City, State

OFFERING MEMORANDUM

4690 N. Oracle Road Tucson, Arizona 85705

Greg Furrier, Principal

Retail Properties

+1 520 546 2735

gfurrier@picor.com

Contact By Email Preferred

PICOR Commercial Real Estate Services

1100 N. Wilmot Road, Suite 200

Tucson, Arizona 85712

phone: +1 520 748 7100

Cushman & Wakefield Copyright 2015. No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question.

picor.com

Price $34,339,000 211,152 Sq. Ft. $162.62 / Sq. Ft. INITIAL CAP Rate 5.25% 30% Rent Increase year 6

City, State

2

The Tucson Galleria, at 4690 N. Oracle Road, was

constructed in the mid-1980’s and operated as a multi-

tenant retail mall initially.

From 1992 until 2008, The Galleria was occupied by

American Home Furnishings, a New Mexico based

furniture company.

The building is 3 floors, totaling 211,152 sq. ft. and

includes a parking garage with approximately 1,050

covered parking spaces on four levels. Comcast will be

the sole occupant of the building for its new IT, call

center and social media operations. In the Arizona

Daily Star, August 6, 2015, Ray Child, a spokesman

from Comcast stated "With an annual payroll of $35

million, the center will be staffed by information-

technology and customer-support workers. It will house

Spanish-speaking employees specializing in social

media so customers can connect with Comcast via

Twitter, Facebook or other outlets. Fifteen percent of

those positions will be filled by military reservists,

veterans and their spouses or domestic partners. The

company will conduct employee training in the existing

movie theatre, and offer employees use of a fitness

facility on site, along with other employee amenities.

DESCRIPTION

City, State

3

PROPERTY INFORMATION

Location

Tucson Galleria is located at 4690

N. Oracle Road in Tucson,

Arizona 85705.

Zoning

The property is zoned C-3

(City of Tucson) which allows 75

feet max height.

Parking

The multi level parking garage

consists of approximately 1,050

covered spaces.

Street Frontage

The site benefits from Oracle Road

frontage and is adjacent to the

Tucson Mall.

Age

The building was built in mid-

1980’s as a multi-tenant retail mall

property.

Construction

Reinforced tilt-up concrete panels.

Pre-cast concrete floors/ garage.

Roof

Built up roof system. New GAF,

I-B-4-M/ P6 BUR roof system

installed with 3.1" polyiso

insulation over a concrete deck,

completed May 2015 over the main

section of the building

(+/- 63,000 sq. ft.) with a 20 year

NDL warranty.

Parcel

4690 N. Oracle Road consists of

five (5) parcels containing a total

of approximately 5.15 acres

(224,361 sq. ft.).

HVAC

Combination of Package and Split

systems, both gas, electric and

heat pump units. Approximately

700 tons of cooling on the building.

Power

4000 Amp, 480-240 Volt,

3-Phase, 4 wire. Back up power

supply by Kohler generator.

Parcels Size

105-11-0440 43,560 sf

105-11-0460 43,560 sf

105-11-0470 86,249 sf

105-11-0480 35,224 sf

105-11-043C 10,400 sf

105-11-053C 5,227 sf

City, State

4

SITE PLAN

N. O

rac

le R

d

Oracle At

the River

City, State

5

TENANT

Tenant Information

BUSINESS SUMMARY

Comcast Corporation operates as a media and technology company

worldwide. It operates through Cable Communications, Cable Networks,

Broadcast Television, Filmed Entertainment, and Theme Parks

segments. The Cable Communications segment offers video, high-

speed internet, and voice services to residential and business customers

under the XFINITY brand name. This segment also provides business

services, such as cellular backhaul services to mobile network

operators; Ethernet network services; and online advertising services.

The Cable Networks segment operates national cable networks, which

provide entertainment, news and information, and sports content;

regional sports and news networks; international channels; and cable

television production operations, as well as owns digital media

properties. The Broadcast Television segment operates NBC and

Telemundo broadcast networks, NBC and Telemundo owned local

broadcast television stations, and broadcast television production

operations, as well as owns digital media properties. The Filmed

Entertainment segment produces, acquires, markets, and distributes

live-action and animated filmed entertainment under the Universal

Pictures, Focus Features, and Illumination names. This segment also

develops, produces, and licenses stage plays, as well as owns digital

media properties. The Theme Parks segment operates theme parks;

studios; Island of adventures; and a dining, retail, and entertainment

complex. Comcast Corporation was founded in 1963 and is

headquartered in Philadelphia, Pennsylvania.

