$6
INVESTMENT OPPORTUNITY
Purchase Price $7,300,000
FOR SALE | 8585 East Hartford Drive, Scottsdale 85260
Colliers International Signature Office Suites 8360 E. Raintree Dr. | Ste 130 Scottsdale, AZ 85260 P: +1 480 596 9000
Contact us: Jim Keeley, SIOR Greg Hopley Dillon Hopley Founding Partner | Scottsdale Executive Vice President Associate +1 480 655 3300 +1 480 655 3333 +1 480 655 3301 [email protected] [email protected] [email protected] Accelerating success. $6
Signature Office Suites 8585 E. Hartford Drive, Scottsdale 85260
Table of Contents
> EXECUTIVE SUMMARY Location ...... 2 Improvements & Environment ...... 2 Investment Highlights ...... 2
> PROPERTY OVERVIEW The Property ...... 3 Construction ...... 3 Tenant Finishes ...... 3 Technology ...... 3 Parking ...... 3 Vehicular Access ...... 3 Freeway Access ...... 3 The Building, The Area and The Region ...... 4 Plat Map ...... 5 Building Outline ...... 6 Floor Plans ...... 7
> FINANCIAL OVERVIEW Financial Overview ...... 8 Capital Improvements Made ...... 8 Income & Expense Summary ...... 9
> TENANT OVERVIEW Partial List of Tenants ...... 10
> AREA OVERVIEW Neighbors and Amenities ...... 11 City of Scottsdale Overview ...... 12 Scottsdale Demographics ...... 13 Phoenix Economic Outlook ...... 14 2030 Report, December 2019 ...... 15 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 Executive Summary
LOCATION Located in the heart of the booming Greater Scottsdale Airpark at the Perimeter Center, this Class “A” one-of-a-kind office building has been a staple in the Perimeter Center for over two decades. Fronting Bell Road and west of Loop 101, this resort-esque complex boasts solid tenants and consistent, competitive rent-flow. Signature Office Suites are five short minutes to the Scottsdale Airport and 25 minutes to Sky Harbor.
OFFICE IMPROVEMENTS & ENVIRONMENT Signature Office Suites offers Class A office space accommodating many occupants. Offices have beautiful views with fully insulated, oversized glass windows with wood blinds and 11’ ceilings featuring LED can lighting. Breakrooms feature granite topped entertainment bar and hardwood cabinets with sink and refrigerator, and private bathrooms feature ceramic tile and wallcoverings. Spectacular desert and mountain views through full height glass, along with a desert oasis courtyard featuring “weeping” water features, and sandstone benches with night lighting, making the outdoors and indoors equally enjoyable.
INVESTMENT HIGHLIGHTS, CLASS “A” FEATURES • Individual signage • Elevator serving second level suites • Soundproofing between suites • Courtyard directory • High speed internet & data via Century Link and Cox • Latest communications technology • Etched glass transom panels • Luxury grade hardware • Drywall ceilings with hardwood moldings • Individual suite temperature controls • Private front doors, no hallways • Soundproof, solid core hardwood doors • Granite counters with hardwood cabinets • Mini-refrigerator and sink • Professional tenants, many long term • 28 Luxury suites • Water features throughout courtyard • Eight foot wooden front doors • Wooden baseboards and crown moldings • Private balcony and patio on 2nd floor suites • Covered parking available
2 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260
Property Overview THE PROPERTY
Signature Office Suites is located along Hartford Drive within Perimeter Cen- ter Business Park. The complex was constructed in 2000 and contains a total of ±27,474 rentable square feet of space (per CoStar). The design and con- struction of the building is state of the art and was recognized in 2001 with the prestigious Gold Nuggest Award and the Orchid Award for design.
GENERAL CONSTRUCTION
The building is designed with the use of masonry block exterior walls with EIFS over metal studs and concrete floor slab over metal deck. The project utilizes 1” insulated reflective vision glass in clear anodized aluminum frames. The roof system consists of 1” thick foam insulation with EPDM membrane covering.
TENANT FINISHES
Signature Office Suites is designed to operate with no tenant improvement costs beyond paint and occasional carpet replacement.
PARKING
Parking for Signature Office Suites is provided by 114 surfance parking spac- es, 46 of which are covered and 4 are handicapped. This represents approxi- mately 4 per 1,000 parking ratio.
VEHICULAR ACCESS Signature Office Suites enjoys two points of vehicular access along Hartford Drive - one to the west of the building, and one to the east of the building.
FREEWAY ACCESS
Signature Office Suites is located approximately two blocks west of the Loop 101 Freeway. This proximity to the freeway allows companies to access the employee pool from all parts of the Phoenix Metropolitan area.
