8683 e via de negocio - loopnet...positive net absorption in the fourth quarter, the biggest...

8683 E VIA DE N EGOCIOScottsdale, Arizona 85258

OFFERI NG MEMORAN DUM

Jerry Jacobs | Exec. Managing Director

602.952.3847 | [email protected]

Jeffrey Rosenbloom | Associate


EXCLUSIVE INVESTMENT ADVISORS

www.ngkf.com2398 E. Camelback Road Suite 950 | Phoenix, Arizona 85016 | Main 602.952.3800 | Fax 602.952.3801

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.

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 Newmark Grubb

Knight Frank and it should not be made available to any other person or entity without the

written consent of Newmark Grubb Knight Frank. 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 Newmark Grubb Knight Frank.

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. Newmark Grubb Knight Frank 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, Newmark Grubb Knight Frank has not verified, and will not verify,

any of the information contained herein, nor has Newmark Grubb Knight Frank 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.

CON FI DENTIALITY AGREEMENT & DISCLAIMER

PROPERTY DESCRI PTION 4

Offering Overview 4

Property Description 5

Floorplans 6

Aerials, Maps & Site Plan 8

MARKET OVERVI EW 12

Overview 12

Office Report 14

Comparables - Lease/Sold 16

FI NANCIAL ANALYSIS 21

Property Summary 21

Rent Roll 22

Cashflow Anaylsis 23

Jerry Jacobs | Exec. Managing Director602.952.3847 | [email protected]

Jeffrey Rosenbloom | Associate602.952.3877 | [email protected]

3


Investment Summary

8683 E Via De Negocio is well located in Scottsdale, Arizona. It is located within

minutes of the Loop 101 freeway and surrounded by retail amenities.

• Class A Improvements

• Covered Parking

• Timeless Split-Face Block Construction

8683 E Via De Negocio consists of a two-story, block constructed multi-tenant office

building with flexible suite sizes. The property attracts professional tenants who

typically live and work in Scottsdale or Paradise Valley.

NEWMARK GRUBB KNIGHT FRANK IS PLEASED TO PRESENT TO QUALIFIED INVESTORS, THE OPPORTUNITY TO PURCHASE 8683 E VIA DE NEGOCIO, AN 8,444 SQUARE FOOT MULTI-TENANT OFFICE BUILDING LOCATED IN PHOENIX, ARIZONA .

OFFERI NG OVERVI EW

A S K I N G P R I C E: $1,795,000 ($212/SF)

A D D R E S S: 8683 E Via De Negocio, Scottsdale, AZ 85258

B U I L D I N G S I Z E: 8,444 SF

L A N D A R E A : 25,617 SF

Y E A R B U I LT: 1984 | Remodeled 2015

PA R K I N G : 33 total / 14 covered

O CC U PA N C Y: 100%

P R O F O R M A N . O. I . : $138,897

PROPERTY DESCRI PTION

D E S C R I P T I O N :8,444 Rentable Square Foot, Two Story Multi-tenant Office Building, Located in Scottsdale, Arizona

A D D R E S S : 8683 E Via De Negocio, Scottsdale, AZ 85258

B U I L D I N G S I Z E : 8,444 SF

O F F E R I N G P R I C E : $1,795,000 ($212/SF)

C O N S T R U C T I O N : Brick, Masonry

Y E A R B U I LT: 1984 | Remodeled 2015

L A N D A R E A : 25,617 SF

PA R C E L N U M B E R S : 117-04-892

Z O N I N G : C-O City of Scottsdale

PA R K I N G : 4/1,000 SF (33 free surface, 14 covered)

H VA C : 12 package units on the roof (programmable thermostats)

A two-story, split-face block construction

located in Scottsdale, Arizona.

