executive summary mirage...the final stage of the 36-mile loop 303, connecting interstate 17 to...

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Offering Memorandum

OFFERING MEMORANDUM

MULTI-TENANTRETAIL CENTER

SEC GREENWAY ROAD & DYSART ROAD EL MIRAGE, AZ

MIRAGEO A S I S

SMALL BAY INDUSTRIAL

FUTURE RESIDENTIAL

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COLLIERS INTERNATIONAL

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TABLE OF CONTENTS

Colliers International 2390 E. Camelback Rd. Suite 100 Phoenix, AZ 85016 www.colliers.com/arizona

EXCLUSIVE INVESTMENT ADVISOR:

JK JACKSONAssociate Vice President+1 602 222 [email protected]

4EXECUTIVE SUMMARY

10PROPERTY DESCRIPTION

18TENANT INFORMATION

22AREA & MARKET OVERVIEW

DEBT & EQUITY ADVISOR:

JOHN SMECKSenior Vice President+1 602 222 [email protected]

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EXECUTIVE SUMMARYMIRAGEO A S I S


THE OFFERINGColliers International, as exclusive advisor, is pleased to present the opportunity to acquire Mirage Oasis (“The Property”), a ±25,849 square foot retail center. Located on the South East corner of Greenway Road and Dysart Road, in El Mirage, AZ, this center serves a young working community with a variety of amenities, such as a takeout pizza restaurant, a donut shop, a Carniceria, nail salon, and a dentist. The shopping center is in the process of also adding an urgent care center, a general practitioner, a chiropractor and other essential neighborhood services. The attractive, upscale-designed buildings were constructed in 2009, and include generous walkways, easy vehicular access and parking as well as ample opportunities for tenant signage, on both Greenway Road and Dysart Road.

THE OPPORTUNITYIn addition to an 79.6% occupied retail center, the offering can include two vacant retail pads, a value-add component to create significant future upside. This is a rare, value-add opportunity that offers investors with the combination of a upside through leasing the remaining space; and significant additional opportunity through future development, ground lease or sale of the two pads.

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Mirage Oasis is a rare, value-add opportunity with a diverse tenant roster and stable cash flow.

Attractive Design

Quality Tenants

Upside Through Leasing

Secure Cash Flow

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STABLE EXISTING CASH FLOW WITH UPSIDEBy purchasing based upon the in-place revenue from 79.6% occupancy, the investor can rely on the stable in-place revenue that is spread among 6 different businesses, while continuing to grow their cash flow and improve their yield through leasing the remaining 4 vacant spaces.

UNREALIZED POTENTIAL THROUGH THE VACANT PADSThe two vacant pads provide an additional opportunity to develop, ground lease or sell, thus creating additional cash flow – improving an already generous yield.

DIVERSE TENANT MIXThis offering includes a diverse tenant mix that caters to the young and active El Mirage community. This center is shadow anchored by Walgreens, and is home to a neighborhood church, a nail salon, a dentist and a variety of various restaurants, catering to essential neighborhood services.

INVESTMENT HIGHLIGHTS

PRICING SUMMARY$4,750,000 Total Price


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OUTSTANDING VISIBILITY AND LOCATIONConveniently located between Loop 303 at Greenway Road to the west and Grand Avenue to the east, the businesses within the center benefit from the center’s excellent visibility, convenient location, safe and easy access; as well as from being surrounded by dense residential communities. It is also adjacent to land that will become a future residential multi-family community, that will rely upon Greenway Road for much of its neighborhood access.

STRONG DEMOGRAPHICS AND CONVENIENT SITE PLANThe surrounding residential communities offer strong demographics to this prime retail location. The well-designed site plan has convenient access, easy site circulation, and offers generous customer parking, all of which further ensures continued tenant success.

PROPERTY HIGHLIGHTS

PROPERTY SUMMARYBuilding Square Feet±25,849 SF

Occupancy 79.87%

Land Area ±2.64 acres total

Number of Tenants6

Parking Ratio 4.87/1,000 SF

EXPLOSIVE POPULATION GROWTH – DRIVING CUSTOMER DEMANDEl Mirage residents are a mixture of young families as well as active retirees, and are moving into the numerous newly developed master-planned communities serving this area.