3 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260
PLAT MAP The Signature Office Suites building is located on ±2.13 acres of land with two ingress/egress driveways on Hartford Drive.
Bell Road
4 CAVE CREEK CAREFREE CAREFREE HWY
Y SIGNATUREW OFFICE SUITES SCOTTSDALE K FORP SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 T D N R RD
SA K
E LE A E E R
HAPPY VALLEY RD DA L C P
E TS E PIMA RD K Location Map AV OT A C L SC SURPRISE
BELL RD BELL RD E SUN E AV AV
RD FOUNTAIN LN RD 7TH ST 51ST CITY 67TH ON IELD HILLS TT HF PEORIA AVE SHEA BLVD REEMS PEORIA CO TC LI
NORTHERN AVE PARADISE
E Y H HW AV VALLEY BUS GLENDALE CAMELBACK RD CAMELBACK RD CENTRAL BUCKEYE P H O E N I X MCKELLIPS RD VAN BUREN ST BUCKEYE RD MESA E
E MAIN ST E AV AV
7TH ST TEMPE 51ST AV 7TH 67TH BASELINE RD GOODYEAR BASELINE RD RD
RAL GILBERT RU H RD R RD R CHANDLER RT POWE
QUEEN CREEK RD ELLSWO
QUEEN CREEK RIGGS RD
5 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260
BUILDING OUTLINE
Bell Road Frontage
6 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 FLOOR PLAN - FIRST FLOOR
FLOOR PLAN - SECOND FLOOR
COURTYARD
7 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 Financial Overview Note: Ownership was advised to change the property management and leasing team in 2016. Camidor Property Services, with a stellar reputation, was hired in 2017; the results over the previous thirty six months clearly exhibits the positive outcome of that decision.
Camidor Property Services - Occupancy History
As of Date: SF Occupied Occupancy Monthly Rent Parking Rent Percentage Growth Growth 01/01/2017 21,044 71% $42,830 07/01/2017 25,456 85% $51,654 01/01/2018 28,014 94% $52,258 07/01/2018 28,238 95% $54,649 01/01/2019 29,128 98% $60,264 07/01/2019 29,796 100% $60,760 03/1/2020 28,240 96% $61,277 $545
Monthly rental growth increased as occupancy increased, as well as the increase in rate per square foot. As leases for current tenants are renewed, the rental rates will be increased, which will increase rental growth for the office building. Hence, the 2020 Budget reflects this upside growth, increasing from $61,277 per month to $66,000 per month by year-end 2020.
Moreover, several tenants were not being charged for covered parking. Currently, all new Tenants are being charged for covered parking ($35/per mo/per space). There are 46 covered parking stalls; once all covered stalls are converted to the $35/per mo/per space, parking in- come will increase from $545 per month to $1,610 per month, with an annual income $19,320.
As of March 1, 2020, occupancy is currently at 96%, with two suites on the first floor (105 and 111, 667 sf each) currently available for lease. Capital Improvements Completed
2017-2018 Building Roof Repair $81,613 +/-
2017-2019 Building remodel & im- $129,567 +/- provements
2017-2019 HVAC Repair $81,689 +/-
2020 Parking lot repavement $26,000 +/- (planned)
TOTAL $318,869 +/-
Accelerating success.
8 0.0
SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260
Income & Expense Summary 2017 - 2019 Gross Income 2019 Annual Total 2018 Annual Total 2017 Annual Total Basic Rent $729,652 $641,293 $530,907 Parking Income* $4,970 $1,170 $105 TOTAL $734,622 $642,463 $531,102
*Reserved, covered parking is currently $35/mo. As leases are being renewed, parking charges are being included. Income from parking will increase as leases are converted. Less Operating Expenses 2019 Annual Total 2018 Annual Total 2017 Annual Total Janitorial Supplies & Services $38,062 $36,974 $34,445 Electricity $49,726 $50,275 $51,361 Water & Sewer $5,653 $6,342 $5,480 Trash Removal $3,854 $3,662 $2,507 Management Fees - Basic $28,800 $28,800 $28,800 Locks & Keys $1,422 $3,424 $2,498 Personnel Costs $24,770 $25,021 $23,807 Landscape Maintenance $12,725 $12,375 $13,245 Parking Lot Repair & Maintenance $720 $720 $2,004 Building Repair & Maintenance $14,375 $17,734 $14,355 Roof Repair & Maintenance $0.00 $4,258 $26,859 HVAC Repair & Maintenance $17,157 $18,604 $9,600 Elevator Repair & Maintenance $2,232 $2,161 $2,092 Electrical Repair & Maintenance $2,190 $1,723 $2,943 Plumbing Repair & Maintenance $2,929 $2,242 $2,021 Fire Protection & Security $4,628 $2,656 $2,416 Window Cleaning $2,200 $2,295 $1,650 Pest Control/Exterminating $1,258 $1,279 $1,439 Association Fees $5,992 $5,992 $5,867 Insurance $9,952 $16,315 $20,316 Real Estate Taxes $71,625 $69,085 $67,160 TOTAL $300,272 $311,935 $320,867
Actual 2019 Annual Total 2018 Annual Total 2017 Annual Total Net Operating Income $434,350 $330,528 $210,235 Estimated 2020 Budget
Gross Income Basic Rent $679,668 Parking Income $7,205 Total Income $776,873 Estimated Operating Expenses $296,247 Estimated Net Operating Income $480,626
Purchase Price: $7,300,000 Capitalization Rate: 6.58% (Based on 2020 Budget)
9 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 Partial List of Tenants
EDWARD JONES Financial Planning Services
PRIMERICA Financial Services
SWENSON MD Premier Care
Law Offices of MARCH & MARCH
PLATINUM PREMIER Realty
Accelerating success.
