Arcadia Place OFFERING MEMORANDUM NWC 40th Street & …€¦ · Arcadia Place NWC 0t Stree Idia Shoo Roa Phoenix AZ FINANCIAL HIGHLIGHTS Price $ 10,500,000 CAP Rate 5.65 Year-1 NOI

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

40th Street

Indian School Road

Full service commercial real estate2710 E Camelback Road, Suite 210

Phoenix, AZ 85016602-468-6100

www.eisenbergcompany.com

Exclusively Listed By:

Jason R. Eisenberg Ryan W. AmatoVice President of Development & Acquisitions Senior Vice [email protected] [email protected]

OFFERING MEMORANDUMArcadia PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ

AGREEMENT

• Disclaimer&ConfidentialityAgreement

EXECUTIVE SUMMARY

• Investment Opportunity• Property Summary / Financial Highlights• Investment Highlights• Demographics / Trade Area Overview• Demographics&IncomeProfile

MARKET ANALYSIS

• Phoenix Economic & Retail Market Overview• Economic Highlights• Metro Phoenix Market Activity• RetailMarketProfile• Aerial Vicinity Map

FINANCIALS

• Tenancy Schedule• Budget

PROPERTY OVERVIEW

• Site Plan• Aerial Close-Up of Property• TenantProfiles• Improvements Data

LOCATION

• Aerial Views of Intersection• Metropolitan Phoenix Overview• Arcadia Neighborhood Overview

TABLE OF CONTENTS

Arcadia PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ

DISCLAIMER and CONFIDENTIALITY AGREEMENT

This confidential OfferingMemorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement signed by you(“ConfidentialityAgreement”)andconstitutespartoftheconfidentialproperty information(“Confidential Information”). It isbeinggiventoyouforthe sole purpose of evaluating the possible acquisition of Arcadia Place - Phoenix, Arizona(the“Property”)andisnottobeusedforanyotherpurposeormadeavailabletoanyotherpartywithoutthepriorwrittenconsentoftheseller(“Seller”)orEisenberg Company(“EisenbergCompany”,“ExclusiveAdvisor”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 estatemarket,butdoesnot containall the informationnecessary toevaluate theacquisitionof theProperty. Thefinancialprojectionscontainedherein(orinanyotherConfidentialInformation)areforgeneralreferenceonly.Theprojectionsarebasedonassumptionsrelatingtothegeneraleconomyandlocalcompetition,amongotherfactors.Accordingly,actualresultsmayvarymateriallyfromsuchprojections.Variousdocumentshavebeensummarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms or legal analysis of such documents.

WhiletheinformationcontainedinthisMemorandumandanyotherConfidentialInformationisbelievedtobereliable,neitherBrokernorSellerguaranteesitsaccuracyorcompleteness.DuetotheforegoingandsincethePropertywillbesoldonan“AsIs,WhereIs”basis,aprospectivepurchasermustmakeitsownindependentinvestigations,projections,andconclusionsregardingtheacquisitionofthePropertywithoutrelianceonthisMemorandumoranyotherConfidentialInformation.AlthoughadditionalConfidentialInformation,whichmayincludeengineering,environmentalorotherreports,maybeprovidedtoqualifiedpartiesasmarketingproceeds,prospectivepurchasersshouldseekadvice fromtheirownattorneys,accountants,engineering,environmental,andotherexperts.

Sellerexpresslyreservestheright,atitssolediscretion,torejectanyoffertopurchasethePropertyortoterminateanynegotiationswithanypartyatany time with or without written notice. Seller shall have no legal commitment or obligation to any prospective purchaser unless and until a written sale agreementhasbeenfullyexecuted,deliveredandapprovedbySellerandanyconditionstoSeller’sobligationsthereunderhavebeensatisfiedorwaived.

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 ordisclosedtoanyoneexceptaspermittedundertheConfidentialityAgreement.

Arcadia PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ AGREEMENT

INVESTMENT OPPORTUNITY

Eisenberg Company, as exclusive advisor, is pleased to present the extraordinaryopportunity to acquire Arcadia Place(the“Property”),apremier,newlyconstructed14,000square-footneighborhoodshoppingcenterwhichwascompletedinJune,2017.ArcadiaPlaceislocatedinPhoenix,ArizonaatthenorthwestcornerofIndianSchoolRdand40thStreet.Locatedon1.4acresofinfillrealestateintheprestigiouscommunityofArcadia,theshoppingcenteris100%leasedtoacomplementarycollectionofretailers.TheProperty’stenancygeneratesahighvolumeofconsumertrafficandincome,whichare 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 investorwithconsistentincomeandanattractiveleaserolloverprofile.