Sourced: Yahoo Finance

City, State

6

INTERIOR PICTURES

City, State

7

Strength Of Tenant

The investment offers extremely secure cash flow with one of the

country’s most respected tenants

The Lease is Guaranteed by Comcast Corporation (a Fortune 40

company, S&P rating A– Moody’s A3) the Parent Company

(NASDAQ: CMCSK) and is NNN. Comcast is the nation’s largest

cable company with a $160.70 billion market capitalization.

INVESTMENT STRATEGY

Rare Opportunity to acquire a Landmark Regional

Single Tenant Building

• Strong Sales with an Extremely Low Rent:

Comcast is paying $11.22 per sq. ft. which represents a below market

lease rate in the area. Comcast pays 100% of building operating

expenses beginning Lease Commencement date. Comcast will expand

by ±50,000 sq. ft. by month 61 at approximately 50% of face rate, no

Landlord contribution. Rental income increases by 30% year 6 as a

result.

• Extremely Secure Cash Flow

100% of the annual rent is derived from Comcast, the highest credit-

rated, most desirable and secure tenant within its sector.

• Replacement Cost

The estimated replacement cost far exceeds the price per sq. ft. The

parking structure alone is estimated to be $20 million to replace.

• Ease of Management

100% leased to only one tenant. Provides ease of management to

potential investors.

• Regional Location

The Tucson Mall provides a regional draw to the trade area.

• Transportation Amenities

The transportation amenities are unparalleled in this area. Located a

short walk across the Tucson Mall parking lot is a major city bus hub, the

Tohono O’Odham Sun Tran Transit hub one of three hubs in the Tucson

Metropolitan Area, serving more than 3,000 riders on weekdays.

In addition, adjacent to the property is a bike and pedestrian pathway

system connecting over 100 miles of paved path throughout the greater

Tucson area, The Loop.

City, State

10

LOCATION SUMMARY

Trade Area

• 18 million shopper visits per year

• Trade area residential has grown more than 340% over the past 10

years

• 150,000 people work within five miles of Tucson Mall

• Dillard’s Tucson Mall is one of the top performing Dillard’s in the

country.

• Major retailers perform well above their national averages at Tucson

Mall and in the trade area.

• Tucson Mall trade area is focused at the corner of Oracle and

Wetmore Roads, just 3 miles east of I-10. This location is easily

accessible for the fast-growing and affluent new communities of

Marana and Oro Valley as well as the established Foothills and

university neighborhoods.

• Tucson Mall produces more than $350 million in total retail sales

annually, and the trade area boasts the largest retail sales volume in

Southern Arizona.

Tucson Mall Area Profile

The Tucson Galleria was conceived to take advantage of the 1.4

million sq. ft. Tucson Mall. The mall is the largest shopping center in

Southern Arizona, with a strong anchor line-up including Dillard’s,

Macy’s, H&M, JC Penney, Sears, Container Store and REI. In addition,

the mall features 200 retail stores and restaurants including Ann

Taylor, Banana Republic, Guess and Coach. Tucson Mall recently

completed a redevelopment project that created 120,000 sq. ft. of new

GLA.

The Tucson Auto Mall hosts 18 dealerships in one location, including

all major car companies with over 5000 automobiles on site.

TRADE AREA PROFILE

2014 Population: 839,637

2019 Projected Population: 860,037

2014 Households: 330,353

2019 Projected Households: 338,680

2014 Median Age: 36.7

2014 Avg. Household Income: $60,125

2019 Projected Avg. Household Income:

$68,473

5 - MILE RADIUS

2014 Population: 228,660

2019 Projected Population: 231,688

2014 Households: 100,098

2019 Projected Households: 101,665

2014 Median Age: 34.2

2014 Avg. Household Income: $52,950

2019 Projected Avg Household Income:

$60,936

DAYTIME EMPLOYMENT

3 - Mile Radius: 57,630

5 - Mile Radius: 155,078

TRAFFIC COUNTS

PER DAY

Oracle Rd- 43,000

Wetmore Rd- 23,000

Total 63,000

City, State

11

SECOND

LARGEST CITY

IN ARIZONA

50,000

STUDENTS &

STAFF AT THE

U OF A

1 M

RESIDENTS

IN METRO

AREA

7 M

VISITORS

A YEAR

CITY OF TUCSON

The second-largest city in Arizona and the county seat of Pima County,

Tucson neighbors the towns of Marana, Oro Valley, Catalina, South

Tucson, Sahuarita, Vail, and Green Valley.