10 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 Neighbors and Amenities
LIFESTLE COMMUNITIES
The Boulders Grayhawk DC Ranch Ironwood Village Desert Highlands McDowell Mountain Ranch Desert Mountain Terravita Gainey Ranch Troon & Troon North
BUSINESS NEIGHBORS
AXON Enterprise Inc. Fender Musical Instruments Corporation Nationwide Insurance Company Pulte Homes Tesla Motors
CHAMPIONSHIP GOLF COURSES Ancala Kierland Golf Club The Boulders Golf Legends Trail Desert Highlands Pinnacle Peak Desert Mountain Troon Estancia Troon North Grayhawl Tournament Player’s Club
FIVE STAR DESTINATION RESORTS
The Boulders Resort and Spa Scottsdale | Curio Collection by Hilton Four Seasons Resort Scottsdale at Troon North Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch Scottsdale Princess Resort The Westin Kierland Resort and Spa
11 City of Scottsdale Overview
CITY OF SCOTTSDALE SCOTTSDALE AIRPARK The city of Scottsdale is located in the northeast portion of the The Scottsdale Airpark is the primary business district in the city of metro Phoenix area. The local population in the city totals more Scottsdale. The Airpark features more than 30 million square feet of than 236,000 residents, and is expanding at a pace of nearly 2 commercial real estate, with nearly 13 million square feet of office percent annually, faster than the state average as a whole. The city space. There is a large concentration of white-collar professional is the seventh largest in Arizona by population, trailing only Phoenix, employees in the Scottsdale Airpark. Discount Tire, which is the world’s Tucson, Mesa, Chandler Gilbert and Glendale. The city is growing at largest tire and wheel retailer, has been headquartered in the Scottsdale an annual rate of approximately 1.4 percent per year, slightly faster Airpark for more than 15 years, and recently purchased the company’s than the statewide pace of expansion. headquarters building, ensuring that the company will maintain a large presence for years to come. Another local company with a headquarters Scottsdale has a diverse economic base and elevated incomes. The in the Scottsdale Airpark is Axon, which was formerly known as Taser city is the premier tourism destination in the Phoenix metro area, International. The company’s headquarters and manufacturing are with high-end resorts such as The Phoenician, The Camelback Inn, operated out of the Scottsdale Airpark, where the company has had a the Four Seasons and the Fairmont Princess. Annual tourism presence for approximately 20 years. volumes top 7 million visitors for the more than 15,000 hotel rooms in the city. The city is home to the Waste Management Phoenix The Scottsdale Airpark is an amenity-rich area, featuring more than 8 Open each winter, which annually sets records for attendance of million square feet of retail space. The Kierland area is a high-end area more than 500,000 for tournament week and the Barrett-Jackson for retailers. The mix of top retailers, 5-star resorts, and upscale Collector Car Auction. restaurants truly make Kierland a luxurious destination. There is over 720,000 square feet of retail space in this neighborhood, featuring the The healthcare industry is a large and growing segment of the local 150,000 square foot lifestyle center called Kierland Commons. economic base. HonorHealth, which is the new name of the Significant retailers in this shopping center include Tommy Bahama, combined Scottsdale Healthcare and John C Lincoln Health Michael Kors, Z Gallerie, Crate and Barrel, and Allen Edmonds. Mastro’s Network, is the largest employer in Scottsdale. The five-hospital Ocean Club is also located in this high-end lifestyle center. organization boasts approximately 10,500 workers, making the company the seventh largest employer in the state of Arizona, immediately behind semiconductor giant Intel. Other prominent healthcare employers in Scottsdale include CVS Caremark’s Corporate Office (2,200 workers) and the world-renowned Mayo Clinic (2,100 workers), which was named by U.S. News and World Report as the top-performing hospital in Arizona.
