16809 NORTH 9TH STREET | PHOENIX, ARIZONA 85022

OFFERING MEMORANDUM BELL TOWNE CENTRE BELL ROAD & 9TH STREET MAJOR EMPLOYERS WASTE MANAGEMENT OF AZ, INC: 800 Employees ANDERSON SECURITY AGENCY: 400 Employees NUMATICS INCORPORATED: 160 Employees THE CORE INSTITUTE: 150 Employees MCDOWELL SUNTRON CORPORATION: 149 Employees MOUNTAIN BENCHMARK ELECTRONICS: 137 Employees REGIONAL PARK LJR INC: 110 Employees SAM’S CLUB POLYMICRO: 110 Employees WALMART SUPERCENTER TRUSTED AEROSPACE ENGINEERING: 110 Employees TURF PARADISE NORTH SCOTTSDALE PHOENIX FIRST ASSEMBLY OF GOD: 100 Employees SCOTTSDALE AIRPORT SOURCE: Greater Phoenix Economic Council (GPEC) 3 APARTMENT COMPLEXES THE BOULEVARD & FOUNTAIN SQUARE (1,049 UNITS) LOOKOUT CORTINA MOUNTAIN (398 UNITS) PRESERVE STARBUCKS N CAVE CREEK ROAD CACTUS VIEW ELEMENTARY VASEO (381 STUDENTS) (1,222 UNITS) WELLS FARGO LA SERENA AT TOSCANA (324 UNITS) BELLRIDGE DESERT HOMES APARTMENTS (412 UNITS) BUILT 2016 (351 UNITS)

SARATOGA RIDGE N 9TH STREET (856 UNITS) SAN PEDEGRAL SITE (348 UNITS) TRELLIS ON BELL

• 306 CLASS-A TURTLE SITE MULTIFAMILY UNITS ROCK PARK CORDILLERA • 90 SINGLE FAMILY HOMES CONDOMINIUMS E BELL ROAD (±33,179 VPD*) • ±25,000 SF OF (272 UNITS) ARIZONA HAIR CO.

TRELLIS ON BELL

N 12TH STREET (±4,123 VPD*) • 306 CLASS-A MULTIFAMILY UNITS • 90 SINGLE FAMILY HOMES • ±25,000 SF OF RETAIL ARIZONA HAIR CO. E BELL ROAD (±33,179 VPD*) TURTLE N 9TH STREET N 12TH STREET (±4,123 VPD*) ROCK PARK BELLRIDGE APARTMENTS (351 UNITS) CORDILLERA

CONDOMINIUMS N (272 UNITS) N

NOT TO SCALE DESERT HOMES NOT TO SCALE *SOURCE: ADOT 2020 (412 UNITS) *SOURCE: ADOT 2020 TABLE OF CONTENTS

EXECUTIVE SUMMARY...... 6 Investment Opportunity Investment Highlights Pricing Summary Return Schedule Lease Summary Demographics

PROPERTY OVERVIEW...... 10 Tenant Overview Location Overview Property Photos

MARKET OVERVIEW...... 14 Phoenix Metropolitan Area

CONFIDENTIALITYAGREEMENT...... 19

EXCLUSIVELY MARKETED BY:

ANDREW K. FOSBERG DYLAN A. BROWN MIKE PARKER Senior Vice President Associate Senior Vice President Investment Properties Investment Properties Advisory & Transaction Services Retail Retail Industrial & Logistics CBRE | Capital Markets CBRE | Capital Markets CBRE | Capital Markets 2575 East Camelback Road, Suite 500 +1 602 369 5936 +1 602 735 1714 +1 602 735 5231 Phoenix, Arizona 85016 [email protected] [email protected] [email protected] www.cbre.com/phoenix © 2021 CBRE, Inc. All Rights Reserved.

