Arcadia Place OFFERING MEMORANDUM NWC 40Th Street & Indian School Road ~ Phoenix, AZ 40Th Street

Arcadia Place OFFERING MEMORANDUM NWC 40th Street & Indian School Road ~ Phoenix, AZ 40th Street

Exclusively Listed By:

Full service commercial real estate Jason R. Eisenberg Ryan W. Amato 2710 E Camelback Road, Suite 210 Vice President of Development & Acquisitions Senior Vice President Phoenix, AZ 85016 [email protected] [email protected] 602-468-6100 www.eisenbergcompany.com

Indian School Road

Arcadia Place OFFERING MEMORANDUM NWC 40th Street & Indian School Road ~ Phoenix, AZ Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ

TABLE OF CONTENTS

AGREEMENT PROPERTY OVERVIEW MARKET ANALYSIS • Disclaimer & Confidentiality Agreement • Site Plan • Phoenix Economic & Retail Market Overview • Aerial Close-Up of Property • Economic Highlights EXECUTIVE SUMMARY • Tenant Profiles • Metro Phoenix Market Activity • Improvements Data • Retail Market Profile • Investment Opportunity • Aerial Vicinity Map • Property Summary / Financial Highlights LOCATION • Investment Highlights FINANCIALS • Demographics / Trade Area Overview • Aerial Views of Intersection • Demographics & Income Profile • Metropolitan Phoenix Overview • Tenancy Schedule • Arcadia Neighborhood Overview • Budget Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ AGREEMENT

DISCLAIMER and CONFIDENTIALITY AGREEMENT

This confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement signed by you (“Confidentiality Agreement”) and constitutes part of the confidential property information (“Confidential Information”). It is being given to you for the sole purpose of evaluating the possible acquisition of Arcadia Place - Phoenix, Arizona (the “Property”) and is not to be used for any other purpose or made available to any other party without the prior written consent of the seller (“Seller”) or Eisenberg Company (“Eisenberg Company”, “Exclusive Advisor” or “Broker”).

This Memorandum was prepared by Broker based on information supplied by Seller and Broker. It contains selected information about the Property and the real estate market, but does not contain all the information necessary to evaluate the acquisition of the Property. The financial projections contained herein (or in any other Confidential Information) are for general reference only. The projections are based on assumptions relating to the general economy and local competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or legal analysis of such documents.

While the information contained in this Memorandum and any other Confidential Information is believed to be reliable, neither Broker nor Seller guarantees its accuracy or completeness. Due to the foregoing and since the Property will be sold on an “As Is, Where Is” basis, a prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the Property without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, environmental or other reports, may be provided to qualified parties as marketing proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineering, environmental, and other experts.

Seller expressly reserves the right, at its sole discretion, to reject any offer to purchase the Property or to terminate any negotiations with any party at any time with or without written notice. Seller shall have no legal commitment or obligation to any prospective purchaser unless and until a written sale agreement has been fully executed, delivered and approved by Seller and any conditions to Seller’s obligations thereunder have been satisfied or waived.

Seller has retained Broker as its exclusive broker and will be responsible for any commission due to Broker in connection with a sale of the Property pursuant to separate agreement. Broker is not authorized to make any representation or agreement on behalf of Seller. This Memorandum is the property of Seller and Broker and may be used only by parties approved by Seller or Broker. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ EXECUTIVE SUMMARY

INVESTMENT OPPORTUNITY

Eisenberg Company, as exclusive advisor, is pleased to present the extraordinary opportunity to acquire Arcadia Place (the “Property”), a premier, newly constructed 14,000 square-foot neighborhood shopping center which was completed in June, 2017. Arcadia Place is located in Phoenix, Arizona at the northwest corner of Indian School Rd and 40th Street. Located on 1.4 acres of infill real estate in the prestigious community of Arcadia, the shopping center is 100% leased to a complementary collection of retailers. The Property’s tenancy generates a high volume of consumer traffic and income, which are strengthened through superior access and visibility to the intersection.

