Shaw Butte Plaza

Offering Memorandum EXCLUSIVELY PRESENTED BY Shaw Butte Plaza 13206 N 7th Street | Phoenix, AZ 85022 PRICE: $1,875,000 Exclusively Listed By: Sean Thomas - 602-682-6088 Business Disclosure & Confidentiality Agreement

Sean Thomas This executive summary is not intended to constitute an offer, but is merely a solicitation of interest with respect to First Vice President - Investment Sales a possible sale of retail income property located 13206 N 7th Street, Phoenix, AZ 85022. 602-682-6088 [email protected] This executive summary has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither owner nor SRS can warrant or represent Alan Houston accuracy or completeness of the materials presented herein or in any other written or oral communications First Vice President - Leasing transmitted or made available to the purchaser. 602-682-6022 [email protected] Many documents 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 owner nor SRS represents that this EXCLUSIVELY offering summary is all inclusive or contains all of the information a purchaser may require. PRESENTED BY: All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were Firstname Lastname undertaken. They do not purport to reflect changes in the economic performance of the property or the business Title activities of the owner since the date of preparation of this executive summary. The projected economic 123.456.7899 performance of the property, competitive submarket conditions, and selected economic and demographic statistics [email protected] may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding Firstname Lastname competitive environment. Title 123.456.7899 Environmental matters can and do have dramatic impact not only on the physical conditions of a property but also [email protected] on its economic performance and underlying value. If such substances exist, special governmental approvals and permits may be required. Purchasers are encouraged to engage qualified professionals to determine whether SRS Real Estate Partners hazardous or toxic substances or wastes, including asbestos, PCB’s, petrochemicals or other contaminants or Office Address conditions are present at the property. Neither SRS nor the owner performs or conducts investigations or analyses Office Address 2 of environmental matters. It is the sole responsibility of qualified purchasers to review all applicable laws and City, ST 12345 regulations applying to either the existence, transportation or removal of hazardous materials and to prudently have an on site investigation and inspection of the property conducted. The cost and removal of hazardous www.srsre.com materials may be substantial; therefore, SRS strongly encourages qualified purchasers to engage legal counsel and appropriate technical professionals if any of these conditions are discovered during the inspection. No person, This information has been secured from sources believed to be reliable, but SRS makes no representations or warranties, expressed or firm or entity is authorized to make or submit offers on behalf of anyone or divulge or reproduce the contents of implied as to the accuracy of the information. References to square this executive summary or discuss the availability or the purchase of the property without first having registered footage or age are approximate. Buyer must verify the information and shall bear all risk and responsibility for any inaccuracies. in writing the name of the party receiving the material and received written authorization to proceed from SRS. The owner and SRS reserve the right, at their discretion, to reject any or all expressions of interest with any party at any time with or without notice. The terms and conditions stated herein apply to all sections of the executive summary.

SRS is acting as exclusive disposition agent, and the owner reserves the right to withdraw the property from the market, to change the price and terms or sell the property at any time without notice being given. OFFERING SUMMARY • Executive Summary • Investment Highlights • Trade Area Retail Aerial • Retail Aerial • Demographic Summary

FINANCIAL OVERVIEW • Rent Roll • Income & Expenses

MARKET OVERVIEW • Market Profile

OFFERING SUMMARY Shaw Butte Plaza Executive Summary

SRS is pleased to present the opportunity to acquire a retail property including INVESTMENT HIGHLIGHTS: Dollar Tree. • Dense infill location • Location offers abundant parking Property Summary • Access off Thunderbird Rd and 7th Street • Excellent demographics including the Pointe Address: 13206 N 7th Street, Phoenix, AZ 85022 Mountainside, Moon Valley and Pointe Tapatio Location: S/SWC Thunderbird Road & 7th Street neighborhoods. Offering Price: $1,875,000 GLA: 24,953 SF Parcel: 159-02-670 Lot Size: 114,214 SF Parking:

This information has been secured from sources believed to be reliable, but SRS makes no representations or warranties, expressed or implied, as to the accuracy of the information. Exclusively Presented By References to square footage or age are approximate. Buyer must verify the information and shall bear all risk and responsibility for any inaccuracies. SRS Shaw Butte Plaza Site Plan

1 Mile 3 Mile 5 Mile POPULATION: 2013 Total Population 7,713 126,980 361,649 Male Population 48.07% 49.42% 49.55% Female Population 51.93% 50.58% 50.45% Median Age 49.4 36.8 36.9 Employees 1,698 42,272 135,528 Establishments 161 2,715 8,175

INCOME: 2013 Median HH Income $83,735 $47,938 $50,291 Per Capita Income $50,149 $27,946 $27,711 Average HH Income $112,382 $67,715 $67,734

HOUSEHOLDS: 2013 Total Households 3,439 52,036 147,051 Average Household Size 2.24 2.42 2.44

HOUSING: 2013 Owner Occupied Housing Units 73.21% 48.13% 52.81% Renter Occupied Housing Units 20.05% 40.39% 36.50% Vacant Housing Units 6.74% 11.48% 10.69%