REPRESENTATIVE PHOTO REPRESENTATIVE PHOTO

INVESTMENT OPPORTUNITY INVESTMENT HIGHLIGHTS CBRE Investment Properties has been retained as the exclusive representative has occupied the Property since 2015 and just renewed their • The Property is 100% leased to American Freight Furniture who just signed a • Major national retailers surrounding the Property include: Hobby Lobby, to offer qualified investors the opportunity to purchase a ±23,500 square foot lease for an additional five years, illustrating their commitment to the site and 5-year lease renewal through 2026. Marshalls, Sally Beauty, Panda Express, Raising Canes, Café Rio, Arby’s, retail asset 100% leased to American Freight Furniture located at 16809 North overall presence in this highly trafficked North Phoenix trade area. • In 2020, American Freight Furniture merged with Outlet, a leading Michaels, Orangetheory Fitness, Tutor Time and Smashburger, among many 9th Street in Phoenix, Arizona (the “Property”). The Property is prominently Founded in 1994, American Freight Furniture was established to help national discount retailer of home appliances, and FFO Home, a regional others. positioned on the southeast corner of Bell Road and 9th Street, just east of customers save on quality furniture and mattresses. In 2020, the company retailer of furniture and mattresses, to form the new American Freight • The Property shadow anchors a small, food & beverage focused strip center a Hobby Lobby anchored shopping center, which features major national started expanding the nationwide footprint to more than 350 stores including Company. which is 100% leased to: Panda Express, Pick N’ Roll Sushi Restaurant and retailers such as: Marshalls, Michaels, Great Clips, Papa Johns, Tutor Time, the addition and rebrand of nearly 130 Sears Outlet and over 30 FFO Home City Tacos. Arby’s, Chase Bank, Sprint and Nationwide Vision, among many others. locations. Through this rebrand, American Freight was able to expand its • American Freight Furniture operates over 350 store locations in 40 states as This ±23,500 square foot, freestanding, single-tenant retail building is fully product assortment to encompass furniture, mattresses, and appliances. well as . • Highly desirable location in the path of growth with ±338,970 residents living within 5 miles of the subject Property (Source: Esri). leased to “American Freight Furniture” on a brand-new five-year NNN lease The Property presents an excellent opportunity for an investor to acquire a • The Property is well-located along Bell Road, a major east-west commercial extension through 2026. Formerly doing business as “Sears Outlet,” the recently renovated, ±23,500 square foot retail asset 100% leased to American thoroughfare, which features over 41,000 vehicles per day (Source; City of • The City of Phoenix was just declared the fastest growing city in the nation Property was rebranded to “American Freight Furniture” last year and features Freight Furniture and located in the fast-growing Phoenix MSA. Phoenix). for population growth, marking its 4th consecutive year (Source: US Census excellent visibility and monument signage along Bell Road, a major east-west Bureau). commercial thoroughfare, which boasts over 41,000 vehicles per day (Source: • Centrally located along Bell Road, the Property benefits from its close proximity City of Phoenix). Not included in the offering but providing an additional to Interstate-17, State Route 51 and the Loop 101 freeway systems, which are draw to the Property and contributing towards their pro rata share of common situated less than 4 miles from this American Freight Furniture location. area costs are: Panda Express, Pick N’ Roll Sushi Restaurant and City Tacos.

6 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 7 ASSET PROFILE PRICING SUMMARY Home Appliance Showroom of Arizona, LLC PROPERTY OVERVIEW NAME dba - American Freight (formerly 'Sears Outlet') LIST PRICE $2,532,000 16809 North 9th Street TENANT OVERVIEW ADDRESS Phoenix, Arizona 85022 CAP RATE 7.00%

BUILDING SIZE ±23,500 SF NOI $177,236 Since 1994, American Freight Furniture and Mattress has been helping customers save money on quality furniture and mattresses. In 2020, American TENANT Home Appliance Showroom of Arizona, LLC PRICE PER SF $108 Freight combined with Sears Outlet, a leading national discount retailer OCCUPANCY 100% of home appliances, and FFO Home, a regional retailer of furniture and YEAR BUILT 1998 mattresses, to create a new American Freight Company. The enhanced