Arcadia Place is host to an array of unique retailers: Cold Beers & Cheeseburgers, Even Stevens, Radi8 Yoga, Arcadia Meat Market, Masterpiece Doughnuts and Coffee, and Tacos, Tequila and Whiskey. Combined, these tenants provide an investor with consistent income and an attractive lease rollover profile.

High barriers to entry, irreplaceable location, desirable trade area, stable cash flow and a strong mix of tenants make Arcadia Place a rare opportunity to acquire an exceptionally rare trophy investment in the prestigious neighborhood of Arcadia in Phoenix, Arizona. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ EXECUTIVE SUMMARY

PROPERTY SUMMARY FINANCIAL HIGHLIGHTS

Property: Arcadia Place Price $ 10,500,000

Location: NWC 40th Street & Indian School Road CAP Rate 5.65 Phoenix AZ Year-1 NOI $ 593,722 Year Built: 2017 (April 2018 - March 2019)

Total Square Footage: ± 13,854 SF

Occupancy: 100 %

Assessor Parcel Number: 170-32-100B

Gross Site Area: ± 1.37 AC

Zoning: C-2, City of Phoenix Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS Trophy Infill Asset Developed in 2017, Arcadia Place encompasses 13,854 square feet of retail space designed with modern architec- ture that creates an attractive shopping environment. With a high profile location in the heart of Arcadia communities, the center consists of lease-only in-line space that provide daily needs, services and dining options to the local consumer base. Positioned just 2 miles south of the employment hub of the Mid-Town office market, Arcadia Place also provides exceptional access and visibility. Consistent Cash Flow Secured by Proven Tenants Arcadia Place is 100% leased to national/regional tenants. Exceptional Access and Visibility Prominently located at the northwest corner of Indian School Road and 40th Street, Arcadia Place is situated along two of the submarkets primary commercial thoroughfares with visibility to an estimated 47,000 vehicles each day. This outstanding visibility is supplemented with exceptional access, as Arcadia Place has 2 points of entry from two sides of the site, leading to an abundance of parking at a ratio of 10 per 1,000 leasable square feet including valet (8 per 1,000 leasable square feet not including valet).

Arcadia Place is also among a large and growing population with attractive demographics in the surrounding family-oriented, extremely vibrant local economy and densely populated infill communities. Ideally Positioned in an Densely Populated Infill / Affluent Trade Area An estimated 145,000 people earning an average household income of $75,000 reside within a three-mile radius of Arcadia Place. Within a five mile radius, this population swells to nearly 305,000. Together, this population creates an ideal upper middle income demographic for Arcadia Place. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ EXECUTIVE SUMMARY

DEMOGRAPHICS OVERVIEW DEMOGRAPHICS AND INCOME PROFILE

Trade Area Overview Population 1-Mile Radius 3-Mile Radius 5-Mile Radius 2022 Projected Population 20,232 143,623 305,564 Arcadia Place’s strategic position within Phoenix 2017 Estimated Population 18,773 133,129 282,228 and Arcadia places the project at the center of a 2010 Census Population 17,301 121,578 252,248 desirable and affluent demographic. Growth Rate Estimated 2017 - 2022 7.77% 7.88% 8.27% The trade area within a five-mile radius consists of Growth Rate Pop 2010 - 2017 8.51% 9.50% 11.89% nearly 122,755 residents. The average household income in a one mile radius of $77,952 annually. Households 1-Mile Radius 3-Mile Radius 5-Mile Radius 2022 Projected Households 9,525 58,550 132,898 2017 Estimated Households 8,835 54,269 122,755 2010 Census Households 8,123 49,622 109,706 HH Growth Rate Projected 2017 - 2022 7.81% 7.89% 8.26% HH Growth Rate 2010 - 2017 8.77% 9.36% 11.89% Owner Occupied Households % 50.90% 48.00% 46.22%

