The

CornerOFFERING on MEMORANDUM 4th Avenue 231 East 33rd St. Tucson, AZ 85713

A HARD CORNER DEVELOPMENT OPPORTUNITY IN SOUTHERN TUCSON EXCLUSIVELY LISTED BY

Jon Ibrahim Andy Burnett Austen Oakley Vice President Branch Manager Investment Advisor (520) 310-0703 (520) 495-5235 (520) 310-1645 [email protected] [email protected] [email protected]

Evan Plonis Investment Advisor (602) 603-9767 [email protected] 2200 E Speedway Blvd. | Tucson, AZ 85719 (520) 495-5235 | www.TaylorStAdvisors.com CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is propritary and strictly confidential. It is intended to be reviewed only by the party receving it from Taylor Street Real Estate Advisors and should not be made available to any other persons or entities without the written consent of Taylor Street Real Estate Advisors. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject proprety. The Information contained herein is not a substitute for a thorough due diligence investigation.

Taylor Street Real Estate Advisors has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the proprety, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements therein, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Taylor Street Real Estate Advisors has not verified, and will not verify, any of the information contained herein, nor has Taylor Street Real Estate Advisors conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT JON IBRAHIM OR ANDY BURNETT FOR MORE DETAILS. www.taylorstadvisors.com Table of Contents EXECUTIVE SUMMARY INVESTMENT SUMMARY...... 5 INVESTMENT DRIVERS...... 6 AERIAL OVERVIEW...... 7

PROPERTY DESCRIPTION PROPERTY HIGHLIGHTS...... 8 PARCEL MAP...... 9 CURRENT SITE PLANS...... 10

TUCSON METRO OVERVIEW TUCSON OVERVIEW...... 11 & 12 DEMOGRAPHICS...... 13 EMPLOYMENT...... 14 The Opportunity Price...... $600,000 Terms...... All Cash or New Loan Property...... 231 E 33rd St Address...... 231 E 33rd St | Tucson, AZ 85713 Parcel ID: ...... 118-25-165A ; 118-25-336A Zoning...... SB-1 & SR-2 Land AC...... 0.6211 Square Ft...... 27,055 Price/Sq Ft...... $22.17

OFFERING SUMMARY INTRODUCTION & ASSET HISTORY

The Corner on 4th Avenue development offers prospective investors the opportunity to construct a new multifamily or mixed-use development just South of the hustle and bustle of Downtown Tucson. Located two miles from Hotel Congress, the AC Hotel by Marriot, and Tucson’s major nightlife, 4th Avenue gives buyers over a half-acre of potential multifamily residency and or retail/business space. Surrounded by neighborhood markets and local eateries, 4th Avenue is prime for the value-add investor.

The Corner on 4th Avenue is separated into two parcels; one of which being zoned SB-1, while the other is a mix of SB-1 (19.34%) and SR-2 (80.66%) zoning. Both SB-1 and SR-2 permit single and multifmaily housing, SB-1 height limit is two stories, but has no limit to apartment density.

Current ownership had started plans to develop 23-units, still in the process of being approved by the city. Site Plans are available by request.

