OFFERING MEMORANDUM | DEVELOPMENT OPPORTUNITYFlexible Zoning R-3 C-2 HR | Approved Multifamily Plans | + 16 ac Parcel

1150 N 44th St - PHOENIX, AZ

44th St. Opportunity – PHOENIX

The Property is a 16 + acre site with Approved Plans to construct 456 residential units (29.62 dwelling units per acre). Overall zoning approvals for the property allow for up to 560 residential units, 406,000 sq. ft. of commercial/retail and 452 hotel units, including condominium units within the hotel. The Property benefits from an exceptional location only minutes from primary employment concentrations, upscale shopping, and Sky Harbor International Airport. Buyer may proceed with the Approved Plans or redesign the project to suit their preferred product mix.

➢ Phoenix's outstanding job growth ranks it as one of the strongest economies in the nation.

➢ Greater Phoenix has a population of 4.5 million and is expected to grow to 6.3 million within the next 10 years.

➢ With a Median Age of 32.2, Phoenix is the sixth youngest workforce in the United States.

ECONOMICS LOCALE➢ Excellent proximity to major employment

centers and Sky Harbor International Airport➢ Superior access to major transportation

corridors, including Interstate 10 and State Route 202.

➢ Major companies include Honeywell, American Express, Verizon, CenturyLink, Intel and Boeing.

OFFERING SUMMARY

Address 1150 N 44th St. – Phoenix, AZ

Submarket Papago | East Camelback | Central Phoenix

Land Area GROSS AC = 16.83 | NET AC = + 15.4

Approved Units Site plan for 456 Units1 B = 336 2 B = 120 | 29.62 units / acRBA = 362,208 SF

Zoning R-3 | C-2 HR560 residential units | 406,000 sq. ft. commercial/retail | 452 hotel & condominium unitsHeight: 90-110 Ft.

Traffic + 38,000 Daily Vehicles – 44th St *+ 180,000 Daily Vehicles – 202 Loop FWY

Parking Covered = 456 SpacesOpen = 363 SpacesTotal = 819 Spaces

County Maricopa

Planning East Camelback Village

Asking Price $18,500,000.00 | $27.5/ SF

TEMPE

52nd & Washington Light Rail COMING 2019!

MOMENTUM & FUNDAMENTALS

➢ Surrounded by Phoenix’s largest growing employment centers – East Camelback’s central city, west of Tempe and adjacent to Sky Harbor International Airport - is ground zero for some of the city’s most exciting new developments. Spurred by new infrastructure investment, public transit improvements, data center construction and job growth. This submarket is on the cusp of reaching critical mass.

➢ Subject parcel benefits from incredible exposure to both the 44th street and 202 Loop FWY corridors. Olen has worked with East Camelback Village to attain the rights to three access points, which include an entry/exit along 40th street, an entry/exit on 44th street and an exit way located in the center of the parcel nearest to the 202 providing direct access to the FWY on ramp! CONVENIENCE

202 FWY

➢ Current site plan allows for 456 apartment units. See site plan details at phxland.com. Recently, in October of 2018, Olen secured the rights to a third access point located in the center of this development. This will provide direct access to the 202 FWY, further adding to the already astounding convenience of the site.

➢ Boasts more than 350,000 jobs within a ten mile radius. Access to Phoenix’s most relevant submarkets in minutes. Immediate proximity to public services and hospitals. Data Center development coupled with infrastructure investment stands to drastically improve connectivity. This site stands to benefit from tremendous long term growth.

VAN BUREN VAN BURENVAN BUREN

WASHINGTON WASHINGTONWASHINGTON

METRO - 44th St / Washington

SKY HARBOR INTERNATIONAL AIRPORT• 10th Busiest Airport in the nation• Annual economic impact = $9.5 billion• Over 40,000 daily employees

CENTRAL BUSINESS DISTRICT• 21,000,000 SF of Office and Industrial• + 60,000 jobs• Logistics, Healthcare, and Data Centers

driving growth

COMING SOON! DATA CENTER1 M + SqFt

LOCATION

DOWNTOWN | 5 MILES AWAY | 70 K + JOBS

1600 +/- jobs

3000 +/- jobs

300 +/-jobs500 +/- jobs

2500 +/- jobs

JOB GROWTH

1500 +/- jobs

COMING SOON! QTS DATA CENTER5000 + NEW JOBS | 1 M + SqFt Bldg.

