ROSS WALGREENS SHOPPING CENTER 234 EAST BELL ROAD | PHOENIX, AZ 85022 FIRST TIME OFFERED FOR SALE

EXCLUSIVELY LISTED BY: JUDI BUTTERWORTH O: 480.750.1215 C: 602.315.2541 [email protected] DISCLAIMER // All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing andJUDI equal BUTTERWORTH opportunity laws. O: 480.750.1215 C: 602.315.2541 ORION Investment Real Estate [email protected] East Stetson Drive | Scottsdale, AZ www.orionprop.com EXECUTIVE SUMMARY

SALE PRICE: $13,880,000 PRICE PER SF: $147.07 CAP RATE: 6.00% LOT SIZE: 7.89 Acres BUILDING SIZE: 94,375 SF YEAR BUILT: 1994-95 ZONING: C-2 PARKING RATIO: 4.00/ 1,000 SF CROSS STREETS: Bell Rd & 3rd St ±48,000 VPD

PROPERTY HISTORY ABOUT THE PROPERTY The Ross Walgreen’s Center was purchased by the current owner while it was under Ross Walgreens Shopping Center offers construction in 1994. The original tenants were CraftMart (local), Ross Dress for Less, great visibility, ingress and egress, Big Lots and Walgreen’s. excellent parking and a huge monument Years later, CraftMart closed all of their stores including this one. Big Lots took the sign. The shopping center has had the former CraftMart space and went from 21,137 sf to 28,500 sf. A consignment store same property management company took the former Big Lots space during the last economic downturn. since it was constructed.

Meanwhile, the entire North Phoenix trade area consistently enjoyed enormous growth in The center is in pristine condition and was both multi-family and single-family residences. partially renovated with new roofs and HVAC To serve this new population, the square footage at 7th Street and Bell Road (2011-12), new landscaping (2015), and a grew to over 1 million square feet, making it one of the few “Power Intersections” in new parking lot (2017). Metropolitan Phoenix: Having more than 1 million square feet of retail without being across from a major mall. Triple net charges are an amazing Big boxes have experienced a resurgence at the intersection and are $3.27 per square foot. quickly filled by even better retailers and tenants. Just in the last 5 years, the intersection has welcomed Sprouts Farmers Market, Tuesday Morning, Planet Fitness, Michael’s, Marshall’s, Hobby Lobby, LA Fitness, WinCo, and Bealls Outlet. Few trade areas have seen a resurgence of popularity like 7th Street and Bell Road. In 2016, Evergreen Development bought a two-story office building and several acres east of the NEC of the intersection. New homes are currently under construction, a new luxury apartment complex was completed, and new retail buildings were fully leased in record time.

Traffic counts in front of the Ross Walgreens Shopping Center are 48,000 vpd, and there are an additional 38,000 vpd going north on 7th Street as well. SUBJECT

SUBJECT NORTH AERIAL MAP

CLICK TO VIEW DRONE VIDEO

±38,000 VPD

BELL ROAD

3RD STREET

±48,000 VPD

BELL ROAD PARCEL MAP NORTH PARCEL #: 208-11-001C, 208-11-001F TAXES (2018): $147,478.42

3RD STREET 208-11-001C 208-11-001F

±48,000 VPD

BELL ROAD TRADE AREA HIGHLIGHTS • This is a very stable trade area which includes post-high school education facilities, primary schools, manufacturing and light-industrial buildings, office buildings and retail buildings contributing to a significant daytime employment figure for a 5 mile radius of 131,843.

• Bell Road is the major east-west arterial in North Phoenix which stretches from Scottsdale to Surprise, Arizona and becomes the Sun Valley Parkway, eventually meeting I-10 in Buckeye, Arizona.

• In this immediate area of Bell Road, shoppers can find a majority of national retailers: Walmart Supercenter, Kohl’s, WinCo Grocers, Sam’s Club along with over 1 million square feet of retail at the intersection.

• This trade area has access to three (3) major freeways. Loop 101 encircles central Phoenix and travels from Tolleson to the Southeast Valley connecting with Interstate 10 which goes to Tucson. Interstate 17 is the major north-south freeway on the westside of the metro area which goes from Flagstaff through Phoenix to the SE Valley and Southern Arizona via I-10. State Route 51, also known as the Piestewa Freeway, connects Interstate 10 just outside Downtown Phoenix with Loop 101 on the north side of Phoenix.

• I-17 has significant national and global businesses located along its corridor like: American Express, PetSmart Corporate, Honeywell, HonorHealth, USAA, Xerox, Discover Card and many more.