Highbarriers to entry, irreplaceable location, desirable trade area, stable cashflowand 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 PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ EXECUTIVE SUMMARY


FINANCIAL HIGHLIGHTS

Price $ 10,500,000

CAP Rate 5.65

Year-1 NOI $ 593,722(April 2018 - March 2019)

PROPERTY SUMMARY

Property: Arcadia Place

Location: NWC 40th Street & Indian School Road Phoenix AZ

Year Built: 2017

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

EXECUTIVE SUMMARY

INVESTMENT HIGHLIGHTS

Trophy Infill Asset

Developedin2017,ArcadiaPlaceencompasses13,854squarefeetofretailspacedesignedwithmodernarchitec-turethatcreatesanattractiveshoppingenvironment.WithahighprofilelocationintheheartofArcadiacom-munities,thecenterconsistsoflease-onlyin-linespacethatprovidedailyneeds,servicesanddiningoptionstothelocalconsumerbase.Positionedjust2milessouthoftheemploymenthuboftheMid-Townofficemarket,Arcadia Place also provides exceptional access and visibility.

Consistent Cash Flow Secured by Proven Tenants

ArcadiaPlaceis100%leasedtonational/regionaltenants.

Exceptional Access and Visibility

Prominently locatedat thenorthwestcornerof IndianSchoolRoadand40thStreet,ArcadiaPlace is situatedalongtwoofthesubmarketsprimarycommercialthoroughfareswithvisibilitytoanestimated47,000vehicleseachday.Thisoutstandingvisibility is supplementedwithexceptionalaccess,asArcadiaPlacehas2pointsofentryfromtwosidesofthesite,leadingtoanabundanceofparkingataratioof10per1,000leasablesquarefeetincludingvalet(8per1,000leasablesquarefeetnotincludingvalet).

Arcadia Place is also among a large and growing population with attractive demographics in the surrounding family-oriented,extremelyvibrantlocaleconomyanddenselypopulatedinfillcommunities.

Ideally Positioned in an Densely Populated Infill / Affluent Trade Area

Anestimated145,000peopleearninganaveragehouseholdincomeof$75,000residewithinathree-mileradiusofArcadiaPlace.Withinafivemileradius,thispopulationswellstonearly305,000.Together,thispopulationcreatesan ideal upper middle income demographic for Arcadia Place.


DEMOGRAPHICS AND INCOME PROFILE

Population 1-Mile Radius 3-Mile Radius 5-Mile Radius

2022 Projected Population 20,232 143,623 305,5642017 Estimated Population 18,773 133,129 282,2282010 Census Population 17,301 121,578 252,248Growth Rate Estimated 2017 - 2022 7.77% 7.88% 8.27%Growth Rate Pop 2010 - 2017 8.51% 9.50% 11.89%

Households 1-Mile Radius 3-Mile Radius 5-Mile Radius

2022 Projected Households 9,525 58,550 132,8982017 Estimated Households 8,835 54,269 122,7552010 Census Households 8,123 49,622 109,706HH 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 $73,7482017 Median Household Income $53,249 $45,985 $47,217

DEMOGRAPHICS OVERVIEW

Trade Area Overview

Arcadia Place’s strategic position within Phoenixand Arcadia places the project at the center of a desirableandaffluentdemographic.

Thetradeareawithinafive-mileradiusconsistsofnearly 122,755 residents. The average householdincomeinaonemileradiusof$77,952annually.


SITE PLAN NOT DRAWN TO SCALE

NORTH

Arcadia PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ PROPERTY OVERVIEW

NORTH


Tenant Founded Products/Services Stores Website

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

TacosTequilaWhiskeyisanestablishedmulti-statechainoffullservicesit-downrestaurantswhichbringsamoderntwiston“comidadelacalle”—Mexicanstreetfood—toasit-downrestaurantwithanexpandedmenuandaselectionofquality,small-batchtequilaandwhiskeyaswellasaward-winningcocktailsanddesserts.

