OfferingOffering Memorandum Memorandum > Owner-User/Redevelopment > For Sale > Investment Opportunity
1144 E. McDowell Rd. PHOENIX, ARIZONA 85006
PRESENTED BY COLLIERS INTERNATIONAL Philip Wurth, CCIM 8360 E. Raintree Dr. Suite 130 Executive Vice President Scottsdale, AZ 85260 480 655 3310 480 596 9000 [email protected] www.colliers.com/greaterphoenix TABLEOffering OF CONTENTS Memorandum > For Sale > Investment Opportunity
1 2 3 4 5 INVESTMENT PROPERTY FINANCIAL LOCATION DEMOGRAPHICS SUMMARY INFORMATION ANALYSIS OVERVIEW
PROJECT OVERVIEW LOCATION & AMENITIES OPERATING COSTS & AERIAL MAP CITY OF PHOENIX INVESTMENT HIGHLIGHTS SITE PLAN RENT ROLL PROJECT PHOTOS DEMOGRAPHICS FLOOR PLANS
PRESENTED BY Philip Wurth, CCIM Executive Vice President 480 655 3310 [email protected] Offering Memorandum > For Sale > Investment Opportunity 1144 E. McDOWELL RD. | PHOENIX, AZ
1 INVESTMENT SUMMARY Offering Memorandum > For Sale > Investment Opportunity INVESTMENT SUMMARY>Project Overview 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
PRICE Overview $2,395,000.00 $82.34 | SF Colliers International is pleased to be retained as the exclusive advisor for the marketing and sale of 1144 E. McDowell Road, an approximately 29,088 square foot medical/professional office building in Phoenix, Arizona. Constructed in BUILDING SIZE 1984, the property was partially renovated in 2016. ±29,088 SF THE OPPORTUNITY 1144 E. McDowell Road sits across the street from Banner-University Medical Center; an ideal location for physicians LAND SIZE with privileges at the hospital. The four-story building includes a built-out basement and covered parking under the second floor. Employees and visitors will enjoy the building’s central location, only two miles away from the mini stack, 1.21 AC the busiest freeway interchange in Arizona, offering quick access to I-10, I-17 and SR 51. The property is located within the Miracle Mile revitalization area on McDowell Road from Seventy Street to State Route 51. Considered the northern bookend of Greater Downtown Phoenix, McDowell Road functions as a major artery between Downtown and Valley YEAR BUILT/REFURBISHED freeways, Banner - University Medical Center Phoenix and to the Coronado and Garfield historic neighborhood districts. 1984 - Partially renovated 2016
PARKING 4.08/1,000 Covered/Reserved Available
ZONING C-2 A unique opportunity to City of Phoenix purchase property on McDowell Road, a major TAX ASSESSOR PARCEL NUMBERS East-West arterial road 117-25-119, 117-25-120, running parallel to I-10. 117-25-121, 117-25-122, 117-25-123, 117-25-124, 117-25-126, 117-25-128 INVESTMENTOffering Memorandum SUMMARY > For Sale > Investment>Investment Opportunity Highlights 1144 E. McDOWELL RD. • PHOENIX, ARIZONA Investment Highlights
• Distinctive architecture features concrete block construction and floor-to- ceiling windows throughout the building • Renovated first floor with new flooring and a large contemporary art sculpture • Gated garage offers secure, covered, reserved parking • Highly-visible Building at the signalized intersection of 12th St. and McDowell Road • Excellent building signage facing McDowell Road • Across the street from Banner-University Medical Center Phoenix • Existing building was designed by a physician to accommodate medical offices • The METRO light rail system and station on Central Avenue are 1.5 miles away from the property, offering access to 26+ miles of transit service from NW Phoenix to downtown Mesa • More than 430,000 Phoenicians reside within five miles of the property - providing a significant pool of potential patients and employees Offering Memorandum > For Sale > Investment Opportunity 1144 E. McDOWELL RD. | PHOENIX, AZ