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 5 Investment Drivers AEROSPACE & DEFENSE (RAYTHEON/DAVIS MONTHAN AIR FORCE BASE/ ports located on the western coast of the United States and Mexico. These NORTHROP GRUMAN facilities provide Tucson with access to global shipping destinations. The Aerospace & Defense industry is a major component in the region’s economy Southern Arizona sits on one of the most heavily-traveled rail lines in the and Tucson and Southern Arizona enjoy the fifth highest concentration of aero- country, the Union Pacific mainline, which primarily carries trains transport- space and defense employees in the country. ing containers to and from the ports of Los Angeles and Long Beach. Union The region’s aerospace industry presence includes defense and space-related Pacific also owns 26% of Grupo Ferroviario Mexicano (GFM), parent compa- manufacturing, research and development, industrial high-tech fields, assembly, ny of Ferrocarril Mexicano (Ferromex), which operates the railway running distribution, and warehousing. It also includes firms that maintain and rehabilitate from Guaymas into Arizona. the nation’s commercial aircraft fleet. Tucson’s highly concentrated aerospace product and parts manufacturing RENEWABLE MINING TECHNOLOGY (GLOBAL SOLAR/CATERPILLAR/ sector has an 8.35 location quotient (source: economy.com), a ratio calculated HEXAGON) to compare a region’s industrial activity level to the rest of the United States. The location quotient means that Tucson is 8.35 times more concentrated in Recognized globally as a location of choice for solar energy activities, South- the aerospace product and parts manufacturing industry than the average of all ern Arizona’s emerging solar industry promises a bright future. The region metropolitan statistical areas across the country. has valuable resources for technology development, manufacturing and so- EXECUTIVE SUMMARY BIOSCIENCE/DIAGNOSTICS (ACCELERATED DIAGNOSTICS/CRITICAL PATH lar power generation. INSTITUTE) The University of Arizona Science & Technology Park is a 1,345 acre site with nearly 2 million square feet of office, engineering and laboratory space de- With a myriad of academic and technical life sciences programs at the University veloped. Tech Parks Arizona is focused on developing innovation hubs that of Arizona, Arizona State University, and Pima Community College, the Tucson unite industry and research to advance leading-edge technology. One of the region has a young, educated workforce and first-rate training opportunities. Col- key initiatives underway is the Solar Zone at the UA Tech Park. The Solar laboration opportunities are numerous and cutting-edge research facilities pro- Zone is one of the largest multi-technology solar testing and evaluation sites vide a strong draw for companies from startups to well established firms. in the United States. The emerging bioscience industry supports research collaborations, partnership Copper mining has been a major industry for Arizona since the 19th centu- identification, international outreach programs and technical assistance. Strong ry. Sixty percent of the nation’s copper comes from Southern Arizona. The support from groups such as the Bioscience Leadership Council of Southern Ar- copper mined in the region is sold principally outside of the state, bringing izona (BLCSA) and the Arizona Bioindustry Association (AZBio), help drive the money into our economy. Jobs in the mining industry produce higher wages bioscience economy, mobilizing leadership committed to collaboration, results than service sector jobs. Much of the nation’s mining technology research is and economic growth. done in Tucson in association with The University of Arizona. The National Institute of Health (NIH) granted UA researchers over $700 million There are about 24 mining companies throughout Tucson & Southern Arizo- since 2010 – the largest NIH grant recipient in Arizona. na employing approximately 8,500 people. TRANSPORTATION/LOGISTICS (TUCSON INT. AIRPORT/PORTS OF GLOBAL ACCESS/ PACIFIC UNION RR) CORPORATE IMPACT Southern Arizona is a transportation and distribution hub that conveniently con- Sun Corridor Inc. – Sun Corridor Inc.’s role is to coordinate all economic de- nects people and products in today’s competitive global marketplace. The re- velopment activities and programs within the Southern Arizona megaregion gion’s unique geography near the Mexico border and near deep water ports, as under one umbrella. The economic benefits of business expansion and at- well as a strong transportation infrastructure, means excellent access for trade. traction, no matter where physically located, transcend jurisdictional lines. With over 150 transportation and logistics providers, Tucson area businesses can Thus, the primary goal of Sun Corridor Inc. is to facilitate primary (non-retail) serve over 34 million people within a 500-mile radius and over 55 million people job and investment growth in the region. within a 1,000 mile radius. A southwestern location allows Southern Arizona to benefit from the deep-water

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. 6 References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Aerial Overview RAYTHEON EXPANSION IN TUCSON Tucson-based Raytheon Missile Systems has already hiredmost of the 2,000 new workers it planned in a major expansion at the company’s plant complex near the airport. “These new facilities will house many of the 2,000 new employees we’ll be hiring over the next few years - we’ve already hired the majority of them,” Raytheon Missile Systems President Taylor Lawrence told a crowd at a rib- bon-cutting for the first new building attended by Gov. Doug Ducey and oth- er state and local officials. Raytheon, Southern Arizona’s largest private employer, now counts about 11,800 employees spread across the airport and several other facilities in the Tucson area, a spokesman said. As the company christened a new visitor-access center on the north side of its airport complex, an advanced test facility and a multipurpose building for research on classified programs are still under construction and are expected to be completed this year.

PROJECT WILDCAT AT CENTURY PARK DEVELOPMENT Plans for the largest industrial warehouse ever built on spec locally are un- derway at the Port of Tucson. Officials say there is no confirmed user at this time, but rumors are swirling that the 800,000-square-foot warehouse is in- tended to woo a specific distribution center, Amazon, to Tucson. The parcels are in the city’s Ward 4 and on county property. The building would be the second-largest in the Tucson area. The largest, Target’s fulfillment center on the city’s southeast side, is 975,000 square feet. Companies with that size footprint in Arizona include Amazon, Walmart and Target. In a letter written by Rory Juneman from the Lazarus, Silvyn & Bangs law firm to the city’s zon- ing inspector, the development was described as “a warehouse and distribu- tion center to fulfill online retail orders.” The use includes receiving, storing and shipping products, including auto- motive, appliances, electronics and software, grocery and alcohol, office supplies, toys and video games. The letter states the warehouse will handle customer returns, light assembly, 3-D printing and direct product pickup by customers from automated kiosks. “Throughout most of the year, the project is projected to have a maximum of approximately 1,500 employees working onsite at one time. During the peak shopping season (i.e. November through December) the project will have a maximum of 1,900 employees working onsite at one time,” the letter states.