Income 1-Mile Radius 3-Mile Radius 5-Mile Radius 2017 Average Household Income $77,952 $74,387 $73,748 2017 Median Household Income $53,249 $45,985 $47,217 Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ PROPERTY OVERVIEW

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SITE PLAN NOT DRAWN TO SCALE Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ PROPERTY OVERVIEW

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TENANT PROFILES

Tenant Founded Products/Services Stores Website

Tacos, Tequila, Whiskey 2010 Full Service Restaurant 4 tacostequilawhiskey.com

Tacos Tequila Whiskey is an established multi-state chain of full service sit-down restaurants which brings a modern twist on “comida de la calle”—Mexican street food— to a sit-down restaurant with an expanded menu and a selection of quality, small-batch tequila and whiskey as well as award-winning cocktails and desserts.

squareoneconceptsinc.com Cold Beers & Cheeseburgers 2011 Full Service Restaurant 11 coldbeers.com

Square One Concepts brought this fast growing chain to market in 2011. Keeping it simple, they decided to call themselves exactly what they offer: cold beers and cheeseburgers. The menu features only fresh ingredients with all items made in-house daily, and the beer menu consists of over 150 beer choices at most locations, on draught, bottled, or canned. Featuring leather booths, butcher block tables, over 30 HD flat screen TVs, sound system with a large patio, roll-up garage doors, indoor/outdoor bars for direct service, and high top community tables with built-in beer coolers. Square One Concepts is a full service hospitality management, design and consulting firm located in Scottsdale, AZ with eight concepts totaling more than 18 restaurants.

Even Stevens 1994 Sandwiches 13 evenstevens.com

Even Stevens is a craft-casual restaurant serving breakfast, lunch, dinner and brunch in the modern neighborhoods. Part of the business model is giving a sandwich to a local non-profit for every sandwich sold, “turning our craft and your experience into a force of social good - two for one, one for all.” They currently have over 13 stores in eight states and are growing rapidly.

Radi8 2017 Yoga Studio 1 radi8love.com

This modern take on hot yoga has fast become a concept that is gaining market share in the fitness world. Although traditionally associated with the style devised by Bi- kram Choudhury, “hot yoga” is now used to describe any number of yoga or yoga-inspired fitness styles that use heat. The heat in Radi8 is used to increase the “tourniquet effect,” to train the mind, and to improve circulation to the joints.

Arcadia Meat Market 2017 Modern Butcher 1 arcadiameatmarket.com

Led by a second-generation Master Butcher, a whole animal butcher shop. Specializing in all-natural meats from the finest family-run farms and ranches across Arizona and beyond, offering only Pasture Raised Grass Fed Beef and Lamb, Pasture Raised Pork, Free Range Organic Chicken and more. Working exclusively with ranchers and farmers who care about the planet and the animals they raise.

MasterPiece Donuts 2017 Donuts & Coffee 1 masterpiecedonutsandcoffeeplus.com

Custom made doughnuts, healthy bowls, coffee and drinks all freshly prepared on site and in plain view of customers using an exhibition window allowing customers to watch as their products are prepared. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ PROPERTY OVERVIEW

IMPROVEMENTS DATA Foundation: Conventional concrete footings Structure: Steel joist & deck system and glu lam beam trusses with plywood roof deck Exterior Walls: Integral color cmu Roof Cover: Metal roof for 65% of building. Foam roofing for all flat roofs. Interior Finishes: Per Tenant Floor Covering: Per Tenant HVAC: Minimum 1 ton per 300 SF Fire Protection: Yes, Sprinkler Lighting: LED fixtures Lighting is controlled by photocells and timers. Landscaping: Ornamental shrubs and hedges, shade trees, lawns, and ground covers Signage: Several building-mounted tenant signs and numerals, and directional signs mounted on steel frame Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ LOCATION

