TWO-TENANT FREESTANDING BUILDING Brand New Construction Investment Opportunity 1313 South Power Road | Mesa, Arizona PHOENIX MSA ACTUAL SITE EXCLUSIVELY PRESENTED BY SEAN THOMAS ED BEEH Vice President EVP & Designated Broker SRS National Net Lease Group SRS Real Estate Partners-West, LLC [email protected] D: 602.682.6088 AZ License No. BR032807000 3131 E. Camelback Road, Suite 110 Phoenix, AZ 85016 AZ License No. SA116826000 2 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC TABLE OF CONTENTS INVESTMENT SUMMARY Offering Summary 5 Investment Highlights PROPERTY OVERVIEW Aerials Site Plan 9 Location Map AREA OVERVIEW 16 Demographics FINANCIALS Rent Roll 18 Brand Profile 3 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY PHOTO 4 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC INVESTMENT SUMMARY SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a two-tenant, NNN leased, freestanding, Del Taco & Aspen Dental investment property located in Mesa, Arizona (Phoenix MSA). Both tenants have signed brand new 10-year leases with 2 (5-year) options to extend, each featuring scheduled rental increases every 5 years throughout the initial term and at the beginning of each option period. The leases are NNN, reducing expense leakage for a new investor. The building is currently under construction and is estimated to have a grand opening in Summer 2020. New construction limits the need for short-term capital expenditure by a new landlord. The Del Taco & Aspen Dental property is strategically located near the signalized, hard corner intersection of S. Power Road and E. Southern Avenue, averaging a combined 55,700 vehicles passing by daily. The site benefits from nearby on/off ramp access to U.S. Highway 60 (155,600 VPD), a highway that connects directly to Interstate 10 (220,000 VPD), the primary east/west freeway serving the Southern United States. The asset is ideally situated as an outparcel to Mesa Pavilions, a 350,000+ SF power center anchored by Target, WinCo Foods, PetSmart, and Floor & Decor. The presence of two big box anchors like Target and WinCo Foods significantly increases consumer draw to the immediate trade area and promotes crossover store exposure for the site. The center is positioned across from Superstition Springs Center, a 1.1 million SF regional mall anchored by Macy’s, JCPenney, and Dillard’s. Superstition Springs Center caters to a diverse and family-oriented market, featuring over 150 retail, dining, and entertainment options, including an outdoor amphitheater that converts into a stage for free concerts in the Summer. Positioned in the heart of an immense retail corridor, Del Taco & Aspen Dental is within close proximity to a variety of other national/credit tenants including The Home Depot, Walmart Supercenter, Costco Wholesale, T.J. Maxx, OfficeMax, Burlington, Petco, and more. Moreover, the property is surrounded by several apartment complexes including Lakeview at Superstition Springs (677-units), Waterford at Superstition Springs (280-units), and San Montego Apartments (240-units), providing for a direct residential consumer base from which to draw. The 5-mile trade area is supported by nearly 289,000 residents and 70,000 daytime employees with a healthy average household income of $82,000. 5 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY PHOTOS 6 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC OFFERING SUMMARY OFFERING Pricing $5,545,000 Net Operating Income $305,000 Cap Rate 5.50% Desert Taco East, LLC (Franchisee) Tenants Aspen Dental Management, Inc. (Corporate) Lease Type NNN Landlord Responsibilities Limited PROPERTY SPECIFICATIONS Rentable Area 6,500 SF Land Area 1.34 Acres East Southern Avenue & S. Power Road Property Address Mesa, AZ 85206 Year Built Under Construction Parcel Number 218-58-984 Ownership Fee Simple (Land & Building) 7 ACTUAL SITE SRS REAL ESTATE PARTNERS-WEST, LLC INVESTMENT HIGHLIGHTS Multi-Tenant Offering | Brand New 10-Year Leases | Signalized, Hard Corner Intersection | U.S. Highway 60 | Scheduled Rental Increases Excellent Visibility & Access | Drive-Thru Equipped • Opportunity to purchase a 1.34 acre parcel with a freestanding, two-tenant • Located near the signalized, hard corner intersection of S. Power Rd and E. building occupied by both Del Taco and Aspen Dental Southern Ave, averaging a combined 55,700 vehicles passing by daily • Corporate guaranteed by Aspen Dental Management, Inc. • Benefits from nearby on/off ramp access to U.S. Highway 60 (155,600 VPD), • Del Taco is franchisee guaranteed by an experienced regional operator a highway that connects directly to Interstate 10 (220,000 VPD), the primary • Both tenants have signed brand new 10-year leases with 2 (5-year) options to east/west freeway serving the Southern United States extend, each featuring scheduled rental increases every 5 years throughout the • Significant street frontage and multiple points of ingress/egress initial