2803 E. CHAMBERS STREET, PHOENIX, AZpdf.leeazmail.com/pdfs/Packages/2803eChambersSt... ·...

FOR MORE INFORMATION PLEASE CONTACT:

KEN [email protected]

2803 E. CHAMBERS STREET, PHOENIX, AZ

INVESTMENT OPPORTUNITY

INVESTMENT OFFERING2803 E. Chambers St.

KEN [email protected] 2


Table of Contents

Table of Contents:

Executive Summary ....................... 3

Property Overview ......................4-6

Location Summary ........................ 7

Lease Comps ................................. 8

Sales Comps .................................. 9

Tenant Overview .......................... 10

Income & Expense Summary ...... 11

Disclaimer ................................... 12




The 2803 E. Chambers St. property is a functional two-tentant 37,943 square foot manufacturing building located within the Southern Gardens Industrial Park in South Phoenix. The property offers features common to many industrial users with proximity to I-10 and access to manufacturing labor.

Chambers offers a stable income stream from tenants with a prolonged history in the property, offering a combination of national and regional credit tenants.

2801 E. Chambers St.Tenant: Climatech

Size: 12,164 SF Months

Term: March 31, 2020

Financial Highlights

Offering Price: $4,100,000

Price Per SF: $108.00

Year 1 NOI: $317,205.84

Cap Rate: 7.75%

Executive Summary

2803 E. Chambers St.Tenant: DXP

Size: 25,779 SF

Term: March 31, 2019

Lease Summary




Property Overview

PROPERTY: 2803 E. Chambers Drive

Phoenix, AZ 85040

SIZE: 37,943 SF

TYPE: Industrial/Freestanding

YEAR BUILT: 2000

BUILDING CONSTRUCTION: Tilt

ZONING: Industrial Park, City of Phoenix

LOT SIZE: 2.30 Acres (38% coverage)

LOADING: 5 Grade and 1 Truckwell

POWER: 2,000 Amps 277/480 Volt

PROPERTY TAXES: $51,931

PARCEL NUMBER: 122-53-122

CLEAR HEIGHT: 24’ Minimum

COMMENTS: » Well-maintained building

» Great image

» Functional for a variety of industrial uses

» Heavy power

» Secure park setting

» 360º maneuverability




Property Overview2803 East Chambers Street • ±37,943 SF For Sale or Lease2803 East Chambers Street • ±37,943 SF For Sale or Lease

This statement with the information it contains is given with the understanding that all negotiations relating to the purchase, renting or leasing of the property described shall be conducted through this office. The information while not guaranteed has been secured from sources we believe to be reliable.

For Further Information Contac t:

Mike HaenelIndustrial Group

[email protected]

Andy MarkhamIndustrial Group

[email protected]

Marc TuiteIndustrial Group

[email protected]

2803EChambersSt-MET

ROESER RDROESER RD

SOUTHERN AVESOUTHERN AVE

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SUBJECT

BROADWAY RD

ROESER RD




Property Overview

BROADWAY RD.

ROESER RD.

SOUTHERN AVE.

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BROADWAY RD. BROADWAY RD.

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GLENDALE AVE.

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Location Summary

• 1.5 Miles South of the I-10

• 7 Minutes to Sky Harbor International Airport

• Full built-out business park

• Proximity to competitive labor

SUBJECT




Location Summary

ROESER RD.

24T

H S

T.

32N

D S

T.

SOUTHERN AVE.

CHAMBERS ST.

NO

RT

H

LEE & ASSOCIATES BROKER OPINION OF VALUE

SUBJECT PROPERTY

2803 E. Chambers, Phoenix, AZ 85040

The 2803 E. Chambers property is a highly functional freestanding building that can accommodate a wide variety of industrial users. Currently leased by Clim-A-Tech and DXP for ± 3 years, the property offers a stable cash flow for an investor from tenants that have over 10 years of tenancy in the building. With a two-tenant configuration, the property offers a mix of national credit with regional credit tenancy. The improvements in the building such as overhead crane, power distribution and paint booth are specific to one of the tenants and will bolster confidence from investors on the likelihood of a lease renewal. Located just 1.5 miles south of I-10, the property affords users direct freeway access to the entire Valley, with Sky Harbor International Airport just 7 minutes from the property. The immediate park surroundings of Southern Gardens is home to several owner-occupied buildings, which holds pride of ownership. Accordingly, most of the neighboring properties are of similar vintage and functionality. A list of the corporate neighbors includes: District Photo

Arcadia, Inc.

American Refrigeration Supply

Centric Elevator

Culligan

Galleher Hardwood

Western Window

LOCATION SUMMARY

Located just 1.5 miles south of I-10, the property affords users direct freeway access to the entire Valley, with Sky Harbor International Airport just 7 minutes from the property. The immediate park surroundings of Southern Gardens is home to several owner-occupied buildings, which holds pride of ownership. Accordingly, most of the neighboring properties are of similar vintage and functionality.