Financial and insurance companies are also large sources of employment in the city of Scottsdale. The Vanguard Group employs nearly 2,300 workers at a company owned facility in the Scottsdale Airpark, while the Scottsdale Insurance Company has 1,500 workers in the area.
A diverse group of companies has national or regional headquarters in Scottsdale, including Discount Tire, Fender Musical Instruments, Henkel, Medicis Pharmaceutical, and TASER International. These companies, with their established foundations and each with hundreds of employees in the city, will support continued economic activity throughout Scottsdale and the surrounding areas.
Accelerating success.
12 Demographics
Subject Property City of Scottsdale Demographics
Age
19 & Under 20-29 30-39 40-49 50-64 65+ 17.7% 11.2% 11.4% 11.8% 22.5% 25.2%
Income Employment
65.80%
$72,163 $88,753 $99,404 2010 2019 2024 White Collar Employees Management & Sales
Households 20.10%
2019 2024 2000 2010 Blue Collar Employees $202,709 $217,385 $459,288 $475,130 Personal Care/ Service & Food Preparation/ Serving
Population 2019 2024 2010 2016 1990 2000 1970 1980 1951 1960
2,021 10,026 67,841 88,364 130,069 202,709 217,365 241,663 251,227 272,488
13 Phoenix Economic Outlook Greater Phoenix Chamber Report September 25, 2019 https://phoenixchamber.com/events/signature-events/eo2019/
Economic Outlook 2019 highlights economic trends at every level On September 25, the Greater Phoenix Chamber hosted renowned speakers who presented highlights to attendees about what businesses can expect from the global, national, and local economies in the 2019. With more than 750 attendees, Economic Outlook 2019 provided actionable, relevant economic information to help guests understand the economic challenges and opportunities, and how they can harness the state of the economy to grow their business.
Global Economy Molly Wood, host of America Public Media’s Marketplace Tech, brought her daily show to Phoenix. According to Wood, the global economy is shaping people’s daily lives. Large technology companies have transformed the world’s economic systems. From Amazon and Google to Facebook and others, these large companies are influencing every part of our economy and taking it from a goods-oriented economy to what Wood called the “Data Economy.”
The leaders of the digital, data-oriented economy dictate standards that touch every business. Large employers like Amazon set the bar for wages and retail prices. In addition, companies that touch everyone’s lives through artificial intelligence—that includes most items on someone’s smartphone—establish the norms for people sharing personal information with technology. Wood discussed how companies and individuals can prepare for the changes coming to the economy as a direct result of technology growth and change, and how people must be prepared to do the unexpected.
National Economy At the national level, Jim Huntzinger, Executive Vice President and Chief Investment Officer for BOK Financial, set the stage and provided insights on the national economy. According to Huntzinger, the national economy is in a good spot because unemployment, which is 3.9%, is at a historic low. By putting more and more people back to work, the U.S. is strengthening the economy. People who go to work every day contribute to the economy through purchases and their taxes. One way that companies are putting more people to work is by increasing hiring and broadening the hiring pool. Businesses are seeking alternative candidates. By expanding their reach beyond traditional college graduates and seeking individuals who can be trained and are eager to work, companies expand their ability to find talent. The economy is currently growing without too much inflation. Confidence remains high. Businesses and consumers are extremely confident in the U.S. economy. Individuals contribute 70% of the GDP in this country. The recent income tax cuts at the federal level contributed to this confidence and put the U.S. in a more competitive spot in the global marketplace. As companies and individuals continue to have high confidence in the economy, the U.S. economy will continue to support growth and increased employment based on the first two quarters of the year.
Local economy Elliott Pollack, renowned local economist of Elliott D. Pollack & Co, took attendees to the micro level of the economy and discussed economic trends specific to Arizona. Pollack told attendees to expect continued economic growth that is steady and predictable. He said that the economy is finally beyond the great recession of a decade ago. Thanks to the recent tax cuts and continued fiscal stimulus, Pollack said that many could expect 2019 to be a good year. Since consumer confidence is very high, the unemployment rate is incredibly low, and more people are working, businesses are in a very good spot for growth and expansion. When it comes to economic challenges, Pollack told attendees that the biggest challenge for the next year is the more than 7 million job openings. Businesses are growing and expanding faster than the labor market can support. In fact, Arizona is seventh in the nation for job growth. Of all those new Arizona jobs, more than 88% are located in the Greater Phoenix region. Pollack said that the Greater Phoenix region is on track to create more than 60,000 jobs next year. As the economy moves into 2019, Pollack shared that he thinks growth is in the horizon despite the hurdles of the Great Recession and any potential trade issues.
