Phoenix Msa Actual Site Exclusively Marketed By
SINGLE TENANT ABSOLUTE NNN Investment Opportunity
17204 N 67th Avenue | Glendale, Arizona PHOENIX MSA ACTUAL SITE EXCLUSIVELY MARKETED BY
MATTHEW MOUSAVI PATRICK R. LUTHER, CCIM SEAN LIEB ED BEEH Managing Principal Managing Principal Vice President Employing Broker SRS Real Estate Partners-West, LLC SRS Real Estate Partners-West, LLC SRS Real Estate Partners-West, LLC SRS Real Estate Partners-West, LLC [email protected] [email protected] [email protected] D: 949.698.1116 | M: 714.404.8849 D: 949.698.1115 | M: 480.221.4221 D: 602.682.6010 AZ License No. BRO32807000 610 Newport Center Drive, Suite 1500 610 Newport Center Drive, Suite 1500 3131 E Camelback Road Newport Beach, CA 92660 Newport Beach, CA 92660 Phoenix, AZ 85016 AZ License No. BR579712000 CA License No. 01912215 AZ License No. SA651420000
2 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC TABLE OF CONTENTS
INVESTMENT SUMMARY Offering Summary 5 Investment Highlights
PROPERTY OVERVIEW Aerials Site Plan 9 Location Map
AREA OVERVIEW 16 Demographics
FINANCIALS Rent Roll Pricing Summary 21 Brand Profile
3 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY PHOTO
4 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC INVESTMENT SUMMARY
SRS Real Estate Partners is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, freestanding, JABZ Smoke and Vape Superstore investment property located in Glendale, Arizona (Phoenix MSA). The tenant, JABZ, LLC, recently signed a brand new 10-year lease with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features 2% annual rental increases (commencing Year 3) throughout the initial term and option periods, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management-free investment opportunity for a passive investor.
The subject property is strategically located near the signalized, hard corner intersection of W Bell Road and N 67th Avenue, averaging a combined 59,100 vehicles passing by daily. The site is ideally situated adjacent to The Home Depot, a premium, big-box tenant that significantly increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. In addition, JABZ Smoke and Vape is located less than 1.5 miles east of Arrowhead Towne Center, a 1,076,000 square foot super regional center anchored by Macy’s, Dillard’s, Dick’s Sporting Goods, and AMC Theatres. As the leading shopping destination in the West Valley with more than 160 retail, dining, and entertainment options, Arrowhead Towne Center serves one of the fastest-growing trade areas in all of Arizona. W Bell Road is one of the primary retail corridors traveling through Glendale, featuring a variety of other national/credit tenants including Walmart Supercenter, Target, Costco Wholesale, Kohl’s, Sam’s Club, Ross Dress for Less, T.J. Maxx, and more, further increasing consumer traffic to the immediate trade area. Moreover, the asset is surrounded by several apartment complexes including Artessa, Sierra Canyon (236 units), and Jerome (408 units), providing a direct residential consumer base from which to draw. The 5-mile trade area is supported by nearly 320,000 residents and 98,500 daytime employees. Residents within 3 miles of the subject property feature a healthy average household income of $98,000.
5 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY PHOTOS
6 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC OFFERING SUMMARY
OFFERING
Pricing $1,900,000
Net Operating Income $117,800
Cap Rate 6.20%
Guarantor Sanad Investments, LLC
Tenant JABZ, LLC
Lease Type Absolute NNN
Landlord Responsibilities None
Sales Reporting No
PROPERTY SPECIFICATIONS
Rentable Area 6,200 SF
Land Area 0.83 Acres
17204 N. 67th Avenue Property Address Glendale, Arizona 85308
Year Built 2000
Parcel Number 200-44-746A
Ownership Fee Simple (Land & Building)
7 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC INVESTMENT HIGHLIGHTS