LOOP 303 FREEWAY – A GAME CHANGERThe final stage of the 36-mile Loop 303, connecting Interstate 17 to I-10, was completed in the fourth quarter of 2017. Being in close proximity to Loop 303, Mirage Oasis is poised to benefit from this important regional transportation asset.

DEMOGRAPHICS (5-MILE RADIUS):

Dense population base: 217,015

Average household income: $66,111

Traffic count at the intersection: 40,382 vehicles per day

AREA HIGHLIGHTS

These statistics support continued success of the property as a strong retail location.

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DYSART ROAD (±17,790 VPD)

GREENWAY ROAD (±18,458 VPD)

FUTURE RESIDENTIAL

SMALL BAY INDUSTRIAL

PROPOSED RETAIL PAD

DRIVE-THRU RETAIL PAD

GRAND AVENUE (±37,786 VPD)

10 I MIRAGE OASIS

PROPERTY DESCRIPTIONMIRAGEO A S I S


PROPERTY PROFILEPROPERTY ADDRESSSEC Greenway Road & Dysart RoadEl Mirage, AZ 85335

BUILDING AREA±25,849 square feet

SITE AREA±2.64 acres total

YEAR BUILT2009

ZONINGUC (Urban Corridor), City of El Mirage

PARKING126 spaces - 4.87 per 1,000 square feet

ASSESSOR’S PARCEL NUMBERS501-33-981501-33-982B 501-33-983

PROPERTY DESCRIPTION

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GENERAL BUILDING EXTERIOREXTERIOR BUILDING MATERIALSThe attractive, upscale-designed buildings feature upgraded building materials and varying roof lines that result in an interesting and appealing environment. The buildings are constructed with concrete masonry unit (CMU) blocks covered with a painted smooth stucco.

FOUNDATIONThe substructure consists of a concrete slab-on-grade with shallow perimeter footings and concrete piers at interior and exterior column locations.

ROOF SYSTEMEach roof over the shops buildings is a flat, built-up roof system over the roof

substructure.

WINDOWSThe storefronts have a tempered 10-foot glass window system, set in anodized aluminum frames.

DOORSEach tenant suite has direct access from the front walkways. Entrance doors are tempered glass set in anodized aluminum frames that match the frames of the buildings. Auxiliary doors such as to access utility rooms and rear entries are typically painted hollow-metal doors set in painted aluminum frames.


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This attractive, upscale-design building features upgraded building materials.

GENERAL BUILDING INTERIORAll interior partitions are of metal or wood studs covered with gypsum board. Wall covering includes a combination of paint, vinyl wall covering and ceramic tile. The lighting is provided through a combination of recessed fluorescent fixtures set in suspended ceiling grids and spot lighting pursuant to each tenant’s requirements. The floor covering is a combination of carpet, ceramic and vinyl tiling and finished concrete floors. The ceilings consist of a combination of suspended grid systems with 2’ by 4’ lay-in acoustical tiles and exposed ceilings open to the roof deck.

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BUILDING SYSTEMSFIRE PREVENTIONEach building is sprinklered and equipped with standard fire alarm equipment. There are also numerous fire hydrants surrounding the site.

HVAC SYSTEMEach occupant has access to its own roof-mounted equipment for heating and cooling. The units are typically heat pumps and split units with cooling fans and typically range in size from three to five tons. Each space is individually thermostatically controlled.

COMMON AREAPARKINGConvenient parking is located throughout the site near the entrances to the tenant suites. There are a total of ±126 dedicated spaces within the subject property providing a ratio of ±4.87 spaces per 1,000 square feet of building area. The Building is also cross-parked with the rest of the shopping center.

LANDSCAPINGThe center is attractively landscaped with a combination of low water, frost-tolerant plants and grass greenbelt areas allowing for water retention fronting Greenway Road.