➢ Job growth in Phoenix’s Central City, East Camelback Village and Tempe submarkets has been booming. Healthcare, financial services, logistics and data centers have been the leading growth sectors.

50 ac SOLD Nov 18$25.8 million $25/SF

TRAFFICDATA CENTER

COMING SOON!

➢ LOOP 202: Approximately 1.7 billion dollars has been allocated to improve traffic flow along the 202 Loop FWY. Scope of work includes 22 miles of new road, multiple new interchanges and widening along the I-10 – this project stands to drastically reduce congestion and increase convenience for hundreds of thousands of workers.

ACCESS

202 Loop - 180,000 +/- daily vehicles

➢ Central location provides unparalleled access and convenience. Site benefits from 2000 ft of frontage on the 202 FWY Loop , visible to more than 180,000 daily vehicles. Papago’s average age is 32 years old. Site has proximity to significant job growth, infrastructure investment and public transit. This development is well positioned to capitalize on the high demand for new construction!

➢ COURTNEY VILLAGE : ‘02 >➢ $1,107 / UNIT

DRIVE TIMES FROM SITE:

AirportTempeGolf CourseDowntown Scottsdale

3 Min8 Min5 min10 Min10 Min

PURCHASED: 8.3 ac | $4.525 million | 2017$545,000 / ac

SOLD: 6.18 ac | $5.056 million | 7/2018 $818,122.00

NEIGHBORHOOD

ALANZA APTS | BUILT ‘02 1 BED RENT = $1.63 PSF

SCOTTSDALE+ 30,000 Jobs

➢ This stellar infill location benefits from it’s proximity to Phoenix’s most relevant neighborhoods. Tempe stands out as the city’s most robust job market and is only an 8 minute drive from the parcel. Coupled with ease of access to Scottsdale, Downtown and East Camelback Village, this site offers major value.

CAMELBACK EAST VILLAGE+ 56,000 Jobs

DEMOGRAPHICS: 5 MILE RADIUS

PopulationIncomeHouseholds Avg. Age Home PriceEmployment

321,000$46,137129,42232 years old$252,000.00300,000 +/-

PRO FORMA: 44th St. Apartments– 456 Units | RBA = 362,2081 Bd = 336 | Avg = 700 sf | 2 Bd = 120 | Avg = 1150 sf | OLENs Estimated PSF = $1.68

PSF Per Unit TOTAL

REVENUE $20.16 $16,204.00 $7,389,043

OP X $7.00 $5,560.21 $2,535,455

NOI $13.16 $10,643.79 $4,853,588

ASKING PRICE TBD MARKET TBDMARKET

TBDMARKET

DEVELOPMENT

GATEWAY EMPLOYMENT CORRIDOR >JOBS = 14,000 | COMMERCIAL OFFICE = 3.6 Million SF

PALAZZO APTS | BUILT ‘01

STUDIO = $1.20 PSF

TRILLIUM APTS | BUILT ‘16

STUDIO = $1.93 PSF

NEW CONSTRUCTION = 50% RENT PREMIUM

TEMPE | 5 Mile dr.| 70 K + STUDENTS | INNOVATION ZONE

➢ With regional new construction far behind other submarkets, new apartments stand to perform incredibly well. This development would benefit from being among the newest and most access rich residential apartment buildings in market. With it’s freeway exposure, the project would stand to easily attract renters from the vibrant young local workforce and new transients looking for convenient access to major employment.

MARKET SUMMARY

Phoenix is evolving… like any primary market in the US, it’s built environment adapts in congruence with changing market demands and population dynamics. Modern economies, especially ones with demographics/topography like AZ have major growth needs: specifically for healthcare, logistics. Most recently institutional capital has been rushing to build data centers in Phoenix - this all plays in the Airport market’s favor.

