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www.orionprop.com
ANDREW HARRISON O: 602.889.9379 C: [email protected]
101-103 E HIGHWAY 260 | PAYSON, AZ PAYSON PLAZAPAYSON PLAZAPAYSON PLAZA
EXECUTIVE SUMMARY 2
SALE PRICE $5,100,000
PRICE/SF $84.37
ACTUAL CAP RATE 5.91%
PROFORMA CAP RATE 10.56%
occupancy 70%
SIZE 60,458 SF
PARCEL SIZE 4.77 Acres
YEAR BUILT 1988
ZONING C-2
CROSS STREETS Beeline Hwy & Hwy 260
TRAFFIC COUNTS 48,971 VPD (COMBINED)
HIGHLIGHTS
• Located on the Hard Corner of the Most Dominant Retail Intersection in Northeast Arizona.
• Vibrant Retail Intersection with Wal Mart, Bashas’, Safeway, Petsmart, Starbucks, and McDonalds to name a few.
• The center is located at the intersection of Highway 87 and Highway 260 – the 2 main arterial roads in the entire trade area. The site receives over 45k cars per day.
• Priced below replacement value at $84 psf; Ability to convert to NNN leases.
• Potential redevelopment Opportunity with 30% Vacancy and abundant parking.
• Excellent Visibility with 2 large Monument Signs on Highway 260 & Highway 87.
SUBJECT
PROPERTY VIEW 3
OBLIQUE VIEW 4
PARCEL VIEW
31,5
63
vp
d
17,408 vpd
PARCEL #: 304-02-023SLAND SIZE: 4.77 Acres
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AERIAL VIEW 6
PAYSON PLAZAPAYSON PLAZAPAYSON PLAZAPAYSON PLAZA
NEW TENANTS IN TRADE AREA7
HOTTRADEAREA
AREA OVERVIEW 8
Payson considers its founding year 1882, at which time the town was known as “Green Valley.” On March 3, 1884, a post office was established with the help of Illinois Representative Levi Joseph Payson. The first postmaster was Frank C. Hise. In honor of the representative's help, the town's name was changed to “Payson.”
Payson is home to the world’s oldest continuous rodeo, which began over 130 years ago. Steeped in tradition, it is one of the “best small town rodeos in the world.” https://www.paysonprorodeo.com
In 1918, author Zane Grey made his first trip to the area surrounding Payson. He would come back with regularity through 1929, and would purchase two plots of land near Tonto Creek, including 120 acres from Sampson Elam Boles under Myrtle Point. Grey wrote numerous books about the area and also filmed some movies, such as To the Last Man, in the Payson area in the 1920s. During Prohibition the manufacture, sale, and distribution of liquor was plentiful. The transactions took place on historic Bootleg Alley.
During the 1930s, an effort began to try to get Payson a better road to connect it to the outside world. At that time the town was very isolated, with a trip from Phoenix to Payson taking eight to twelve hours. Throughout the 1950s, work on a paved road from Phoenix to Payson progressed, and the road was completed in 1958. A few years ago this highway, State Route 87 (also known as the Beeline Highway), was expanded to four lanes. Today Payson is home to a growing number of citizens who enjoy the quiet life of nature, but still want a since of community and selection of shopping.
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AREA OVERVIEW 9
the rim golf club offers a golf experience like no other. Due to Payson’s mild climate, avid golfers can relish year-round golf and enjoy true four-season playability. Towering ponderosa pines, spectacular views, and massive rock formations all complement the course, the ultimate championship collaboration of Tom Weiskopf and Jay Morrish. Situated at an elevation of 5000 feet, The Rim offers a challenging golf experience for all levels of golf play. This beautiful course can be played from 5,200 to 7,200 yards, with forested fairways woven through dramatic rock outcroppings and the largest stand of Ponderosa pines in the country. The natural elevations and native vegetation enhance the strategic challenge of the hazards, with water coming into play on six holes. http://rimgolf.com
the golf club at chaparral pines is an 18-hole, par-72 masterpiece designed by former U.S. Open and PGA Champion David Graham and noted Scottsdale-based architect Gary Panks. This private championship golf course was named one of Golf Digest’s “Top 10 New Private Golf Courses in the U.S.” when it opened in 1997 and consistently ranks among the magazine’s “Top 10 Private Golf Courses” in Arizona. Spreading over the Mogollon Rim country of northern Arizona, the golf course features a variety of challenging holes, beautifully manicured fairways and breathtaking views of the majestic landscape. http://chaparralpines.com