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 7 PROPERTY DESCRIPTION PROPERTY

Property Highlights

• Proximity to Downtown Tucson Nightlife and Restaurants. • Corner Parcel Development Opportunity. • Ample Road Frontage. • Mixed Zoning Allows Residential and Business Dwellings. • Close to I-10, Tucson’s Major Throughway.

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. 8 References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Parcel Map

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 9 CurrentSite Plans PROPERTY DESCRIPTION PROPERTY

(23 units - subject to city approval, available upon request)

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. 10 References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Tucson Economic Drivers TUCSON OVERVIEW

The Tucson Metropolitan Statistical Area (MSA) is in Southern Arizona’s Pima County and is the second largest county in the state of Arizona (9,189 square miles). Current population in Pima County is approximately 1.103 million, with anticipated popula- tion increase to 1.2 million by 2020. Tucson is the second-largest city in Arizona behind Phoenix, which both anchor the Arizona Sun Corridor. The city is located 108 miles (174 km) Southeast of research universities nationwide. Currently, it is estimated that Phoenix, and 60 miles (97 km) north of the U.S.-Mexico border. over 1,200 high-tech cluster companies employ 50,000 people With a diverse cross-section of business spanning across health- in the region, generating annual revenue of $6 billion. care, education, software, defense, world-class travel, tourism, and a growing presence of “clean” manufacturing, the Tucson The natural beauty of the Sonoran Desert makes Tucson a de- region is emerging as a major industrial center in the Southwest. sirable location for residents and businesses alike. Downtown The metro has solidi¬fied itself as a knowledge-based econo- Tucson is a diverse submarket with a rich cultural heritage that my specializing in sectors at an unparalleled level. Aerospace, contains a blend of Native American, Spanish, Mexican and An- defense, healthcare and education have found Tucson home. glo-American influences. Tucson Ranks high nationally in various The clear skies and elevation are prime environments for both categories including: the second best American small city in solar-technology and space research. Tucson is the 33rd largest 2017 (Resonance Consultancy), top 100 best places to live (2016 city and the 59th largest metropolitan area in the United States. U.S. News and World Report), “top 10 city everyone wants to As of 2016, the total Tucson population is 527,586 which has live in” in 2017 (Business Insider), eighth best city for recreation grown 16.8% since 2000. (2018 WalletHub), and one of America’s best cities for global trade (2017 Global Trade). Arizona is ranked 4th in the nation in Aerospace and Defense manufacturing, largely due to Tucson. “Tucson and Southern Arizona enjoy the fifth highest concentration of aerospace and defense employees in the country”, according to Sun Corridor Inc. The city benefits from its major military installations, prom- inent aerospace industries, innovative high-tech companies, and leading medical research. Among these is The University of Arizona, which is currently ranked among the top 20 public

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 11 1.3% POPULATION GROWTH The population in the Tucson Metropolitan Statistical Area (MSA) increased by 1.3% in 2019, bringing the total population to 1,044,675 residents. This growth rate ranked Tucson eighth out of 12 western MSAs.

$51,425 MEDIAN HOUSEHOLD INCOME The current median household income for Tucson is $51,425. Real median household income peaked in 2008 at $53,185 and is now $1,760 (3.31%) lower. From a post peak low of $46,191 in 2013, real median household income for Tucson has now grown by $5,234 (11.33%).

5.2% UNEMPLOYMENT RATE The BLS reported that the unemployment rate for Tucson rose 0.9

PHOENIX METRO OVERVIEW percentage points in March 2020 to 5.2%. For the same month, the metro unemployment rate was 0.3 percentage points lower than the Arizona rate. The unemployment rate in Tucson peaked in November 2009 at 10.0% and is now 4.8 percentage points lower. From a post peak low of 4.2% in July 2018, the unemployment rate has now grown by 1.0 percentage points

1,190 UNITS UNDER CONSTRUCTION Efforts are increasing to keep up with Tucson’s rising population as over 1,000 new units are under construction this year and another 2,619 units in planning.

85,904 UNITS EXISTING INVENTORY Tucson’s current inventory sits at 85,904 units spread across 1,410 properties.

