Offering Memorandum BANNER URGENT CARE Freddy’s Frozen ...images4.loopnet.com/d2/a4Jv1MGzZD0o4NPe8IL... · BANNER URGENT CARE 3200 S. Gilbert Rd. Chandler, AZ 85286 FINANCIAL SUMMARY

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

BANNER URGENT CARE3200 S. GILBERT RD.CHANDLER, AZ 85286

Offering Memorandum

AERIAL PHOTO BANNER URGENT CARE

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID Y0070189


2

AERIAL PHOTO

3

BANNER URGENT CARE



Starbucks

S GI

LBER

T RD

- 2

7,00

0 CP

D

E QUEEN CREEK RD- 13,300 CPD

LEGACY TRADITIONAL

SCHOOL(K-8)

• 221,600 RESIDENTS IN TRADE AREA

• 156,000 DAYTIME EMPLOYEES IN TRADE AREA

• AVERAGE HOUSEHOLD INCOME IS $126,155 IN A 1-MILE RADIUS

EXECUTIVE SUMMARY


4

BANNER URGENT CARE

BANNER URGENT CARE3200 S. Gilbert Rd.Chandler, AZ 85286

FINANCIAL SUMMARY

Price $2,725,000

Down Payment 100% $2,725,000

Cap Rate 6.25%

Building SF +/- 4,631 SF

Net Cash Flow 6.25% $170,371.32*

Year Built 2007

Lot Size .11 Acres (part of office condo development)

LEASE SUMMARY

Lease Type Absolute Triple-Net (NNN)

Tenant Banner Urgent Care

Lease Guarantor Banner Health (the parent company of Banner)

Roof & Structure Tenant Responsible

Rent Commencement Date December 16, 2013

Lease Expiration Date December 31, 2023

Lease Term 6+ Years

Rental Increases 3% Annual Increases

Renewal Options 2, 5 Year Options**

BASE RENT $170,371.32

Net Operating Income $170,371.32

Total Return 6.25% $170,371.32

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

1/1/2018 - 12/31/2018 $170,371.32 6.25%

1/1/2019 - 12/31/2019 $175,482.48 6.45%

1/1/2020 - 12/31/2020 $180,744.00 6.63%

1/1/2021 - 12/31/2021 $186,169.14 6.83%

1/1/2022 - 12/31/2022 $191,754.48 7.04%

1/1/2023 - 12/31/2023 $197,507.16 7.25%

*Rent as of January 1, 2018**Year one of each option period will be at Fair Market Value and increased 3% annually

AERIAL PHOTO

5

BANNER URGENT CARE



Starbucks

TENANT OVERVIEW

Whether it’s a sprained ankle, a cough that won’t go away or something in between, Banner Urgent Care clinics have experts who treat a variety of conditions in a comfortable, convenient location. Banner Urgent Care Centers offer ultra-convenient office hours – they are open late and have weekend hours – patients can walk right in and receive prompt, immediate medical attention. With minimal wait times, affordable service and ultimate flexibility, Banner Urgent Care is a smart, sensible choice.

Banner Urgent Care provides a variety of screenings and diagnostics tests including:Flu Shots & Other VaccinationsOn-Site X-ray, including chest x-raysEye ExamsBlood testPregnancy testing

Banner Urgent Care treats common illnesses and injuries including:Abdominal painAnimal bitesBroken bonesCold & Flu symptomsCuts in need of stichesMinor infections (ear, sinus, respiratory)PhysicalsSimple fractures & sprainsUrinary tract infection (UTI)

Headquartered in Phoenix, Arizona., Banner Health is one of the largest, nonprofit health care systems in the country and the leading nonprofit provider of hospital services in all the communities they serve. The system owns and operates 28 acute-care hospitals, Banner Health Network, Banner – University Medicine, academic and employed physician groups, long-term care centers, outpatient surgery centers and an array of other services; including Banner Urgent Care, family clinics, home care and hospice services, pharmacies and a nursing registry. Banner Health is in six states: Arizona, California, Colorado, Nebraska, Nevada and Wyoming.Their Western Region facilities serve a number of rural areas -- many are the only inpatient facilities available within the community.In February 2015, Banner Health merged with the University of Arizona Health Network in Tucson, Arizona, to form Banner – University Medicine. At the heart of this merger is academic medicine – research, teaching and patient care – across three academic medical centers.Banner has more than 50,000 employees, making the company one of the country’s largest employers as well. In fact, Banner Health is a leading nonprofit employer in every community they serve. In the Arizona Region, we are the state’s largest private employer, and are one of Northern Colorado’s largest employers.




