premier medical building for lease all or part offering ... · 2 1150 san francisco | flagstaff,...

Offering Memorandum

Premier Medical BuildingFor Lease All or Part

1150 N. San Francisco St. | Flagstaff, AZ

2 1150 SAN FRANCISCO | FLAGSTAFF, ARIZONA

This Offering Memorandum contains select information pertaining to the business and affairs of the property located at 1150 N. San Francisco, Flagstaff, Arizona 86001 (hereinafter the “Property”). It has been prepared by Colliers International.

This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memoran-dum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Colliers International from sources it deems reliable.

Neither Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own con-clusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum from Colliers International, you agree:

1) The Offering Memorandum and its contents are confidential;

2) You will hold it and treat it in the strictest of confidence;

3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acqui-sition of this Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date of this Offering Memorandum.

Confidentiality and Disclaimer

EXCLUSIVELY OFFERED BY:

CONTENTS

Executive Summary 7

Property Overview 10

Market Overview 24

DENNIS KELLY Senior Vice President+1 928 440 [email protected]

COLLIERS INTERNATIONAL | ARIZONA 510 North Humphreys | Suite 100

Flagstaff, AZ 86001+1 928 440 5450

EXECUTIVE SUMMARY

7

EXECUTIVE SUMM

ARY

SURROUNDING USES AND ECONOMIC DRIVERS

Extensive institutional medical, private medical, professional office, retail, and undeveloped land.

HIGHLIGHTS

> Excellent location in the heart of Flagstaff’s medical community

> Close to downtown Flagstaff

> Directly across the street from Flagstaff Medical Center

> Outstanding architectural features and finishes

> Extremely flexible floor plan

> Tremendous potential for expansion

> Excellent parking

PROPERTY TOURS

BY APPOINTMENT ONLY. DO NOT DISTURB OCCUPANTS.

Qualified prospective tenants will be given an opportunity to tour the Property. To schedule a tour, please contact:

DENNIS KELLY Senior Vice President+1 928 440 5450

[email protected]

PROPERTY DESCRIPTION

Exceptional one-of-a kind medical/professional building across the street from Flagstaff Medical Center, Northern Arizona’s largest medical facility. Approximately 16,310 square feet of building and improvements on 1.4+ acres of land in premier medical/professional location.

SPECIFICATIONS

Price: TBD base cost $24 SF NNN

Property Tax: $25,000.68 (2018)

Square Footage: 16,310 SF improved building area with 15,800± SF rental area

Land Area: 1.4 acres/60,984 SF

Parking: 54+ private spaces, 1/292 parking ratio

Frontage: Over 400’ on N. San Francisco St.

Access: Established curb cut off municipal arterial street. Additional established access to lower level parking.

Age: Built in 1990 with subsequent and ongoing renovations, improvements, and remodels.

Assessor Parcel: 101 01 022

Zoning: Urban commercial. Flexible zoning allowing for a wide variety of commercial, professional, and residential uses.


PROPERTY OVERVIEW

9

EXECUTIVE SUMM

ARY


Concept Plan

11

PROPERTY OVERVIEW

FLOOR PLAN


Concept Plan

Decking

Decking

13

PROPERTY OVERVIEW

FLOOR PLAN


FLOOR PLANS

This building is adorned with extensive architectural details. Multiple roof lines, extensive glass placement to take advantage of incredibly unique views and surrounding properties. Privacy fencing for thoughtful screening of the busy hospital across the street, extensive decking, outdoor koi pond, highly developed gardening beds, excellent concrete paved parking plus significant parking in the rear with separate access. The property currently consists of 54 parking spaces with potential for additional spaces and is configured with covered executive parking. The grounds also include an out-building for maintenance.

The facility includes a privacy gate and path for a short walk of 100’ to the hospital across the street.

The land area of 1.4 acres includes additional exclusive use easements on adjacent hospital properties.

CONSTRUCTION

Structural steel, brick, glass, and concrete with standing seam metal roof.

LAND DESCRIPTION

The property is located on a highly vegetated, sloped parcel at the foot of Arizona’s high mountains, the 13,000 foot San Francisco Peaks and overlooking Switzer Canyon. The entire area is covered with pine and oak trees.

This property is in the City of Flagstaff and is surrounded by primarily medical institutions, medical and professional offices and uses. It is located across the street and 150’ from the doors of the Emergency Entrance of Flagstaff Medical Center.

