EXECUTIVE SUMMARY MESA CORPORATE CENTER 1001 WEST SOUTHERN AVENUE MESA, AZ 85210 MESA CORPORATE CENTER 1001 WEST SOUTHERN AVENUE | MESA, ARIZONA 85210 05 Executive Summary 17 Property Description CAPITAL MARKETS AGENCY LEASING CHRIS TOCI JERRY NOBLE, CCIM, SIOR Executive Managing Director Senior Director +1 602 615 0999 +1 602 229 5912 [email protected] [email protected] CHAD LITTELL GREG MAYER Managing Director Senior Director +1 602 229 5987 +1 602 229 5905 [email protected] [email protected] 2555 E. Camelback Rd, Suite 400 Phoenix, Arizona 85016 ph:+1 602 954 9000 | fx:+1 602 468 8588 www.cushmanwakefield.com DOBSON ROAD THREE FOUNTAINS PLAZA ALMA SCHOOL RO AD GRACE DEVELOPMENT REDEVELOPMENT SITE MESA TOWER VENUE VENUE VE A MESA POLICE GRO FIESTA DISTRICT STATION SOUTHERN A WES FIESTA COMMONS TWOOD 115 ROOMS SOUTHERN 149 ROOMS AVENUE VILLAS 354 UNITS DOBSON ROAD THREE FOUNTAINS PLAZA ALMA SCHOOL RO AD GRACE DEVELOPMENT REDEVELOPMENT SITE MESA TOWER EXECUTIVE VENUE VENUE VE A MESA POLICE SUMMARY GRO FIESTA DISTRICT STATION SOUTHERN A WES FIESTA COMMONS TWOOD 115 ROOMS SOUTHERN 149 ROOMS AVENUE VILLAS 354 UNITS EXECUTIVE SUMMARY THE OFFERING Cushman & Wakefield of Arizona, Inc. has been retained as exclusive agent and advisor for the disposition of Mesa Corporate Center located at 1001 West Southern Avenue in Mesa, Arizona 85210 (the “Property”). Mesa Corporate Center was constructed in 2000 and is currently 94% leased to a well-balanced rent roll. The Property features a total parking ratio of 5.9/1,000 square feet and boasts attractive design and architectural detail. At 106,209-rentable- square feet, the two-story Class A office building is situated on 8.27 acres in the heart of the Fiesta District, the primary corridor for business in the City of Mesa. Its highly-desirable location, just north of a full-diamond interchange at the US 60 freeway and Alma School Road, allows the Property to access 1.6 million employees within a 30-minute drive time. This Offering provides an opportunity to acquire an institutional- quality, Class A office development featuring (1) stable cash flow from investment-grade and blue chip tenants, (2) significant public and private capital investment into the Fiesta District, and (3) strong tenant demand driven by a dearth of Class A options near the confluence of the Loop 101 and US 60 freeways. 6 MESA MESA CORPORATE CORPORATE CENTER CENTER EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS In-Place Contract Rents Below Market Likely strike pricing is substantially In-place contract rents of $19.90 per below Mesa Corporate Center’s $245 Investment-Grade & square foot are 17% percent below per square foot replacement cost. Blue Chip Tenancy market rates for the Property and Mesa Corporate Center boasts 74% 25% below peak Class A rates in the Class A Office Outperforming of the rentable area featuring the Superstition Corridor submarket. Mesa Submarket following investment-grade and Corporate Center offers cash flow The Competitive Set of properties near blue chip tenants: Allstate Insurance stability with an average annual rollover the Superstition Corridor collectively Company (S&P: AA-), Adtalem Global