payson golf course is located among the pure beauty that makes North Central Arizona wonderful. Towering ponderosa pine trees, rolling hills, and the Majestic Mogollon Rim in the background are all present during this truly wonderful golfing experience. The wildlife ranges from herds of elk to migrating geese and truly makes Payson Golf Course unique. This course is designed to create a fair challenge for all ability levels. http://www.paysongolfcourse.com
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CURRENTUnit Tenant Name Unit Sqft Lease From Lease To Monthly Rent PSF Annual Rent PSF Monthly Rent Annual Rent NNN Recapture NNN PSF Next Increase Increases Amount
108 Available 7,765 -$ -$ $0 $0 $0 $ - Notes/Options:
105 Available 3,000 MTM MTM -$ -$ $500 $6,000 $0 $ - Notes/Options: Currently used as storage for Roud's Home Furnishings
107 Roud's Home Furnishings 18,450 12/01/2018 03/31/2023 0.46$ 5.53$ $8,500 $102,000 $0 $ - 4/1/2021 $9,000Notes/Options: None
109 AutoZone 12,000 02/12/1996 09/30/2023 0.50$ 6.00$ $6,000 $72,000 $8,138 $ 0.68 Notes/Options: 2 @ 5 years ; $6,610 per month for fourth renewal period & $7,601 per month fourth fifth renewal period
111 Beverage House 3,990 04/01/2005 07/31/2025 1.02$ 12.20$ $4,057 $48,684 $9,252 $ 2.32 4/1/2021 $4,178Notes/Options: None 4/1/2022 $4,304
4/1/2023 $4,4334/1/2024 $4,5664/1/2025 $4,703
113 Available 7,160 -$ -$ $0 $0 $0 $ - Notes/Options:
101B Anytime Fitness 5,793 01/18/2011 01/31/2024 1.18$ 14.21$ $6,858 $82,292 $18,814 $ 3.25 2/1/2022 $7,275Notes/Options: 1 @ 5 years with 3% annual increases 2/1/2023 $7,420
101GF Banner Urgent Care 2,300 07/10/2007 05/31/2023 1.88$ 22.61$ $4,334 $50,502 $7,343 $ 3.19 6/1/2021 $4,464Notes/Options: 2 @ 5 years with rate to be negotiated 6/1/2022 $4,598
Totals 60,458 1.01$ 12.11$ $30,249 $361,478 $43,547 1.89$
Occupied Units 42,533 70%Vacancy 17,925 30%
RENT rollS
PRO FORMA
11
Unit Tenant Name Unit Sqft Lease From Lease To Monthly Rent PSF Annual Rent PSF Monthly Rent Annual Rent NNN Recapture NNN PSF Next Increase Increases Amount
108 Available 7,765 1.00$ 12.00$ $7,765 $93,180 $14,675 $ 1.89 Notes/Options:
105 Available 3,000 1.00$ 12.00$ $3,000 $36,000 $5,670 $ 1.89 Notes/Options:
107 Roud's Home Furnishings 18,450 12/01/2009 03/31/2023 0.46$ 5.53$ $8,500 $102,000 $0 $ - 4/1/2021 $9,000Notes/Options: None
109 AutoZone 12,000 02/12/1996 09/30/2023 0.50$ 6.00$ $6,000 $72,000 $8,138 $ 0.68 Notes/Options: 2 @ 5 years ; $6,610 per month for fourth renewal period & $7,601 per month fourth fifth renewal period
111 Beverage House 3,990 04/01/2005 07/31/2025 1.02$ 12.20$ $4,057 $48,684 $9,252 $ 2.32 4/1/2021 $4,178Notes/Options: 1 @ 5 year with 3% annual increases 4/1/2022 $4,304
4/1/2023 $4,4334/1/2024 $4,5664/1/2025 $4,703
113A Available 3,993 1.00$ 12.00$ $3,993 $47,916 $13,532 $ 3.39 Notes/Options:
113B Available 3,167 1.83$ 22.00$ $5,806 $69,672 $4,592 $ 1.45 Notes/Options: Proposed to split into End Cap
101B Anytime Fitness 5,793 01/18/2011 01/31/2024 1.18$ 14.21$ $6,858 $82,292 $18,814 $ 3.25 2/1/2022 727500%Notes/Options: 1 @ 5 years with 3% annual increases $ 44,958.00 $7,420.00
101GF StatClinx 2,300 07/10/2007 05/31/2023 1.88$ 22.61$ $4,334 $50,502 $7,343 $ 3.19 6/1/2021 $4,464Notes/Options: 1 @ 5 years $ 44,713.00 $4,598.00
Totals 60,458 1.01$ 12.07$ $50,313 $602,246 $82,017 1.89$
Occupied Units 60,458 100%Vacancy 0 0%
RENT projections
PRO FORMA
CURRENT
12
Tenant Name Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Total
Available $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Available $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $6,000
Roud's Home Furnishings $8,500 $8,500 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $107,000
AutoZone $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $72,000
Beverage House $4,057 $4,057 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $49,894
Available $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Available $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Anytime Fitness $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $82,292
