Investment Offering 2585 Miracle Mile, Unit 106, Bullhead City, Az 86442

SOUTHWEST BEHAVIORAL HEALTH AT COLORADO PLACE BULLHEAD CITY, AZ

INVESTMENT OFFERING 2585 MIRACLE MILE, UNIT 106, BULLHEAD CITY, AZ 86442

2580 HIGHWAY 95, SUITES 119-125, BULLHEAD CITY, AZ 86442

EXCLUSIVE BROKER INVESTMENT ADVISOR CAPITAL MARKETS ADVISOR Thomas Pancrazi Christopher DePierro Jay Quinn President Managing Director Senior Managing Director [email protected] [email protected] [email protected] (928) 782-5559 (949) 221-1824 (949) 221-1804 R.E. License No BR009183000 R.E. License No 01158321

18301 Von Karman Avenue, Suite 800, Irvine, CA 92612 P (949) 221-1800 F (949) 221-1830 farislee.com TABLE OF CONTENTS

PROPERTY OVERVIEW 4 AREA OVERVIEW 11 FINANCIAL ANALYSIS 16

STATEMENT OF CONFIDENTIALITY & DISCLAIMER

Faris Lee Investments (“FLI”) has been engaged as the exclusive information obtained by FLI from sources it deems reasonably reliable. or in connection with the sale of the Property shall be limited to financial advisor to the Seller in connection with Seller’s solicitation of Summaries of any documents are not intended to be comprehensive or those expressly provided in an executed Purchase Agreement and offers for the purchase of the property known as Southwest Behavioral all-inclusive, but rather only outline some of the provisions contained shall be subject to the terms thereof. In no event shall a prospective Health, City of Bullhead City, County of Mohave, State of Arizona. therein and qualified in their entirety by the actual document to which purchaser have any other claims against Seller or FLI or any of their Prospective purchasers are advised that as part of the solicitation they relate. affiliates or any of their respective officers, directors, shareholders, process, Seller will be evaluating a number of factors including the owners, employees, or agents for any damages, liability, or causes current financial qualifications of the prospective purchaser. Seller No representation or warranty, expressed or implied, is made by of action relating to this solicitation process or the marketing or expressly reserves the right in its sole and absolute discretion to the Seller, FLI, or any of their respective affiliates as to the accuracy sale of the Property. evaluate the terms and conditions of any offer and to reject any offer or completeness of the information contained herein. Prospective without providing a reason therefore. Further, Seller reserves the purchasers should make their own projections and form their own Prospective purchasers are not to construe the contents of this right to terminate the solicitation process at any time prior to final conclusions without reliance upon the material contained herein Offering Memorandum or any prior or subsequent communication execution of the Purchase Agreement. and conduct their own due diligence, including engineering and from FLI or Seller or their affiliates or any of their respective officers, environmental inspections, to determine the condition of the Property directors, shareholders, owners, employees, or agents as legal, tax, The information contained in this Offering Memorandum is and the existence of any potentially hazardous material located at the or other advice. Prior to submitting an offer, prospective purchasers confidential and furnished solely for the purpose of a review by a Property site or used in the construction or maintenance of the building should consult with their own legal counsel and personal and prospective purchaser of the Property, and it is not to be used for at the Property site. tax advisors to determine the consequences of an investment any other purpose or made available to any other person without the in the Property and arrive at an independent evaluation of such express written consent of Seller or FLI. The material is based in part A prospective purchaser’s sole and exclusive rights with respect to this investment. upon information supplied by the Seller and in part upon financial prospective transaction, the Property, or information provided herein PROPERTY OVERVIEW $1,893,000 $152,820 PRICE NOI 8.07% CAP RATE

THE OFFERING PROPERTY SPECIFICATIONS:

Faris Lee Investments is pleased to offer for sale the commercial condominium interest in a single GLA: 8,490 SF tenant, NNN leased to Southwest Behavioral Health Services, a leading statewide healthcare provider with 14 locations throughout the State of Arizona. The asset is part of Colorado Place, an approximately TENANT: 100,000 SF mixed-use center located in Bullhead City, Arizona. The subject property consists of Southwest Behavioral Health approximately 8,490 square feet of GLA and the tenant is on a NNN lease. Southwest Behavioral Health Services has been located at Colorado Place for 10 years. The lease term has approximately 5 years LOCATION: remaining with scheduled 2% annual rent increases that contribute strong NOI growth throughout the 2580 Highway 95, Suites 119-125 lease term. Colorado Place is also home to several other professional healthcare providers, service Bullhead City, AZ 86442 oriented tenants, retailers, and commercial users.