BUILDING EXTERIOR

15

PROPERTY OVERVIEW

EXTERIOR


FLOOR PLANS

This is not your typical building! Architecturally unique and appealing with exceptional quality finish, the building has extensive exterior glass walls showcasing beautiful views of the snow covered mountains and the oak and ponderosa pine forested Switzer Canyon.

The attention to detail includes the highest quality flooring and finish work, 37’ high vaulted ceilings, beautiful private offices with views for discriminating tastes, multiple large aquariums and koi ponds, and multiple entrances and reception areas. The center feature is a beautiful circular staircase.

With existing medical exam rooms, the building design allows for extremely flexible floor plans for medical office/professional office space and large open conference rooms. Concept plans are available for increasing usage and space for high volume medical staffing. Multiple primary entrances allow for more than one principal usage.

The building is currently built out as medical office space and private residence, with flex space and flex HVAC system.

INTERIOR | MAIN FLOOR

17

PROPERTY OVERVIEW

INTERIOR | MAIN FLOOR


FLOOR PLANS

This medical/professional office building is currently built out with a private residence on the ground floor, incorportating the same high standards of design and construction featured thoughout the entire building and property.

A spiral staircase from the main floor leads to the ground level residence. The residence includes a large professional chef kitchen with two sinks and solid glass block windows to allow light from the other areas of the living space.

The living room has recessed indirect lighting and a linear, coffered ceiling. There are extensive glass walls and door that opens onto private decks.

A large master bedroom includes an oversized dressing room/closet area and a walk-out patio with a waterfall flowing to the exterior koi pond.

INTERIOR | GROUND FLOOR

19

PROPERTY OVERVIEW

INTERIOR | GROUND FLOOR


COCONINO COUNTY ASSESSOR’S MAP

11/14/2018 Coconino Parcel Viewer

https://gismaps.coconino.az.gov/parcelviewer/ 1/1

La t/Long: 35.2070/-111.6424

Enter Search Here

100m

300ft

◄ 1150 N. San FranciscoSubject Property

Flagstaff Medical CenterExpansion Property

Flagstaff Medical Center

Northern Arizona Orthopaedics

Summit Center

MedicalOffice Complex

21

PROPERTY OVERVIEW

1150 SAN FRANCISO SITE MAP

MARKET OVERVIEW

23

EXECUTIVE SUMM

ARY


THE SAN FRANCISCO PEAKS

FLAGSTAFF MARKET OVERVIEW

The Flagstaff metro area is located approximately 120 miles north of Phoenix and serves as a steady contrast to the Valley of the Sun that has been prone to booms and busts. Economic, employment, and population growth in Flagstaff has been far steadier than in Greater Phoenix and the rest of the Grand Canyon state. The Flagstaff market is a mature area with fairly predictable performance rather than a growth market that is subject to highs and lows.

The Flagstaff area features elevation ranging from roughly 7,000 feet in the center of town to the more than 12,000 foot high San Francisco Peaks. Flagstaff is approximately 90 minutes from the Grand Canyon, two hours away from Phoenix, and approximately four hours from Las Vegas by car. The airport has direct flights to Phoenix and Los Angeles. The elevation allows for much cooler temperatures than the oppressive summer time heat of Flagstaff’s neighboring desert cities as well as winter activities such as skiing and snowboarding. The area also features a number of hiking and biking trails through and around the mountainous area.

The Flagstaff metro area is located in Coconino County in northern Arizona. The county population consists of approximately 138,000 individuals or 46,500 households. The population demographics in the area are slanted to work-age cohorts. The very young and retired-age segments of the population account for significantly lower shares of the population than the state as a whole. Statewide, the population between ages 18 and 64 accounts for less than 54 percent of the overall population. In the Flagstaff metro area, however, the 18-64 age cohort accounts for 61 percent of the population.

In the city of Flagstaff, the total population is just shy of 70,000, and nearly 75 percent of the population is between the ages of 18 and 64. Northern Arizona University is the primary economic engine in Flagstaff with a total enrollment at the Flagstaff campus of more than 20,000 students. Because of the large population of students and recent graduates, the homeowner-ship rate in Flagstaff is just 44 percent. The median household income in Flagstaff of $49,800 per year is nearly identical to the Arizona median income.

The influence of Northern Arizona University is evident in the level of education achieved among the area’s population. Nearly one in three residents have at least a bachelor’s degree compared to one in four statewide. While median incomes at the metro level closely track the statewide average, housing prices skew higher with the median-valued owner-occupied home in the metro approximately 20 percent higher than the statewide median.