EXTERIOR LIGHTINGPole and wall-mounted lighting illuminate the parking areas. The canopies and rear building areas are lit with a variety of upgraded light fixtures. Additional accent lighting within the landscaped areas illuminate the plant materials during evening hours.

FUTURE RESIDENTIAL



SIGNAGEMirage Oasis has a monument sign on Greenway Road and Dysart Road that prominently displays the project name, building addresses, and tenancy.

SITE ACCESSThe site is easily accessed via two entrances along Greenway Road, one being a dedicated median turn lane allowing both left and right turn access into and from the project and two entrances along Dysart Road. There will be an additional access point located along the south property boundary, connecting the planned multifamily neighborhood and adjacent school.

UTILITIES AND MUNICIPAL SERVICES Water/Sewer - City of El MirageElectricity – Arizona Public ServiceLife Safety - City of El Mirage

15 DYSART ROAD (±17,790 VPD)

GREENWAY ROAD (±18,458 VPD)

FUTURE RESIDENTIAL

SMALL BAY INDUSTRIAL PROPOSED

RETAIL PAD

DRIVE-THRU RETAIL PAD

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SUITENO. TENANT SIZE

SF EXPIRATION

13015 Reveal...A Vineyard Community Church 13,969 7/31/27

A101 Diana Yeskas & Francisco Castillo Fimbres 1,320 5/31/23

A102 Sunrise Donuts, LLC 1,320 6/1/26

A103 Little Caesars Enterprises, Inc. 1,320 3/31/20

A104 General Dentistry 1,320 5/31/20

A105 Do Nails Salon 1,320 11/30/22

A106 Vacant 1,320

A107 Vacant 1,320

A108 Vacant 1,320

A109 Vacant 1,320

TOTAL 56,530

LEASE EXPIRATIONS AND SITE PLAN


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TENANT INFORMATIONMIRAGEO A S I S


REVEAL VINEYARDwww.revealvineyard.comSuite 13015# of locations: 1

Reveal Vineyard Church started in June 2008 by Marty and Shelia Kaiser. After 15 months meeting in a theater, Reveal moved to the Performing Arts Center at Valley Vista High School then it’s current location at Dysart and Greenway in July of 2017.

TENANT INFORMATION

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TENANT INFORMATION

TENANT PROFILES

La Caniceria is a Mexican style butcher that specializes in Mexican style bbq meats.

CARNICERIASuite A101# of locations: 1

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Do Nails Salon is a specialty beauty salon dedicated to nail care. Offerings include manicures, pedicures, acrylics, silk wraps, nexgen nails and more.

DO NAILS SALONSuite A105# of locations: 1

Little Caesars is the third-largest pizza chain in the United States. Although it started in the U.S. in 1959, Little Caesars is now serving pizza, wings, Crazy Bread and Italian Cheese Bread in Europe, Asia and the Middle East.

LITTLE CAESARSwww.littlecaesars.comSuite A103# of locations: 5,509

Sunrise Donuts is a donut shop located in Arizona. Offerings include cinnamon rolls, tiger tails, maple long johns, glaze donuts, and many more. Besides donuts, Sunrise Donuts serves coffee, hot chocolate, smoothies, and croissants.

SUNRISE DONUTSwww.facebook.com/sunrisedonutsazSuite A102# of locations: 3

General Dentistry provides patients with comprehensive general dentistry and oral solutions. Along with dental care such as general cleanings, tooth fillings, teeth whitening, and implant retained dentures, the dental office has a periodontist who takes care of wisdom teeth, implants and other oral surgery procedures.

GENERAL DENTISTRYSuite A104# of locations: 1


TENANT INFORMATION

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AREA & MARKET OVERVIEWMIRAGEO A S I S


SURPRISE

SUNCITY

SCOTTSDALE

P H O E N I X

GLENDALE

Downtown

PEORIA

PARADISEVALLEY

CAREFREE

CAVE CREEK

BUCKEYE

ANTHEM

FOUNTAINHILLS

MESA

GILBERT

TEMPE

AHWATUKEEFOOTHILLS

CHANDLER

QUEEN CREEK

APACHE JUNCTION

BELL RD.