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

SquareOneConceptsbroughtthisfastgrowingchaintomarketin2011.Keepingitsimple,theydecidedtocallthemselvesexactlywhattheyoffer:coldbeersandcheese-burgers.Themenufeaturesonlyfreshingredientswithallitemsmadein-housedaily,andthebeermenuconsistsofover150beerchoicesatmostlocations,ondraught,bottled,orcanned.

Featuringleatherbooths,butcherblocktables,over30HDflatscreenTVs,soundsystemwithalargepatio,roll-upgaragedoors,indoor/outdoorbarsfordirectservice,andhightopcommunitytableswithbuilt-inbeercoolers.SquareOneConceptsisafullservicehospitalitymanagement,designandconsultingfirmlocatedinScottsdale,AZwitheightconceptstotalingmorethan18restaurants.

Even Stevens 1994 Sandwiches 13 evenstevens.com

EvenStevensisacraft-casualrestaurantservingbreakfast,lunch,dinnerandbrunchinthemodernneighborhoods.Partofthebusinessmodelisgivingasandwichtoalocalnon-profitforeverysandwichsold,“turningourcraftandyourexperienceintoaforceofsocialgood-twoforone,oneforall.”Theycurrentlyhaveover13storesineight states and are growing rapidly.

Radi8 2017 Yoga Studio 1 radi8love.com

Thismoderntakeonhotyogahasfastbecomeaconceptthatisgainingmarketshareinthefitnessworld.AlthoughtraditionallyassociatedwiththestyledevisedbyBi-kramChoudhury,“hotyoga”isnowusedtodescribeanynumberofyogaoryoga-inspiredfitnessstylesthatuseheat.

TheheatinRadi8isusedtoincreasethe“tourniqueteffect,”totrainthemind,andtoimprovecirculationtothejoints.

Arcadia Meat Market 2017 Modern Butcher 1 arcadiameatmarket.com

Ledbyasecond-generationMasterButcher,awholeanimalbutchershop.Specializinginall-naturalmeatsfromthefinestfamily-runfarmsandranchesacrossArizonaandbeyond,offeringonlyPastureRaisedGrassFedBeefandLamb,PastureRaisedPork,FreeRangeOrganicChickenandmore.Workingexclusivelywithranchersandfarmerswho care about the planet and the animals they raise.

MasterPiece Donuts 2017 Donuts&Coffee 1 masterpiecedonutsandcoffeeplus.com

Custommadedoughnuts,healthybowls,coffeeanddrinksallfreshlypreparedonsiteandinplainviewofcustomersusinganexhibitionwindowallowingcustomerstowatch as their products are prepared.

TENANT PROFILES


https://en.wikipedia.org/wiki/Bikram_Choudhury

https://en.wikipedia.org/wiki/Bikram_Choudhury

IMPROVEMENTS DATAFoundation: Conventional concrete footings

Structure: Steel joist & deck system and glu lam beam trusses with plywood roof deck

Exterior Walls: Integral color cmu

RoofCover: Metalrooffor65%ofbuilding.Foamroofingforallflatroofs.

Interior Finishes: Per Tenant

Floor Covering: Per Tenant

HVAC: Minimum1tonper300SF

FireProtection: Yes,Sprinkler

Lighting: LEDfixtures Lightingiscontrolledbyphotocellsandtimers.

Landscaping: Ornamentalshrubsandhedges,shadetrees,lawns,andgroundcovers

Signage: Severalbuilding-mountedtenantsignsandnumerals,anddirectional signs mounted on steel frame



METROPOLITAN PHOENIX OVERVIEW

ThePhoenix-Mesa-Glendalemetropolitanarea,hometoapproximately4.2millionresidents,isthe14thmostpopulousmetropolitanareaintheUS and features one of the fastest growing populations in the country. Phoenix Metro is recognized for its warm climate, diverse economy,exceptionalworkforceandeducationalopportunities,thrivingqualityoflife,numerousrecreationalofferings,andmoreaffordablecostoflivingthan many other major western markets.

Location and Access

WithcloseproximitytoCalifornia,TexasandMexico,GreaterPhoenixisconveniently accessible to a multitude of major domestic and international markets.Theregionboasts 14airports,numerous freewaysandpublictransportation options.

