A

Unfussy, family-owned counter serve pro-viding well-known Mexican dishes, includ-ing tacos & burritos.

OWNERSHIP Private


ALESHA DONUTS

WEBSITE www.pr.business/alesha-do-nuts-glendale-arizona Alesha donuts, recognized and voted as one

of the best donut shops in Phoenix metro, is a family-owned and operated, fully licensed and insured business with several years of experi-ence in the industry. They specialize in donuts, bagels, sandwiches and smoothies.

OWNERSHIP Private


E X E C U T I V E S U M M A R Y - 2 1

FIVE

LOCATION

OVERVIEW


WHY WEST VALLEY

Phoenix’s West Valley has achieved tremendous growth over the last several decades. An influx of residents and businesses are helping the region shed its image as a bedroom community, earning its reputation as a great place to live, work and play. Today, approximately one-third of the metro’s population calls the West Valley home, and its population over the next five years is projected to grow at twice the national average. The region’s mix of luxury and affordable housing contributes to a diverse community that attracts both executives and first-time homebuyers. West Valley amenities—including Westgate Entertainment district, University of Phoenix Stadium (home of the Arizona Cardinals), Gila River Arena, five spring training stadiums, and continuously expanding dining options—provide an exceptional quality of life for its residents.

The West Valley’s large talent pool, affordable cost of living and doing business, and availability of land has attracted health care, distribution and advanced manufacturing companies to the region over the last several years. Recent business announcements in the West Valley from Chewy.com, nikola Motor, Huhtamaki, Ball Corporation, Aldi Foods and UPS are bringing thousands of jobs to the area. Additionally, luke Air Force Base, headquartered in the West Valley, is a major economic driver in the region, with an economic impact of $2.2 billion in the state of Arizona. lastly, numerous educational institutions in the West Valley, including Arizona State University West and Grand Canyon University, ensures employers that their future labor needs are met.

Source: CBRE RESEARCH

Northern Ave.

Glendale Ave.

91st A

ve.

83rd

Ave

.

GLENDALECROSSING

QUEEN CREEK RD.

ALM

A S

CHO

OL

RD.

10

10

17

SITE

NOT TO SCALE


Not to ScaleSource: ADOT 2018

GLEN

DA

LE AVE. :: ±22,998 V

PD

83RD AVE. :: ±11,266 VPD

GLENDALECROSSING

Positano by K. Hovnanian56 Future Homes


Westgate Village by K. Hovnanian76 Homes Under Construction

New 2017-construction Catania Development 77 Homes

l o C AT I o n o V E R V I E W - 2 5

SITE PLAN


NOT TO SCALE


SIX

DEMOGRAPHICS

d E M o G R A P H I C S - 2 7

DEMOGRAPHICS

POPULATION 1 MILE 3 MILES 5 MILES

2018 Population - Current Year Estimate 15,243 132,029 390,292

2023 Population - Five Year Projection 16,598 142,347 416,384

2010 Population - Census 13,078 117,188 352,020

2000 Population - Census 8,955 100,750 321,734

2010-2018 Annual Population Growth Rate 1.87% 1.46% 1.26%

2018-2023 Annual Population Growth Rate 1.72% 1.52% 1.30%

HOUSEHOLDS 1 MILE 3 MILES 5 MILES

2018 Households - Current Year Estimate 4,378 39,628 125,164

2023 Households - Five Year Projection 4,736 42,682 133,328

2010 Households - Census 3,859 35,628 114,207

2000 Households - Census 2,651 31,389 107,170

2010-2018 Annual Household Growth Rate 1.54% 1.30% 1.12%

2018-2023 Annual Household Growth Rate 1.58% 1.50% 1.27%

2018 Average Household Size 3.46 3.32 3.10

PLACE OF WORK 1 MILE 3 MILES 5 MILES

2018 Businesses 129 2,190 6,830

2018 Employees 1,292 27,818 82,916

©2019 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Source: Esri


DEMOGRAPHICS

HOUSEHOLD INCOME 1 MILE 3 MILES 5 MILES

2018 Average Household Income $81,395 $60,703 $58,107

2023 Average Household Income $94,973 $71,398 $67,628

2018 Median Household Income $70,505 $49,463 $45,978

2023 Median Household Income $80,194 $55,357 $51,854

2018 Per Capita Income $23,793 $18,361 $18,933

2023 Per Capita Income $27,541 $21,533 $21,946

©2019 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Source: Esri

EDUCATION 1 MILE 3 MILES 5 MILES

2018 Population 25 and over 9,561 77,792 239,246

High School diploma 2,401 20,059 60,388

Bachelor̀ s degree 1,410 7,687 23,643

Graduate or Professional degree 689 3,389 11,318

HOUSING UNITS 1 MILE 3 MILES 5 MILES

2018 Housing Units 4,831 44,932 142,084

2018 Vacant Housing Units 453 5,304 16,920

2018 occupied Housing Units 4,378 39,628 125,164

2018 owner occupied Housing Units 3,038 21,993 71,088

2018 Renter occupied Housing Units 1,340 17,635 54,076

d E M o G R A P H I C S - 2 9


JESSE GOLDSMITH


CHASE DORSETT


STEVE JULIUS


CONTACTS

WATC H D RO N E V I D EOGLENDALECROSSING

https://vimeo.com/368328462

glendale crossing - loopnet › d2 › 0d0qbf_ks92bp1... · company, may have or represent clients...

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