Post on 18-Jul-2020
The Sekulovski GroupRetail Investment Offering
Tony Sekulovskitony@SekulovskiGroup.com
The Shops of Estrella Town Center 7500 W. Lower Buckeye Road
Phoenix, Arizona 85043
The Sekulovski Group
2944 North 44th Street, Suite 200Phoenix, AZ 85018
P. 602.476.8807F. 888.801.9381
300 South Wacker Drive, Suite 2300Chicago, IL 60606
P. 312.423.6662F. 888.801.9381
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiv-ing it from The Sekulovski Group and should not be made available to any other person or entity without the written consent of The Sekulovski Group. This of-fering has been prepared to provide a summary of unverified 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 thor-ough due diligence investigation. The Sekulovski Group has not made any in-vestigation, 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, PCB’s or asbestos, the compliance with state and federal regulations, the physical condition of the im-provements thereon, or the financial condition or business prospects of any ten-ant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering has been obtained from sources we believe to be reliable; however, The Sekulovski Group has not veri-fied, and will not verify, any of the information contained herein, nor has The Sekulovski Group 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 ap-propriate measures to verify all of the information set forth herein.
ALL PROPERTY SHOWINGS
ARE BY APPOINTMENT ONLY.
PLEASE CONSULT THE SEKULOVSKI GROUP
FOR MORE DETAILS.
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Confidentiality AgreementThe Shops of Estrella Town CenterPhoenix, AZ
Section 1 ................................................................. Investment Summary Investment Overview
Section 2 ................................................................. Pricing & Financial Analysis Income Expenses Financial Summary Rent Roll Tenant Profiles
Section 3 ................................................................. Property Description Location Overview Property Photos Location Maps Site Plan Aerial Photos
Section 4 ................................................................. Demographic Profile
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Table of ContentsThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Investment SummaryThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Investment OverviewINVESTMENT HIGHLIGHTS
The Shops of Estrella Town CenterPhoenix, AZ
•Brand New 13,523 Sq. Ft. Strip Center
•Favorable Financing in Place (5.79% Int.)
•Across from Tuscano Town Center & WalMart Supercenter
•Rapidly Developing Retail Location
•At the Intersection of Lower Buckeye Road & 75th Avenue
The Sekulovski Group is pleased to present The Shops of Estrella Town Center, a brand new
13,523 square foot strip center in Phoenix, Arizona. This strip center is one phase of the Es-
trella Town Center. Currently under development, the Estrella Town Center will include
over 186,000 square feet of retail space on 27 acres. Featuring brand new, 2007 construction,
The Shops of Estrella Town Center is home to a strong tenant mix including Domino’s Pizza,
Checksmart and China Buffet. This asset is in a prime retail location directly across the street
from Tuscano Town Center, which is anchored by a new WalMart Supercenter. Estrella
Town Center will benefit from the traffic that WalMart generates, plus it is at the highly de-
sirable intersection of Lower Buckeye Road and 75th Avenue. National retailers in the im-
mediate area include Ace Hardware, Chase Bank, M&I Bank, Subway, Burger King, KFC/
A&W, Panda Express, Arby’s, Brake Masters, Jiffy Lube, Tutor Time, Checkers Auto Parts
and Del Taco.
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Offering SummaryThe Shops of Estrella Town CenterPhoenix, AZ
Summary
Price: $5,320,000
Down Payment: $1,420,000
GLA in Sq Ft: 13,523
Price/SF: $393.40
NOI: $355,252
Cap Rate: 6.75%
Total Return: 9.39%
Financing
Loan Amount: $3,900,000
Loan Type: Assumption
Interest Rate: 5.79%
Amortization: 35 Years
Term: 10 Years
Maturity Date: May 11, 2017
Monthly Payment: $21,690
Operating Data
Scheduled Rent: $359,096
Expense Recapture: $62,711
Scheduled Income: $421,807
Expenses: $62,711
NOI: $359,096
Debt Service: $260,280
Cash Flow: 6.96% $98,816
Principal Reduction: $34,470
Total Return: 9.39% $133,286
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Pricing and Financial AnalysisThe Shops of Estrella Town Center
Phoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Income
Current PSF
INCOME
Scheduled Rent $359,096 $26.55
GROSS POTENTIAL RENT $359,096 $26.55
Expense Recapture
Real Estate Taxes $27,046 $2.00
Insurance $10,142 $0.75
CAM $13,523 $1.00
Management Fee $12,000 $0.89
Total Expense Recapture $62,711 $4.64
Effective Gross Income $421,807 $31.19
The Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
ExpensesThe Shops of Estrella Town CenterPhoenix, AZ
Current PSF
EXPENSES
Real Estate Taxes $27,046 $2.00
Insurance $10,142 $0.75
CAM
Contract Services $13,523 $1.00
Management Fee $12,000 $0.89
Total Expenses $62,711 $4.64
Net Operating Income (NOI) $359,096 $26.55
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Financial SummaryThe Shops of Estrella Town CenterPhoenix, AZ
7500 W. Lower Buckeye RoadPhoenix, AZ 85043
Price: $5,320,000
GLA in SF: 13,523
Price/SF: $393.40
Current CAP Rate: 6.75%
Year Built: 2007
Lot Size: 2.099 Acres
Parking: 105 Spaces
INCOME Current
Scheduled Rent $359,096
Gross Potential Rent $359,096
Total Expense Recapture $62,711
Effective Gross Income $421,807
Less: Expenses $62,711
Net Operating Income $359,096
Debt Service $260,280
Cash Flow After D/S 6.96% $98,816
Principal Reduction $34,470
Total Return 9.39% $133,286
EXPENSES Current
Real Estate Taxes $27,046
Insurance $10,142
CAM
TOTAL CAM $13,523
Management Fee $12,000
Total Expenses $62,711
Expenses/SF $4.64
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Rent RollThe Shops of Estrella Town CenterPhoenix, AZ
Tenant GLA Rent Start Lease
Expiration
Annual Rent
Rent/SF Options
Vacant* 1,202 1 yr. from COE
$31,252 $26.00 N/A
Domino’s Pizza 1,200 4/1/2007 4/1/2012 $30,000 $25.00 (2) 5-Yr.