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PROPERTY DESCRI PTION

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LOCATION MAP

Phoenix SouthMountain Park

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Spring TrainingSpring Training baseball under the warm Arizona sun has been a tradition for devoted fans since 1947. Scottsdale is home to the San Francisco Giants, Colorado Rockies and Arizona Diamondbacks. The San Francisco Giants play in the heart of downtown Scottsdale at Scottsdale Stadium. A short drive north, the Colorado Rockies and Arizona Diamondbacks play at the Salt River Fields at Talking Stick. along Scottsdale’s border with the Salt River Pima-Maricopa Indian Community.

Talking Stick Resort & CasinoLocated conveniently off Loop 101 and Talking Stick Way, Talking Stick is a top cultural and entertainment destination for both Arizona residents and tourists. A Talking Stick Resort, a 4-diamond hotel, offers luxurious guest rooms and hotel suites embodying the unique flavor of Scottsdale. Home to the best casino experience in Scottsdale, Talking Stick Casino is home to the Arizona State Poker Championship, featuring a prize pool of over $1,000 every August. The Casino also offers numerous headliner concerts throughout the year.

TopgolfTopgolf offers a unique, unforgetable experience with competitive golf games for all ages. With climate-controlled bays that mirror a bowling lane, you experience golf like never before including an impressive food and drink menu, private spaces for groups of any size, HDTVs and a complete music selection for any taste.

Waste Management OpenDubbed “The Greatest Show on Grass”, the Phoenix Open (known as the Waste Management Phoenix Open) is a top PGA tour golf tournament held in Late january/early February at the TPC of Scottsdale. The tournament hosts many of the top names in professional golf and includes the one-of-a-kind 16th Hole experience, where fans can cheer on their favorite golfer in a fun, relaxed, party-like atmosphere. The Thunderbirds

SCOTTSDALE POI NTS OF I NTEREST

host this tournament each year with proceeds funding many charities, including the Special Olympics activities in Phoenix. The 4-day attendance is normally around a half million and is the best-attended event in golf. In 2016, it set PGA Tour and Phoenix Open single day attendance record with 201,003 fans in attendance on Saturday and a tournament week attendance record of 618,365 fans.

Kierland CommonsKierland Commons is a mixed-use destination and was the first lifestyle center in Arizona. The 600,000 squaer foot Main-Street-style development includes shopping, dining, entertainment , office space and upscale loft condominiums. Included in the development is the Westin Kierland Resort and Spa, the 27-hole Kierland Golf Club, aprpoximately 75 stores and restaurants - including many of the top brands in the retail market.

Scottsdale AirparkScottsdale Airpark is in the heart of one of gthe Phoenix area’s major hubs for urban growth with increasing numbers of businesses and employees moving to this 5 square mile area of North Scottsdale. More than 55,000 employees work for approximately 3,000 companies within the Scottsdale Airpark area. In 2016, Scottsdale Airpark added nearly 1,200 jobs.

Scottsdale Fashion SquareScottsdale is home to some of the best shopping in the State of Arizona, including Scottsdale Fashion Square - a premier upscale mall. Scottsdale Fashion Square features Arizona’s largest assortment of luxury brands, upscale amenities, exclusive sales and events and is a central location in the heart of Scottsdale.

Oldtown/Downtown ScottsdaleA premier destinatino for visitors and residents alike, Oldtown/Downtown Scottsdale is home to unique art galleries, specialty retail, southwest cultural activities, dining ventures from casual to upsscale and an extraordinary nightlife.

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SCOTTSDALE OFFICE REPORT

Strong Finish to End the Year

The metro Phoenix office market finished 2016 strong with 668,184 square feet of

positive net absorption in the fourth quarter, the biggest quarterly gain of the year.

This gain helped push the annual net absorption total to 1.95 million square feet, a

slight drop from 2015, but still a healthy figure with a two-year run topping more

than 4.0 million square feet in net occupancy gains. The market’s overall vacancy rate

declined further during the fourth quarter to 19.6%, a 110-basis-point improvement

from a year ago and the first time the rate has fallen below 20% since 2008.

