Chase Bank CLICK FOR

Retail condo within professional office building

Long term lease: Metro Phoenix aerial Video 90k vehicles per day 1601 North 7th Street, Phoenix, AZ 85006 (click for map)

Call for info: Karla Zens Zeb Ripple Chris Kostanecki Chris Peters [email protected] | (415) 274-2714 [email protected] | (415) 274-2702 [email protected] | (415) 274-2701 [email protected] | (415) 274-2703 CA BRE# 01915057 CA BRE# 01002010 CA BRE# 01002010 CA BRE# 01339983

Capital Pacific collaborates. Click here to meet In conjunction with AZ Licensed Broker: Jessica Zahn Gibson, CIA Brokerage Company | 619-863-0840 | [email protected] the rest of our San Francisco team. Quick Facts. Long term lease - situated on one of Phoenix’s most Price $2,885,000 heavily-trafficked arterials. Cap Rate 5.0% The subject property is a condominium interest in a Chase Bank that is located within a professional office building in a dense and well-diversified submarket. For more info on the condo, see Page 6. Primary Term Expires 2030 Options Four 5-year irreplaceable retail location Chase Bank shares the intersection of North 7th and East McDowell with top retailers: McDonald’s, Walgreens & Starbucks RENT increases Every 5 years Just 10 minutes from downtown Phoenix & Phoenix airport. Easy access to Freeways I-10, US-51 & 1-17 (aerial on Page 4) RENTABLE SF 4,714 SF th PRICE PER SF $612.01 Strategic corner location on “going home side” of N. 7 Street Half a mile from the largest hospital in Arizona (Banner Good Samaritan Medical Center) 4 drive-thru automated teller lanes (NAP) & abundant parking (see site plan on Page 9) Year BUILT 1985 RENOVATED 2010 Chase is an A+ Credit tenant JPMorgan Chase & Co. is the largest bank holding company in the US: $2.5 trillion in assets, 5,600 branches: S&P Credit Traffic 90,000 VPD rating A+ 5 mile population 360,000+ Chase invested heavily in this site before their lease commenced in 2010. The timing and scale of their investment Points of Entry Four demonstrates strong commitment to the site (more info on Page 3)

90,000 VPD at intersection Outstanding visibility

Retail condo within professional office building Chase Phoenix | 2 Project Information

chase HAS invested HEAVILY IN THIS site: IN 2010 THEY ACQUIRED ADJACENT PARCEL OF LAND TO CONSTRUCT 4 DRIVE THRU TELLER LANES & ADDITIONAL PARKING When Chase decided to locate a branch at this site in 2010, they acquired 29,660 SF of adjacent land for $1.23M and constructed additional parking and four drive-thru automated teller lanes. Chase continues to own this parcel, and it is not [NAP] included in the offering. Chase also invested in their interior space, which features sustainable design elements such as energy efficient HVAC systems, low VOC coatings/paint and materials with recycled content.

RETAIL CONDO within dynamic Office Building Chase Bank will be sold as a condominium interest within a yELLOW SHADING SHOWs land acquired by chase in 2009 AND multi-tenant office building.For more info on the condo, see REDEVELOPED TO ADD FOUR DRIVE- Page 6. tHRU LANES & PARKING. This parcel The property was formerly a headquarters for Circle K, and is not included in the offering. is arguably over-improved and over-parked. In 2009, Circle K elected not to renew their lease for the subject ground floor retail, which Chase Bank now occupies. The property is attractive and has enjoyed healthy occupancy/rents over the years. It recently sold to new ownership, which is in the process of making aesthetic, maintenance and energy efficiency improvements to further enhance the value of the property.

Chase has INVESTED HEAVILY Demonstrating Four drive thru lanes IN THIS SITE commitment to location owned by Chase (NAP) Chase Phoenix | 3 Outstanding access Prime Retail Location rESIDENTIAL gROWTH market Aerial Just one block from Interstate 10, which has This asset shares the intersection with “best in class” 500+ units of high end multi-family traffic counts of over 250,000 vehicles per day retailers: Walgreens, McDonalds and Starbucks residential planned for immediate area

Phoenix Emerson Elementary Elementary Street th Central Ave.