14 DECEMBERTHE GREATER 2019 SCOTTSDALE AIRPARK | 2030 REPORT | DECEMBER 2019
THE GREATER SCOTTSDALE AIRPARK 2030 REPORT
Jim Keeley, SIOR, CCIM Founding Partner Scottsdale Office
LOCATION The “Greater Scottsdale Airpark” Boundaries: NORTH Loop 101 Pima Freeway SOUTH Thunderbird Rd. WEST 64th St. EAST 90th St. - between Raintree & the CAP Canal; 96th St. - between the CAP Canal & Bell Rd. // Pictured Above: Nationwide Insurance building under construction at Hayden Road and Loop 101 ZONING 2030 Report Commercial Office; Light Industrial; Hotel; Commercial Retail; Aviation; Multifamily Our original report for the Scottsdale Airpark began in 1981 and was named the 2010 Report. In that Base Year of 1981, there were 3,320 employees, 1,580,000 square feet of buildings, and 268 companies. SIZE ±3,300 Acres The Scottsdale Airpark has exceeded every recorded prediction since then. Currently, the Airpark has ±44,402,564 SF of Buildings approximately 59,732 employees, 44,402,564 square feet of buildings and 3,283 companies.
CURRENTLY DEVELOPED The Scottsdale Airpark Economy ±3,250 Acres In 2019, we reached the longest economic expansion in U.S. history (10+ years), and, despite the trade war NUMBER OF COMPANIES turmoil, the economy did well and seems poised to continue a steady climb. ±3,283 “Power in the Pause” BUSINESS CATEGORIES Since 2009, we have actually had several small recessions or “pauses” in the economy. Pause 1 in the ±130 (i.e., accountants, auto, publishing, Airpark was 2011, when investors and companies pondering purchases and growing their companies aerospace/defense, light manufacturing, became nervous, fearing a double-dip recession. And tapped the brakes. retail, high tech, healthcare & biotech, business services, hospitality, retail, etc.) Pause 2 occurred in 2015-2016. Economic activity was robust, but the winds of change were blowing. There was a slowdown in industrial production and the Fed hiked rates for the first time in over 10 NUMBER OF EMPLOYEES years in December 2015. Tap the brakes! ±59,732 Pause 3, we are now in the middle of a manufacturing slowdown and lower CEO confidence domestically. The Fed stopped further rate hikes and began cutting rates in June 2019. So now we are NUMBER OF BUILDINGS – 1,204 back to optimism and growth. (including hotels, auto dealerships, all retail) The power of the pause seems to have curtailed possible imbalances in the economy that could have Building Usage Square Feet Percentage led to a recession, thus allowing the U.S. economy to grow modestly and perhaps extend the current Office 12,938,588 29% expansion cycle for several more years. That is what we and our colleagues are seeing. Industrial/Flex 9,241,921 21% 18-Hour City Hangar 910,272 2% The Greater Scottsdale Airpark has become an “18-Hour” City, with a robust and growing job market, Retail 8,527,800 19% 9,000+ apartment units (±9,823,631 sf) and new modern retail and hotel amenities. Hotels 2,960,352 7% The Airpark is now lively all day and into the night, and continues to create an urban character where Apartments 9,823,631 22% one can walk to breweries and restaurants…and even walk their dogs. Total 44,402,564 This is drawing employers, and in turn, attracts job seekers and entrepreneurs.
The Greater Scottsdale Airpark 2030 Report | December 2019 | Colliers International 1 15 THE GREATER SCOTTSDALE AIRPARK | 2030 REPORT | DECEMBER 2019
// Pictured Above: One of Many Cranes/Shutterstock Tech Image/Cavasson Mixed-Use Development (www.cavasson.com) Supply and Demand Company # of Emp* Cluster Office/Warehouse Go Daddy Software, Inc 880 High Tech Mfg & Development We actually need more office/warehouse space; however, due to land Early Warning Services, LLC 660 High Tech Mfg & Development costs, no more will be built. JDA Software, Inc 430 High Tech Mfg & Development Retail Abbott 280 High Tech Mfg & Development Some of the non-functional space built over the last 10 years has been remodeled to fit today’s needs. Some newer boutique space has also Ring 200 High Tech Mfg & Development come online, so retail is in a good spot. Interface, Inc 180 High Tech Mfg & Development Office Stormsource