YEAR RENOVATED 2015 American Freight leverages the strong legacies of the founding organizations to deliver consumers a one-stop-shop for quality furniture, mattresses, LEASE TYPE Triple-Net (NNN) DEMOGRAPHICS and appliances at everyday low prices in over 350 locations in 40 states PARCEL NUMBER 214-16-246 1 MILES 3 MILES 5 MILES and Puerto Rico. American Freight will offer affordable prices, new product PARCEL SIZE ±85,421 SF (±1.96 Acres) offerings, and financing solutions to help better serve consumers in each local 2020 POPULATION 24,619 143,744 338,970 market. COUNTY Maricopa *The company is Not affiliated with Sears or its parent company ransformCo.T ZONING C-2 2025 POPULATION 26,313 152,102 357,309 www.americanfreight.com PARKING SPACES 94 Parking Spaces GROWTH 2020-2025 1.34% 1.14% 1.06% PARKING RATIO 4 Spaces per 1,000 Sq Ft 2020 AVERAGE $67,695 $80,175 $80,313 HOUSEHOLD INCOME

2020 AVERAGE $285,891 $284,149 $282,624 HOME VALUE

2020 MEDIAN AGE 34.30 37.40 37.20

(SOURCE: Esri)

www.americanfreight.com You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

8 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 9 REPRESENTATIVE PHOTO LEASE SUMMARY PROPERTY OVERVIEW TENANT Home Appliance Showroom of Arizona, LLC LOCATION OVERVIEW LEASE DATE 4/1/2015 This American Freight Furniture is located on the southeast corner of Bell Road & Drug (Kroger) store located a few blocks east of the Property which opened BUILDING SF ±23,500 SF and 9th Street in a dense infill trade area of metropolitan Phoenix, just east in 2016. LEASE TERM 60 Months of Moon Valley Towne Center which features major national retailers such as: The Property is well-located in a high barrier-to-entry trade area and features Hobby Lobby, Marshalls, Michaels, Orangetheory Fitness, Chase Bank, Sprint, excellent visibility and monument signage along Bell Road, a major east- COMMENCEMENT DATE 9/1/2015 Tutor Time, Arby’s, GNC, Subway, Great Clips, Papa Johns and Nationwide west commercial thoroughfare, which boasts over ±41,000 vehicles per EXPIRATION DATE 2/28/2026 Vision, among many others. The Property is located along one of Phoenix’s day (Source: City of Phoenix). Not included in the offering but providing an major east-west commercial thoroughfares, Bell Road, and across the street additional draw to the Property and contributing towards the pro rata share LEASE TYPE Triple-Net (NNN) from the new ‘Trellis on Bell’ mixed-use development project consisting of of common area costs are: Panda Express, Pick N’ Roll Sushi Restaurant ANNUAL RENT (2021) $177,236 306 multifamily units, 90 single family homes and approximately ±25,000 and City Tacos. Located in the highly accessible North Phoenix submarket of SF of retail. Originally a semiconductor manufacturing plant, Trellis on Bell metropolitan Phoenix, this American Freight Furniture is situated within 3.5 ANNUAL RENTAL RATE PSF $7.54 was one of the largest redevelopment projects in metropolitan Phoenix over miles of Interstate-17 and SR-51, two of Phoenix’s major arterial highways, (2021) the last decade and features best-in-class architecture, design and a diverse, and approximately 2 miles south from the Loop 101, which extends from Tenant shall pay directly the cost of all utilities including: natural gas, electric, water, sewer, phone, internet and any service-oriented tenant roster, including: Raising Cane’s, Smashburger, Blaze UTILITIES Scottsdale to the West Valley of metropolitan Phoenix. other utility serving the Premises. Pizza, Café Rio, Kneaders and Arizona Hair Company. Further highlighting the strength of the immediate trade area is a brand-new ±123,000 SF Fry’s Food REAL ESTATE TAXES Tenant shall pay Landlord its proportionate share of Real Estate Taxes. INSURANCE Tenant shall, at its sole expense, pay all insurance policy premiums. N 9TH ST COMMON AREA MAINTENANCE Common areas includes without limitation, pedestrian walkways, landscaped areas, sidewalks and parking areas.