Demand for Class A office space remains red hot, with the lowest vacancy in the

Tempe and Scottsdale submarkets. Large blocks of available space (above 40,000

square feet) continue to diminish in these submarkets. The Tempe South/Chandler

submarket led all others with 143,381 square feet in quarterly net absorption, as

Northern Trust occupied the remaining 75,000 square feet of its build-to-suit

property at Discovery Business Campus. The Scottsdale North/Airpark submarket

tallied 137,969 square feet of net absorption this quarter, with Hartford Insurance

moving into 101,420 square feet at Raintree Corporate Center.

Rent Growth

Average rental rate increases continued across the region, finishing

the first quarter at $23.03/SF. This represents a year-over-year rate

increase of 7.3%, marking the highest annualized growth rate since

2007. Rates are projected to continue to increase throughout the year,

as tenant demand and absorption levels remain strong. Rate increases

were highest at the top-level Class A buildings, some up by more

than the $2.00/SF to $3.00/SF over the past year. The Class A rate

reached $26.47/SF, with the highest rates in the Camelback Corridor

and North Scottsdale submarkets. Rising rents in the traditionally

strong Class A markets have spurred demand in Class B product in

neighboring submarkets.

Employment Tops Two Million

The metro Phoenix labor market reached its highest level ever in

November, topping 2.0 million nonfarm jobs. Despite this record

total, the job growth rate slowed to 1.1% compared with the

same month last year, adding 21,500 jobs. The educational and

health services continued to add the most over the past year with

8,300 jobs. Financial activities led all office-using employment

growth with 5,500 new jobs, marking a 3.2% job growth rate.

The region’s robust employment growth continued to drive the

unemployment rate down to 4.1% in November, well below both

the state and national rates of 5.0% and 4.6%, respectively.

The recent voter-approved Proposition 206, which raises the state’s

minimum wage to $10.00 an hour in January 2017 and to $12.00 an

hour in 2020, will have an impact on the region’s employment in the

coming years.

MARKET SUMMARY

Year to Date

Total Inventory 4,734,584

Vacancy Rate 13.7%

Quarterly Net Absorption 42,601

Average Asking Rent $25.57

Under Construction 271,000

Source: U.S. Bureau of Labor Statistics

Market Summary

Current Conditions

Market Analysis

PHOENIX1Q17 OFFICE MARKET

Strong finish to endthe yearThe metro Phoenix office market finished 2016 strong with 668,184 square feet of positive net absorption in the fourth quarter, the biggest quarterly gain of the year. This gain helped push the annual net absorption total to 1.95 million square feet, a slight drop from 2015, but still a healthy figure with a two-year run topping more than 4.0 million square feet in net occupancy gains. The market’s overall vacancy rate declined further during the fourth quarter to 19.6%, a 110-basis-point improvement from a year ago and the first time the rate has fallen below 20% since 2008.

Demand for Class A office space remains red hot, with the lowest vacancy in the Tempe and Scottsdale submarkets. Large blocks of available space (above 40,000 square feet) continue to diminish in these submarkets. The Tempe South/Chandler submarket led all others with 143,381 square feet in quarterly net absorption, as Northern Trust occupied the remaining 75,000 square feet of its build-to-suit property at Discovery Business Campus. The Scottsdale North/Airpark submarket tallied 137,969 square feet of net absorption this quarter, with Hartford Insurance moving into 101,420 square feet at Raintree Corporate Center.

Rent GrowthThe direct average asking rent continued to rise across metro Phoenix to $24.09/SF, a 6.2% increase from year-end 2015. Three submarkets commanded rents above $30.00/SF for Class A space: The Camelback Corridor, South Scottsdale and Tempe, each offering unique and amenity-rich locations for tenants. Class A rents were up 4.1% from a year ago, while Class B rents increased 8.3% over the same time period. Quick lease-up of Class A space in neighboring Tempe and new construction deliveries led to a 13.9% increase in rents in the Airport Area submarket over the past year, one of the largest annual increases compared with the other submarkets. As tenant demand remains strong, the average asking rent is expected to reach $25.00/SF in the coming year.