Tucson is home to the University of Arizona—established as Arizona's

first university in 1885 and now a campus of 50,000 students and staff

from around the world

A number of annual events drawing participants and spectators from

around the world, including the Tucson Gem, Mineral & Fossil

Showcase, La Fiesta de los Vaqueros (Tucson Rodeo), Tucson Festival

of Books, Tucson International Mariachi Conference, the El Tour bike

race, and the Tucson Classic.

Tucson, Arizona, grew out of the dangers, opportunities and cultural

crossings of the Old West. Today, that heritage shapes us without

limiting who we are: a destination for nearly 7 million visitors a year; a

place known for outstanding hiking and outdoor adventures, rich cultural

traditions, a vibrant arts scene, world-class golf, great dining; and a

thriving desert home to more than 1 million residents.

TOP EMPLOYERS (2014 DATA)

The University of Arizona – 12,053 employees

Raytheon Missile Systems – 11,370 employees

Davis-Monthan Air Force Base – 10,869 employees

Pima County – 7,100 employees

U.S. Border Patrol – 6,800 employees

Tucson Unified School District – 6,467 employees

University of Arizona Health Network – 6,462 employees

Freeport-McMoRan Copper & Gold Inc. – 5,819 employees

U.S. Army Intelligence Center of Excellence & Ft Huachuca – 5,096

employees

State of Arizona – 4,986 employees

Wal-Mart – 4,360 employees

City of Tucson – 4,348 employees

Carondelet Health Network – 3,594 employees

Fry’s Food Stores – 3,109 employees

Tucson Medical Center (TMC Healthcare) – 2,977 (Source www.visittucson.org)

City, State

12

RESUME

GREG FURRIER PRINCIPAL | RETAIL PROPERTIES

PROFILE

Greg Furrier, a lifelong Tucsonan, has been active in commercial real estate since 1985. He joined CB Commercial in 1986 as a retail sales and leasing

specialist. Greg earned CB’s Rookie of the Year award in 1987, and distinguished himself as one of the top five producers within the Tucson office, as

well as the top producing retail broker every year while at CB Commercial. He joined Cushman & Wakefield | PICOR in 1996 and focuses on landlord

and tenant representation. Greg has been the top producing retail broker most every year since joining PICOR and has received many company

awards, including top overall producer and Presidents Award for Excellence.

Greg has been involved with the local family-owned Western Tire Centers, Inc. His experience in virtually every position -- from warehouse employee to

store manager -- served as the foundation for Greg’s highly successful sales career.

AFFILIATIONS AND ACHIEVEMENTS

• Goodwill Industries of Southern Arizona – Past Board President

• Western Tire Centers, Inc. – Board of Directors

• COPE Behavioral Health Organization – Past Board President

• Development Designs Group Non-Profit Housing – Board Member

• International Council of Shopping Centers (ICSC) – Organization

EDUCATION

• University of Arizona – Tucson, AZ

• Bachelor of Science – Finance and Real Estate

Selected Sales

Institutional Sellers Selected Tenant / Buyer Representations

Bank of America

Bank of Orient

Chase Bank

Humana

Wells Fargo Bank

New West Federal

Corporate Life Company

Metropolitan Life

Firestone

Sun Life of Canada

Starbucks

Boston Market

Einstein Bagels

Computer City

Goodwill Industries

Family Dollar Stores

Just for Feet

Beauty Brands

Skechers

Burger King

Golden Corral

Wendy’s

Old Chicago Restaurants

Tony Roma’s Restaurants

Subway

Public Storage

Walgreens

Smashburger

PARTIAL CLIENTS LIST