CONTROLLABLE CAMS Shall not increase more than 5% on a cumulative annual basis. Tenant shall maintain and repair the Premises, the improvements, equipment and personal property located within TENANT OBLIGATIONS the Premises in good condition and repair. Not APart Landlord will maintain roof responsibility but Tenant shall remain responsible for service and repairs to HVAC units. LANDLORD OBLIGATIONS Tenant responsible for any HVAC repairs serving the Premises up to $500.00 per unit, per occurrence. E PHELPS RD BELL ROAD EARLY TERMINATION None

SECURITY DEPOSIT $17,098.72

USE Outlet Store

RENT SCHEDULE ANNUAL MONTHLY ANNUAL RENT RENT RENT PER SQ FT 3/1/21 - 8/31/21 $120,000 $10,000.00 $5.11

9/1/21 - 2/28/26 $177,236 $14,770 $7.54 N NOT TO SCALE You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

10 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 11 REPRESENTATIVE PHOTOS REPRESENTATIVE PHOTOS MARKET OVERVIEW

METROPOLITAN PHOENIX BUSINESS MAJOR EMPLOYERS The Phoenix metropolitan area is a vibrant community and economic hub, Efforts to diversify the Phoenix economy, market its strengths and make the With a competitive advantage regarding cost, talent and quality of life, Phoenix is uniquely attractive to IN METROPOLITAN PHOENIX attracting new residents and businesses alike. Today, the region is home to 4.9 region a friendlier place to do business have paid dividends. Today, the Phoenix businesses. These factors, in addition to the metro’s business-friendly regulatory environment and proximity million residents and continues to grow. The Phoenix MSA is the second fastest metro area is increasingly known for its relatively low taxes and business- to major markets, continue to help fuel growth. In recent years, a significant number of financial, technology CORPORATE HEADQUARTERS growing metro in the nation and ranks 11th in total population. The metro friendly regulatory climate. This combination, backed by numerous public- and manufacturing companies have located and expanded operations in greater Phoenix. remains attractive not only because of its competitive advantage regarding cost, private partnerships between government, industry and leading educational but also because of an overall value proposition, which includes its talent pool, institutions, supports a dynamic entrepreneurial community. Furthermore, the The metro’s growing prominence as a financial hub is fueled by companies such as USAA, State Farm, quality of life and infrastructure. Valley has become a preferred location for finance, technology and advanced Charles Schwab, Freedom Financial and Northern Trust—all of which have expanded operations within manufacturing. Companies also benefit from the metro’s inherent advantages; AEROSPACE & AVIATION the last few years. As a result, hiring rates for finance and insurance jobs in Phoenix have been among the for example, its strategic location provides access to major markets within one highest in the country. The financial activities sector accounts for 9.0% of total employment in Phoenix and is day’s drive. a growing sector that supports more than 198,000 jobs.4 Still, industries such as trade, transportation and utilities; professional and business services; and educational and health services make up the largest share of the metro’s labor economy. E-COMMERCE/LOGISTIC CENTERS

GROWING POPULATION GROWING AND AND LABOR POOL DIVERSIFYING KEY INDUSTRIES ECONOMY FINANCIAL SERVICES State Farm METROPOLITAN Bank of PHOENIX America

FINANCIAL PRODUCTION & HEALTH CARE SERVICES MANUFACTURING HEALTH CARE/BIOTECH Businesses: 7,726 5,199 2,751 AFFORDABILITY BUSINESS Employees: 229,150 181,500 139,890 AND QUALITY FRIENDLY OF LIFE ENVIRONMENT HIGH-TECH MANUFACTURING

WAREHOUSE/ INFORMATION AEROSPACE& DISTRIBUTION TECHNOLOGY AVIATION Businesses: 3,079 1,036 583 Employees: 103,410 82,550 46,130 Source: CBRE Research Source: Maricopa Association of Governments, 2019. Source: CBRE Research