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. 12 References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Demographics Tucson is home to an estimated 1,182,128 res- and continues through Phoenix and Tucson. idents with a projected four year population growth of 6.00% (1,253,015). Population growth Although the economic downturn slowed from 2000 to 2010 exploded by 16.8% across retail sales and construction, the weaker dollar Tucson MSA instilling itself as a regional cen- increased the attractiveness of the Valley to ter for com¬merce, learning, research and foreign tourists and investors. Home sales to in- entertainment. The median age in the met- ternational buyers remain strong and new home ropolitan area is 38.1 years. The 2017 median starts are rising. annual household income in the Tucson metro is $48,676. Nearly year-round sunshine attracts retirees from across the nation further bolster- POPULATION BY OCCUPATION ing the city’s population numbers and inducing Pubic Administration 5.8% demand for both healthcare and entertainment Agriculture, Forestry, Fishing, 0.3% options. The University of Arizona and the high- Hunting Mining, Quarrying, Oil & Gas Ex- 0.5% tech community will continue to support the traction prevalence of college edu¬cated residents. Construction 6.7% Innovation is at the forefront of the Tucson eco- Manufacturing 5.9% nomic development agenda. Forbes has called Wholesale Trade 1.8% it one of America’s Most Innovative Cities, and Retail Trade 12.2% the city has the highest concentration of start- Transportation & Warehousing 3.1% ups of any U.S. city its size. Furthermore, it was ranked as a Top Five City for Entrepreneurs by Utilities 0.5% Entrepreneur Magazine in 2013. Metro Tucson is Information 1.6% a hub for optics and science, while biotech and Finance & Insurance 3.3% other science clusters flourish in the UA Tech Real Estate, Rental, Leasing 2.0% Park, BioPark and Innovation Park. Tourism is a Professiona, Scientific, Technical 5.2% key economic driver as well. Tucson is known Administrative, Support, Waste 6.7% for its world-class health spas such as Canyon Mgt Ranch, more than twenty golf courses, and nu- Educational Services 11.0% merous natural attractions, museums, missions Healthcare & Social Assistance 14.7% and cultural history. Interstate 10, the major Arts, Entertainment, Recreation 2.5% East-West highway in the Sun Belt, runs east from California, enters Arizona near Ehrenberg

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. 13 Employment Greater Tucson enjoys a labor pool made up of academic medicine, research, instruction and pa- more than 461,000 positions in the wake of pop- tient care at three academic medical centers. ulation growth that has led to increased employ- ment, entrepreneurship opportunities, and salary Workers in the Tucson Metropolitan Statistical increases. The region boasts a diverse cross-sec- Area had an average (mean) hourly wage of tion of business sectors including health and ed- $22.89 in May 2018, about 8 percent below the ucation, state and federal government, aerospace nationwide average of $24.98, according to the and defense manufacturing, and hospitality. U.S. Bureau of Labor Statistics. Assistant Com- missioner for Regional Operations Richard Holden Due to the high costs of operating in neighboring noted that, after testing for statistical significance, Western Cities, particularly Southern California, wages in the local area were higher than their businesses continue to flock to Tucson. These em- respective national averages in 2 of the 22 major ployers relocate due to the lower labor, utility, ma- occupational groups: architecture and engineer- terial costs, and a Regional Development Program ing; and food preparation and serving related. which fosters a pro-business climate. Businesses Fourteen groups had significantly lower wages can benefit from a favorable re¬gional and state than their respective national averages, including tax incentive program. legal; management; and life, physical, and social PHOENIX METRO OVERVIEW science. As of 2017, the University of Arizona is the top employer with a work force of 11,251, followed by When compared to the nationwide distribution, Raytheon Missile Sys¬tems, 9,600; the State of local employment was more highly concentrated Arizona, 8,580; Davis-Monthan Air Force Base, in 11 of the 22 occupational groups, including 8,406; Pima County, 7,060; Tucson Unified School office and administrative support; personal District, 6,770; Banner University Healthcare, care and service; and food preparation and 6,272, Freeport-McMoRan Copper & Gold, 5,800; serving related. Conversely, six groups had U.S. Customs and Border Patrol, 5,739; and Wal- employment shares significantly below their Mart, 5,530, while the city’s unemployment rate national representation, including production; was 4.9% that year. Davis-Monthan is home to transportation and material moving; and business the 355th Fighter Wing, part of the Air Combat and financial operations Command. The base is best known as the loca- tion of the Air Force Materiel Command’s 309th Aerospace Maintenance and Regeneration Group, the aircraft boneyard for all excess military and government aircraft. In the world of healthcare, Banner Health and the University of Arizona Health Network merged to create a platform of

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. 14 References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. The Corner on 4th Avenue OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY Jon Ibrahim Vice President (520) 310-0703 [email protected] Andy Burnett Branch Manager (520) 495-5235 [email protected] Austen Oakley Investment Advisor (520) 310-1645 [email protected] Evan Plonis Investment Advisor (602) 603-9767 [email protected]

2200 E Speedway Blvd. | Tucson, AZ 85719 (520) 495-5235 | www.TaylorStAdvisors.com