2 PROPERTY INFORMATION BARTLETT DESERT HILLS DR MORRI STOWN HWY N CAVE TO JOY RANCH RD VE CREEK RD CA
E CREEK E ARLING NEW RIVER RD CLOUD RD OM D 7TH AV 7TH ST T CAREFREE HWY 19TH AV 16TH ST 24TH ST 32ND ST E E
203RD AV HAYDEN RHODES AQUEDUCT LONE MOUNTAIN RD 163RD AV DIXILETA DR TONTO NATIONAL FOREST EEK RD R C DYNAMITE BLVD RIO VERDE DR RD VE ST PATTON RD CA GRAND AVE 64TH ST JOMAX RD FORE VD ALE RD
AKE PLEASANT RD D HAPPY VALLEY RD L HAPPY VALLEY RD TS OT E E TA TUM BL PIMA RD PINNACLE PEAK RD SC PINNACLE PEAK RD T AV L RD
DEER VALLEY RD WEL 91S 195TH AV DEER VALLEY RD
THOMPSON PEAK PKWY PIMA FWY T MCDO SURPRISE BEARDSLEY RD AGUA FRIA FWY FOR VD
AIN RD E E E E E E
E SCS OTTSDALE
UNION HILLS DR AV
L MOUNT T AV
WEL
SUN VALLEY PKWY 35TH 7TH AV 7TH ST 16TH ST 32ND ST 40TH ST TA TUM BL 56TH ST 64TH ST 115TH AV 59TH AV BELL RD 51S 43RD AV 19TH AV BELL RD GREENWAY PKWY MCDO SUNU GREENWAY RD GREENWAY RD FRANK LLO THUNDERBIRD RD ELL MIRAAGEE CITTY THUNDERBIRD RD YD WRIGHT BL
FWY
N
O VE CREEK RD CACTUS RD CACTUS RD CA VIA LINDA YDEN RD K CANY VD FOUNTOUNTAAIN
AC YOOUNGU GTOWNN PEEORIAR PEORIA AVE SHEA BLVD HA 104TH ST 124TH ST
BL ON LN. HILHI LLS
TT Offering Memorandum > For Sale > Investment Opportunity DOUBLETREE RANCH RD OLIVE AVE CO REEMS RD PROPERTY INFORMATION>LocationDUNLAP AVE & Amenities HA YDEN RHODE S A NORTHERN AVE 1144 E. McDOWELL RD. • PHOENIX, ARIZONA GLENDL N AALE NORTHERN AVE PARADISED VIA DE QUEDUCT E VENTURA
GE RD GLENDALE AVE VALLEYE INDIAN BEND RD AL AV BUSH HWY The Location LINCOLN DR CHFIELD RD
SART RD GRAND AVE BETHANY HOME RD MCDONALD DR Y SARIV LIT McDOWELLDY EL MIRA ROAD
Major East-West arterial runs parallel to Interstate 10 Y AK FW CAMELBACK RD CAMELBACK RD CHAPARRAL RD BEELINE HWY LITCHFIELDI D PE CAMELBACK RD AW PIMA FW S RD
INDIAN SCHOOL RD SQU PARK ARTS INDIAN SCHOOL RD OL RD SA DR CKER RD WE Close to the Phoenix Art Museum and the Heard Museum on Central Avenue E E ALE E E E E E E E E D E ME RE POWER RD HA THOMAS RD Y PASS RD TS THOMAS RD CREEK PKWY THOMAS RD T AV T AV BSON RD YDEN RD OT PLE SER P 43RD AV U 35TH AV 115TH AV 107TH AV 99TH AV 91S 83TH AV 75TH AV 67TH AV 59TH AV 51S PE BANNER-UNIVERSITY ALMA SC HO MCDOWELL RD MCDOWELL RD 24TH ST 32ND ST 40TH ST 44TH ST 56TH ST 64TH ST SC HA PIMA RD DO MCDOWELL RD OD DR PAPAGO FWY MEDICAL CENTER PHOENIX RED MT FWY GALVIN One of the largest nonprofit hospital systems in the country VAN BUREN ST PKWY MCKELLIPS RD GOODO YEAREARR VAN BUREN ST IRONWO CURRY RD LOST DUTCHMAN BLVD YUMA RD BUCKEYE AVONDOMINI-STACKDAALE BUCKEYE RD UB DR BROWN RD
Convenient access to the busiest freeway interchangeTOLLL inESE ArizonaSONN MARICOPA FWY Y CL PKWY Immediate access to I-10, I-17 and SR 51 LOWER BUCKEYE RD MEM SAA SUPERSTITION BLVD
LA APAPPAACHEH JJUNCTIONC O
UNIVERSITY DR CRISMON RD MAIN ST APACHE TR TREL DR
E APACHE BLVD OLD WE ES E
COUNTR BROADWAY RD BROADWAY RD TA T RD SKY HARBOR INTERNATIONAL AIRPORT BROADWAY RD Y RD L AV ST HWY ARD AV 5 minute drive SA DR APLEY DR
MIL TEEMPPE
AL VIS SOUTHERN AVE
BULL SOUTHERN AVE V SOSSAMAN RD GREENFIELD RD HIGLEY RD ME ST GILBER LINDSA SOUTHERN AVE E SUPERSTITION FWY E E E E E E ARIZONA STATE UNIVERSITYBASELINE RD E 10 minute drive to Tempe main campus BASELINE RD TE RD WK RD T AV AHO RD JA CKRABBIT TR INDIAN5 minute SPRINGS drive to Downtown RD Phoenix campus
BELOAT RD ID CENTRAL AV 59TH AV 51S 7TH AV 7TH ST 16TH ST 19TH AV 43RD AV 35TH AV 27TH AV DOBBINS RD 48TH ST GUADALUPE RD GILBERG B RT AIN VIEW MERIDIAN RD OMAHA GOLDFIELD RD T
GUADALUPE DR ELLIOT RD TRANSIT ELLIOT RD ELLIOT RD Y SIGNAL BUT ST Bus station borders the property MOUNT
1.5 miles to the Light Rail station at Central Ave. and McDowell FW Y NARRAMORE RD ESTRELLA DR PRIE WARNER RD PRICE OCK RD