The subject property is ideally located in the heart of the regional trade area that consists of a population of approximately 140,000 people. Furthermore, Colorado Place is located along the most heavily travelled portion of Mohave Valley Highway / State Highway 95 with more than 35,000 vehicles per day, and near Mohave High School, Bullhead City Civic Center, and the planned Civic Center Park and Events Center. The subject property strategically spans an entire city block, with one corner of the site at the signalized, hard corner intersection of Riverview Drive and Highway 95, providing ease of access to the subject property. Highway 95 is the only major north-south corridor that connects the immediate trade area of Bullhead and Laughlin with the cities of Needles and Lake Havasu, and provides access to Interstate 95, which leads to nearby Las Vegas. The subject property is located within close proximity to Smart N Final, Hobby Lobby, Wal-Mart Supercenter, Target, Safeway, Sam’s Club, Home Depot, Lowe’s and many other national tenants. There are nearly 50,000 permanent residents with an average household income also nearly $50,000 surrounding the subject property. Additionally, the immediate trade area is supported by more than 34,600 daytime employees within a 5 mile radius.

5 PROPERTY HIGHLIGHTS

Anchor Tenant of Dominant Mixed Use/Healthcare-Oriented Diverse and Strong Economic Drivers Provide Sustained Center Growth to Bullhead City / Laughlin Economy »» Synergistic co-tenants include another well-known regional healthcare »» Area benefits from over 4 Million annual visitors and tourists to provider North County Health Care, Arizona Kidney Disease Center, Bullhead City and Laughlin pediatric office, Edward Jones and Sears Hometown »» The attraction and draw of the Colorado River and 10 Stable Investment / Long Term Tenant Lease with Strong renowned Casinos with approximately 12,000 hotel rooms and the 4th largest gaming volume in the United States Increases »» Southwest Behavioral Health Services has been located at Colorado »» Bullhead City is a leader in Sports Tourism, with dozens of Place for 10 years and increased their GLA by 2,400 SF in 2011 showing National and Regional Sports Tournaments on an annual faith in the location and bolstering their presence in the market basis bringing economic stimulus to the city and surrounding communities »» Provides secure income stream to the investor »» 2% annual increase is a natural hedge against inflation Strategic and Centralized Location in Bullhead City / Laughlin Ease of Management / NNN Lease »» Colorado Place is located at the signalized intersection of »» Tenant reimburse for Taxes, Common Area Maintenance and Insurance Highway 95 & Riverview Drive (35,590 VPD), which is within the »» Landlord (HOA Director) Responsible for Roof, Structure and part of commercial core of the trade area HVAC Maintenance »» Located in close proximity to Bullhead City Civic Center, »» Ideal Investment for an out-of-state investor as the HOA/CAM all Government Offices, Mohave County State and Federal Management Director maintains the overall shopping center Offices, Mohave High School (1,400 students) and 2 elementary and 2 middle schools, and the planned Civic Center Park and Unique and Dynamic Regional Trade Area with Strong Events Center Demographics »» Colorado Place is located at the most travelled portion of »» Colorado Place is located within the Commercial Core of the trade area Highway 95, which connects the “River Cities” and is the main serving Bullhead City, AZ, Laughlin, NV, Kingman, AZ, Fort Mohave, AZ corridor connecting Laughlin, NV to Needles, CA and Needles, CA »» Approximately 140,000 population in the trade area »» Approximately 700 residential units planned for 2019 in Bullhead City and surrounding trade area »» Daytime employment of 34,000+ in the immediate trade area

6 PROPERTY SPECIFICATIONS

Rentable Area Year Built Ownership 8,490 SF (Condo Unit) 2004 Commercial Condominium Interest Zoning: C2 (District Commercial: General Sales & Services)