25

MARKET OVERVIEW

1150 N. San Francisco◄

Downtown


AERIAL PHOTOGRAPH LOOKING SOUTH

FLAGSTAFF AMENITIES

The Flagstaff area includes a number of amenities for the large student population, local residents and visitors looking to escape the summer heat or enjoy snow sports during the winter months. Many of the attractions are outdoors, including the Arizona Snowbowl for skiing and snowboarding as well as approximately a half dozen golf courses. Flagstaff is also home to Lowell Observatory, which is one of the oldest observatories in the United States and famous for the discovery of Pluto. Lowell offers both daily tours and nighttime telescope viewing.

Flagstaff has multiple shopping options. There is more than 5.5 million square feet of retail space in the city and the area is thriving. The Milton Road corridor and Woodlands area of Flagstaff feature major retail, food service, and hospitality options close to NAU.Market Place is an outdoor power center with big-box anchors such as Home Depot and Best Buy. It is located across the street from Flagstaff Mall, which features Dillards, JC Penney, and Mattress Firm among others. The mall is located at the northeast portion of the Flagstaff metro area, along historic Route 66. The Aspen Place at the Sawmill project has a mixed-use component, with anchor stores REI and Whole Foods, 222 luxury apartment units and 33,000 square feet of retail space.

Northern Arizona University

Flagstaff Medical Center

1150 N. San Francisco

Medical Office Complex

Flagstaff High School

DowntownFlagstaff

27

MARKET OVERVIEW

FLAGSTAFF EMPLOYMENT & ECONOMIC OVERVIEW The Flagstaff metro area includes approximately 66,000 employees after dipping down to about 61,000 workers during the recession. Unlike much of the state of Arizona, which is subject to significant ex-pansions and contractions, conditions in the Flagstaff metro tend to be far more stable. Primary drivers of employment stem from local government, Northern Arizona University and leisure and hospitality employment due to the area’s abundance of outdoor recreation options.

Among all sectors, government accounts for the largest share of workers in the Flagstaff metro area with nearly one in three employees employed by a government entity. Of the nearly 20,000 government employees, all but 3,000 are employed by either state or local agencies, with the federal government having a rather small presence in the area.

The vast majority of the private sector is concentrated in just a handful of industries, led by the leisure and hospitality segment. It employs nearly 13,000 workers, which accounts for almost 20 percent of all workers in the metro area. In comparison, leisure and hospitality accounts for just over 10 percent of the jobs in the Phoenix metro area. The more than 70 hotels in the Flagstaff area employ many of these workers as well as the Arizona Snowbowl, Arizona’s most popular ski resort.

Education and health services is the third largest sector in the local economy, totaling 9,800 workers. This sector has grown by two percent in the past year, outpacing the economy as a whole but lagging the statewide pace of expansion. The trade, transportation and utilities sector consists of 9,500 workers. However, it has not added workers in a calendar year since 2014.

As far as specific employers are concerned, Northern Arizona University features the greatest number of employees of any one entity with nearly 2,600 workers in the area. This means that the university accounts for more than four percent of all employment in the Flagstaff area. Flagstaff Medical Center is the second largest employer with 2,200 people on its payrolls.

W.L. Gore & Associates, makers of GORE-TEX fabric, employs 1,950 workers in the Flagstaff area, repre-senting approximately 20 percent of the company’s worldwide workforce. The Arizona operation is the hub of the W.L. Gore’s medical products division and the site of the development and manufacturing of implantable medical devices.

Many of the largest employers in the Flagstaff area are in the form of state and local government. The Flagstaff Unified School District (1,375 workers), Coconino County government (1,200 workers), and City of Flagstaff (650 workers) combine to make up approximately five percent of the total local workforce.