Checksmart 2,701 4/1/2007 4/1/2012 $78,329 $29.00 (2) 5-Yr.
China Buffet 6,498 6/18/2007 6/18/2015 $165,699 $25.50 (2) 5-Yr.
Pelican Bay Oyster Bar and Grill
1,922 8/15/2008** 5/15/2013 $53,816 $28.00 (1) 5-Yr.
*Seller will master lease vacant space for one (1) year from close of escrow.**Anticipated Rent Commencement Date
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Tenant Profile/AnalysisThe Shops of Estrella Town CenterPhoenix, AZ
Tenant Lease Abstract:
Headquartered: Ann Arbor, MI
# of Locations: 8,300+
GLA: 1,200
Lease Commencement: 4/1/2007
Lease Expiration: 4/1/2012
Options to Renew: (2) 5-Year
Tenant Expense Recapture:
CAM Pro Rata
Real Estate Tax Pro Rata
Insurance Pro Rata
Management Fee Pro Rata
Roof/Structure Landlord
Tenant Base Rent Schedule:
Monthly PSF
Current $2,500.00 $25.00
4/1/08 $2,563.00 $25.63
4/1/09 $2,627.00 $26.27
4/1/10 $2,692.00 $26.92
4/1/11 $27.60 $27.60
Option 1 2.5% Annual Increases
Option 2 2.5% Annual Increases
Domino's (NYSE: DPZ) knows the rules of the pizza delivery game. The company is the world's #2 pizza chain, with more than 8,300 locations in more than 50 countries. Domino's menu features several different styles of pizza with a wide array of topping options, as well as additional items such as bread sticks, cheese bread, and chicken wings. Its stores are principally delivery locations and generally do not have any dine-in seating. The company owns and operates about 570 locations in the US and a handful of international restaurants, while the rest are franchised.
www.dominos.com
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Tenant Profile/AnalysisThe Shops of Estrella Town CenterPhoenix, AZ
Tenant Lease Abstract:
Headquartered: Dublin, OH
# of Locations: 217+
GLA: 2,701
Rent Commencement: 4/1/2007
Lease Expiration: 4/1/2012
Options to Renew: (2) 5-Year
Tenant Expense Recapture:
CAM Pro Rata
Real Estate Tax Pro Rata
Insurance Pro Rata
Management Fee Pro Rata
Roof/Structure Landlord
Checksmart offers financial services to customers who need cash immediately. Whether they are cashing a check or getting a payroll advance, that money is needed imme-diately. Checksmart offers financial services which include payroll advances, check cashing, bill pay services, wire transfers, money orders, pre-paid debit cards and phone cards both wireless & long distance. At Checksmart we provide our customers with short-term cash solutions along with great customer service. Checksmart currently has stores in Arizona, Florida, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Virginia, and Utah.