Construction ActivityImproving market fundamentals have kept construction levels high over the last two years. During fourth-quarter 2016, 280,663 square feet delivered, bringing the annual total to 841,000 square feet. There was nearly 2.0 million square feet under construction across six submarkets by year-end; of this, nearly 1.1 million square feet was speculative development. Most of the speculative development is slated for delivery in the first half of 2017, and only 5.0% is pre-leased. This will create a potential uptick in the market’s overall vacancy beginning next year. There were also two build-to-suit projects that broke ground this quarter, for Farmers Insurance (150,000 square feet) and McKesson Corporation (271,000 square feet). Developers are still eager to build, and numerous proposed projects are still in the pipeline; however, the pace of construction is projected to slow next year, as tenant demand plays catch-up with new speculative supply.

Research

• Area employment tops two million, an all-time high.

• Overall vacancy drops below the 20.0% mark for the first time since 2008.

• Tenant demand pushed the annual net absorption total to 1.95 million square feet.

• Unemployment rate drops to 4.1%.

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1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17

Net AbsorptionSquare Feet, Millions

5%

10%

15%

20%

25%

30%

$0

$5

$10

$15

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$25

1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17

Average Asking Rent (Price/SF) Vacancy (%)

Asking Rent and Vacancy

Current Quarter

Prior Quarter

Year Ago Period

12 Month Forecast

Total Inventory 87.1MSF 85.5MSF 82.7MSF

Vacancy Rate 20.1% 19.7% 20.6%

Quarterly Net Absorption 991,222 668,184 198,191

Average Asking Rent $24.58 $24.09 $22.58

Under Construction 735,063 1,948,085 2,345,324

Deliveries 1,352,196 280,663 204,477

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www.ngkf.com

Research

Downtown North/Midtown 8,920,949 - 25.0 % -39,467 -39,467 $24.84 $20.77 $21.89

Downtown South 6,929,954 26,174 18.2 % 62,248 62,248 $30.85 $27.90 $29.49

CBD Total 15,850,903 26,174 22.0 % 22,781 22,781 $27.65 $22.33 $24.37

44th Street Corridor 3,183,933 - 16.3 % 6,908 6,908 $25.32 $23.60 $24.58

Airport Area 6,864,928 324,889 32.2 % 57,385 57,385 $24.92 $22.61 $23.10

Camelback Corridor 6,860,081 113,000 18.2 % 21,937 21,937 $34.15 $24.91 $31.06

Central/East Phoenix 1,062,467 - 15.3 % 10,266 10,266 - $18.37 $15.26

Chandler/Gilbert 4,858,230 - 29.6 % -21,390 -21,390 $25.02 $22.10 $23.89

Deer Valley/Airport 5,186,789 - 18.8 % 183,363 183,363 $25.26 $19.17 $22.44

Glendale 825,485 - 30.1 % -28,589 -28,589 $22.13 $15.22 $20.53

Mesa Downtown 256,039 - 7.3 % 4,847 4,847 - $17.34 $16.30

Mesa East 637,026 - 29.7 % 1,405 1,405 $26.52 $15.70 $24.54

N Phoenix/Desert Ridge 2,223,032 - 14.2 % 6,961 6,961 $27.37 $21.23 $25.09

Northwest Phoenix 4,433,422 - 31.7 % -17,533 -17,533 $21.91 $18.79 $18.97

Piestewa Peak 2,072,967 - 28.8 % -10,702 -10,702 $25.42 $19.54 $21.38

Scottsdale Central 4,734,584 271,000 13.7 % 42,601 42,601 $28.14 $23.25 $25.57

Scottsdale North/Airpark 7,972,315 - 14.6 % 77,080 77,080 $29.68 $24.01 $28.64

Scottsdale South 3,603,705 - 15.5 % -34,102 -34,102 $34.23 $30.28 $33.24

Sun City 709,669 - 11.4 % 1,279 1,279 - $21.77 $21.77

Superstition Corridor 2,497,710 - 18.3 % -4,249 -4,249 $23.11 $16.77 $19.11

Tempe 7,303,085 - 10.9 % 595,468 595,468 $32.48 $22.86 $27.38

Tempe South/Chandler 5,102,969 - 14.6 % -7,650 -7,650 $23.62 $22.32 $22.45

West Phoenix 847,274 - 26.7 % 11,156 11,156 $25.78 $18.82 $20.53