Data Centers: Over 1 Billion has been committed and over 390 million has been invested within just a .25 mile radius of the parcel. This include QTS and Iron Mountain projects.

Healthcare: home to many branches of Hospitals and health providers, there are over 10 K + healthcare jobs within a 1 mile radius.

Logistics: obviously the airport is synergistic with logistics. With modern needs expanding, companies have been investing in new facilities.

ASU - TEMPE, AZStudents 73,000Population 185,000Avg. Rent = $1,458 / unit

LOGISTICS

EDUCATION

PAPAGO CENTER: + 5 Million SF - Cutting Edge Class A Retail, Apartment & Office Project

DATA CENTERS

$430m projectUnder const.

HEALTHCARE

USPS + 1000 jobs

84 ac | Sold ‘17

SITE

OPPORTUNITY ZONES

MULTIFAMILY RENT STUDY | NEW vs OLD CONSTRUCTION

PROPERTY BLT STUDIO 1 BED 2 BED AVG DIST.

THE URBAN3601 E McDowell1.1 mile

2004

$885 / unit

Avg. SF = 535

$1.65 / PSF

$932 / unit

Avg. SF = 640

$1.46 / PSF

$1057 / unit

Avg. SF = 759

$1.39 / PSF

$1.41

TRILLIUM :111 N Dupont1.8 miles

2016$1,120 / unit

Avg. SF = 580

$1.94 / PSF

$1,350 / unit

Avg. SF = 783

$1.75 / PSF

$1,730 / unit

Avg. SF = 1,059

$1.43 / PSF

$1.68

Modena815 N 52nd St1 mile

2004

N/A

$944 / unit

Avg. SF = 580

$1.61 / PSF

$1,170 / unit

Avg. SF = 938

$1.25 / PSF

$1.37

THE MUSE:1616 N Central5.6 MIles

2017$1,210 / unit

Avg. SF = 540

$2.14 / PSF

$1,465/ Unit

Avg. SF = 717

$2.04 / PSF

$1,893 / unit

Avg. SF = 1,025

$1.85 / PSF

$1.97

SUMMARY: This acreage is uniquely positioned for high density construction. Phoenix is in the top three most favorable growth markets in the Central Southwest. This submarket’s lack of new supply presents a unique opportunity for a developer take advantage of high demand for newly built apartments.

COMPS

INVESTMENT SALES MARKET | NEW vs. OLD CONSTRUCTION

PROPERTY BLT. SALE DATE SALE PRICE PRICE / UNIT PRICE / SF

MODENA815 52nd St. | 768 units

1990 01/24/18 $110,000,000 $143,229 $186

Hanover Mill Avenue101 W 5th St | 341 units

2015 5/7/2018 $95,100,000 $278,885 $171

Alanza Place2606 N 44th St | 360 units

2002 10/20/2016 $57,325,000 $159,236 $128

Green Leaf Art’s District222 E McDowell Rd|280 units

2017 8/3/2018 $80,000,000 $285,714 $286

Arcadia Cove Apartments2252 N 44th St | 432 Units

1996 6/21/2017 $71,500,000 $165,509 $188

Park 284114 N 28th St | 152 Units

2015 06/09/2017 $29,700,000 $195,000 $236

SUMMARY: Momentum in the region’s sales market points to the fact that the innovation zones along the 202 Loop FWY are lining up to become the Technology corridors of Phoenix’s future. New construction is receiving major rent premiums over older product.

OLDNEW

VS

COMPS

APPROVED SITEPLAN

➢ Olen has worked extensively with the city to secure the rights for 3 access points for this development. With the recent purchase of the 3rd access point, we’ve drastically improved accessibility to the 202 freeway and the site itself SITE ACCESS

➢ ELEVATIONS

APPROVED SITEPLAN

➢ ELEVATIONS

APPROVED SITEPLAN

STATS

For more information please contact us:

PHONE: 949-719-7206EMAIL: kmorgenstern@olenproperties.comADDRESS: 7 Corporate Plaza, Newport Beach CA 92660WEBSITE: www.phxland.com