Brand New 10-Year Lease | Annual Rental Increases Adjacent to The Home Depot | Arrowhead Towne Center | • JABZ, LLC, recently signed a brand new 10-year lease with 2 (5-year) options Extremely Dense Retail Corridor to extend, demonstrating their commitment to the site • Situated adjacent to The Home Depot, a premium, big-box tenant that • Guarantor: Sanad Investments, LLC significantly increases consumer draw to the immediate trade area and • 2% annual rental increases (commencing Year 3) throughout the initial term promotes crossover store exposure for the site and option periods, steadily growing NOI and hedging against inflation • Located less than 1.5 miles east of Arrowhead Towne Center, a 1,076,000 square foot super regional center anchored by Macy’s, Dillard’s, Dick’s Sporting Absolute NNN | Fee Simple Ownership | Goods, and AMC Theatre Zero Landlord Responsibilities • Arrowhead Towne Center is the leading shopping destination in the West • Tenant pays for CAM, taxes, insurance Valley with more than 160 retail, dining, and entertainment options • No landlord responsibilities • Other nearby national/credit tenants include Walmart Supercenter, Target, • Ideal, management-free investment for a passive investor Costco Wholesale, Kohl’s, Sam’s Club, Ross Dress for Less, T.J. Maxx, and more • Trade area has over 3 million SF of retail development Signalized, Hard Corner Intersection | State Highway 101 | Excellent Visibility Along W Bell Road Direct Residential Consumer Base | • Located near the signalized, hard corner intersection of W Bell Road and N 67th Strong Demographics in 5-Mile Trade Area Avenue, averaging a combined 59,100 vehicles passing by daily • Nearby apartment complexes include Artessa, Sierra Canyon (236 units), and • Situated just 2 miles east of the on/off ramps to State Hwy 101 (155,000 VPD), Jerome (408 units) the primary commuter thoroughfare traveling through Glendale • Provides a direct residential consumer base from which to draw • Excellent visibility via significant street frontage and prominent signage • Nearly 320,000 residents and 98,500 employees support the trade area • Residents within 3 miles of the subject property feature a healthy average household income of $98,000
8 SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY OVERVIEW
Location Parking Glendale, Arizona There are approximately 21 parking spaces on the owned parcel. Maricopa County The parking ratio is approximately 3.38 stalls Phoenix MSA per 1,000 SF of leasable area.
Access Parcel Parcel Number: 200-44-746A N. 67th Ave: 1 Access Point Acres: 0.83 Square Feet: 36,123 SF
Traffic Counts Construction N. 67th Ave: 24,700 Vehicles Per Day W. Bell Rd: 34,400 Vehicles Per Day Year Built: 2000 Agua Fria Fwy/St Hwy 101: 155,000 Vehicles Per Day
Improvements Zoning
There is approximately 6,200 SF C-2: Commercial of existing building area
9 SRS REAL ESTATE PARTNERS-WEST, LLC 34,400 VEHICLES PER DAY BELL RD. 19,900 VEHICLES PER DAY
N. 67TH AVE.
10 SRS REAL ESTATE PARTNERS-WEST, LLC ARROWHEAD CROSSING
34,400 VEHICLES PER DAY
BELL RD.
19,900 VEHICLES PER DAY
N. 67TH AVE.
11 SRS REAL ESTATE PARTNERS-WEST, LLC STATE HIGHWAY 101
MIDWESTERN 114,300 UNIVERSITY VEHICLES PER DAY
ABRAZO ARROWHEAD HOSPITAL DEER VALLEY HIGH SCHOOL ARROWHEAD TOWNE CENTER
ARROWHEAD MARKETPLACE
34,400 VEHICLES PER DAY
W. BELL RD.
PEORIA SPORTS COMPLEX N. 67TH AVE. 67TH N.
ARROWHEAD CROSSING ARIZONA CHRISTIAN UNIVERSITY 24,700 VEHICLES PER DAY
12 SRS REAL ESTATE PARTNERS-WEST, LLC ANDREW LAWSON M.C., LMFT, LISAC 24,700 VEHICLES PER DAY ANNE L. CONSER, LCSW N. 67TH AVE.
13 SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY PHOTO
14 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC LOCATION MAP
GLENDALE
2020 ESTIMATED POPULATION 1 Mile 11,082 3 Miles 116,050 5 Miles 319,697 PHOENIX 2020 AVERAGE HOUSEHOLD INCOME 34 min | 17 miles 1 Mile $93,422 3 Miles $98,343 5 Miles $86,084 2020 ESTIMATED TOTAL EMPLOYEES 1 Mile 6,048 3 Miles 52,148 5 Miles 98,564
15 SRS REAL ESTATE PARTNERS-WEST, LLC AREA OVERVIEW
GLENDALE, ARIZONA
The City of Glendale is the 7th largest city in Arizona with a population of 248,267 as of July 1, 2020. Located in the northwesten1 part of the metropolitan Phoenix area and occupying approximately 59 square miles of land, the City is home to the Arizona Cardinals and the Arizona Coyotes. The City is also the owner of Can1elback Ranch, the spring training facility for the Los Angeles Dodgers and the Chicago White Sox.