COLLIERS INTERNATIONALA FW 7 RAY RD SAINT JOHNS RD TH RD CLINT LEY RD URAL RD AIN RD L WILLIAMS FIELD RD 56TH ST MC KYRENE RD R PRICE RD
CHANDLER BLVD MARICOP CHANDLERC A D E LSWOR W VA L RD EL PECOS RD PECOS RD MOUNT RIT TENHOU TUTHIL RAINBO GERMANN RD GERMANN RD CKER RD SE RD D RE R
BEL A QUEEN CREEK RD TLINE RD GILA RIVER INDIAN CRIMSON RD PEARL HARBOR ME SUN LAKAKEKKES OCOTILLO RD GANTZEL RD COMMUNITY MARICOP CHANDLER HEIGHTS RD
RIGGS RD RIGGS RD COMBS RD MORIAL QUEEN E OL RD
DR CREEK TA T RD HUNT HWY Y RD FW S RD
Y ONA AV QUEEN RD WE SKYLINE DR AL VIS ALMA SCHO ARIZ MC COOPER RD GILBER LINDSA V HIGLEY RD POWER RD HA SCHNEPF RD SOSSAMAN RD LOCATIONOffering Memorandum OVERVIEW > For Sale > Investment> Opportunity 1144 E. McDOWELL RD. • PHOENIX, ARIZONA Banner – University Medical Center Phoenix
Banner – University Medical Center Phoenix, formerly Banner Good Samaritan Medical Center, is a nationally recognized academic medical center. The world-class hospital is focused on coordinated clinical care, expanded research activities and nurturing future generations of highly trained medical professionals who serve the community.
Banner – University Medical Center Phoenix was recently ranked by U.S. News & World Report in the top 50 hospitals nationally for specialty care areas including Geriatrics, Nephrology and Urology. The hospital was also ranked the number 2 hospital in Arizona.
The Phoenix campus, long known for excellent patient care, is the new home for medical discoveries, thanks to our collaboration with the University of Arizona College of Medicine – Phoenix. Patients with the most complex to the most common medical conditions seek us out for care. Moms-to-be
choose to deliver babies at Banner – University Medical Center Phoenix because of our expertise in high-risk obstetrics care. Our specialty services include advanced heart care, treatment for advanced lung diseases, organ transplantation, orthopedics, rehabilitation, concussion care and much more. Banner – University Medical Center is a Level I Trauma Center. PROPERTYOffering Memorandum INFORMATION > For Sale > Investment>Site Opportunity Plan 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
SUITE# TENANT NAME ±SF
ARIZONA CORRECTIONAL 401 PEACE OFFICERS ±1,603 ASSOCIATION
406 R. JAY STANDERFER. M.D. ±1,022 N 12TH ST
E McDOWELL RD
COLLIERS INTERNATIONAL 9 PROPERTYOffering Memorandum INFORMATION > For Sale > Investment>Floor Opportunity Plans
1144 E. McDOWELL RD. • PHOENIX, ARIZONA KNOELL & QUIDORT ARCHITECTS JUNE 25, 2015
MEN'S LOCKER ROOM BASEMENT SPACE: STORAGE RACQUETBALL ±3,000 RSF COURT
ELECTRICAL KNOELL & QUIDORT ARCHITECTS JULY 23, 2015 SPA
WOMEN'S LOCKER ROOM SUITE 200: MECHANICAL ELEVATOR ±8,723 RSF
SHELL SUITE
NORTH BASEMENT FLOOR PLAN SCALE: 3/32" = 1'-0" 1144 1144 E MCDOWELL ROAD PHOENIX, ARIZONA
SUITE 200 7,930 USF
NORTH SECOND FLOOR FLOOR PLAN SCALE: 3/32" = 1'-0" 1144 1144 E MCDOWELL ROAD PHOENIX, ARIZONA COLLIERS INTERNATIONAL 10 PROPERTYOffering Memorandum INFORMATION > For Sale > Investment>Floor Opportunity Plans 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
SUITE 300: ±3,522 RSF
SUITE 301: ±2,858 RSF
SUITE 401: LEASED
SUITE 400: SUITE 306: ±2,989 RSF ±1,550 RSF
SUITE 406: LEASED
SUITE 402: SUITE 404: ±484 RSF ±1,833 RSF
COLLIERS INTERNATIONAL 11 Offering Memorandum > For Sale > Investment Opportunity 1144 E. McDOWELL RD. | PHOENIX, AZ
3 FINANCIAL ANALYSIS
COLLIERS INTERNATIONAL 12 FINANCIALOffering Memorandum ANALYSIS > For Sale > Investment> Opportunity 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
OPERATING COSTS ANNUALIZED 2019
EXPENSES ACTUAL JAN-JUNE 2019 ANNUALIZED ANNUALIZED COST PSF Elevator Maintenance & Repair $2,798 $5,596 $.19
HVAC Maintenance & Repair $3,797 $7,594 $.26