Access Parking Traffic Counts (Regis 2019) There are seven (7) access points to the center: There are approximately 348 dedicated parking Highway 95: 35,590 VPD one (1) along Highway 95, three (3) along Riverview stalls for the center. All tenants have equal access Riverview Drive: 7,218 VPD Drive and three (3) along Havasupai Drive. to all parking stalls. Miracle Mile: 7,167 VPD

2580 Highway 95, Suites 119-125, Bullhead City, AZ 86442

7 SITE PLAN

Miracle Mile

Pylon Sign Pylon Sign

Havasupai Drive

101-103 104 105 106 107 108 109 110 111 112/113 114 115 116 117 119 120 121 122 123 124 125 Office Medical Pharmacy Expansion Expansion Restaurant Restaurant Just 4 Kids Just

Easy Pharmacy Easy Riverview Drive Riverview

Pylon Sign Pylon Sign

Mohave Valley Highway SITE PLAN NOT TO SCALE 8 AERIAL - CLOSE

LAUGHLIN, NEVADA HOTELS AND CASINOS Aquarius Harrah’s Edgewater Don Laughlin’s Tropicana Colorado Belle Golden Nugget Pioneer 12,000 HOTEL ROOMS 4TH LARGEST GAMING REVENUE IN THE US

9 AERIAL - FAR

DEMOGRAPHICS (REGis 2019) 3 MILES 5 MILES Population 31,241 49,880 Average HHI $46,412 $49,586 Total Households 14,145 22,959

10 AREA OVERVIEW TRADE AREA MAP

12 DEMOGRAPHICS

Bullhead City, AZ (REGis 2019) 1 Mile 3 Mile 5 Mile Trade Area 2019 Estimated Population 2,755 31,241 49,880 140,067 2024 Projected Population 2,798 33,230 53,001 148,189 2010 Census Population 2,623 30,612 46,255 131,830 2000 Census Population 2,166 27,741 40,460 106,173 Projected Annual Growth 2019 to 2024 0.3% 1.3% 1.3% 1.2% Population Historical Annual Growth 2000 to 2019 1.4% 0.7% 1.2% 1.7% 2019 Median Age 51.1 48.8 49.7 48.5 2019 Estimated Households 1,319 14,145 22,959 61,678 2024 Projected Households 1,316 14,765 23,852 64,111 2010 Census Households 1,161 12,820 19,711 54,493 2000 Census Households 893 11,337 16,689 43,101

Projected Annual Growth 2019 to 2024 - 0.9% 0.8% 0.8% Households Historical Annual Growth 2000 to 2019 2.5% 1.3% 2.0% 2.3% 2019 Estimated Average Household Income $52,750 $46,412 $49,586 $52,745

Income 2019 Estimated White 81.8% 78.5% 79.6% 82.7% 2019 Estimated Black or African American 1.3% 1.8% 2.4% 2.1% 2019 Estimated Asian or Pacific Islander 1.7% 1.6% 2.1% 1.8% 2019 Estimated American Indian or Native Alaskan 1.3% 1.2% 1.2% 1.8% Ethnicity 2019 Estimated Other Races 13.8% 17.0% 14.8% 11.6% 2019 Estimated Hispanic 21.0% 28.2% 24.5% 19.3% 2019 Estimated Total Businesses 284 1,307 1,892 5,185 2019 Estimated Total Employees 3,592 10,956 34,614 64,921 Business

13 CITY INTEL

DISTANCE FROM:

84102 Miles Miles 183 Miles 217 Miles 277 Miles Las Vegas/Henderson, NV Flagstaff, AZ Phoenix, AZ Los Angeles, CA

80.9% Home appreciation since 2000 16.6% Population growth since 2000 49,880 Estimated population in 5 mile radius $52,750 Average household income in 1 mile radius

18 Minutes Average commute time

* REGis 2019, city-data.com and census.gov 14 AREA OVERVIEW

Bullhead City Bullhead City is located in west-central Mohave County in the tri-state area of Arizona, California and Nevada. Among Arizona’s fastest growing communities, it is the sister city to Laughlin, Nevada and just 90 minutes south of Las Vegas. Bullhead City was incorporated in August 1984. Bullhead City has also been referred to as Arizona‘s West Coast because the City is located on the east bank of the Colorado River near the juncture of Arizona, California and Nevada. Bullhead City serves as the economic hub and retail shopping center for Western Mohave County and Southeastern Clark County, Nevada. It’s easily accessible by major highways and a short drive from Los Angeles, Phoenix and Las Vegas.