The Business attraction is focused on five targeted industries: aerospace & Defense, manufacturing, signature retail and entertainment, medical technology and advanced business services. In 2015 the City successfully hosted the 2015 Pro Bowl and Super Bowl XLIX which was reported by the Arizona State University WP Carey School of Business had a major economic impact on Arizona. Healthcare is expected to be one of the fastest growing occupations in Glendale over the next five years. One out of every seven new jobs created will be in healthcare occupations. Glendale provides access to a workforce of 1.43 million within a 30-minute commute.
The city has four focus areas, which include Loop 101 Corridor, the Downtown City Center, North Glendale, and the Loop 303 Corridor. All areas offer unique opportunities for business development. Located in North Glendale is the Talavi Business Park, a 67-acre class-A office complex of nationally known companies. This fast growing trade area continues to offer successful opportunities for new retail and office development.
Glendale’s three hospitals are strategically located throughout the city, employing 4,100 people. The hospitals are owned by major healthcare organizations including Dignity Health, Banner Health and Abrazo. Midwestern University is Arizona’s first largest medical school and home to the state’s first Veterinary school, one of only five in the Western US. Glendale’s top 5 employers are: Luke Air Force Base, Banner Health System, Glendale Community College, Arrowhead Hospital, & CSAA/AAA Insurance.
16 SRS REAL ESTATE PARTNERS-WEST, LLC AREA OVERVIEW
PHOENIX, ARIZONA
Phoenix, the capital of Arizona and seat of Maricopa County, is the 5th largest city in the state. It is located in the center of Arizona, on the Salt River. This metropolitan area also includes the cities of Mesa, Glendale, Tempe, Scottsdale, Chandler, Peoria, Goodyear, Tolleson, El Mirage, Surprise, Litchfield Park and Avondale; the towns of Buckeye and Gilbert; and all unincorporated areas of the County. The City of Phoenix is the largest city in Arizona with a population of 1,628,812 as of July 1, 2020. The city takes up more than 500 square miles, geographically exceeding Los Angeles. Phoenix is situated 1,117 feet above sea level in the semi-arid Salt River Valley. The area is widely known for its mild winters, having over 300 days of sunshine a year, a variety of outdoor recreation activities, and its proximity to the Grand Canyon National Park.
Phoenix is home to Arizona State University and numerous high-tech and telecommunications companies that have recently relocated to the area. Due to the warm climate in winter, Phoenix also benefits greatly from seasonal tourism and recreation, especially in the golfing industry. The military has a significant presence in Phoenix with Luke Air Force Base located in the western suburbs. Foreign governments have established 30 consular offices and eleven active foreign chambers of commerce and trade associations in the city as well. Located in Downtown Phoenix, Scottsdale and other surrounding areas are a large array of cultural activities, including the Phoenix Symphony Hall, Phoenix Art Museum, and Center for Creative Photography, Heard Museum and the Pueblo Grande Museum and Cultural Park. Phoenix is a commercial and manufacturing center in an agricultural region. Major industries include government, agricultural products, aerospace technology, electronics, air-conditioning, leather goods, and Indian arts and crafts. Mining, timbering, and tourism also contribute to the economy.
17 SRS REAL ESTATE PARTNERS-WEST, LLC AREA OVERVIEW
2019 GDP Population by age (Maricopa County): 32% 0-19 $19,900,834 60% 20-64 Up 1.5% YOY 08% 65+
Industrial Market Industrial Market 2020 Vacancy Rate Inventory Major Employers: Employer Employees Median Home Value: 7.9% 362M SF 1. State of Arizona 37,655 2. Banner Health 36,213 $269,175 3. Wal-Mart Stores Inc. 33,814 Up 8% since 2019 4. Wells Fargo 15,062 5. City of Phoenix 13,894 6. Arizona State University 13,480 7. Raytheon Missile Systems 12,000 Optimal Location for 8. HonorHealth 11,308 6th Most Distribution to 9. Dignity Health Arizona 11,206 Populous City Significant Markets in the US including California and Mexico 1,703,080 Residents Phoenix MSA Population has Population increased by 4,948,203 17.81% Inc. 2018 2019 Since 2010 Phoenix Ranked #1 Best Place to Start a Business