Software, Inc 150 High Tech Mfg & Development This segment has reached the point where new development is needed. Universal Laser Systems, Inc 80 High Tech Mfg & Development The Axis Raintree by Trammell Crow is under construction with ±175,000 sf of new, modern office space at Raintree, just west of Loop Data Mapping solutions, LLC 80 High Tech Mfg & Development 101. Aspen Marketing Services, Inc 100 Media, Publishing & Entertainment Self-Storage GPS Insight, LLC 150 Telecommunications This segment may be out in front of its skis, with nine existing facilities Globalmedia Group, LLC 100 Transportation & Distribution and over ±500,000 sf. There are two currently under construction and Avad LLC 150 Transportation & Distribution three more planned. This supply pipeline is probably going to over-supply the current demand. *These are all estimates Cranes, Cranes, Cranes Cavasson’s 134 acres mixed-use development is under construction, What else happened in 2019? with ±500,000 sf of new office space for Nationwide Insurance • Tesla opened a much larger service center in the Scottsdale Airpark at Company and Choice Hotels at Hayden Road and the Loop 101 Freeway. 8300 E. Raintree Drive. This new 40,000 facility is nearly four times In total, ±800,000 square feet of new office space is coming to what the previous facility was. Go Tesla! the Airpark, which is about 5% of the existing inventory, not an • Optima added two more properties to their existing multi-family overabundance. Watch for more developments in 2020. properties at Scottsdale Road and Greenway-Hayden Parkway. These Investment Market additional 10 story multi-family projects will complement their new 12-story projects built in 2017 and 2018. Rents are still not at 2008 levels and operational costs are higher; • Axon’s new headquarter plans to move to the Salt River-Pima Indian however, average building prices are selling over the 2008 levels due to Community have fallen through, so they remain in the Greater Scottsdale the low interest rates and low CAP rates. Airpark (Perimeter Center). Stay tuned for future announcements! National Commercial Real Estate Predictions for 2020: • Shmoop University Inc. has moved into Scottsdale Airpark. This Silicon Valley ed-tech company, started by a Yahoo founding executive, opened » Interest rates will remain low, possibly dropping lower its Scottsdale offices July 1, 2019. » Downward pressure on CAP rates • Whish Body Products expanded into a ±24,279 sf facility on Greenway- Hayden Loop. » Alternate investment sectors will grow PREDICTIONS FOR 2030 Commercial real estate is still a very good investment – when you can find it. » The Metro Phoenix area will add another 1 million people » Autonomous vehicles will be commonplace Technology Chatter » Your Virtual Assistant will be by your side, “always on” There are over 70 “high-tech” companies in the Airpark that employ » The Scottsdale Airport will be home to 20 electric planes over 4,000 people. Ranging from Go Daddy Software, Inc. (800+) to » The Greater Scottsdale Airpark will have 82,000 employees, 53 million Universal Laser Systems, Inc. (80), the companies are diverse in size and applications. square feet of a variety of office, flex, industrial, medical, retail, multi-family, hotels and car dealership buildings and about 4,100 companies
2 The Greater Scottsdale Airpark 2030 Report | December 2019 | Colliers International 16 THE GREATER SCOTTSDALE AIRPARK | 2030 REPORT | DECEMBER 2019 Major Companies LAND SALES Accolade Healthcare Alliance Defense Fund YEAR # OF LOT SALES SALES VOLUME TOTAL ACRES AVG PRICE/SF APL Container Transportation Services Appogee Physicians 2019 10 $36,830,000 37.30 $25.48 AutoNation Ford 2018 6 $17,274,920 20 $25.50 AXON Barrett-Jackson 2017 5 $28,124,548 26 $24.84 Best Western 2016 4 $13,010,986 9 $33.46 Chase Bank Choice Hotels International, Inc. 2015 131 $77,736,765 82 $21.65 Colliers International 2014 13 $46,716,714 37.57 $24.00 Carlisle Companies Corporate Jets, Inc. 2013 6 $26,558,420 25.36 $24.04 Costco Cox Cable of Scottsdale 2012 4 $10,880,978 15.36 $16.25 Data Mapping Solutions Dillon Precision Industries 2011 3 $4,803,456 8.21 $13.43 Discount Tire Company, Inc. Early Warning Services Earnhardt Cadillac THE GREATER SCOTTSDALE AIRPARK GROWTH - JUNE 1981 - DECEMBER 2019 Electronics for Imaging Fairmont Scottsdale Princess DATE SQUARE FEET VACANCY NUMBER OF EMPLOYEES NUMBER OF BUSINESSES Farmers Insurance Fender Musical Instruments Corporation Jun. 1981 1,580,611 13.9% ±3,320 268 First Fidelity Bank Flow Dynamics, Inc. Jun. 1982 1,720,210 10.1% ±3,680 289 GE Franchised Finance Corporation Jun. 1983 1,900,188 6.1% ±4,038 316 General Mills Go AZ Motorcycles Jan. 1984 2,288,439 10.9% ±4,504 383 Go Daddy Software Jan. 1985 2,683,394 11.8% ±5,345 480 Go Video GPS Insight Jan. 1986 3,673,589 18.7% ±5,861 534 GTCO CalComp Input Technologies Division Jan. 1987 4,419,226 19.4% ±8,661 733 Han Wei Lines Harley-Davidson of Scottsdale Jan. 1988 4,881,979 16.0% ±9,802 957 Home Depot HomeSmart Aug. 1990 5,698,361 14.3% 10,120 943 Hypercom Corporation Aug. 1991 6,170,344 14.2% 10,654 1,082 IKON Ingram Micro Aug. 1992 6,971,986 12.6% 11,345 1,076 Interface, Inc. Nov. 1993 6,977,774 6.7% 13,402 1,237 IO Capital Princess, LLC JDA Software Sep. 1994 7,716,855 3.5% 13,846 1,257 Knowledge Net Sep. 1995 8,920,772 2.3% 14,132 1,332 KYOCERA Solar Lowes Home Improvement Warehouse Dec. 1996 10,114,610 3.1% 17,275 1,477 Mayo Clinic Mercer Advisors, Inc. Dec. 1997 11,685,747 3.2% 19,873 1,624 Meritage Corporation Dec. 1998 13,991,908 4.1% 25,891 1,708 Metris Company MidFirst Bank Dec. 1999 18,443,263 6.0% 30,344 1,807 Mobility Electronics Dec. 2000 19,474,883 7.6% 31,992 1,868 Morgan Stanley Smith Barney, LLC Nationwide Insurance Company Dec. 2001 20,388,981 9.8% 33,015 1,907 Nautilus Insurance Co. Dec. 2002 21,683,303 12.9% 41,265 2,198 North Central University Orion Health Dec. 2003 23,385,523 11.9% 44,815 2,288 Pegasus Solutions Dec. 2004 25,864,351 11.5% 47,218 2,397 Penske Auto Complex Peter Piper Corporate Headquarters Dec. 2005 26,714,351 9.9% 48,634 2,481 Phase 2 Solutions Prudential Insurance Dec. 2006 27,661,351 9.7% 50,450 2,554 Pulte Homes Dec. 2007 33,764,653 12.9% 52,500 2,774 Rental Service Corp. Redirect Health Dec. 2008 34,213,932 15.1% 52,000 2,800 Right Honda and Toyota Dec. 2009 34,736,584 29.0% 48,000 2,576 Russo & Steele Schumacher European, Ltd. (Mercedes-Benz) Dec. 2010 34,757,067 28.8% 48,500 2,580 Scottsdale Area Association of Realtors Scottsdale Prep Academy Dec. 2011 34,766,078 23.0% 49,200 2,601 SonicAir Dec. 2012 39,722,398 18.5% 52,000 2,848 State Farm Insurance Target Dec. 2013 39,781,068 16.0% 53,400 2,900 Tesla Motors The Tech Group / Tech Poulson Dec. 2014 40,101,068 13.0% 54,100 2,950 Trivita Dec. 2015 40,718,394 11.6% 55,260 3,025 Universal Technology Institute (UTI) U.S. Postal Service Dec. 2016 41,251,574 10.3% 56,180 3,075 U-Haul Dec. 2017 42,187,874 10.1% 57,300 3,150 Unison Health Care Universal Laser Systems Dec. 2018 43,887,549 8.5% 59,132 3,233 Van Chevrolet VanGuard Dec. 2019 44,402,564 9.5% 59,732 3,283 Wal-Mart Supercenter Westin Kierland Resort *Using the newest technology (CoStar) we have updated the list of all buildings, including auto dealerships, Costco, Walmart, etc., that we had not included in the past. World at Work
The Greater Scottsdale Airpark 2030 Report | December 2019 | Colliers International 3 17 THE GREATER SCOTTSDALE AIRPARK | 2030 REPORT | DECEMBER 2019
BUILDING SALES TYPE # OF SALES SALES VOLUME TOTAL SF AVG PRICE/SF HIGH/LOW 2019 Office 20 $308,868,000 1,397,576 $233 $376/$103 Industrial 12 $44,017,000 325,620 $174 $285/$145 Retail 4 $ 31,150,000 97,089 $321 $551/$125 Multifamily 5 $428,700,000 1,655,795 $259 $339/$223 TOTAL 41 $812,735,000 3,476,080 2018 Office 22 $ 231,843,037 948,069 $219 $313/$104 Industrial 36 $ 117,260,350 634,581 $179 $220/$116 Jim Keeley SIOR, CCIM Retail 8 $ 55,127,734 324,448 $244 $458/$99 Founding Partner Multifamily 2 $ 91,500,000 409,993 $222 $240/$204 Scottsdale Office TOTAL 68 $495,731,121 2,317,091 [email protected] 2017 Office 23 $168,965,337 812,008 $208 $313/$104 Industrial 41 $129,318,047 1,000,204 $129 $202/$92