RACE: 2013 White 88.94% 75.96% 77.43% Black 2.13% 3.99% 3.88% Asian & Pacific Islander 4.41% 2.70% 2.88% Other 4.51% 17.35% 15.81%

ETHNICITY: 2013 Hispanic 7.34% 27.69% 24.39% Non-Hispanic 92.66% 72.31% 75.61%

Tenant GLA Annual Base Monthly PSF Type Lease Lease Rent Base Rent Start End

Dollar Tree 13,460 $107,680 $8,973 $8.00 NNN 1/29/2014* 1/31/2016

Vacant 11,493

Total 24,953 $107,690 $8,873

* Term of original lease with Dollar Tree was 8/13/2007 - 8/31/2015. Original lease had a co-tenancy provision related to adjacent shopping center. The co-tenant (AJ’s Fine Foods) closed October 7, 2012. In Lieu of terminating lease due to co-tenancy provision, Dollar Tree and Landlord negotiated new first amendment to original lease. The basic terms of the first amendment are reflected in the above rent roll. Goodwill is now occupying the former AJ’s space.

INCOME STATEMENT

Total Square Feet 24,953

INCOME $/SF/Yr. Current In-Place Estimated Scheduled Base Rent $107,680 Total Expense Reimbursements $1.61 $40,167 EFFECTIVE GROSS INCOME $147,847

OPERATING EXPENSES Common Area Maintenance $1.12 $28,044 Real Estate Taxes $1.68 $41,856 Property Insurance $0.18 $4,484 TOTAL OPERATING EXPENSES $2.98 $74,384 NET OPERATING INCOME $73,463

MARKET OVERVIEW Shaw Butte Plaza Phoenix Market Profile

OVERVIEW • PHOENIX CBSA is located in central Arizona and is home to the following key counties: Maricopa and Pinal. • Phoenix major thoroughfares: I-17, I-10 Loop 101, Loop 202, SR 51 & US 60 • Phoenix has 2 commercial airports: Sky Harbor International Airport and Phoenix- Mesa Gateway Airport • Total Population: 4,380,905 • 12th Largest CBSA in the U.S. • 12,884 single-family home permits in 2013 Downtown Phoenix (5th in the U.S.) • 5 Fortune 500 companies are headquartered in Phoenix including: Avnet, Freeport-McMoRan, Republic Services, Petsmart and Insight. • The June 2014 Year-over-Year Job Growth Rate for Phoenix was 2.12% - above the national average. Projected annual population growth for 2013-2014 is 2.0%.

ECONOMIC SUMMARY Arizona Sunset • Median Household Income: $56,239 • College Graduates: 28.3% • Work Force: 2,080,100 AREA’S LARGEST EMPLOYERS • U.S. Unemployment Rate: 6.2% • Arizona Unemployment Rate: 6.9% • State of Arizona • Phoenix Unemployment Rate: 6.5% • Walmart • Phoenix Cost of Living: 94 (U.S.: 100) • Banner Health • Attractions: Heard Museum, Chase Field, Desert Botanical Garden, Phoenix • City of Phoenix Zoo, US Airways Center, Camelback Mountain, Piestewa Peak, Arizona Science • Wells Fargo Center, Frank Lloyd Wright/Taliesin West, Arizona Museum of National History and • Bank of America many more • Maricopa County • Major Universities: Arizona State University including several campuses making it • Arizona State University the largest public university in the US by enrollment and a large community college • Apollo Group system. • JP Morgan Chase

Sources: Greater Phoenix Economic Council

TRANSPORTATION • Phoenix is bisected by two major freeway, I-17 (north/south) and I-10 (east/west) which meet in the heart of Phoenix. Additional state routes Loop 101, Loop 202 and Loop 303, SR-51, & US-60 give commuters alternate routes to destinations throughout the metro Phoenix area. • Phoenix’s Sky Harbor International Airport ranks 9th in the world for takeoffs and landings. On a typical day more than 1,200 aircraft arrive & depart with more than 100,000 passengers, and more than 600 tons of air cargo is handled. • The Metro Light Rail system provides direct access from Downtown Phoenix to Mesa with the capacity to carry up to 15,000 people per hour. • Modern infrastructure makes Greater Phoenix an excellent location for business growth. Greater Phoenix has made strategic transportation investments, making easy Scottsdale Fashion Square commutes possible for the region’s abundant labor force. • Greater Phoenix is also well-positioned for distribution to Southwestern markets including California and Mexico through our interstate highways.

RETAIL MARKET • Phoenix Vacancy Rate: 10.3% • Major Regional Malls: Desert Sky, Chandler Fashion Center, Arrowhead Towne Center, Superstition Springs Center, Biltmore Fashion Park, Keirland Commons, Fiesta Mall, University of Phoenix Stadium San Tan Village, Outlets at Anthem, Paradise Valley Mall, Scottsdale Fashion Square, Tempe Marketplace, The Pavilions at Talking Stick, Arizona Mills, Metrocenter Mall, Phoenix Premium Outlets, Desert Ridge Marketplace, Westgate Mall • Under Construction/Planned: Estrella Falls • Total Market GLA: 216,033,155 SF (existing inventory) • Total Retail Sales: $49,798,553,133

Phoenix Premium Outlets