Economic Highlights Bullhead City’s economic activities are mainly related to tourism and retail sales. The City, as MAJOR BULLHEAD CITY well as community groups, have been working diligently to attract visitors from throughout AREA EMPLOYERS the United States and beyond for events being held within the community. The biggest event is the annual River Regatta. Although it started out small in August 2007, with only 583 participants, it grew to 30,000 people by 2016 and capacity has since been capped at 20,000. City of Bullhead City The City hosts an annual youth soccer tournament in February of each year. The tournament Western Arizona Regional Medical Center attracts upwards of 120 teams from California, Nevada and Arizona. Softball leagues and Valley View Medical Center tournaments are held throughout the year. The largest tournaments take place in March, including the annual senior softball tournament that attracts 70 teams from throughout Mohave Community College the United States and Canada, and the Dave Kops Tournament of Champions, which Bullhead Unified School District attracts some of the top high school softball teams from throughout the country. The City, Colorado River Unified School District in partnership with the Bullhead Area Chamber of Commerce and the Southern California Harley Davidson Dealers Association, hosts the annual Bullhead City Bike Fest. This event Home Depot is held in April, in conjunction with the annual Laughlin River Run. The event attracts WalMart motorcycle enthusiasts to stop in Bullhead City at Harley Park (i.e. Community Park) and enjoy the activities that are happening on this side of the river. Lowe’s There are ten casinos in Laughlin, Nevada located just across the Colorado River from Sam’s Club Bullhead City. Tourism is a primary economic activity centered on the Laughlin resort/ Target gaming industry, area water sports, golfing and fishing.

15 FINANCIAL ANALYSIS RENT ROLL & TENANT SYNOPSIS

Current Monthly Current Annual Rental Increases Size Recovery Lease Lease Tenant Monthly Rent Annual Rent Increase Monthly Monthly Annual Annual Lease Options (SF) Increase Type Start Expires Rent $/SF Rent $/SF Date Rent $/SF Rent $/SF Southwest Behavioral Health 8,490 $12,735 $1.50 $152,820 $18.00 Feb-2020 2% $12,990 $1.53 $155,876 $18.36 NNN 8/1/2009 12/2/2024 1 (5-Year) Feb-2021 2% $13,249 $1.56 $158,994 $18.73 Year 1: $14,198.32/mo. Feb-2022 2% $13,514 $1.59 $162,174 $19.10 Year 2: $14,624.27/mo. Feb-2023 2% $13,785 $1.62 $165,417 $19.48 Year 3: $15,062.99/mo. Year 4: $15,514.88/mo. Year 5: $15,980.33/mo. Notes Admin Fee - Lesser of 15% of total of all other Common Area Expenses or $0.30 PSF of Floor Area CAM Cap - Not to exceed $3.00 PSF Termination Right - Tenant may terminate lease within 9 months of notice to Landlord in the event that public funding for its programs are no longer available. See agent for more details.

