thunderbird road center...5 you've got maids 1,017 8.0% 4/1/2019 2/28/2022 $11.80 $1,000.00...

OFFERING MEMORANDUM

THUNDERBIRD ROAD CENTER1820 & 1832 W. THUNDERBIRD RD. PHOENIX, AZ 85023

SUBJECT PROPERTY

The information in this package 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 Z0070501

SUBJECT PROPERTY

17

4,445 STUDENTS

18,100 STUDENTS

51

101

MARCUS & MILLICHAP 2 // Thunderbird Road Center

Rent RollLessee Information as of March 2020

PARCEL SUITE TENANT NAMEAPPROX.

RENTABLE SFPERCENT

OCCUPANCYLEASE

COMMENCEMENTLEASE

EXPIRATIONAPPROX.RENT PSF

BASE RENT PER MONTH

ANNUAL RENT

LEASE TYPE

NEXT INCREASE

DATE

ANNUAL RENT

INCREASE

SECURITY DEPOSIT

208-16-001P N/A Juliobertos 3,010 23.7% 2/1/2011 1/31/2030 $26.11 $6,548.96 $78,580.00 NNN 2/1/2021 3% N/A

20

8-1

6-0

01

N

1,2,3 Smile Today Dental 3,567 28.1% 4/19/2013 4/19/2023 $15.37 $4,569.75 $54,837.00 NNN 4/20/2020 * 3% $4,640

4 Royal Day Spa 1,017 8.0% 11/1/2008 12/31/2022 $15.34 $1,300.00 $15,600.00 NNN 1/1/2021 3% $1,174

5 You've Got Maids 1,017 8.0% 4/1/2019 2/28/2022 $11.80 $1,000.00 $12,000.00 Gross 3/1/2020 10% $1,100

6 Wilderness Medics 1,017 8.0% 4/1/2017 3/31/2021 $11.80 $1,000.00 $12,000.00 Modified Net 4/1/2020 * 10% $2,450

7,8,9 Mama Bear 3,051 24.1% 4/9/2018 4/8/2023 $13.77 $3,500.00 $42,000.00 Gross 4/9/2020 * 3% $5,000

Total SF 12,679 100% Monthly Income $17,919

Occupied SF 12,679 100% Annual Income $215,017

Available SF 0 0% Average $16.96

* Annual Rent based on this upcoming rent increase.


Total Square Feet Per Leases 12,679

Lot Size 1.27 Acres

Year Built 1981

Occupancy as of March 2020 100%

INCOME

Scheduled Base Rent $215,017

Estimated Total Potential Base Rent $215,017

Plus Expense Reimbursements $39,150

EFFECTIVE GROSS INCOME $254,167

ESTIMATED OPERATING EXPENSES PSF

CAM Expense* $13,534 $1.07

Insurance $8,782 $0.69

Property Taxes $24,854 $1.96

Management Fee @ 3% Gross Rents $6,451 $0.51

Easement Fee @ $205.80/month $2,470 $0.19

TOTAL OPERATING EXPENSES $56,006 $4.42

NET OPERATING INCOME $198,077

OFFERING PRICE $3,170,000

CAPITALIZATION RATE 6.25%

PRICE PER SF $250.02

Income & Expense Summary

* Royal Day Spa reimburses 10% of CAM as a management fee. All other tenants do not reimburse for Management Fee.


SUBJECT PROPERTY

THUNDERBIRD HIGH SCHOOL(1,530 STUDENTS)

26,200 CPDN 19TH AVE

37,700 CPDW THUNDERBIRD RD


THUNDERBIRD HIGH SCHOOL(1,530 STUDENTS)

SUBJECT PROPERTY

17

Walgreens

26,200 CPDN 19TH AVE

37,700 CPDW THUNDERBIRD RD


Population

2024 Projection 13,917 136,908 405,801

2019 Estimate 13,635 134,855 401,732

Growth 2019 - 2024 2.07% 1.52% 1.01%

Households

2024 Projections 5,624 55,364 163,294

2019 Estimate 5,471 54,082 160,345

Growth 2019 - 2024 2.79% 2.37% 1.84%

Income

2019 Est. Average Household Income

$76,508 $72,807 $73,130

2019 Est. Median Household Income

$52,765 $51,216 $53,437

2019 Est. Per Capita Income

$30,728 $29,313 $29,315

DEMOGRAPHICS 1-mile 3-miles 5-miles

INVESTMENT HIGHLIGHTS

» 100% Leased to Diverse Tenant Profile - 2 Separate Parcels

» New 10 Year Lease with Julioberto's - NNN Single-Tenant Parcel

» 401,732 Residents within a 5-Mile Radius - Growing North Phoenix Neighborhood

» Annual Rent Increases for All Tenants

» Nearly 64,000 Cars/Day at the Nearby Intersection of 19th Avenue and Thunderbird

Road

» Adjacent to Thunderbird High School (1,530 Students)

» 1 Mile Off the I-17 Freeway, a Major Connector for the Phoenix Valley

» Average Household Income Exceeds $76K in Immediate Area

» Down the Road from Major National Retailers - Lowe's, The Home Depot, Best Buy,

Fry's Electronics, Walgreens, McDonald's, and More

» Strong Daytime Population - 388,739 Employees in Surrounding Area

Property Description


Julioberto's is a family-operated business that has been serving fresh and au-

thentic Mexican food since 2009. Open 24 hours, 7 days a week, Julioberto's

offers breakfast, lunch, and dinner platters at ten locations throughout the

Phoenix Valley.