term and at the beginning of each option period • Del Taco will feature a drive-thru, providing convenience and ease for customers Brand New Construction | High Barriers to Entry • On average, stores with drive-thrus experience higher sales than • The building is currently under construction and is estimated to have a grand those without opening in Summer 2020 • State-of-the-art building with attractive facade and high quality materials Outparcel to Mesa Pavilions | Dense Retail Corridor | used, featuring Del Taco & Aspen Dental’s most recent prototype Superstition Springs Center | National/Credit Tenants • Dense, infill trade area with high barriers for new development • Ideally situated as an outparcel to Mesa Pavilions, a 350,000+ SF power center anchored by Target, WinCo Foods, PetSmart, and Floor & Decor Direct Residential Consumer Base | • The presence of two big box anchors like Target and WinCo Foods significantly Strong Demographics in 5-Mile Trade Area increases consumer draw to the immediate trade area and promotes crossover • Nearby apartment complexes include Lakeview at Superstition Springs (677 store exposure for the site units), Waterford at Superstition Springs (280 units), and San Montego • Positioned across from Superstition Springs Center, a 1.1 million SF regional Apartments (240 units) mall anchored by Macy’s, JC Penney, and Dillard’s • Provides a direct residential consumer base from which to draw • Within close proximity to a variety of other national/credit tenants including • Nearly 289,000 residents and 70,000 employees support the trade area The Home Depot, Walmart Supercenter, Costco Wholesale, T.J. Maxx, • $82,000 average household income OfficeMax, Burlington, Petco, and more 8 SRS REAL ESTATE PARTNERS-WEST, LLC PROPERTY OVERVIEW Location Parking There are approximately 32 parking spaces Mesa, Arizona on the owned parcel. Maricopa County The site benefits from reciprocal parking with Phoenix MSA Winco Foods. Parcel Access Parcel Number: 218-58-984 S. Power Road: 2 Access Points Acres: 1.34 E. Hampton Avenue: 2 Access Points Square Feet: 58,176 Traffic Counts Construction S Power Road: 38,600 Vehicles Per Day Year Built: Under Construction U.S. Highway 60: 155,600 Vehicles Per Day Improvements Zoning There is approximately 6,500 SF LC: Limited Commercial of existing building area 9 SRS REAL ESTATE PARTNERS-WEST, LLC SUPERSTITION SPRINGS CENTER 164,900 VEHICLES PER DAY BANNER GATEWAY MEDICAL CENTER U.S. HIGHWAY 60 S. POWER RD. E. HAMPTON AVE. MESA PAVILIONS 38,600 VEHICLES PER DAY 8,000 VEHICLES PER DAY E. SOUTHERN AVE. 17,100 VEHICLES PER DAY 10 Arizona: SRS REAL ESTATE PARTNERS-WEST, LLC 88,300 VEHICLES PER DAY STATE HIGHWAY 202 WATERFORD AT DESERT SANDS SUPERSTITION SPRINGS 8,000 GOLF COURSE 164,900 (280 UNITS) VEHICLES PER DAY VEHICLES PER DAY U.S. HIGHWAY 60 ARIZONA GOLF RESORT 17,100 VEHICLES PER DAY MESA PAVILIONS E. HAMPTON AVE. E. SOUTHERN AVE. S. POWER RD. 38,600 VEHICLES PER DAY 11 Arizona: SRS REAL ESTATE PARTNERS-WEST, LLC E AST SOU THER N AVE. 17,100 VEHICLES PER DAY S. POWER RD. S. POWER 38,600 VEHICLES PER DAY MESA PAVILIONS E. HAMPTON AVE. 12 Arizona: SRS REAL ESTATE PARTNERS-WEST, LLC S. POWER RD. S. POWER 38,600 VEHICLES PER DAY 17,100 VEHICLES PER DAY EAST SOUTHERN AVE. SUPERSTITION SPRINGS CENTER WATERFORD AT SUPERSTITION SPRINGS (280 UNITS) MESA PAVILIONS 155,600 VEHICLES PER DAY U.S. HIGHWAY 60 SAN MONTEGO APARTMENTS (240 UNITS) LAKEVIEW AT SUPERSTITION SPRINGS (677 UNITS) 13 Arizona: SRS REAL ESTATE PARTNERS-WEST, LLC S. 70TH ST. S. 70TH THAI HOUSE MESA 17,100 VEHICLES PER DAY E. SOUTHERN AVE. MASKADORES TACO SHOP S. POWER RD. S. POWER MESA PAVILIONS MUSIC & ARTS 38,600 VEHICLES PER DAY E. HAMPTON AVE. 14 Arizona: SRS REAL ESTATE PARTNERS-WEST, LLC LOCATION MAP PHOENIX 43 min | 29 miles MESA 20XX ESTIMATED POPULATION 1 Mile 7,710 3 Miles 111,966 5 Miles 288,843 20XX AVERAGE HOUSEHOLD INCOME TUCSON 1 Mile $66,139 111 min | 114 miles 3 Miles $71,362 5 Miles $82,174 20XX ESTIMATED TOTAL EMPLOYEES 1 Mile 10,389 3 Miles 33,393 5 Miles 70,089 15 SRS REAL ESTATE PARTNERS-WEST, LLC AREA OVERVIEW MESA, ARIZONA Mesa is located in Maricopa County and just 15 miles east of Phoenix. Mesa covers 138 square miles and is the third largest city in Arizona and the 36th largest city in the nation. The City provides the advantages of a thriving metropolis while maintaining the feel of a suburban environment. The City of Mesa, Arizona had a population of 511,334 as of July 1, 2019. Economic Development priorities are guided by Mesa’s industries of opportunity: Healthcare; Education; Aerospace/Aviation/Defense; Tourism/Technology. Building on Mesa’s strengths, quality infrastructure, talented workforce, projected growth and global market trends, the City of Mesa is already realizing significant benefit in each industry space. As part of the Phoenix- Mesa metro area, Mesa is a premier location for medical device design and manufacturing.