Suburban Total 71,235,710 708,889 19.7 % 896,441 896,441 $28.11 $21.59 $24.63

Totals 87,086,613 735,063 20.1 % 919,222 919,222 $28.03 $21.75 $24.58

Under Total Qtr YTD Class A Class B TotalInventory Construction Vacancy Absorption Absorption Asking Rent Asking Rent Asking Rent

(SF) (SF) Rate (SF) (SF) (Price/SF) (Price/SF) (Price/SF)

Submarket Statistics


Market Summary

Current Conditions

Market Analysis


Strong finish to endthe yearThe metro Phoenix office market finished 2016 strong with 668,184 square feet of positive net absorption in the fourth quarter, the biggest quarterly gain of the year. This gain helped push the annual net absorption total to 1.95 million square feet, a slight drop from 2015, but still a healthy figure with a two-year run topping more than 4.0 million square feet in net occupancy gains. The market’s overall vacancy rate declined further during the fourth quarter to 19.6%, a 110-basis-point improvement from a year ago and the first time the rate has fallen below 20% since 2008.

Demand for Class A office space remains red hot, with the lowest vacancy in the Tempe and Scottsdale submarkets. Large blocks of available space (above 40,000 square feet) continue to diminish in these submarkets. The Tempe South/Chandler submarket led all others with 143,381 square feet in quarterly net absorption, as Northern Trust occupied the remaining 75,000 square feet of its build-to-suit property at Discovery Business Campus. The Scottsdale North/Airpark submarket tallied 137,969 square feet of net absorption this quarter, with Hartford Insurance moving into 101,420 square feet at Raintree Corporate Center.

Rent GrowthThe direct average asking rent continued to rise across metro Phoenix to $24.09/SF, a 6.2% increase from year-end 2015. Three submarkets commanded rents above $30.00/SF for Class A space: The Camelback Corridor, South Scottsdale and Tempe, each offering unique and amenity-rich locations for tenants. Class A rents were up 4.1% from a year ago, while Class B rents increased 8.3% over the same time period. Quick lease-up of Class A space in neighboring Tempe and new construction deliveries led to a 13.9% increase in rents in the Airport Area submarket over the past year, one of the largest annual increases compared with the other submarkets. As tenant demand remains strong, the average asking rent is expected to reach $25.00/SF in the coming year.

Construction ActivityImproving market fundamentals have kept construction levels high over the last two years. During fourth-quarter 2016, 280,663 square feet delivered, bringing the annual total to 841,000 square feet. There was nearly 2.0 million square feet under construction across six submarkets by year-end; of this, nearly 1.1 million square feet was speculative development. Most of the speculative development is slated for delivery in the first half of 2017, and only 5.0% is pre-leased. This will create a potential uptick in the market’s overall vacancy beginning next year. There were also two build-to-suit projects that broke ground this quarter, for Farmers Insurance (150,000 square feet) and McKesson Corporation (271,000 square feet). Developers are still eager to build, and numerous proposed projects are still in the pipeline; however, the pace of construction is projected to slow next year, as tenant demand plays catch-up with new speculative supply.

Research

• Area employment tops two million, an all-time high.

• Overall vacancy drops below the 20.0% mark for the first time since 2008.

• Tenant demand pushed the annual net absorption total to 1.95 million square feet.

• Unemployment rate drops to 4.1%.