• Deer Valley Airport 5 miles to the north and is home to many businesses serving the region.

• The population is dense with 140,347 people in a 3 mile radius to the intersection. There are 2.43 persons per household with a median age of 36.9 years. The average household income in 2 miles is a strong $74,442 based on 2018 US Census Figures. These great demographics support why the vacancy rate at this intersection has been consistently low for years. PHOENIX IS HOT! Phoenix, Arizona (Maricopa County) is the vibrant center of one of the fastest growing job markets in the country. Phoenix is emerging in the new economy with strength in high technology, manufacturing, bioscience research and advanced business services. As a top market for skilled and available workforce, companies are growing in Phoenix because it’s not only a thriving business environment, but a great place to live life. Phoenix is #1 in Entrepreneurial Activity for a reason – Phoenix is Hot!

MAJOR EMPLOYMENT HUB FINANCIAL ANALYSIS

RENT ROLL Square Rate Rate Monthly Annual Percentage Property 2018 Suite Tenant Start Date End Date Breakpoint CAM Insurance CAM Total Next Increase Footage per Month per Year Rent Rent Rent Taxes CAM/SF

220 Ross 27,200 28.8% 09/01/95 01/31/21 $ 0.65 $ 7.75 $ 17,566.67 $ 210,800 2.0% Annual Rent $ 33,334 $ 2,454 $ 42,824 $ 78,612 $ 2.89 at option $11.25 PSF

Options/Notes: One, 5-year Option Remaining; Renewed 3 previous options. 204 Walgreens 17,486 18.5% 07/24/95 08/31/55 $ 1.13 $ 13.50 $ 19,671.75 $ 236,061 2.0%/1.0%/0.5% $262,500 cap $ 20,710 $ 4,764 $ 28,049 $ 53,523 $ 3.06 -

Options/Notes: Seven, 5-year options beginning 9/1/2020. 230 Big Lots! 28,552 30.3% 08/12/94 01/31/22 $ 0.65 $ 7.77 $ 18,481.50 $ 221,778 1.5% $ 13,775,000 $ 31,955 $ 3,754 $ 45,793 $ 81,502 $ 2.85 at option $10.93 PSF

Options/Notes: Two, 5-year Options Remaining; Renewed 3 previous options. Relocated/Upsized within Center in October 2011. 210 Bealls Outlet 21,137 22.4% 03/01/14 01/31/25 $ 0.75 $ 9.00 $ 15,852.75 $ 190,233 $ 3,804,660 $ 26,631 $ 5,790 $ 33,901 $ 66,322 $ 3.14 03/01/22 $10.00 PSF

Options/Notes: Two, 5 Year Options. One time conditional termination right on 08/30/21 with 6 months advance notice and a $50,000 penalty.

Totals 94,375 SF $ 0.76 $ 9.10 $ 71,572.67 $ 858,872 $ 112,630 $ 16,762 $ 150,567 $ 279,959 $ 2.97

INCOME/EXPENSE Current Income

Base Rent $ 858,872 CAM & Insurance Reimbursement $ 279,959 (91%) Total Revenue $ 1,138,831 Estimated Operating Expenses Maintenance Personnel $ 24,460 $0.26 psf Pressure Washing $ 6,640 $0.07 psf Trash Collection $ 200 $0.00 psf Repair and Maintenance $ 8,435 $0.09 psf Signage $ 200 $0.00 psf Parking Lot $ 17,460 $0.19 psf Pest Control $ 576 $0.01 psf Landscaping $ 19,290 $0.20 psf Security $ 5,460 $0.06 psf Fire Protection $ 645 $0.01 psf Electricity $ 10,158 $0.11 psf Water/Sewer $ 13,671 $0.14 psf Management Fees $ 27,600 $0.29 psf Miscellaneous $ 900 $0.01 psf Real Estate Taxes $ 151,734 $1.61 psf Insurance $ 20,955 $0.22 psf Total Operating Expenses $ 308,384 $3.27 psf $ (308,384)

Net Operating Income $ 830,447 6.00% CAP SITE PLAN

3RD STREET

BELL ROAD TENANT PROFILES

WALGREENS (NYSE & : WAG, $118B) ROSS (NASDAQ: ROST, $14B)