6

TENANT OVERVIEW

Banner Health buys 32 urgent care facilities in ArizonaAug 17, 2016, 11:06pm MST

Phoenix-based Banner Health is getting into the urgent care business in a big way.

The state’s largest health system is purchasing Urgent Care Extra’s 32 facilities in Arizona. The purchase price was not disclosed.

Currently, Banner only has three urgent care centers, and only one of those is in Arizona — Casa Grande. The other two are in Colorado. Banner operates in seven states, managing 29 hospitals, the Banner Health Network, Banner Medical Group, long-term care centers, outpatient surgery centers and other services, such as family clinics, home care, hospice and a nursing registry.

But this acquisition is only the beginning of Banner’s urgent care growth plans. Banner plans to have as many as 50 urgent care centers in Arizona by the end of 2017.

Once that happens, Banner will be the largest urgent care operator in the state — that is if FastMed Urgent Care and NextCare Urgent Care don’t accelerate their expansion plans. Currently, they each operate more than 30 facilities in Arizona.

More than 400 Urgent Care Extra employees will join Banner on Oct. 1, when the Urgent Care Extra facilities will be part of the Banner network. Banner has more than 40,000 employees in Arizona, making it the state’s largest private employer.

Angela GonzalesSenior ReporterPhoenix Business Journal

AERIAL PHOTO

7

BANNER URGENT CARE



Starbucks

LOCATION OVERVIEWINVESTMENT HIGHLIGHTS

Chandler is a prominent suburb of the Phoenix, Arizona, Metropolitan Statistical Area (MSA). It is bordered to the north and west by Tempe, to the north by Mesa, to the west by Phoenix, to the south by the Gila River Indian Community, and to the east by Gilbert. Chandler embodies an active lifestyle with easy access to outdoor recreation with endless family-fun, award-winning events, world-class golf facilities, and a vibrant downtown. Visitors ans residents enjoy the diverse community with its vibrant restaurants of every cuisine, premier shopping, arts and culture and a wide range of things to do all year-round.The Phoenix metro consists of Maricopa and Pinal counties, and includes more than 30 incorporated and more than 30 unincorporated towns and cities. Since 2000, the population in the metro increased by more than 38 percent. The largest city is Phoenix, which encompasses about 520 square miles, is the capital city and boasts a population of more than 1.5 million.As one of the primary beneficiaries of the massive shift in the U.S. population from north to south, the Phoenix metro has had little difficulty finding workers; the challenge, though, is attracting high-paying jobs. Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan, Republic Services, Insight Enterprises, Avnet and PetSmart. Construction, high-tech manufacturing, healthcare and tourism dominate the Phoenix economy. The local economy has strengthened since the recession, with retail sales projected above 8 percent this year and hotel occupancy levels rising.

• Absolute Triple-Net (NNN) Lease

• 3% Annual Increases

• Lease is Guaranteed by Banner Health - With More than 50,000 Employees, Banner is one of the Country’s Largest Employers

• Free Standing Urgent Care Center

• Visible to 27,000 Cars per Day from S Gilbert Rd

• 221,600 Residents in Rapidly Growing Trade Area

• Average Household Income is $126,155 in a 1-Mile Radius

• 156,000 Daytime Employees in Trade Area

• Easily Accessible from AZ Loop 202 (132,600 CPD) - A Primary Connector

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles2016 Est. Average Household Income $126,155 $119,641 $105,1772016 Est. Median Household Income $100,411 $92,997 $80,2142016 Est. Per Capita Income $38,341 $36,319 $34,858

Population 1-Mile 3-Miles 5-Miles2021 Projection 10,417 77,782 266,5392016 Estimate 7,759 59,697 221,608Growth 2015 - 2020 34.26% 30.29% 20.28%

Households 1-Mile 3-Miles 5-Miles2021 Projections 3,166 23,595 88,2872016 Estimate 2,357 18,112 73,410Growth 2015 - 2020 34.32% 30.27% 20.27%

DEMOGRAPHICS




8

PROPERTY PHOTOS

AERIAL PHOTO

9

BANNER URGENT CARE



Starbucks

SITE PLAN

N




10

Williams-Sonoma

MAP

REGIONAL MAP

AERIAL PHOTO

11

BANNER URGENT CARE



Starbucks

LOCAL MAP

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

JAMIE MEDRESSSenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

MARK RUBLESenior Managing Director InvestmentsPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

CHRIS LINDVice President InvestmentsPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

Documents

Offering Memorandum BANNER URGENT CARE Freddy’s Frozen ...images4.loopnet.com/d2/a4Jv1MGzZD0o4NPe8IL... · BANNER URGENT CARE 3200 S. Gilbert Rd. Chandler, AZ 85286 FINANCIAL SUMMARY