14 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 15 STRATEGIC LOCATION PHOENIX DEMOGRAPHICS & ECONOMY

The Phoenix metro serves as an optimal Robust population growth across the Valley is market, is supporting wage increases. In 2018, location due to its proximity to major supported by strong net migration. The metro’s the annual mean wage rose 2.1% to $50,520, just markets which attracts firms that export population has grown from 375,000 people in slightly below the U.S. mean wage of $51,960. abroad to the Valley. Companies HIGHWAY AND RAIL 1950 to more than 4.9 million residents today. Source: CBRE Research , 2019 that distribute throughout the western LEGEND An average of 260 people are added to the metro and southwestern U.S. and Mexico RAILWAYS each day making it the second fastest growing benefit from the area’s location and SALT LAKE CITY 1-DAY HIGHWAY DELIVERY metro in the nation. Maricopa County—where infrastructure that connects Arizona 2-DAY HIGHWAY DELIVERY BAY AREA Phoenix is located—was the fastest growing DENVER 3-DAY HIGHWAY DELIVERY to 65 million people in markets county in the U.S.1 Looking forward, the Phoenix POPULATION BY AGE throughout California, Colorado, LAS VEGAS metro population is expected to grow at an Nevada, New Mexico, Texas and Utah, average annual rate of 1.6% over the next five which are within a one-day truck haul. 7.0% INLAND EMPIRE years, more than double the national rate of growth. Less than 5 ALBUQUERQUE SAN DIEGO PHOENIX DALLAS While many know Phoenix as a retirement TUCSON destination, the metro boasts a relatively young 20.1% HIGHWAY TRAVEL EL PASO population with a median age of 36.9 years— 5-19 TIMES FROM PHOENIX SANTA ANA younger than the national median age.3 This City ±Miles ±Hours young and growing labor pool offers long-term Tucson 125 1.75 stability to metro employers. 21.6% CHIHUAHUA Las Vegas 285 5.25 HOUSTON 20-34 Inland Metropolitan Phoenix is the economic engine of 310 4.10 Empire the state, accounting for two-thirds of Arizona LOS MOCHE San Diego 350 4.75 residents and nearly three-fourths of the state’s 18.9% TORREON El Paso 440 6.00 labor economy. The employment outlook for the MAZATLAN MONTERREY 35-49 Albuquerque 475 6.25 metro is positive. Notable growth is occurring in Salt Lake the professional and business services, financial 635 11.00 City CIUDAD VICTORIA activities and health care employment sectors. 17.0% Bay Area 750 12.00 Rising employment in these higher-paying 50-64 Dallas 1,12 0 15.00 industries, combined with a tightening labor Houston 1,185 17.50 15.2% Source: Greater Phoenix Economic Council 65+ Source: Esri, 2019

16 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 17 PHOENIX’S ROBUST POPULATION GROWTH DRIVEN POPULATION GROWTH BY NET MIGRATION

HIGHLIGHTS 9 Phoenix Maricopa County

State of Arizona MEDIAN AGE UNEMPLOYMENT AZ US AZ US 6 36.9 38.2 4.5 3.9

Source: Esri 2019

RELATIVE COST INDEX 3

Cost of Living Cost of Business Net Migration Natural Increase 160,000 140,000 0 1990 2000 2015 2020 2030 120,000 Source: CBRE Research, Q1, 2019

100,000 Denver HISTORIC AVG: 89,990 80,000 Salt Lake City 60,000

40,000 Phoenix

20,000 Las Vegas

0 1990 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 011 2 2012 2013 014 2 2015 2016 017 2 2018* 2019* 2020* 2021* 2022* 60 80 100 120 14 0 160 180 U.S. = 100 Source: Moody’s Analytics, Q2 2018 *Forecast Source: Moody’s Analytics, 2018 18 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 19 MAJOR MILESTONES 2010 2000 Freeport-McMoRan Kierland Commons 2019 tower completed 1998 opened in Scottsdale 2005 2017 Completion of in Phoenix 2015 Chase Field Phoenix Biomedical 2008 Intel announces Block 23 opened in Phoenix Campus opened with Marina Heights $7B investment in Metro Light TGen and IGC opens Chandler, creating Rail opened in 3,000 jobs Phoenix

METRO PHOENIX POPULATION GROWTH 1990 2.2M 2000 3.3M 2010 4.2M 2020 4.9M

Loop 303 connected to I-10 Thunderbird School of State Farm Stadium Loop 202 freeway State Farm Management Integrates opened in Glendale completed in Tempe Town Lake Campus with ASU and moves to east valley completed Jobing.com Arena CityScape 2014 completed downtown Phoenix built in Glendale 2006 2008 completed in 1999 Phoenix 2017 2018 2003 2010