18 SRS REAL ESTATE PARTNERS-WEST, LLC AREA OVERVIEW
Talking Stick Resort Arena State Farm Stadium Chase Field Home stadium of the Phoenix Suns NBA team Home stadium of the Arizona Cardinals NFL team Home of the Arizona Diamondbacks MLB team
Gila River Arena Cactus League Sun Devil Stadium (ASU) Home of the Arizona Coyotes NHL ice hockey team The Phoenix area is host to MLB spring training Sun Devil Athletics boasts a robust roster of NCAA
19 SRS REAL ESTATE PARTNERS-WEST, LLC AREA DEMOGRAPHICS
1 MILE 3 MILES 5 MILES POPULATION 2020 Estimated Population 11,082 116,050 319,697 2025 Projected Population 12,193 121,873 334,462 2010 Census Population 10,403 109,059 297,031 Projected Annual Growth 2020 to 2025 1.93% 0.98% 0.91% Historical Annual Growth 2010 to 2020 0.63% 0.63% 0.70% HOUSEHOLDS & GROWTH 2020 Estimated Households 4,318 44,435 124,513 2025 Projected Households 4,769 46,689 130,150 2010 Census Households 4,027 41,702 115,803 Projected Annual Growth 2020 to 2025 2.01% 0.99% 0.89% Historical Annual Growth 2010 to 2020 0.69% 0.64% 0.70% RACE & ETHNICITY 2020 Estimated White 88.34% 84.32% 85.31% 2020 Estimated Black or African American 2.82% 3.86% 4.05% 2020 Estimated Asian or Pacific Islander 4.37% 5.93% 4.37% 2020 Estimated American Indian or Native Alaskan 0.81% 0.98% 1.23% 2020 Estimated Other Races 5.67% 4.97% 7.13% 2020 Estimated Hispanic 15.63% 15.53% 19.18% INCOME 2020 Estimated Average Household Income $93,422 $98,343 $86,084 2020 Estimated Median Household Income $69,928 $79,107 $67,008 2020 Estimated Per Capita Income $36,383 $37,687 $33,572 DAYTIME POPULATION 2020 Estimated Total Businesses 572 3,875 7,812 2020 Estimated Total Employees 6,048 52,148 98,564
20 SRS REAL ESTATE PARTNERS-WEST, LLC RENT ROLL
LEASE TERM RENTAL RATES SQUARE LEASE LEASE RECOVERY TENANT NAME BEGIN INCREASE MONTHLY PSF ANNUALLY PSF OPTIONS FEET START END TYPE
JABZ, LLC 6,200 2/1/2021 1/31/2031 Current - $9,817 $1.58 $117,800 $19.00 Absolute NNN 2 (5-Year)
(Est.) (Est.) 2/1/2023 2% $10,013 $1.62 $120,156 $19.38
2/1/2024 2% $10,213 $1.65 $122,559 $19.77
2% Annual Rental Increases Throughout Initial Term & Options
FINANCIAL INFORMATION
Price $1,900,000
Net Operating Income $117,800
Cap Rate 6.20%
Lease Type Absolute NNN
PROPERTY SPECIFICATIONS
Year Built 2000
Rentable Area 6,200 SF Land Area 0.83 Acres For financing options and loan quotes: 17204 N. 67th Avenue Address Please contact our SRS Debt & Equity team at [email protected] Glendale, Arizona 85308
21 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC BRAND PROFILE
JABZ SMOKE AND VAPE SUPERSTORE
Company Type: Private Locations: 1
Arizona’s biggest and best smoke and vape super store with the largest glass selection and best customer service you can’t find anywhere else from zong to roor and more, we have what you need: glass, vape, cigar.
22 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC THE EXCLUSIVE NET LEASE CAPITAL MARKETS TEAM OF SRS REAL ESTATE PARTNERS
275+ 25+ #1 1.7K+ 500+ $1.9B
RETAIL OFFICES LARGEST REAL ESTATE RETAIL NET LEASE NET LEASE PROFESSIONALS SERVICES FIRM TRANSACTIONS PROPERTIES SOLD TRANSACTION VALUE in North America company-wide in 2020 in 2020 exclusively dedicated in 2020 to retail
This document has been prepared by SRS Real Estate Partners (SRS) and has been approved for distribution by all necessary parties. Although effort has been made to provide accurate information, SRS and those represented by SRS make no guarantees, warranties, or representations as to the completeness of the materials presented herein or in any other written or oral communications transmitted or made available. Documents may have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither SRS or those represented by SRS represent that this document is all inclusive or contains all of the information you may require. Any financial projections and/or conclusions presented herein are provided strictly for reference and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in economic performance, local market conditions, economic and demographic statistics, or further business activities since the date of preparation of this document. Recipients of this document are urged to undertake their own independent evaluation of the subject and/or asset(s) being shared in this document.
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