Founded in Chicago, Illinois in 1901, The Walgreen Company (or , Inc. is an American chain of off-price department Walgreens) is an American company that operates as the second- stores headquartered in Dublin, California, officially operating largest pharmacy store chain in the behind CVS under the brand name, Ross Dress for Less. It is the largest off- Health. It specializes in filling prescriptions, health and wellness priced retailer in the U.S. There are 1,412 Ross Dress for Less products, health information, and photo services. As of June 28, stores in 37 states, the District of Columbia and , with 2018, Walgreens operates approximately 9,800 drugstores with more on the way. Ross Department Store was first opened in a presence in all 50 states (241 stores in Arizona), the District of San Bruno, California in 1950. In 1982, a group of investors, Columbia, and the U.S. Virgin Islands. including Mervin Morris, founder of the Mervyns chain of department stores, purchased the six existing Ross Department In 2014, Walgreens merged with European-based Alliance Boots Stores in and changed the format to off-price retail to form , Inc., the first global pharmacy- units. Their focus has been toward bringing their customers a led, health and well-being enterprise. Combining Walgreens with constant stream of high quality department and specialty store the Boots pharmacy chain and pharmaceutical distributor Alliance brands at extraordinary savings a.k.a. bargains, while providing Healthcare has created opportunities to bring global beauty an easy, fun and organized shopping experience. brands to Walgreens U.S. customers and offer more value to pharmacy patients through global pharmaceutical supply chains Over the past 30+ years, Ross Stores, Inc. has grown from a and group purchasing. six-store chain into a $12.9 billion, Fortune 500 Company. Ross operates off price businesses in a way that keeps costs The merger also gave Walgreens the opportunity to think in low so they can pass the savings to their customers. With this a new way about their business. During the first phase of this model, they’ve been able to grow and open new stores across transformation, they have made significant progress to bring the country. In fact, their sales growth has outpaced traditional their pharmacy services to more patients, improve the shopping retailers for the past three years. experience in their stores and manage costs across their company. Most recently, they completed their acquisition of more than www.rossstores.com 1,900 Rite Aid drugstores in the U.S., making Walgreens quality health care accessible to more customers and patients. www.walgreens.com TENANT PROFILES

BIG LOTS (NYSE: BIG, $5.3B) BEALLS OUTLET

Headquartered in Columbus, Ohio, Big Lots, Inc. is a Founded in 1915, Bealls Outlet is a privately held company, rich community retailer operating more than 1,400 Big Lots stores in tradition, owned by the founding family and its employees. in 47 states; 34 of those stores are located in the Phoenix Bealls, Inc. is the parent company of Bealls Outlet Stores, Inc. Metro area. From their closeout store roots to their entrance into The retail holding company operates through subsidiaries Bealls discount retailing, their core purpose of helping people save Department Stores, Bealls Outlet, and Burke’s Outlet Stores in money on all kinds of products has stayed the same. a dozen states. The multi-brand retailer has more than 500 department and outlet stores (about 200 are in Florida) located Due to the needs of their customers expanding drastically, they throughout states in the southern and western US, including currently offer an extensive assortment of brand-name items Arizona, California, Georgia, Louisiana, and Texas. There are and quality products, including food, furniture, seasonal items, currently 3 stores in Phoenix. electronics and accessories, home décor, toys, and gifts. Big Customers can find brand name apparel and accessories for Lots supports the communities it serves through the Big Lots the entire family at up to 70% off other stores prices every day. Foundation, a charitable organization focused on four areas of In addition, most stores carry shoes, home furnishings, gifts, need: hunger, housing, healthcare, and education. and toys. Their stores are designed to serve customers of all ages and income levels. They pride themselves in offering great www.biglots.com assortments at great prices every day. Privately-owned Bealls rings ups more than $1 billion in sales annually.

www.beallsoutlet.com DEMOGRAPHICS

2018 POPULATION 335,557 *5 Mile Radius

AVERAGE HOUSEHOLD INCOME $74,442 *2 Mile Radius

MEDIAN AGE 36.9 *3 Mile Radius

2018 SUMMARY (SOURCE: ESRI) TWO MILE THREE MILE FIVE MILE

DAYTIME EMPLOYEES 13,087 46,148 131,843

POPULATION 71,242 140,347 335,557

AVG HOUSEHOLD SIZE 2.39 2.43 2.50

AVG HOUSEHOLD INCOME $74,442 $71,942 $70,537

MEDIAN AGE 37.9 36.9 36.6 ROSS WALGREENS SHOPPING CENTER 234 EAST BELL ROAD | PHOENIX, AZ 85022 FIRST TIME OFFERED FOR SALE

BELL ROAD

EXCLUSIVELY LISTED BY: JUDI BUTTERWORTH O: 480.750.1215 C: 602.315.2541 [email protected]