SOUTHWEST BEHAVIORAL HEALTH Southwest Behavioral & Health Services was established in 1969 as a federally funded program under a partnership known as St. Luke’s – Jane Wayland Community Mental Health Center. Incorporated in 1974 as a 501(c)3 non-profit, the organization continued to grow as Phoenix South Community Mental Health Center when federal funding ceased in 1979. A merger acquisition of Community Behavioral Health in 1995 strengthened its position as one of the largest community-based behavioral health providers in the state. The merger acquisition of Rim Guidance Center in Payson, Arizona in 2000 allowed Southwest Behavioral & Health Services to achieve a major, long-term goal: to expand services beyond Maricopa County and thereby reduce dependence upon a single source of revenue. After over 40 years of community service, Southwest Behavioral & Health Services continues to prosper. In January 2011, Southwest Behavioral & Health Services acquired the existing Toby House, Inc. corporation, adding housing inventory for more than 170 seriously mentally ill adults, in addition to staff and services. The agency employs just under 1,000 persons including psychiatrists, psychologists, therapists and other support staff who provide treatment to children and adults throughout the state. Staff and volunteers reflect the cultural diversity of the community. SB&H is governed by a Board of Directors comprised of approximately 15 community volunteers. Its service area includes the Phoenix metropolitan area, rural Maricopa County, Gila, Mohave, Coconino, and Yavapai Counties. SB&H offers an array of programs to meet the unique needs of the communities it serves. These include outpatient mental health treatment and psychiatric services including medication monitoring; assistance for persons with addictions; intensive inpatient care for persons in crisis; residential housing, in-home and supported housing services; prevention services, community outreach and school-based counseling; services throughout the lifespan for members with Autism Spectrum Disorder (ASD); and four opioid replacement clinics throughout the state that are working tirelessly to save lives and help alleviate the statewide crisis. More recently, integrated care and value based contracting have been initiated to offer a more flexible and culturally sensitive approach to clients served and resolve the historical challenges of fragmented care. SB&H is one of the leaders in the United States in providing professional training through the Training Institute - Southwest Behavioral & Health, an American Psychological Association certified training program for psychologist and therapist internships. In addition, in 2010 SB&H developed a partnership with Sias University in China to participate with consultation, training and education. SB&H is proud to have been accredited by CARF (a nonprofit accreditor of health and human service programs) for more than 20 years. SB&H continues to foster a whole healthcare model by seeking out opportunities and innovative approaches to treatment that focus on integrated care at its core. The company is committed to work to achieve its mission to help people discover their strengths and improve its communities.

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness. Company Type: Private 17 TRANSACTION SUMMARY

Financial Information Lease Type: NNN Price: $1,893,000 Tenant is responsible for taxes, insurance and CAM. Price/SF: $223 Landlord is responsible for roof, structure and some HVAC.

Property Specifications Rentable Area: 8,490 SF Land Area: NA (Condo) Year Built: 2004 Address: 2580 Highway 95, Suites 119-125 Bullhead City, AZ 86442 Ownership: Condominium Interest Tenant: Southwest Behavioral Health

Operating Information In-Place Feb-2023 Gross Potential Rent $152,820 $165,417 Plus Recapture NNN NNN Effective Gross Income $152,820 $165,417 Less Expenses (NNN) (NNN) Net Operating Income $152,820 $165,417

Cap Rate: 8.07% 8.74%

18

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness. LEASE SUMMARY

Tenant Name: Southwest Behavioral Health Services, Inc. Rentable Square Feet: 8,490 Original Lease Execution Date: May 27th, 2009 Original Lease Start Date: August 1st, 2009 Current Lease Expiration Date: December 2nd, 2024 Lease Type: NNN Current Lease Term: 5 Years

Current $12,735.00/mo. February, 2020 $12,989.70/mo. Rent: February, 2021 $13,249.49/mo. February, 2022 $13,514.48/mo. February, 2023 $13,784.77/mo.

Lease Options: 1 (5-Year)

December, 2024 $14,198.32/mo. December, 2025 $14,624.27/mo. Option Rent: December, 2026 $15,062.99/mo. December, 2027 $15,514.88/mo. December, 2028 $15,980.33/mo.

Property Taxes, Insurance, CAM: Tenant Responsible Expense Caps: CAM - Not to exceed $3.00 PSF Roof & Structure: Landlord / HOA Responsible HVAC: Tenant / Landlord Responsible Parking Lot Maintenance: HOA Responsible Lesser of 15% of CAM (excluding insurance and tax) or $0.30 Admin/Management Fee: PSF of floor area

19 SOUTHWEST BEHAVIORAL HEALTH AT COLORADO PLACE BULLHEAD CITY, AZ

EXCLUSIVE BROKER INVESTMENT ADVISOR Thomas Pancrazi Christopher DePierro President Managing Director [email protected] [email protected] (928) 782-5559 (949) 221-1824 R.E. License No BR009183000 R.E. License No 01158321

18301 Von Karman Ave., Suite 800 Irvine, CA 92612 P (949) 221-1800 F (949) 221-1830 farislee.com