Kahlsa

Montessori N 7 N 3rd Street School

Drive Thru H&R BLOCK

Summit High School

41,000 DAILY E McDowell Road

Genesis Academy

Summit New World Elementary Educational Center 52,000 DAILY - 5,400 Physicians/Employees - 733 Beds METRO Light Rail

Phoenix Children’s Chorus 253,500 DAILY 10 PAPAGO FREEWAY N 10th Street

Chase Phoenix | 4 CLICK FOR Site H&R BLOCK S treet th 7 aerial Video

Drive Thru

41,000 DAILY E McDowell Road 52,000 DAILY

excellent visibility from Signalized intersection.

90,000+ VEHICLES PER DAY

Chase Phoenix | 5 FAQ Income & Expense Q: Are there annual Condo dues? A: There are no condo dues associated with the retail condominium. Common area maintenance and capital PRICE $2,885,000 improvement costs are levied through annual assessments and are reimbursable to landlord, subject to the Chase lease. Price Per Square Foot: $612.01 Capitalization Rate: 5.00% Q: What expenses is the Chase owner responsible Total Rentable Area (SF): 4,714 for? STABILIZED INCOME Per Square Foot A: The condo declaration follows the Chase lease, which states that the owner of the Chase Bank is responsible for Scheduled Rent $30.80 $145,191 roof and structure (pro rata), and Chase is responsible for Effective Gross Income $30.80 $145,191 other expenses. Reserves for roof and structure have been underwritten in the Income/Expense statement. LESS Per Square Foot

Taxes NNN $0.00 Q: How does Chase pay expenses? Insurance NNN $0.00 Taxes, insurance and common area maintenance expenses owed by Chase are estimated at the beginning of each year, Structural Reserves ($0.20) ($942.80) and reconciled at the end of the year. Chase pays their own Total Operating Expenses ($0.20) ($942.80) utility costs directly. EQUALS NET OPERATING INCOME $144,248

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Chase Phoenix | 6 Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

Current Monthly Yearly Monthly Yearly Tenant Name Sq. Ft. Term Rent Rent Rent Rent/FT Rent/FT Chase 4,714 7/18/2010 7/31/2015 $10,999 $131,992 $2.33 $28.00

8/1/2015* 7/31/2020 $145,191 $12,099 $145,191 $2.57 $30.80

8/1/2020 7/312025 $13,309 $159,710 $2.82 $33.88

8/1/2025 7/31/2030 $14,640 $175,681 $3.11 $37.27

Option 1 8/1/2030 7/31/2035 $16,104 $193,249 $3.42 $40.99

Option 2 8/1/2035 7/31/2040 $17,715 $212,574 $3.76 $45.09

Option 3 8/1/2040 7/31/2045 $19,486 $233,832 $4.13 $49.60

Option 4 8/1/2045 7/31/2050 $21,435 $257,215 $4.55 $54.56

Totals: 4,714 $145,191 $12,099 $145,191 $2.57 $30.80

*Seller to credit buyer the difference between actual rent and increase rent at close of escrow

Chase Phoenix | 7 Chase Bank

S&P Credit Rating About JPmORGAN Chase & Co. A+ With approximately $2.5 trillion in assets, JPMorgan Chase & Co. is the NYSE largest bank holding company in the US. jp mORGAN CHASE & JPM CO. IS RANKED #18 IN NUMBER OF EMPLOYEES Chase has more than 5,600 branches in several states and is among THE FORTUNE 500 245,192 the nation’s top mortgage lenders and credit card issuers (it holds ASSETS some $128 billion in credit card loans). $2.5 TRILLION NUMBER OF BRANCHES Active in 60 countries, it also boasts formidable investment banking 5,600 and asset management operations. The firm’s subsidiaries include the prestigious JPMorgan Private Bank and institutional investment manager JPMorgan Asset Management (with some $2 trillion under supervision). It also owns private equity firm One Equity Partners.

Chase Phoenix | 8 aMPLE pARKING Chase customers have access to 31 exclusive surface stalls and all unreserved Site Plan stalls in 141-stall underground garage (10 of which are exclusive to Chase)

pROJECT BOUNDARIES ALLEY Blue border shows Chase Condo boundary

Red border shows overall project boundary

Site Plan Key

TO U NDE RGR O ND RK IN G PA Chase Rentable SF: 4,714 TO U NDE RGR O ND RK IN G PA 52,000 DAILY Ingress/Egress: CHASE PARKING 7th S treet N CHASE PARKING CHASE PARKING Drive-Thru (NAP)

CHASE PARKING

41,000 DAILY E McDowell Road Photos

Located within attractive office building in thriving midtown Phoenix

Retail condo within professional office building

Chase Phoenix | 10 Surrounding Retail Photos

CLICK FOR

aerial Video

chase shares intersection with Walgreens, McDonalds & Starbucks. Safeway is less than 1 block away.