Freeways

Three major freeway systems serve the Greater Phoenix region including Interstate 10, Interstate 17 and US Route 60. The regional freewaysystemincludesthreearterialroutes,Loop101,Loop202andLoop303,connectingthemetroareawithperimeterloops,aswellasStateRoute51/PiestawaPeakandStateRoute143,whichoffernorth/southconnectionsintheValley.Loop101servestheNorthScottsdalemarket.

Airports

Locatedlessthanfour(4)milesawayfromArcadia Place,Phoenix’sSkyHarborInternationalAirportisthe10thbusiestairportinthenationwith44millionannualpassengersand800tonsofestimateddailyaircargo.Theairport’seconomicimpactisapproximately$90millionperdaywith1,200dailyflightsto85domesticand19internationallocations.Thereareeightadditional commercial airports thatoffer service inMetropolitanPhoenix, including Phoenix-Mesa Gateway, Scottsdale, Glendale, DeerValley,Chandler,GoodyearandFalconFieldinMesa.

Rail

Valley Metro provides public transportation throughout Greater Phoenix viatrains,buses,andaride-shareprogram.ValleyMetro’s20-milelightrailproject,orMETRO,traversesthroughNorthCentralPhoenix,downtown,and eastward through Tempe and Mesa. Riders have convenient access with32lightrailstopsthatincludeArizonaStateUniversity’sDowntownPhoenixandTempeCampuses,ChaseField,USAirwaysArenaand thePhoenix Convention and Visitors Center. Future rail segments totaling morethan30milesareplannedtoopenby2030.

Twotranscontinentalrailroadsand10interstaterailroadsprovidefreightrail service in Arizona and Metropolitan Phoenix. Union Pacific is thelargest andoffers over 700miles of freight track inArizona, includingroutesfromCaliforniaandthePortsofLosAngelesandLongBeach.

Quality of Life

Inadditiontoawell-balancedeconomy, jobopportunities,educationalinstitutionsandconvenienttransportationoptions,GreaterPhoenixalsooffersanexceptionalqualityoflifewithaffordablelivingandwiderangeof recreation, entertainment and cultural options. As a complementto itswarmclimate,GreaterPhoenixboastsanabundanceofoutdooractivitiessuchashiking,cycling,andshopping,aswellasavastarrayofresorts,spasandgolfcourses.

Phoenixalsohasamultitudeofculturalofferingssuchasmuseums,artgalleries,andbotanicalgardens.SportingeventsareinabundancewiththeArizonaCardinals (NFL),ArizonaDiamondbacks(MLB)andPhoenixCoyotes(NHL).

LOCATIONLOCATIONLOCATION


ARCADIA TRADE AREA

Arcadia is a neighborhood in Phoenix and Scottsdale, Arizona. It isboundedby40thStreetto68thStreetandIndianSchooltoCamelbackRoad. Arcadia contains well-kept homes on large lots; these homes commandrelativelyhighpropertyvalues(astheneighborhoodisadjacenttotheupscalesuburbsofParadiseValley,theBiltmorearea,ScottsdaleandnorthPhoenix).Builtonformercitrusgroves,Arcadiaisknownforwell-irrigated, mature landscaping. Several yards prominently featureorange,lemonandgrapefruittreesasremindersofthearea’spast;theareausedtobeoccupiedbycitrusfarmersfrom1919tothemid-1950s.Inthemid-1950s,therestofPhoenixcaughtupwiththefarmsandtheareasuburbanized 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 forbothworkand fun, vibrant food / culture,walk-ability,andplushlandscape.

It is also just south of the desired hiking destinations of Camelback Mountain and Piestewa Peak.Much of Phoenix’s cycling scene pedalsthroughthisneighborhood,asCampbell /Lafeyette isoneofthemainPhoenix cycling corridors.

NEIGHBORHOOD HIGHLIGHTS

Arcadia Place is located within one of the hottest restaurant submarkets inthesouthwest,withtheselocalrestaurateursalllocatedon40thStreetwithin one-half mile of the property:

• Postino Winecafè

• North Italia

• Chelsea’sKitchen&LGO

• The Vig

LOCATIONLOCATIONLOCATION


PHOENIX ECONOMIC AND RETAIL MARKET OVERVIEW

The Phoenix-Mesa-Glendale metropolitan area, or Greater Phoenix, isrecognized for its warm climate, diversified economy, talented workforce,excellenteducationalopportunities,andenhancedqualityof lifewithyear-roundoutdoorrecreationandamoreaffordablecostoflivingthanmany other major western markets. Home to approximately 4.2millionresidents,GreaterPhoenixisthe14th most populous metropolitan area in the United States and has one of the fastest growing populations in the country. The region benefits from its geographic location withproximity to domestic and international markets throughout the Southwest, includingTexas,Nevada,CaliforniaandMexico.Asaresult,GreaterPhoenixcontinuouslydrawscompaniestotheregioneachyear,creatingadiversifiedmixofeconomicdriversthatincluderetailservices,high-technologymanufacturing,financeandhealthcare.TheseindustrieshavesignificantlycontributedtothereboundofthePhoenixeconomy,which is experiencing a substantial surge in employment and overall economic expansion.

Economic Highlights

With 4.2 million residents and nearly 500,000 students,GreaterPhoenix’spopulation 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 Fortune500companiesincludingwastemanagementcompanyRepublic Services,mining giantFreeport McMoRan Copper & Gold, electronicsdistributor Avnet and pet supply superstore PetSmart. Other Fortune 500 companies operating within the region include Boeing, Bank ofAmerica,TimeWarnerTelecom,IBMandIntel.

AccordingtotheBureauofLaborStatistics(BLS),Trade,Transportation&Utilitiescurrentlyleadstheregion’semployment,followedbyProfessional& Business Services, Education & Health Services, Government andLeisure&Hospitality.

GreaterPhoenixhasa$181billionregionaleconomythatoffersabusiness-friendly environment for innovation and entrepreneurship. The region and its international access are ideal for aerospace, high technology,bioscience, advanced business services and sustainable technologiescompanies.

The largest private employers in Greater Phoenix include Wal-Mart Stores Inc.,BannerHealthSystem,WellsFargo&Co.,BankofAmerica,RaytheonCo.,ApolloGroup,JPMorganChase,IntelCorpandUSAirwaysGroup.

GreaterPhoenixoffersamyriadoftop-notchschoolsthatsupplymuchof the region’s talentedworkforce, includingArizona State University (ASU), one of the largest public universities in the United Stateswith75,000studentsonfourcampusesacrossGreaterPhoenix.Additionally,the Maricopa Community Colleges is one of the largest networks of communitycollegesinthenationwith270,000students.(continued)

MARKET ANALYSIS


PHOENIX ECONOMIC & RETAIL MARKET OVERVIEW (continued)

Metro Phoenix Market Activity

A favorable job forecast, remarkable population growth, rebound innew home construction and an overall positive economic outlook for theregionaleconomyhaspositivelyaffectedthePhoenixretailmarket.Strongleasingactivityhasresultedinoutstandingabsorption,decliningvacancy and an anticipated rise in rental rates. Much of the leasing activity isduetosmallshopspacebelow10,000squarefeet,a positive sign that small businesses are gaining confidence and expanding or opening additional locations. As demand for retail space continues to strengthen,well-locatedprojectswithdesirabletradeareaslikeArcadia Placearewellpositionedtobenefit.

Retail Market Profile

The Phoenix retail market is comprised of 151.6 million square feetincluding 91.5 million square feet in neighborhood centers. The market is dividedinto10submarketsthatareledbyNorthwestPhoenix,thelargestsubmarketwith 29.4million square feet, followed by Chandler/Gilbertwith26.2millionsquarefeetandMesawith20.7millionsquarefeet.

A favorable job forecast, remarkable populationgrowth and a rebound in new home construction havepositivelyaffectedthePhoenixretailmarket.

MARKET ANALYSIS


NORTH

MARKET ANALYSIS

Full service commercial real estate2710 E Camelback Road, Suite 210

Phoenix, AZ 85016602-468-6100

www.eisenbergcompany.com

Exclusively Listed By:

Jason R. Eisenberg Ryan W. AmatoVice President of Development & Acquisitions Senior Vice [email protected] [email protected]

OFFERING MEMORANDUMArcadia PlaceNWC 40th Street & Indian School Road ~ Phoenix, AZ

Documents

Arcadia Place OFFERING MEMORANDUM NWC 40th Street & …€¦ · Arcadia Place NWC 0t Stree Idia Shoo Roa Phoenix AZ FINANCIAL HIGHLIGHTS Price $ 10,500,000 CAP Rate 5.65 Year-1 NOI