GRAND AVE.

SHEA BLVD.PEORIA AVE.

MAIN ST.

BASELINE RD.

CAMELBACK RD.

VAN BUREN ST.

CAREFREE HWY.

PIMA FWY.AGUA FRIA FWY.

PAPAGO FWY.

SUPERSTITION FWY.

MARICOPA FWY.

SAN TAN FWY.

RED MOUNTAIN FWY.

PIES

TEW

A FW

Y.

BLAC

K C

ANYO

N FW

Y.

SCOT

TSDA

LE R

D.

CAVE

CRE

EK R

D.

BEELINE HWY.

67TH

AVE

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7TH

ST.

POW

ER R

D.

CENT

RAL

AVE.

COUN

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CLUB

DR.

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KIERLAND

Considered the gateway to the Northwest Valley of the Greater Phoenix Metro Area, El Mirage has grown from a small town, dependent on agriculture, to a diverse urban economy with a 2017 census population of 34,400, 23% increase from 2010 Census. In fact, the City’s population has more than quadrupled in the last decade.

LOCATION

El Mirage is located approximately 10 miles northwest of downtown Phoenix and minutes away from Luke Air Force Base (AFB). Luke AFB is the USAF’s largest fighter pilot training facility in the world. On the City’s southern border, El Mirage is a part of a collaborative effort to build the Northern Parkway transportation corridor. This project will provide access to the Loop 303, connecting to Interstate 10 and Interstate 17. On the City’s northern edge, U.S. Highway 60 provides easy access to the Loop 101 and Loop 303, two of the area’s busiest regional highways.

AREA & M

ARKET OVERVIEW

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EL MIRAGE OVERVIEW

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ECONOMYThe economy of El Mirage, AZ employs 14,466 people. The economy of El Mirage, AZ is specialized in Admin., Support, Waste Management Services; Management of Companies & Enterprises; and Real Estate, Rental & Leasing, which employ respectively 2.13; 1.84; and 1.47 times more people than what would be expected in a location of this size. The largest industries in El Mirage, AZ are Healthcare & Social Assistance (2,016), Retail trade (1,812), and Accommodation & Food Service (1,390), and the highest paying industries are Utilities ($100,531), Finance & Insurance ($38,061), and Transportation & Warehousing ($31,793). Median household income in El Mirage, AZ is $49,504.

El Mirage is part of a multi-jurisdictional effort in the West Valley known as the Greater Maricopa Foreign Trade Zone (FTZ). The zone is a government designated, 400-acre site at the City’s southern end where foreign and domestic goods may be stored, assembled, or exhibited for sale exempted from U.S. Customs duties and excise taxes. The FTZ is an integral part of future business development.

Just upstream from El Mirage, Lake Pleasant Regional Park is a major hub for watery fun in the warm Arizona sunshine. The lake itself – 10,000 acres of splashy fun – has numerous boat docks and beaches so you can get right on the water. If hiking amid pristine Arizona desert surroundings

is more your idea of the perfect day outside, White Tank Mountain Regional Park sits just to the west of El Mirage. The largest regional park in Maricopa County, the park offers 26 miles of serene trails for trekking.

Retail expansion in El Mirage is also a significant economic driver due to its potential for generating tax revenues, creating jobs, and drawing new visitors and residents. In recent years, several new retailers – most representing national chains – have located to El Mirage including, Valero, Auto Zone, Goodwill Industries, Burger King, Subway, and Enterprise Rent-A-Car.

DEMOGRAPHICS1 MILE

RADIUS3 MILE RADIUS

5 MILE RADIUS

30 MINUTE DRIVE TIME


CITY OF EL MIRAGE

MARICOPA COUNTY

Population 20,504 102,894 217,015 1,335,021 1,945,578 34,971 4,376,544

Average Household Income $63,256 $66,327 $66,111 $71,922 $72,298 $62,486 $83,970

Average Housing Value $151,850 $162,000 $179,093 $195,361 $204,940 $140,183 $271,282