Menu items include burritos, tacos, enchiladas, quesadillas, and other spe-

cials, such as carne asada fries, menudo, nachos, huevos rancheros, break-

fast platters, and more.

Smile Today Dental has three locations in the Phoenix Valley: Phoenix,

Scottsdale, and Gilbert. The business specializes in offering personalized,

high-quality dental care, ensuring patients are comfortable and are offered

affordable prices.

Smile Today Dental was recently acquired by MB2 Dental, along with 16 other

Phoenix dental offices. MB2 Dental grew to more than 180 dental practices

and $320 million in revenue.

Phoenix's Royal Day Spa offers a peaceful facility to relax your mind and re-

juvenate your body. At Royal Day Spa, all the essential purifying products and

top-of-the-line treatments are available.

Tenant Overviews

Julioberto's Phoenix, Arizona 2009 10 www.juliobertos.com

Company Headquarters Founded Locations Website

Smile Today Dental MB2 Dental 180+ smiletoday.net

Company Parent Company Locations Website

Royal Day Spa Phoenix, Arizona 2010 1

Company Headquarters Founded Locations

RoyalDay Spa


Mama Bear Phoenix, Arizona 2005 2 mamabearsbnb.com


With franchise locations all over the United States, You've Got Maids offers

cleaning services ranging from deep cleaning to everyday cleaning. Maids are

required to complete the Maid University training program, which is focused

on raising the industry standard of excellence in maid service.

Frank and Cynthia Berger founded You've Got Maids in Orlando in 2005, and

opened the first franchise location in 2010. The founders personally train

each new franchise partner and provide one-on-one sales, marketing, and

management coaching.

Wilderness Medics is a premier emergency medical services provider special-

izing in immediate, onsite emergency support to locations across the United

States. The staff at Wilderness Medics consists of a dedicated team of certi-

fied and experienced paramedics, RNs, and EMTs, providing expert medical

services to disaster areas and remote wildland locations. Wilderness Medics

brings professionalism, experience, and expertise to every emergency situa-

tion, using the best equipment in the industry to complete the job quickly and

effectively.

Mama Bear's Bed & Biscuit offers a variety of services including full service

grooming, pet boarding, dog daycare, and pet taxi services. Each pet's stay

includes group playtime, premium bedding, belly rubs, and a bedtime snack.

The sister company, AZ Mama Bear Pet Care, offers in-home dog boarding

and daycare, pet sitting visits, sleep overs, and dog walking.

Tenant Overviews

You've Got Maids Orlando, Florida 2005 600+ youvegotmaids.com


Wilderness Medics Phoenix, Arizona 1995 wildernessmedics.com

Company Headquarters Founded Website


1/2 Mileto Thunderbird

High School

4.5 Milesto Arizona State West

Campus

8 Milesto Glendale

Community College

15 Milesto Downtown Phoenix

Location Overview SUBJECT PROPERTY

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.

Phoenix claims five Fortune 500 headquarters, including Freeport-McMoRan,

Republic Services, Insight Enterprises, Avnet and PetSmart. Construction,

hightech 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.

High-tech manufacturing has been a powerful driver in the local economy for

two decades. The region’s relatively low cost of doing business has encouraged

several manufacturers to remain and expand in the area, while luring others. The

strengthening economy has drawn job seekers to the area, boosting the housing

market. Phoenix offers a lower cost of living than other metros its size, a moderate

climate, and a wide variety of recreational and cultural activities.

The Phoenix region boasts almost 300 days of sunshine annually, low humidity

and mild winters. In addition to hiking, camping and boating, sports enthusiasts

can enjoy one of the most complete lineups of major league teams found in any

city, including teams in all four major sports. The Cactus League holds spring

training baseball throughout the Valley, and the area has numerous golf courses

and tennis courts.


NET LEASED DISCLAIMERMarcus & 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 careful, 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 financial 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 facilities 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 interrupted 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.

CONFIDENTIALITY AGREEMENTThe 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.

[ exclusively listed by ]Jamie A. MedressSenior Managing Director602 687 [email protected]

Dan PetersAssociate Advisor602 687 [email protected]

Chris N. LindFirst Vice President 602 687 [email protected]

Mark J. RubleSenior Managing Director602 687 [email protected]

Offices Nationwidewww.marcusmillichap.com

thunderbird road center...5 you've got maids 1,017 8.0% 4/1/2019 2/28/2022 $11.80 $1,000.00...

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