Banner Urgent Care $4,334 $4,334 $4,334 $4,334 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $53,048
$30,249 $30,249 $30,870 $30,870 $31,000 $31,000 $31,000 $31,000 $31,000 $31,000 $31,000 $31,000 $370,234
Tenant Name Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021 Oct 2021 Nov 2021 Dec 2021 Jan 2022 Total
Available $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $7,765 $93,180
Available $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Roud's Home Furnishings $8,500 $8,500 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $9,000 $107,000
AutoZone $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $72,000
Beverage House $4,057 $4,057 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $4,178 $49,894
Available $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $3,993 $47,916
Available $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $5,806 $69,672
Anytime Fitness $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $6,858 $82,292
Banner Urgent Care $4,334 $4,334 $4,334 $4,334 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $4,464 $53,048
$50,313 $50,313 $50,934 $50,934 $51,064 $51,064 $51,064 $51,064 $51,064 $51,064 $51,064 $51,064 $611,002
FINANCIAL ANALYSIS 13
Rental Income $370,234 $611,002
CAM Recapture $43,547 $112,272
$3,467 $3,467
Scheduled Gross Income $413,781 $723,274
Vacancy Factor ACTUAL (30%) $72,327 10%
Adjusted Gross Income $413,781 $650,947
Less Operating Expenses $112,272 $112,272
Net Operating Income $301,509 $538,675
Proforma IncomeAugust 2020 Year Forward
Pizza Hut CAM Reinbursment
Current Income
TENANT PROFILES 14
ANYTIME FITNESS is a 24-hour health and fitness club headquartered in Woodbury, Minnesota. The company operates over 4,000 franchised locations in 50 countries. The gym facilities are open 24 hours a day, 365 days out of the year. Chuck Runyon, Dave Mortensen, and Jeff Klinger founded Anytime Fitness in 2002. Runyon is the CEO of the company. According to Forbes, Anytime Fitness was the fastest growing health club franchise in 2014. In 2015, Entrepreneur Magazine ranked Anytime Fitness first on its global franchise list.
AUTOZONE is the nation’s leading retailer and a leading distributor of automotive replacement parts and accessories with more than 6,000 stores in US, Puerto Rico, Mexico, and Brazil. Each store carries an extensive line for cars, sport utility vehicles, vans and light trucks, including new and re-manufactured hard parts, maintenance items and accessories. Since opening its first store in Forrest City, Arkansas on July 4, 1979, the company has joined the New York Stock Exchange (NYSE: AZO) and earned a spot in the Fortune 500.www.autozone.com
www.anytimefitness.com
BANNER URGENT CARE is a widly recognized Urgent Care run by Banner Health, which operates 28 hospitals across 6 states. Banner Health Network is comprised of 5,000 Banner Health-affiliated physicians and advanced practice providers. Getting excellent medical attention from Banner Urgent Care is simple, and their services include flu shot, x-ray, diagnostic tests and more.
www.bannerhealthnetwork.com
ROUD’S FINE FURNISHINGS is a family-owned discount furniture and mattress store based in Payson, AZ. Since 1997, Roud’s Fine Furnishings has served customers in Payson, Pinetop, Show Low, Snowflake, Taylor, Springville, St Johns and Heber Overgaard with low prices and top notch customer service. Their knowledge of the furniture and mattresses we sell sets us high above the competition. Roud’s Fine Furnishings is an authorized dealer of such brands as America’s Mattress, Best Home Furnishings, Cal Lighting & Accessories, Coast To Coast Imports, Coaster, and more. www.roudshomefurnishings.com
DEMOGRAPHIC HIGHLIGHTS15
2019 SUMMARY (SOURCE: ESRI) TWO MILE FIVE MILE TEN MILE
DAYTIME POPULATION 20,977 27,092 29,192
POPULATION 14,018 19,201 20,995
AVERAGE HOUSEHOLD SIZE 2.16 2.16 2.17
AVERAGE HOUSEHOLD INCOME $54,455 $56,538 $57,182
MEDIAN AGE 56.3 56.6 56.6
DAYTIME POPULATION
10 mile radius
29,192DAYTIME POPULATION
10 mile radius
$57,182AVG HH INCOMEAVG HH INCOME
2 mile radius
56.3MEDIAN AGEMEDIAN AGE
www.orionprop.com
ANDREW HARRISON O: 602.889.9379 C: [email protected]
101-103 E HIGHWAY 260 | PAYSON, AZ
All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws.
DISCLAIMER
PAYSON PLAZAPAYSON PLAZA