METROPOLITAN PHOENIX OVERVIEW Rail Valley Metro provides public transportation throughout Greater Phoenix The Phoenix-Mesa-Glendale metropolitan area, home to approximately via trains, buses, and a ride-share program. Valley Metro’s 20-mile light rail 4.2 million residents, is the 14th most populous metropolitan area in the project, or METRO, traverses through North Central Phoenix, downtown, US and features one of the fastest growing populations in the country. and eastward through Tempe and Mesa. Riders have convenient access Phoenix Metro is recognized for its warm climate, diverse economy, with 32 light rail stops that include Arizona State University’s Downtown exceptional workforce and educational opportunities, thriving quality of Phoenix and Tempe Campuses, Chase Field, US Airways Arena and the life, numerous recreational offerings, and more affordable cost of living Phoenix Convention and Visitors Center. Future rail segments totaling than many other major western markets. more than 30 miles are planned to open by 2030. Location and Access Two transcontinental railroads and 10 interstate railroads provide freight With close proximity to California, Texas and Mexico, Greater Phoenix is rail service in Arizona and Metropolitan Phoenix. Union Pacific is the conveniently accessible to a multitude of major domestic and international largest and offers over 700 miles of freight track in Arizona, including markets. The region boasts 14 airports, numerous freeways and public routes from California and the Ports of Los Angeles and Long Beach. transportation options. Quality of Life Freeways In addition to a well-balanced economy, job opportunities, educational Three major freeway systems serve the Greater Phoenix region including institutions and convenient transportation options, Greater Phoenix also Interstate 10, Interstate 17 and US Route 60. The regional freeway offers an exceptional quality of life with affordable living and wide range system includes three arterial routes, Loop 101, Loop 202 and Loop 303, of recreation, entertainment and cultural options. As a complement connecting the metro area with perimeter loops, as well as State Route 51/ to its warm climate, Greater Phoenix boasts an abundance of outdoor Piestawa Peak and State Route 143, which offer north/south connections activities such as hiking, cycling, and shopping, as well as a vast array of in the Valley. Loop 101 serves the North Scottsdale market. resorts, spas and golf courses. Airports Phoenix also has a multitude of cultural offerings such as museums, art Located less than four (4) miles away from Arcadia Place, Phoenix’s Sky galleries, and botanical gardens. Sporting events are in abundance with Harbor International Airport is the 10th busiest airport in the nation with the Arizona Cardinals (NFL), Arizona Diamondbacks (MLB) and Phoenix 44 million annual passengers and 800 tons of estimated daily air cargo. Coyotes (NHL). The airport’s economic impact is approximately $90 million per day with 1,200 daily flights to 85 domestic and 19 international locations. There are eight additional commercial airports that offer service in Metropolitan Phoenix, including Phoenix-Mesa Gateway, Scottsdale, Glendale, Deer Valley, Chandler, Goodyear and Falcon Field in Mesa. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ LOCATION

ARCADIA TRADE AREA NEIGHBORHOOD HIGHLIGHTS

Arcadias i a neighborhood in Phoenix and Scottsdale, Arizona. It is Arcadia Place is located within one of the hottest restaurant submarkets bounded by 40th Street to 68th Street and Indian School to Camelback in the southwest, with these local restaurateurs all located on 40th Street Road. Arcadia contains well-kept homes on large lots; these homes within one-half mile of the property: command relatively high property values (as the neighborhood is adjacent • Postino Winecafè to the upscale suburbs of Paradise Valley, the Biltmore area, Scottsdale and north Phoenix). Built on former citrus groves, Arcadia is known for • North Italia well-irrigated, mature landscaping. Several yards prominently feature • Chelsea’s Kitchen & LGO orange, lemon and grapefruit trees as reminders of the area’s past; the • The Vig area used to be occupied by citrus farmers from 1919 to the mid-1950s. In the mid-1950s, the rest of Phoenix caught up with the farms and the area suburbanized with characteristic ranch homes on large lots.

Arcadia High School serves and derives its name from the neighborhood. Arcadia is frequently listed as the top place to live in all of Phoenix Metro due to its ideal location for both work and fun, vibrant food / culture, walk-ability, and plush landscape.