of 2.7% through the first three years. enjoy a vacancy rate of 10% and a Education, formerly DeVry Education weighted average asking rate of $24.50 Group, (NYSE: ATGE; S&P MidCap 400), Pricing Well Below Replacement per square foot. Class A office in this Allied Universal Security ($4.8B in 2016 Strike pricing is significantly below the corridor consistently outperforms the revenue), Teledoc (NYSE: TDOC), and peak asset pricing for office in Metro submarket and is a major relief valve Kimley-Horn. All have chosen to locate Phoenix between 2005 and 2008 of for tenants driven east of the Price in the Fiesta District due to its access $393 per square foot. Road Corridor. to labor, transportation, and amenities. OFFERING TERMS PRICE: Unpriced NOI (FY) 2019: $1,174,938 TERMS: Cash TOURS END/ TBD OFFERS DUE: MESA CORPORATE CENTER 7 BANNER DESERT GRACE DEVELOPMENT MEDICAL CENTER REDEVELOPMENT SITE DOBSON FIESTA VILLAGE SQUARE GRACE DEVELOPMENT FURNISHED APARTMENTS 500 EMPLOYEES FIESTA PLAZA REDEVELOPMENT SITE FIESTA COMMONS DOBSON Your Neighborhood Pizza Joint PLAZA 3,000 EMPLOYEES MIXED-USE ALONG SOUTHERN SOUTHERN AVENUE 595 BEDS NEW RESIDENTIAL ON 140,000+ NORTH END OF SITE PATIENTS SEEN IN 2016 WILL PROVIDE ADDITIONAL BANNER FEDERAL WALKABLE AMENITIES CREDIT UNION SOUTHERN 149 ROOMS AVENUE VILLAS 354 UNITS MESA MESA COMMUNITY COLLEGE FIESTA COMMONS JOHN D RIGGS VETERANS STADIUM CENTER MESA POLICE FIESTA DISTRICT STATION 115 ROOMS MESA THREE 117 ROOMS 256 EMPLOYEES FOUNTAINS CORPORATE PLAZA CENTER 64 ROOMS 22,000+ STUDENTS WALKABLE AMENITIES LONGMORE LARGEST COMMUNITY COLLEGE RETAILERS: AMERICAN DISCOUNT FOODS, BIG LOTS!, DOLLAR TREE, WALGREENS ROAD DOBSON IN METRO PHOENIX RESTAURANTS: BOULDERS ON SOUTHERN, OFFERS OVER CARL’S JR., HIBACHI SUPER BUFFETT, FREEDOM 200 DEGREE PROGRAMS MCDONALDS GOLF COURSE 263 ROOMS FIESTA MALL SOUTHERN AVENUE VILLAS MCC PERFORMING ARTS CENTER ALMA SCHOOL ROAD ALMA SCHOOL FIESTA DISTRICT 40 RESTAURANTS | 50 RETAIL STORES | 5 HOTELS 700+ ROOMS | 2 HOSPITALS 755 BEDS NEW OWNERS HAVE PLEDGED FIRST NEW HOUSING IN $30 MILLION INTO REDEVELOPMENT FIESTA DISTRICT IN 20 YEARS FIESTA CROSSING SEEKING HIGH TECH/MEDICAL TENANTS 354 UNITS NEW AMENITIES TO $41 MILLION COMPLEX COMPLEMENT CORPORATE USERS DELIVERED IN 2016 Imagery ©2017 , DigitalGlobe, U.S. Geological Survey, USDA Farm Service Agency BANNER DESERT GRACE DEVELOPMENT MEDICAL CENTER REDEVELOPMENT SITE DOBSON FIESTA VILLAGE SQUARE GRACE DEVELOPMENT FURNISHED APARTMENTS 500 EMPLOYEES FIESTA PLAZA REDEVELOPMENT SITE FIESTA COMMONS DOBSON Your Neighborhood Pizza Joint PLAZA 3,000 EMPLOYEES MIXED-USE ALONG SOUTHERN SOUTHERN AVENUE 595 BEDS NEW RESIDENTIAL ON 140,000+ NORTH END OF SITE PATIENTS SEEN IN 2016 WILL PROVIDE ADDITIONAL BANNER FEDERAL WALKABLE AMENITIES CREDIT UNION SOUTHERN 149 ROOMS AVENUE VILLAS 354 UNITS MESA MESA COMMUNITY COLLEGE FIESTA COMMONS JOHN D RIGGS VETERANS STADIUM CENTER MESA POLICE FIESTA DISTRICT STATION 115 ROOMS MESA THREE 117 ROOMS 256 EMPLOYEES FOUNTAINS CORPORATE PLAZA CENTER 64 ROOMS 22,000+ STUDENTS WALKABLE AMENITIES LONGMORE LARGEST COMMUNITY COLLEGE RETAILERS: AMERICAN DISCOUNT FOODS, BIG LOTS!, DOLLAR TREE, WALGREENS ROAD DOBSON IN