20 American Freight Furniture Offering Memorandum American Freight Furniture Offering Memorandum 21 CONFIDENTIALITY AGREEMENT AFFILIATED BUSINESS DISCLOSURE hold it in the strictest confidence, (iii) you will not available to qualified prospective purchasers. You CBRE, Inc. operates within a global family of disclose it or its contents to any third party without are advised to independently verify the accuracy companies with many subsidiaries and related the prior written authorization of the owner of the and completeness of all summaries and information entities (each an “Affiliate”) engaging in a broad property (“Owner”) or CBRE, Inc., and (iv) you will contained herein, to consult with independent legal range of commercial real estate businesses including, not use any part of this Memorandum in any manner and financial advisors, and carefully investigate but not limited to, brokerage services, property and detrimental to the Owner or CBRE, Inc. the economics of this transaction and property’s facilities management, valuation, investment fund suitability for your needs. ANY RELIANCE ON THE management and development. At times different If after reviewing this Memorandum, you have no CONTENT OF THIS MEMORANDUM IS SOLELY Affiliates, including CBRE Global Investors, Inc. or further interest in purchasing the property, kindly AT YOUR OWN RISK. Trammell Crow Company, may have or represent return it to CBRE, Inc. clients who have competing interests in the same The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of transaction. For example, Affiliates or their clients DISCLAIMER may have or express an interest in the property interest or offers to purchase the property, and/ This Memorandum contains select information or to terminate discussions at any time with or described in this Memorandum (the “property”), pertaining to the property and the Owner, and does and may be the successful bidder for the property. without notice to you. All offers, counteroffers, and not purport to be all-inclusive or contain all or part negotiations shall be non-binding and neither CBRE, Your receipt of this Memorandum constitutes your of the information which prospective investors may acknowledgment of that possibility and your Inc. nor the Owner shall have any legal commitment require to evaluate a purchase of the property. The or obligation except as set forth in a fully executed, agreement that neither CBRE, Inc. nor any Affiliate information contained in this Memorandum has been has an obligation to disclose to you such Affiliates’ definitive purchase and sale agreement delivered obtained from sources believed to be reliable, but by the Owner. interest or involvement in the sale or purchase of has not been verified for accuracy, completeness, the Property. In all instances, however, CBRE, Inc. or fitness for any particular purpose. All information CBRE and the CBRE logo are service marks of CBRE, and its Affiliates will act in the best interest of their is presented “as is” without representation or Inc. All other marks displayed on this document are respective client(s), at arms’ length, not in concert, warranty of any kind. Such information includes the property of their respective owners, and the use or in a manner detrimental to any third party. CBRE, estimates based on forward-looking assumptions of such logos does not imply any affiliation with or Inc. and its Affiliates will conduct their respective relating to the general economy, market conditions, endorsement of CBRE. businesses in a manner consistent with the law and competition and other factors which are subject to Photos herein are the property of their respective EXCLUSIVELY MARKETED BY: all fiduciary duties owed to their respective client(s). uncertainty and may not represent the current or owners. Use of these images without the express future performance of the property. All references to written consent of the owner is prohibited. CONFIDENTIALITY AGREEMENT acreages, square footages, and other measurements ANDREW K. FOSBERG DYLAN A. BROWN MIKE PARKER Your receipt of this Memorandum constitutes are approximations. This Memorandum describes Senior Vice President Associate Senior Vice President your acknowledgment that (i) it is a confidential certain documents, including leases and other Investment Properties Investment Properties Advisory & Transaction Services Retail Retail Memorandum solely for your limited use and benefit materials, in summary form. These summaries may Industrial & Logistics CBRE | Capital Markets CBRE | Capital Markets CBRE | Capital Markets in determining whether you desire to express further not be complete nor accurate descriptions of the full agreements referenced. Additional information and +1 602 369 5936 +1 602 735 1714 +1 602 735 5231 interest in the acquisition of the property, (ii) you will [email protected] [email protected] [email protected] an opportunity to inspect the property may be made

22 American Freight Furniture Offering Memorandum