www.checksmart.com
Tenant Base Rent Schedule:
Monthly PSF
Current $6,527.42 $29.00
4/1/08 $6,723.24 $29.87
4/1/09 $6,925.81 $30.77
4/1/10 $7,132.89 $31.69
4/1/11 $7,346.72 $32.64
Option 1 3% Annual Increases
Option 2 3% Annual Increases
The Sekulovski GroupTony Sekulovski
tony@SekulovskiGroup.com
Tenant Profile/AnalysisThe Shops of Estrella Town CenterPhoenix, AZ
Tenant Lease Abstract:
GLA: 6,498
Rent Commencement: 6/18/2007
Lease Expiration: 6/18/2015
Options to Renew: (2) 5-Year
Tenant Expense Recapture:
CAM Pro Rata
Real Estate Tax Pro Rata
Insurance Pro Rata
Management/Admin Fee Pro Rata
Roof/Structure Tenant
Tenant Base Rent Schedule:
Monthly PSF
Current $13,808.25 $25.50
6/18/08 $14,153.46 $9.00
6/18/09 $14,507.29 $26.79
6/18/10 $14,869.98 $27.46
6/18/11 $15,241.72 $28.15
6/18/12 $15,622.77 $28.85
6/18/13 $16,013.36 $29.57
6/18/14 $16,413.67 $30.31
Option 1 2.5% Annual Increases
Option 2 2.5% Annual Increases
China Buffet serves authentic Chinese food in an all-you-can-eat buffet in our superbly appointed restaurant. Tradi-tional Chinese take-out foods are also available. The friendly atmosphere and surroundings will make your visit to our restaurant a memorable occasion.
China Buffet
The Sekulovski GroupTony Sekulovski
tony@SekulovskiGroup.com
Tenant Profile/AnalysisThe Shops of Estrella Town CenterPhoenix, AZ
Tenant Lease Abstract:
GLA: 1,922
Rent Commencement: 8/15/2008*
Lease Expiration: 5/15/2013
Options to Renew: (1) 5-Year
Tenant Expense Recapture:
CAM Pro Rata
Real Estate Tax Pro Rata
Insurance Pro Rata
Management/Admin Fee Pro Rata
Roof/Structure Tenant
Tenant Base Rent Schedule:
Monthly PSF
Current $4,484.67 $28.00
8/15/09 $4,373.21 $28.84
8/15/10 $4,758.55 $29.71
8/15/11 $4,901.10 $30.60
8/15/12 $5,048.45 $31.52
Option 1 3% Annual Increases
Pelican Bay Oyster Bar and Grill offers a vast daily menu including a selection of fresh oysters and other seafood fa-vorites. You can also choose from the extensive drink menu, which includes everything from wine to martinis.
Pelican Bay Oyster Bar and Grill
*Anticipated Rent Commencement Date
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Property DescriptionThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Location OverviewThe Shops of Estrella Town CenterPhoenix, AZ
LOCATION HIGHLIGHTS
•Adjacent to New Wal-Mart Super-
Center
•5th Largest City in the Nation
•Strong Growth in Immediate Area (23% Growth Projected for 2012 in
5-Mile Radius)
The subject property is located on the northwest corner of 75th Avenue and Lower Buckeye
Road in Phoenix, Arizona. As Phase F of the development, this asset is part of the planned
186,000 square foot Estrella Town Center. In addition to the subject property, this community
center will include Ace Hardware, Jiffy Lube, Brake Masters, Tutor Time, M&I Bank, KFC/
A&W, as well as four additional pad buildings and inline shop space. Tuscano Town Center,
which is anchored by a new Wal-Mart Super Center, is across the street on Lower Buckeye
Road. Other retailers in the area include Checker Auto Parts, Chase Bank, Subway, Burger
King and Del Taco.
Thousands of people move to the greater Phoenix area every year to take advantage of the
area's climate and business community. Phoenix continues to grow rapidly and has become
the nation's fifth-largest city, with a strong and vibrant economy. Phoenix is young by his-
torical standards but now ranks as one of the fastest-growing cities in the nation. Visitors,
residents and businesses will find that Phoenix offers just about everything in the way of
sports, recreation, arts, culture, dining, lodging and financial opportunities.
The Sekulovski GroupTony Sekulovskitony@SekulovskilGroup.com
Property PhotosThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Tenant Profile/AnalysisLocation MapsThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
ElevationsThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Site PlanThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Site PlanThe Shops of Estrella Town CenterPhoenix, AZ
Subject Property
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Tenant Profile/AnalysisAerial PhotoThe Shops of Estrella Town CenterPhoenix, AZ
75th Avenue
Aerial Photo
Subject Property
Lower Buckeye Road
Future Phase
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Demographic ProfilesThe Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Demographic Profile1 Mile Radius
The Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Demographic Profile3 Mile Radius
The Shops of Estrella Town CenterPhoenix, AZ
The Sekulovski GroupTony Sekulovskitony@SekulovskiGroup.com
Demographic Profile5 Mile Radius
The Shops of Estrella Town CenterPhoenix, AZ
The Shops of Estrella Town Center 7500 W. Lower Buckeye Road
Phoenix, Arizona 85043
Tony Sekulovskitony@SekulovskiGroup.com
The Sekulovski Group
2944 North 44th Street, Suite 200Phoenix, AZ 85018
P. 602.476.8807F. 888.801.9381
300 South Wacker Drive, Suite 2300Chicago, IL 60606
P. 312.423.6662F. 888.801.9381