Chase Phoenix | 11 Regional Map

Chase is located on “going home” Phoenix MSA side of N. 7th Street Location

Just 2 miles from downtown Phoenix & 3.5 miles from Phoenix Sky Harbor International Aiport.

Downtown Phoenix

downtown Phoenix

7th Street

52,000 DAILY About Phoenix & Arizona

about Phoenix Phoenix is the state capital and largest city in Arizona. It is the economic hub of the state, and a major tourisism and recreation destination.

Phoenix Population & Growth Phoenix proper has a population of 1.6 million and is the fifth largest city in the US. The Phoenix metro is glendale the 14th largest metro area by population in the US, with approximately 4.3 million people as of 2010. The Census Bureau estimates that by 2030 the population of the metro area will reach 6.3 million. Scottsdale Phoenix rankings CNN Money: One of the 10 fastest growing cities (2013) Fortune Magazine: Fastest growing cities for Tech Jobs now (2013) mesa Latest News: Arizona expected to add 120,000 Jobs in 2015/2016 read more

Arizona growth forecasts According to Forbes, The Grand Canyon State’s job and economic growth forecasts over the next five years are the best in the US. Population growth through 2017 chandler is expected to be the second fastest in the country. People gravitate towards Arizona for its warm weather and business-friendly climate.

arizona rankings Forbes: #1 Best State for Growth Prospects (2013) CNBC: #2 State based on Workforce (2013) Chase Phoenix | 13 Location & Demos

Latest news: Phoenix Metro Home Sales slated to jump Population 30% in next few months click here to read more 1-Mile 3-Mile 5-Mile 2010 15,553 129,429 350,417 Phoenix, AZ economy 2013 16,461 132,938 360,815 2018 17,985 141,413 384,816 Phoenix has a growing tech sector, ranking 4th in the US for tech salary growth in 2013, according to Fortune Magazine. 2013 Household incomes The manufacturing base of the Phoenix economy is diversified, but particularly 1-Mile 3-Mile 5-Mile strong in aerospace and electronics. Semi-conductor factories such as SUMCO Average $49,037 $45,152 $47,768 Southwest, ON Semiconductor, Microchip Technology and Intel are based in the Median $31,489 $30,866 $32,314 greater Phoenix area. Top 5 Employers in Phoenix Financial service companies, including national banks and insurance companies with large support offices and data centers are located in Phoenix. They are Employer # of Employees* attracted in part by the low occurrence of weather disruptions or earthquakes. State of Arizona 49,800 Banner Health 24,825 The Phoenix metro area has an unemployment rate of 5.6%, compared to the national average of 6.3% (as of December 2014). City of Phoenix 15,100 Wells Fargo 13,308 midtown Phoenix Bank of America 13,300 The Property is located in Midtown Phoenix, a submarket just north of downtown *Approximate and one of the region’s largest employment centers, with nearly 60,000 people employed within a 3 mile radius. JP Morgan Chase is the 10th largest employer There is an estimated 10M+ square feet of office space in Midtown Phoenix. in Phoenix with 10,600 employees Growth is spurred by light rail connectivity between Midtown and downtown Phoenix. * Chase Phoenix | 14 A unique HUMAN The capital pacific experience - our daily commitment to our clients RESULTS-DRIVEN client experience [ www.CapitalPacific.com ]

For more info on this opportunity please contact: Karla Zens Zeb Ripple In conjunction with AZ Licensed Broker: Jessica Zahn Gibson, [email protected] | (415) 274-2714 [email protected] | (415) 274-2702 CIA Brokerage Company | 619-863-0840 | [email protected] CA BRE# 01915057 CA BRE# 01002010 Chris Kostanecki Chris Peters [email protected] | (415) 274-2701 [email protected] | (415) 274-2703 CA BRE# 01002010 CA BRE# 01339983