The unemployment rate in the Flagstaff metro area dropped throughout much of 2017, starting the year in the low- to mid-6 percent range and dropping down the high-4 percent to mid-5 percent range by midyear. The unemployment rate in the Flagstaff metro area for 2018 was at 3.9%

3 mile radius 5 mile radius 7 mile radius

Population Overview

Population Trend

2000 Total Population 39,802 54,341 56,845




Population Change 2000 to 2010 22.4% 24.6% 23.9%




2018 Age

Median Age 24.5 25.7 26.1

19 and Under 29.4% 28.6% 28.4%

20 to 29 31.7% 28.9% 28.3%

30 to 39 11.3% 12.2% 12.2%

40 to 49 7.9% 8.8% 8.9%

50 to 64 12.2% 13.4% 13.8%

65 and Over 7.5% 8.2% 8.4%

2018 Occupation

Employed 16 years and over 28,001 38,976 40,437

White Collar 62.9% 64.1% 64.2%

Blue Collar 37.1% 35.9% 35.8%

2018 Educational Attainment

Population 25 years and over 26,196 38,489 40,428

No High School Diploma 8.6% 7.7% 7.8%

High School Graduate or GED 15.9% 16.1% 16.0%

College/No Degree 22.2% 22.8% 22.7%

College or Advanced Degree 53.3% 53.5% 53.5%

2018 Marital Status

Population 15 years + 47,159 63,168 65,453

Married 30.1% 35.1% 35.6%

Not Married 69.9% 64.9% 64.4%

Household Overview

DEMOGRAPHICS

3 mile radius 5 mile radius 7 mile radius

Household Trend

2000 Households 14,301 19,863 20,755

2010 Households 16,252 23,582 24,581

2018 Households 17,593 25,325 26,321

2023 Households 18,375 26,389 27,392

Household Change 2000 to 2010 13.6% 18.7% 18.4%




Household Income Trend

2000 Median Income $36,031 $38,215 $38,701

2010 Median Income $44,820 $50,927 $51,562

2018 Median Income $51,450 $56,449 $57,643

2023 Median Income $61,976 $68,569% $70,111

Median Income Change 2000 to 2010 24.4% 33.3% 33.2%




2018 Household Income

Up to $24,999 27.5% 24.4% 23.9%

$25,000 to $49,999 21.4% 20.8% 20.5%

$50,000 to $74,999 17.7% 18.0% 17.8%

$75,000 to $124,999 20.0% 20.6% 20.9%

$125,000 to $199,999 8.5% 10.4% 10.9%

$200,000 or more 4.9% 5.9% 6.0%

Housing Units Overview

2018 Home Value

Median Home Value $268,379.40 $279,594.10 $282,975.10

Average Home Value $299,272.30 $320,751.50 $325,438.50

2018 Occupancy

Households 17,593 25,325 26,321

Owner Occupied 42.1% 47.2% 48.6%

Renter Occupied 57.9% 52.8% 51.4%

DEMOGRAPHICS


NORTHERN ARIZONA HEALTHCARE

FLAGSTAFF MEDICAL CENTER ACROSS THE STREET FROM 1150 N. SAN FRANCISO

Northern Arizona Healthcare is the largest medical care organization in a region that encompasses more than 50,000 square miles, and has a team of more than 4,000 doctors, nurses and other experts available.

The organization serves more than 700,000 people in communities across the region, and provides comprehensive healthcare services through two hospitals – Flagstaff Medical Center and Verde Valley Medical Center, with a combined capacity of nearly 400 beds.

Flagstaff Medical Center is one of only 10 Arizona hospitals with a Level I designation from the Arizona Department of Health Services and the only Level I Trauma Center north of Phoenix.

31

MARKET OVERVIEW

Northern Arizona Healthcare outpatient services are provided through 33 ambulatory sites throughout Flagstaff, Cottonwood, Sedona and Camp Verde, including: primary care and specialty physician clinics, outpatient surgical centers, a weight management clinic, the Heart & Vascular Center of Northern Arizona, Cancer Centers of Northern Arizona Healthcare, EntireCare Rehab & Sports Medicine, Fit Kids of Arizona and Valley View Care.

NAH provides diagnostic imaging, laboratory and pharmacy services throughout the region.

With 7 helicopters and 15 ambulances, NAH provides emergency transport services through Guardian Air and Guardian Medical Transport.

NAH also serves millions of tourists visiting regional landmarks, including the Grand Canyon, Sedona, Monument Valley and Lake Powell.

Northern Arizona Healthcare ranks in the top 20 percent of small healthcare systems in the nation by Truven Health Analytics since 2013.

As a nonprofit healthcare system, the organization is governed by a volunteer board of directors.

COLLIERS INTERNATIONAL | ARIZONA 510 North Humphreys | Suite 100

Flagstaff, AZ 86001+1 928 440 5450

Dennis KellySenior Vice President+1 928 440 [email protected]

Contact:

1150 N. San Francisco St. | Flagstaff, AZ

premier medical building for lease all or part offering ... · 2 1150 san francisco | flagstaff,...

Documents