Goodwill Industries
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OFFERING MEMORANDUM TEMPE ARIZONA Free Standing Goodwill Elliot Plaza Shopping Center CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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 property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap 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 property, 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 thereon, 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of w, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. Fredonia 15 Page 160 389 163 89A 89 Kayenta 89A 160 67 Lukachukai Many Farms 89 191 Chinle Tuba City 160 Grand Canyon Village 64 264 180 APACHE COCONINO 264 Fort Defiance 93 264 Window Rock MOHAVE 89 66 180 77 191 87 Williams 64 NAVAJO 40 40 40 68 Kingman Flagstaff Bullhead City 666 Winslow 40 61 89 89A Holbrook 40 Sedona 17 180 Clarkdale Chino Valley Jerome Cottonwood 87 666 89A 77 279 95 93 Prescott Valley 180 Bagdad Camp Verde Prescott 180A 87 Snowflake St. Johns Lake Havasu City 277 Taylor 69 89 77 61 260 180 YAVAPAI 260 60 Show Low Payson Parker 87 Lakeside 60 Pinetop Springerville Eagar 71 93 260 17 180 Wickenburg 60 72 188 McNary LA PAZ Cave Creek 87 Whiteriver 95 TABLE OF CONTENTS 60 60 60 Sun City West Surprise 10 Sun City El Mirage Fountain Hills Investment Summary .........................................2 Youngtown Peoria GILA 10 MARICOPA Luke AFB Glendale Paradise Valley Lease Abstract ....................................................3 88 88 Litchfield Park Scottsdale Goodyear Tolleson Phoenix Avondale Cashion Investment Highlights.........................................7 Dreamland-Velda Rose 666 60 Central Heights-Midland Mesa Apache Junction Claypool 85 Miami Globe Buckeye Tempe Aerial Map .........................................................8 Guadalupe 87 Gilbert San Carlos Chandler GREENLEE Williams AFB 10 60 Superior 95 Site Plan ..........................................................10 Sun Lakes 70 Tenant Summary ..............................................12 87 89 77 Bylas 85 177 Location Map ...................................................14 Sacaton Stargo Kearny Clifton Florence Morenci Location Overview ............................................16 Hayden Winkelman Coolidge Gila Bend Arizona State University—Tempe, AZ .................17 Dudleyville Pima Casa Grande 84 Safford Yuma Proving Ground 8 666 Location Highlights ...........................................19 8 Thatcher 75 77 PINAL 70 Demographics ..................................................22 Eloy 89 GRAHAM Mammoth Duncan Yuma Wellton 8 10 8BR 85 666 Oracle Somerton 77 San Manuel YUMA 95 San Luis Catalina Marana Oro Valley Ajo 10 Willcox Tucson 86 Tucson Estates South Tucson Davis-Monthan AFB 186 PIMA 86 85 89 10 Benson 181 Sells 80 Green Valley 83 COCHISE 90 666 82 Tombstone Huachuca City 19 Sierra Vista Patagonia 90 82 80 80 Bisbee SANTA CRUZ 92 Pirtleville Nogales Douglas 1 INVESTMENT SUMMARY 7850 S PRIEST DRIVE, TEMPE, AZ 85284 PRICE: $6,484,200 CAP: 6.25% RENT: $405,262 GOODWILL - OVERVIEW ANNUALIZED OPERATING DATA Price $6,484,200 Lease Term Annual Rent Gross Leasable Area (GLA) 32,421 SF 1-5 $405,262 Lot Size (approx) 3.24 Acres 6-10 $453,894 Net Operating Income $405,262 Option 1 $491,178 CAP Rate 6.25% Option 2 $543,051 Year Built / Renovated 1994 / 2015 LEASE ABSTRACT Lease Type* NN Original Lease Term 10 Years * Original lease commenced 12/23/2014, and Lease Term Commenced Tenant extended lease thru 9/30/2028 Lease Expiration 9/30/2028 Remaining Lease Term 9.3 Years Renewal Options 2x5 Increases Bumps every 5 years Landlord Responsibilities Roof & Structure * See Lease Abstract on following page. 2 LEASE ABSTRACT GOODWILL Tenant Goodwill Industries of Central Arizona Guarantee None Initial Term 10 years Options 2x5 Lease Commencement 12/23/14 and extended on 11/3/2018 for 10-years Years Remaining (Base Term) 9.3 Percentage Rent None Security Deposit None Additional Rent Tenant's pro rata share to be paid monthly on taxes $7,658.98, the Shopping Center Operating Costs $3,230.70 & Insurance $417.76 for total of $11,307.44. Costs to be adjusted annually on Landlord's reasonable estimate Operating Costs Cap Shall not increase more than 5% in any lease year on a non-cumulative basis Operating Costs Definition All of the Shopping Center's Operating Costs. To include repairing/replacing & maintaining the common areas, more specifically: insurance premiums/deductibles, utility charges, lawn care and landscaping, irrigation, repainting and staining, repairs, replacement, security, line painting, restriping, seal-coating, cleaning, sweeping, and parking lot resurfacing, lighting, plumbing, electrical lines, pest control, removal of trash, snow removal, cost of personnel to implement these services, pylon repair and reasonable management fees. Capital improvements over $25,000 shall be amortized and not funded thru reserves CC&R’s To be managed by Seller’s entity. Common area charges are to be paid by Tenant. Tenant’s proportionate share for CAM’s is 22.65%. Reporting Tenant shall report annual gross sales upon written landlord request Real Estate Taxes Pass through payment Exclusivity No other tenant in center can be a thrift store Parking Nonexclusive rights to entire center Landlord Maintenance Foundation, slab, column footings, exterior walls, roofs, roof membrane, gutters, downspouts, structural elements. As of 5/2018 it was reported upon inspection of the roof that it is in “fair/good” condition, with no drainage or other concerns identified. Tenant Maintenance Repair and keep in good order store front, interior, all exterior doors, HVAC, plumbing, sprinklers, fixtures, equipment, glass replacement, repair whether interior/exterior Property Insurance Landlord shall procure & maintain on all building an common areas of the shopping center, fire & extended coverage, property damage, liability insurance . Tenant's pro rata share shall be reimbursed by tenant Liability & Other Insurance Tenant shall maintain commercial general liability insurance, worker's compensation and employer's liability insurance, all risk Estoppel & SNDA Tenant to provide within 15 business days of request / CC&R estoppels by Declarant has a 10-day turn around time frame Security Landlord has no responsibility to provide security for any portion of the Center including the premises or the common areas 3 * Property boundaries TBD. 4 5 6 INVESTMENT HIGHLIGHTS t Goodwill offers a long term single tenant modified NNN lease (minimal landlord obligations) t The Center is anchored by LA Fitness and is surrounded by other national retailers such as Costco, WalMart and Ross Dress For Less t The Goodwill is located in a shopping center that is 100% leased with 70% of the tenants leased thru the next 6 years (prior to options) t Densely populated area and strong retail/residential infill limits future new development, creating high barriers to entry for direct competition to the tenancy t Significant visibility with more than 202,000