Janitorial Services $3,489 $6,978 $.24
Landscaping and Groundskeeping $2,625 $5,250 $.18
Pest Control $580 $1,160 $.04
Property Insurance $3,084 $6,167 $.21
Property Management Fee $4,500 $9,000 $.31
Property Taxes $5,000 $10,000 $.34
Telephone $7,350 $14,699 $.51
Trash Service $2,040 $4,080 $.14
Utilities: Electric $18,980 $37,960 $1.31
Utilities: Water $2,795 $5,590 $.19
TOTAL EXPENSE $57,733 $115,465 $3.97
RENT ROLL - ACTUAL ANNUAL FUTURE RENT SUITE TENANT NAME SQ. FT. LEASE LEASE END MONTHLY ANNUAL $/SQFT/ INCREASES DATE LEASE TYPE CAM SEC DEPOSIT NOTES START BASE RENT RENT YEAR AND ESCALATION
04/01/18 -$2,003.75 Tenant plans to relocate 04/01/19 -$2,070.54 Full Service 401 AZ Correctional Peace 1,603 12/15/2016 4/30/2021 $2,003.75 $24,045.00 $15.00 Base Year $0.00 $4,332.77 at the end of their Officers Assoc. 04/01/20 - $2,137.33 2016 current lease term. 04/01/21 - $2,204.12
04/01/16 - $1,703.33 04/01/17 - $1,745.91 Full Service No additional 406 R. Jay Standefer, M.D. 1,022 3/1/2016 3/31/2020 $1,703.33 $20,439.96 $20.00 04/01/18- $1,778.50 Base Year $0.00 $8,457.28 renewal clause in the 04/01/19- $1.831.08 2016 tenant's lease.
COLLIERS INTERNATIONAL 13 Offering Memorandum > For Sale > Investment Opportunity 1144 E. McDOWELL RD. | PHOENIX, AZ
4 LOCATION OVERVIEW
COLLIERS INTERNATIONAL 15 LOCATIONOffering Memorandum OVERVIEW > For Sale > Investment>Property Opportunity Aerials 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
Select Specialty Hospital
Banner-University Medical Center Banner Health Surgicenter N 12TH ST Banner Corporate E MCDOWELL RD Center
COLLIERS INTERNATIONAL 16 PROPERTYOffering Memorandum INFORMATION > For Sale > Investment>Photos Opportunity 1144 E. McDOWELL RD. • PHOENIX, ARIZONA
COLLIERS INTERNATIONAL 17 Offering Memorandum > For Sale > Investment Opportunity 1144 E. McDOWELL RD. | PHOENIX, AZ
5 DEMOGRAPHICS
COLLIERS INTERNATIONAL 18 Offering Memorandum > For Sale > Investment Opportunity DEMOGRAPHICS>Phoenix, AZ 1144 E. McDOWELL RD. • PHOENIX, ARIZONA City of Phoenix Demographics
Phoenix is the 5th largest city in the United States by population, making it the most populous state capital. Businesses looking to locate to or expand in Phoenix will find a workforce demographic ripe for success.
POPULATION
COLLIERS INTERNATIONAL 19 CONFIDENTIALTYOffering Memorandum > For AGREEMENTSale > Investment Opportunity> 1144 E. McDOWELL RD. • PHOENIX, ARIZONA CONFIDENTIALITY & DISCLAMER STATEMENT
This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of The Town Square at Surprise, Srprise, AZ 85000 This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information that prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner and Colliers International. Therefore, all projections, assumptions, and other information provided and made here- in are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to in- terested and qualified prospective purchasers. Neither the Owner nor Colliers International AZ, LLC, a Delaware limited liability company (hereinafter referred to as “Colliers” or “Colliers International”), nor any of their re- spective directors, officers, affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time, with or without notice, which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.
By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Colliers International. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Colliers International.
In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Colliers International.
PRESENTED BY COLLIERS INTERNATIONAL Philip Wurth, CCIM 8360 E. Raintree Dr. Suite 130 Executive Vice President Scottsdale, AZ 85260 480 655 3310 480 596 9000 [email protected] www.colliers.com/greaterphoenix
COLLIERS INTERNATIONAL 20