Workforce Population (20 to 64) 42.6% 38.9% 32.6% 41.7% 42.7% 42.6% 45.6%

Median Age 31.8 36.8 50.0 34.6 34.1 28.8 35.0

Some College Education 23.5% 26.9% 27.8% 26.2% 25.5% 27.3% 24.6%

College Degrees 24.7% 28.8% 32.9% 31.0% 32.3% 20.3% 40.2%

Employed Population 3,228 25,099 54,642 374,018 676,655 4,083 1,927,481

White Collar Occupation 56.1% 58.7% 61.4% 58.3% 59.1% 53.6% 64.6%


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DEMOGRAPHICS1 MILE

RADIUS3 MILE RADIUS

5 MILE RADIUS



CITY OF EL MIRAGE

MARICOPA COUNTY

Population 20,504 102,894 217,015 1,335,021 1,945,578 34,971 4,376,544

Average Household Income $63,256 $66,327 $66,111 $71,922 $72,298 $62,486 $83,970

Average Housing Value $151,850 $162,000 $179,093 $195,361 $204,940 $140,183 $271,282

Workforce Population (20 to 64) 42.6% 38.9% 32.6% 41.7% 42.7% 42.6% 45.6%

Median Age 31.8 36.8 50.0 34.6 34.1 28.8 35.0

Some College Education 23.5% 26.9% 27.8% 26.2% 25.5% 27.3% 24.6%

College Degrees 24.7% 28.8% 32.9% 31.0% 32.3% 20.3% 40.2%

Employed Population 3,228 25,099 54,642 374,018 676,655 4,083 1,927,481

White Collar Occupation 56.1% 58.7% 61.4% 58.3% 59.1% 53.6% 64.6%

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RETAIL MARKET OVERVIEWFollowing a very strong first half of the year, the Greater Phoenix retail market leveled off a bit during the fourth quarter with 261,500 square feet absorbed, the lowest fourth quarter showing since 2015’s, 255,763 square feet amount. Since 2010, tenants have absorbed a net of more than 750,000 square feet on average during the fourth quarter in Greater Phoenix, and last year, net absorption during the fourth quarter topped 1.2 million square feet. Despite fourth quarter’s subdued absorption, over the year, retail witnessed nearly 2.1 million square feet absorbed, the second highest in the last 5 years.

Sales of shopping centers decreased during the fourth quarter in line with decreased leasing and absorption activity. While total building sales, and sales volume for 2018 lagged 2017 levels, median price per SF increased 7 percent over the year to $134.

Also of note, cap rates have continued to push higher in the last three quarters with average cap rates for the fourth quarter reaching 8.22 percent. These mixed investment trends may hinder sales of shopping centers in the months ahead.

As of fourth quarter 2018, more than 93% of the Greater Phoenix retail space is occupied.


AREA & M

ARKET OVERVIEW27

0%

2%

4%

6%

8%

10%

12%

14%

Airport Area DowntownPhoenix

East Valley NorthPhoenix

NorthScottsdale

NorthwestPhoenix

Scottsdale SouthMountain

West Valley

Vacancy

4Q 2018 4Q 2017

5%

6%

7%

8%

9%

10%

11%

12%

13%

(4,000,000)

(3,000,000)

(2,000,000)

(1,000,000)

‐

1,000,000

2,000,000

3,000,000

4,000,000

Vacancy

Squa

re Fe

et

Net Absorption Deliveries Vacancy* Forecast

VACANCY BY SUBMARKET

HISTORICAL ABSORPTION, DELIVERIES AND VACANCY RATES

Offering Memorandum

Colliers International 2390 E. Camelback Rd. Suite 100 Phoenix, AZ 85016 www.colliers.com/arizona

JOHN SMECKSenior Vice President+1 602 222 [email protected]

JK JACKSONAssociate Vice President+1 602 222 [email protected]

EXCLUSIVE INVESTMENT ADVISOR: DEBT & EQUITY ADVISOR:

SEC GREENWAY ROAD & DYSART ROAD EL MIRAGE, AZ

MIRAGEO A S I S

executive summary mirage...the final stage of the 36-mile loop 303, connecting interstate 17 to...

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