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Net AbsorptionSquare Feet, Millions

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1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 1Q16 1Q17

Average Asking Rent (Price/SF) Vacancy (%)

Asking Rent and Vacancy

Current Quarter

Prior Quarter

Year Ago Period

12 Month Forecast

Total Inventory 87.1MSF 85.5MSF 82.7MSF

Vacancy Rate 20.1% 19.7% 20.6%

Quarterly Net Absorption 991,222 668,184 198,191

Average Asking Rent $24.58 $24.09 $22.58

Under Construction 735,063 1,948,085 2,345,324

Deliveries 1,352,196 280,663 204,477

2

Employment By Industry

Employment Growth by Industry

Top 5 Lease Transactions

Top 5 Sales Transactions

ADP 111 W Rio Salado Pkwy Tempe New 225,000

Carvana 1930 W Rio Salado Pkwy Tempe New 69,774

State of Arizona Attorney General 2005 N Central Ave Downtown North/Midtown New 67,650

DriveTime 1930 W Rio Salado Pkwy Tempe New 65,889

SagePoint Financial 20 E Thomas Rd Downtown North/Midtown New 65,783

Tenant Building Submarket Type Square Feet

Galleria Corporate Center Scottsdale South $142,500,000 $268 531,574

CBIZ Plaza Downtown North/Midtown $26,000,000 $92 282,693

111 W Rio Salado Pkwy Tempe $19,617,885 $343 225,000

Talavi Tech Center Deer Valley/Airport $17,245,000 $93 185,000

Warner Crossing Tempe South/Chandler $18,480,000 $134 138,180

Building Submarket Sale Price Price/SF Square Feet

Capital Market ActivitySales activity during the fourth quarter totaled $780.4 million, more than double the total from the prior quarter and pushing 2016’s total to $1.8 billion. Meanwhile, average cap rates remained stable at 6.7%. The largest transaction for the quarter was the two-property sale of Renaissance Square in Downtown Phoenix. Oaktree Capital Management purchased the high-profile, 965,508-square-foot property for $151.3 million, or $157/SF, from Hines with plans to renovate the buildings. In Chandler, City Office REIT acquired the fully occupied, 266,820-square-foot SanTan Corporate Center for $58.5 million.

Employment Tops Two MillionThe metro Phoenix labor market reached its highest level ever in November, topping 2.0 million nonfarm jobs. Despite this record total, the job growth rate slowed to 1.1% compared with the same month last year, adding 21,500 jobs. The educational and health services continued to add the most over the past year with 8,300 jobs. Financial activities led all office-using employment growth with 5,500 new jobs, marking a 3.2% job growth rate. The region’s robust employment growth continued to drive the unemployment rate down to 4.1% in November, well below both the state and national rates of 5.0% and 4.6%, respectively. The recent voter-approved Proposition 206, which raises the state’s minimum wage to $10.00 an hour in January 2017 and to $12.00 an hour in 2020, will have an impact on the region’s employment in the coming years.

Research


1Q17 Deliveries

Building Building Address Submarket Type Square FeetMarina Heights – Building E 600 E Rio Salado Pkwy Tempe Build-to-Suit 443,000