Retail 5 $45,512,500 233,280 $195 $353/$170 COLLIERS INTERNATIONAL Multifamily 3 $270,050,000 1,199,312 $225 $326/$192 SCOTTSDALE Total 72 $613,845,884 3,244,804 8360 E. Raintree Dr. | Suite 130 Scottsdale, Arizona 85260 2016 +1 480 596 9000 Office 35 $404,599,070 2,032,707 $199 $258/$112
Industrial 38 $80,386,448 64,229 $125 $300/$64 PHOENIX Retail 16 $271,149,939 1,177,515 $230 $616/$53 2390 E. Camelback Road, Ste 100 Total 89 $756,135,457 3,274,451 Phoenix, Arizona 85016 2015 +1 602 222 5000 Office 24 $178,174,381 919,060 $194 $254/$98 www.colliers.com/arizona Industrial 23 $48,994,677 395,149 $124 $192/$77 Retail 13 $97,120,600 448,244 $217 $767/$132 Total 60 $324,289,658 1,762,453 Jim Keeley, SIOR, CCIM, founded Classic 2014 Real Estate Corporation, now known as Office 30 $69,800,000 555,965 $139 $217/$79 CC Partners, L.L.C., DBA Colliers Industrial 39 $60,000,000 668,488 $114 $257/$52 International, in 1983. The firm conducts
Retail 6 $39,744,000 208,927 $190 $414/$15, the majority of its commercial brokerage business within the Scottsdale Airpark Total 75 $169,544,000 1,433,380 and the Loop 101 Employment Base and 2013 has concluded over 5,500 transactions Office 22 $179,000,800 1,098,164 $163 $312/$97 and $3 billion of business. Industrial 25 $24,194,800 9,000 $101 $149/$58 A special thanks to Colliers International Retail 2 $4,200,000 239,552 $250 N/A brokers for their input and, in particular, Total 49 $207,395,600 1,346,716 to Paul Pritts for the graphic design, Thomas Brophy for research efforts, 2012 Cristina Lenko & Mary Beth Campbell for Office 41 $204,454,653 998,687 $114 $305/$48 their editing expertise, and Jennifer Ford Industrial 28 $50,662,667 553,022 $92 $303/$25 for pulling it all together. Retail 7 $94,522,237 637,434 $148 $350/$101
Total 76 $349,639,557 2,189,143
This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2020. All rights reserved.
18 Signature Office Suites 8585 E Hartford Drive Scottsdale, AZ 85260l
colliers.com/arizona
LOOKING NORTH
LOOKING SOUTH BREAK ROOM
LOOKING EAST COURTYARD EAST ENTRANCE19 FOR SALE 8585 East Hartford Dr Scottsdale, AZ 85255
Contact us:
Jim Keeley, SIOR Founding Partner | Scottsdale +1 480 596 9000 [email protected]
Greg Hopley Executive Vice President +1 480 655 3333 [email protected]
Dillon Hopley Associate +1 480 655 3301 [email protected]
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2020. All rights reserved.
Potential Purchaser shall be responsible for any fee due to the Procuring Broker.
colliers.com/arizona
Colliers International 8360 E Raintree Dr | Suite 130 Scottsdale, AZ 85260 P: 480-596-9000
Accelerating success.
20 SIGNATURE OFFICE SUITES FOR SALE | 8585 East Hartford Drive, Scottsdale AZ 85260 SIGNATURE OFFICE SUITES
±2.13 ±27,474 4 Unique Floorplans 96% PCD Loop 101 Acres square feet 25 Secure Tenants Occupied Scottsdale Directly East per CoStar Zoning of Property
THE BUILDING Signature Office Suites’ personalized design is an attractive draw to quality tenants. Signature Office Suites is undoubtedly a landmark office building, known through the bustling Scottsdale Airpark and the Perimeter Center. THE AREA Scottsdale Airpark boasts some of the most robust growth in Arizona. Totalling approximately 3,300 acres, this sector hosts over 3,500 companies and nearly 60,000 employees. With over 44 million square feet of buildings, this building in the Airpark profits from some of the highest rents across the Valley. The Airport itself provides transit for trade and clientele around the world. In 2019, the runway saw 186,519 operations, making it one of the busiest single-runway airports in the Phoenix Metro area. THE REGION The Phoenix Metro area reinvented itself as one of the healthiest and vibrant markets in the nation in 2019, ranking 4th overall for job growth and home to three of the top 10 “Best Cities for Jobs.” Compared to other primary markets, PMSA’s affordability, labor pool and opportunity appear unmatched. In 2019, Phoenix investment sales topped $7 Billion in 63 transactions and checked off over 31 straight months of positive office absorption. Investors are taking advantage of the massive population growth the PMSA has shown this decade, providing jobs, housing, entertainment and long-term stability.
Looking Southwest 21