It is also just south of the desired hiking destinations of Camelback Mountain and Piestewa Peak. Much of Phoenix’s cycling scene pedals through this neighborhood, as Campbell / Lafeyette is one of the main Phoenix cycling corridors. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ MARKET ANALYSIS

PHOENIX ECONOMIC AND RETAIL MARKET OVERVIEW According to the Bureau of Labor Statistics (BLS), Trade, Transportation & Utilities currently leads the region’s employment, followed by Professional The Phoenix-Mesa-Glendale metropolitan area, or Greater Phoenix, is & Business Services, Education & Health Services, Government and recognized for its warm climate, diversified economy, talented work Leisure & Hospitality. force, excellent educational opportunities, and enhanced quality of life with year-round outdoor recreation and a more affordable cost of living Greater Phoenix has a $181 billion regional economy that offers a business- than many other major western markets. Home to approximately 4.2 friendly environment for innovation and entrepreneurship. The region million residents, Greater Phoenix is the 14th most populous metropolitan and its international access are ideal for aerospace, high technology, area in the United States and has one of the fastest growing populations bioscience, advanced business services and sustainable technologies in the country. The region benefits from its geographic location with companies. proximity to domestic and international markets throughout the The largest private employers in Greater Phoenix include Wal-Mart Stores Southwest, including Texas, Nevada, California and Mexico. As a result, Inc., Banner Health System, Wells Fargo & Co., Bank of America, Raytheon Greater Phoenix continuously draws companies to the region each year, Co., Apollo Group, JP Morgan Chase, Intel Corp and US Airways Group. creating a diversified mix of economic drivers that include retail services, high-technology manufacturing, finance and healthcare. These industries Greater Phoenix offers a myriad of top-notch schools that supply much have significantly contributed to the rebound of the Phoenix economy, of the region’s talented workforce, including Arizona State University which is experiencing a substantial surge in employment and overall (ASU), one of the largest public universities in the United States with economic expansion. 75,000 students on four campuses across Greater Phoenix. Additionally, the Maricopa Community Colleges is one of the largest networks of Economic Highlights community colleges in the nation with 270,000 students. (continued) With 4.2 million residents and nearly 500,000 students, Greater Phoenix’s population is expected to reach 6.9 million in the next 20 years, outpacing the national rate more than three times over.

Greater Phoenix is host to numerous headquarter operations and four Fortune 500 companies including waste management company Republic Services, mining giant Freeport McMoRan Copper & Gold, electronics distributor Avnet and pet supply superstore PetSmart. Other Fortune 500 companies operating within the region include Boeing, Bank of America, Time Warner Telecom, IBM and Intel. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ MARKET ANALYSIS

PHOENIX ECONOMIC & RETAIL MARKET OVERVIEW Retail Market Profile (continued) The Phoenix retail market is comprised of 151.6 million square feet including 91.5 million square feet in neighborhood centers. The market is Metro Phoenix Market Activity divided into 10 submarkets that are led by Northwest Phoenix, the largest A favorable job forecast, remarkable population growth, rebound in submarket with 29.4 million square feet, followed by Chandler/Gilbert new home construction and an overall positive economic outlook for with 26.2 million square feet and Mesa with 20.7 million square feet. the regional economy has positively affected the Phoenix retail market. Strong leasing activity has resulted in outstanding absorption, declining vacancy and an anticipated rise in rental rates. Much of the leasing activity is due to small shop space below 10,000 square feet, a positive A favorable job forecast, remarkable population sign that small businesses are gaining confidence and expanding or growth and a rebound in new home construction opening additional locations. As demand for retail space continues to have positively affected the Phoenix retail market. strengthen, well-located projects with desirable trade areas like Arcadia Place are well positioned to benefit. Arcadia Place NWC 40th Street & Indian School Road ~ Phoenix, AZ MARKET ANALYSIS

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Arcadia Place OFFERING MEMORANDUM NWC 40th Street & Indian School Road ~ Phoenix, AZ