The HUB 2701 E Ryan Rd Chandler/Gilbert Speculative 290,785

The Grand at Papago Park Center I 1101 W Washington St Tempe Speculative 213,055

Total NonfarmNatural Resources and Mining

ConstructionManufacturing

Trade, Transportation, and UtilitiesInformation

Financial ActivitiesProfessional and Business Services

Educational and Health ServicesLeisure and Hospitality

Other ServicesGovernment

-4% -2% 0% 2% 4% 6%

Phoenix-Mesa-Glendale, January 2017, 12-Month % Change

Source: U.S. Bureau of Labor Statistics

19.5%

17.1%

15.0%11.9%

11.1%

9.1%

6.1%5.2%

3.1%1.8%

0.2%

Trade, Transportation, andUtilitiesProfessional & Business Services

Educational & Health Services

Government

Leisure and Hospitality

Financial Activities

Manufacturing

Construction

Phoenix-Mesa-Glendale, AZ, January 2017

Source: U.S. Bureau of Labor Statistics Source: U.S. Bureau of Labor Statistics

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COMPARABLES - LEASE MAP

•Lease Comps1 . P I M A C E N T E R

8 4 1 4 N 9 0 T H S T

2 . I R O N W O O D S Q U A R E , P H A S E I 1 0 2 93 N 92 N D S T - B L D G M

3 . 9 9 41 N 95 T H S T - B L D G E

4 . 1 0 6 0 7 N H AY D E N R D - B L D G F

5 . 8 1 51 E I N D I A N B E N D R D - B L D G H

6 . 8 1 55 E I N D I A N B E N D R D

7. T H E V I L L A G E AT H AY D E N 8 3 9 0 E V I A D E V E N T U R A

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SUBJECTPROPERTY

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Rd E Via de Ventura

E Via Linda

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IRONWOOD SQUARE 10293 N 92nd St | Scottsdale, AZ 85258

R E N T:$27. 0 0/ S F Full Service

B U I L D I N G S I Z E :5,798 SF

O C C U PA N C Y:67. 3 %

L E A S I N G C O M PA N Y:Menlo Group

2

9941 N 95th St - Bldg E | Scottsdale, AZ 85258

R E N T:$2 2 . 0 0/ S F Fu l l S e r v i c e


O C C U PA N C Y:53.0%

L E A S I N G C O M PA N Y:The Plaza Companies

3PIMA CENTER 8414 N 90th St | Scottsdale, AZ 85258 1

R E N T:$25.50/SF Modified Gross



L E A S I N G C O M PA N Y:Levrose Real Estate

COMPARABLES – LEASE

10607 N Hayden Rd - Bldg F | Scottsdale, AZ 85260

R E N T:$2 1 . 0 0/ S F Full Service



L E A S I N G C O M PA N Y:LevRose Real Estate

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8151 E Indian Bend Rd - Bldg H | Scottsdale, AZ 85250

R E N T:$25.50/SF Full Service



L E A S I N G C O M PA N Y:Core Realty Partners

5 8155 E Indian Bend Rd | Scottsdale, AZ 85250

R E N T:$24 . 0 0/ S F Full Service


O C C U PA N C Y:55 . 9 %

L E A S I N G C O M PA N Y:Omni American

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THE VILLAGE AT HAYDEN 8390 E Via De Ventura - Bldg F | Scottsdale, AZ 85258

R E N T:$2 2 . 0 0/ S F Fu l l S e r v i c e



L E A S I N G C O M PA N Y:CBRE

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COMPARABLES – LEASE

COMPARABLES MAP – SOLD

134

2

E Doubletree Ranch Rd

N H

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N 9

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E Mountain View Rd

E Via Linda

E Shea Blvd

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Rd

•Sale Comps1 . I R O N W O O D O F F I C E S Q U A R E

10101 N 92N D S T

2 . 817 1 E I N D I A N B EN D R D

3 . I R O N W O O D O F F I C E S U I T E S I I 9 431 E I R O N W O O D S Q UA R E D R

4 . I R O N W O O D O F F I C E S U I T E S I I 9 455 E I R O N W O O D S Q UA R E D R

E Indian Bend Rd

N P

ima

Rd

SUBJECTPROPERTY

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COMPARABLES – SOLD

IRONWOOD OFFICE SQUARE10101 N 92nd St | Scottsdale, AZ 85258

S O L D :05/0 9/ 2016

P R I C E :$5,650,000

$/ S F :$282.75

C A P :7.40%

Y E A R B U I LT:2003

1

8171 E Indian Bend Rd | Scottsdale, AZ 85250

S O L D :11/20/2015

P R I C E :$1,500,000

$/ S F :$250.00

C A P :N/A


2

9431 E Ironwood Square Dr | Scottsdale, AZ 85258

S O L D :0 6/ 16/ 2016

P R I C E :$1,400,000 SF

$/ S F :$2 2 9. 51

C A P :N/A


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IRONWOOD OFFICE SUITES II9455 E Ironwood Square Dr | Scottsdale, AZ 85258

S O L D :05/ 27/ 2016

P R I C E :$1,230,000

$/ S F :$215.79

C A P :N/A


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CU R RENT OPERATI NG DATA

*No vacancy allowance was taken. Actual income was used since 79.22 % of the center is occupied, effectively being a 20 percent vacancy.