METRO PHOENIX RESTAURANTS: BOULDERS ON SOUTHERN, OFFERS OVER CARL’S JR., HIBACHI SUPER BUFFETT, FREEDOM 200 DEGREE PROGRAMS MCDONALDS GOLF COURSE 263 ROOMS FIESTA MALL SOUTHERN AVENUE VILLAS MCC PERFORMING ARTS CENTER ALMA SCHOOL ROAD ALMA SCHOOL BANNER DESERT GRACE DEVELOPMENT MEDICAL CENTER REDEVELOPMENT SITE FIESTA DISTRICT 40 RESTAURANTS | 50 RETAIL STORES | 5 HOTELS 700+ ROOMS | 2 HOSPITALS 755 BEDS NEW OWNERS HAVE PLEDGED FIRST NEW HOUSING IN $30 MILLION INTO REDEVELOPMENT FIESTA DISTRICT IN 20 YEARS FIESTA CROSSING SEEKING HIGH TECH/MEDICAL TENANTS 354 UNITS DOBSON FIESTA VILLAGE SQUARE NEW AMENITIES TO $41 MILLIONGRACE COMPLEX DEVELOPMENT FURNISHED APARTMENTS COMPLEMENT CORPORATE USERS DELIVERED IN 2016 500 EMPLOYEES FIESTA PLAZA REDEVELOPMENT SITE FIESTA COMMONS DOBSON Your Neighborhood Pizza Joint PLAZA 3,000 EMPLOYEES MIXED-USE ALONG SOUTHERN SOUTHERN AVENUE 595 BEDS NEW RESIDENTIAL ON 140,000+ NORTH END OF SITE PATIENTS SEEN IN 2016 WILL PROVIDE ADDITIONAL BANNER FEDERAL WALKABLE AMENITIES CREDIT UNION SOUTHERN 149 ROOMS AVENUE VILLAS Imagery ©2017 , DigitalGlobe, U.S. Geological Survey, USDA Farm Service Agency 354 UNITS MESA MESA COMMUNITY COLLEGE FIESTA COMMONS JOHN D RIGGS VETERANS STADIUM CENTER MESA POLICE FIESTA DISTRICT STATION 115 ROOMS MESA THREE 117 ROOMS 256 EMPLOYEES FOUNTAINS CORPORATE PLAZA CENTER 64 ROOMS 22,000+ STUDENTS WALKABLE AMENITIES LONGMORE LARGEST COMMUNITY COLLEGE RETAILERS: AMERICAN DISCOUNT FOODS, BIG LOTS!, DOLLAR TREE, WALGREENS ROAD DOBSON IN METRO PHOENIX RESTAURANTS: BOULDERS ON SOUTHERN, OFFERS OVER CARL’S JR., HIBACHI SUPER BUFFETT, FREEDOM 200 DEGREE PROGRAMS MCDONALDS GOLF COURSE 263 ROOMS FIESTA MALL SOUTHERN AVENUE VILLAS MCC PERFORMING ARTS CENTER ALMA SCHOOL ROAD ALMA SCHOOL FIESTA DISTRICT 40 RESTAURANTS | 50 RETAIL STORES | 5 HOTELS 700+ ROOMS | 2 HOSPITALS 755 BEDS NEW OWNERS HAVE PLEDGED FIRST NEW HOUSING IN $30 MILLION INTO REDEVELOPMENT FIESTA DISTRICT IN 20 YEARS FIESTA CROSSING SEEKING HIGH TECH/MEDICAL TENANTS 354 UNITS NEW AMENITIES TO $41 MILLION COMPLEX DELIVERED IN 2016 COMPLEMENT CORPORATE USERS MESA CORPORATE CENTER 9 Imagery ©2017 , DigitalGlobe, U.S. Geological Survey, USDA Farm Service Agency EXECUTIVE SUMMARY GRACE DEVELOPMENT REDEVELOPMENT SITE MESA CORPORATE CENTER SOUTHERN AVENUE JACKSON COMMERCIAL REAL ESTATE ROAD ALMA SCHOOL LONGMORE FUTURE HIGH-TECH/ DIMENSION FINANCIAL & REALTY INVESTMENTS INC MEDICAL DEVELOPMENT JACKSON COMMERCIAL REAL ESTATE 10 MESA CORPORATE CENTER FULL DIAMOND INTERCHANGE @ ALMA SCHOOL Google 2017 EXECUTIVE SUMMARY FIESTA DISTRICT supported by the City Council as the The District Vision creates next step in reshaping the area in a uniquely identifiable area and around the Fiesta District. This Economic Force with Abundant approval will allow Mesa to utilize for Mesa that is economically Opportunity economic tools like the Government Encompassing 1.2 square miles, the Property Lease Excise Tax (GPLET) vibrant, pedestrian friendly, and Fiesta District is reemerging as Mesa’s to incentivize new commercial and an active, urban destination. premier business district featuring retail development as well as secure cutting-edge industry clusters,