R E N T/ L E A S E I N C O M E : $176,664

PA R K I N G I N C O M E : $420

E X P E N S E R E I M B U R S E M E N T S : $0.00

L E S S VA C A N C Y FA C T O R : Actual*

E F F E C T I V E G R O S S I N C O M E ( E G I ) : $177,084

T O TA L E X P E N S E S : ($38,187)

P R O F O R M A N E T O P E R AT I N G I N C O M E ( N O I ) : $138,897

E N D O F Y E A R O N E C A P R AT E : 7.74%

*Based on 2016 actuals. Tenants pay their janitorial directly to vendor.

EXPENSES*

A MOUNT A MOUNT/SF

R E A L E S TAT E TA X E S : $15,333 $1.81

I N S U R A N C E : $2,850 $0.34

O T H E R E X P E N S E S : $3,600 $0.43

D U E S : $756 $0.09

WAT E R & S E W E R : $1,536 $0.18

E L E C T R I C : $12,996 $1.54

T R A S H : $1,116 $0.13

T O TA L E X P E N S E S : $3 8 , 1 8 7 $ 4 . 52

F I NANC IAL I N FORMATION

P U R C H A S E P R I C E : $1,795,.000

G R O S S L E A S A B L E A R E A : 8,444 SF

O W N E R S H I P T Y P E : Fee Simple

P R I C E / S F : $212.00

P R O F O R M A C U R R E N T N E T O P E R AT I N G I N C O M E : $138,897

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RENT ROLL

SUITE TENANTSQUARE

FEET% PROJEC T TER M RENT/SF

MONTHLY RENT

ANNUAL RENT

DATE OF INCRE A SE

LE A SE ADJUSTMENT

100 NEW TENANT 4,418 52.32% TBD TBD $21.35 $7,860.36 $94,324.30 TBD TBD

200 ADECCO 4,026 47.68% 3-1-2016 6-30-2021 $20.45 $6,860.98 $82,331.76 6-1-2018 $0.50 annually

TOTAL 8,444 100% AVERAGE:

TOTAL OCCUPIED 8,4 4 4 100%

TOTAL AVAIL ABLE 0 0%

TH E TENANTS

Entegee Inc., a Subsidiary of Adecco Inc., leases the second floor with a corporate guarantee from Adecco Inc. The lease term expires 6/30/2021.

The Adecco Group is the world’s leading provider of HR solutions. With more than 32,000 FTE employees and around 5,100 branches, in over 60 countries and territories around the world, we offer a wide variety of services, connecting around 700,000 associates with our clients every day. The services we offer fall into the broad categories of temporary staffing, permanent placement, career transition and talent development, as well as outsourcing and consulting.

www.adecco.com

Since 1958, ENTEGEE has responded to the staffing needs of hundreds of companies by providing experienced professionals in the engineeering and technical industries. ENTEGEE has over fifty years of experience in providing Fortune 500 and other companies with highly qualified technical personnel. All our offices combined currently employ over 2,500 contract engineering and programming specialists, and maintain an internal staff of over 300 successful recruiting and customer service personnel.

www.entegee.com

Jerry Jacobs | Exec. Managing Director


Jeffrey Rosenbloom | Associate



www.ngkf.com

2 3 9 8 E . C a m e l b a c k R o a d S u i t e 9 5 0 | P h o e n i x , A r i z o n a 8 5 0 1 6

8683 e via de negocio - loopnet...positive net absorption in the fourth quarter, the biggest...

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