A list of the corporate neighbors includes:




Lease Comps

2040 W. Rio Salado, TempeTenant: Express ScriptsSize: 81,300 SFTerm: 123 MonthsStart Rate: $0.685/SF NNNIncreases: 2.5%/YearDate: Sept, 2016

Tenant: Rofo MasterSize: 25,920 SFTerm: 60 MonthsStart Rate: $0.67/SF NNNIncreases: $0.02/SF/YearDate: Sept, 2016

Tenant: Machl GlobalSize: 22,558 SFTerm: 65 MonthsStart Rate: $0.60/SF NNNIncreases: $0.02/SF/YearDate: Feb, 2016

Tenant: United Printing & MailingSize: 30,920 SFTerm: 36 MonthsStart Rate: $0.63/SF NNNIncreases: $0.02/SF/YearDate: Jan, 2016

318 S. Dobson, Mesa

4830 S. 38th St. Phoenix

2250 S. Riverview, Phoenix

1

2

4

3

60

143

60

101

202

101

101

202

202

KEN MCQUEENBRIAN PAYNE602.956.7777 BASELINE RD.

SOUTHERN AVE.

BROADWAY RD.

UNIVERSITY DR.

VAN BUREN ST.

WASHINGTON ST.

24T

H S

T.

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Sales Comps

Sales Price: $3,512,410Size: 34,156 SFPrice/SF: $102.83Sale Date: Dec, 2015Year Built: 2007

Sales Price: $4,800,000Size: 48,362 SFPrice/SF: $99.25Sale Date: Oct, 2015Year Built: 2004

Sales Price: $2,750,000Size: 29,000 SFPrice/SF: $94.83Sale Date: May, 2015Year Built: 1997

Sales Price: $11,500,000Size: 112,574 SFPrice/SF: $102.16Sale Date: Oct, 2015Year Built: 1996

2105-2114 W. 7th St. Tempe

779 N. Colorado, Gilbert

7150 W. Erie, Chandler

101

101

6060

202

202

143

BASELINE RD.

GUADALUPE RD.

ELLIOT RD.

WARNER RD.

RAY RD.

CHANDLER BLVD.

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GERMANN RD.

CHANDLER MUNICIPALAIRPORT

202

GILA RIVERINDIAN COMMUNITY

120,000 SF

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7TH

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MESAFALCONFIELD

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STELLARAIRPARK

KEN MCQUEENBRIAN PAYNE602.956.7777

8207 S. Priest, Tempe 1

2

3

4




Tenant Overview

2801 E Chambers St

Clim-A-Tech2803 E Chambers St

DXP

Clim-A-Tech manufactures plastic profile extrusions and fabricates die-cut components of flexible materials. With locations in Phoenix, AZ and Hopkins, MN Clim-A-Tech is an employee owned company, with over 47 years of experience.

Clim-A-Tech has a long history of supplying products to Window & Door Companies, Appliance Manufacturers, Recreational Industry, Technology Sector, Refining/Mining Industry, Medical Industry, Retail and other Industrial/Commercial Markets.

www.clim-a-tech.com

DXP is a publicly held company; who is a leading products and service distributor to industrial customers throughout the United States, Canada and Sonora, Mexico in virtually every industry since 1908.

DXP provides Innovative Pumping Solutions (IPS), Supply Chain Services and maintenance, repair, operating and production (MROP) Products and Services.

www.dxpe.com




Income and Expense SummaryKenneth O. McQueen

Principal

(602)474-9564

[email protected]

Square Lease Monthly Monthly Increases Annual Tenant Feet End Rate Rent (NNN) Rent (NNN)

Climatech 12,164 3/31/2020 0.697$ 8,474.25$ 101,691.00$ 1164sf office

0.703$ 8,555.37$ 102,664.44$ 4/1/2017

0.710$ 8,636.44$ 103,637.28$ 4/1/2018

0.717$ 8,717.53$ 104,610.36$ 4/1/2019DXP 25,779 3/31/2019 0.697$ 17,959.57$ 215,514.84$ 8520sf office

0.703$ 18,131.23$ 217,574.76$ 4/1/20170.710$ 18,303.09$ 219,637.08$ 4/1/2018

Project Total 37,943 0.697$ 26,433.82$ 317,205.84$

Comments

2803 East Chambers, Phoenix, AZCurrent Rent Roll

Annual Monthly/SFProperty Taxes 51,931.00$ 0.114Property Insurance 5,150.00$ 0.011Property Maintenance 13,086.00$ 0.029Administrative/Management 8,881.00$ 0.020

Total Operating Expenses 79,048.00$ 0.174

2803 E. Chambers Operating Expenses




Disclaimer

Lee & Associates Arizona (“Agent”) has been engaged as the exclusive agent for the sale of 2803 E. Chambers Street, located in Phoenix, Arizona (the “Property”), by the owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representation or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Lee & Associates as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor”. The use of this Offering Memorandum and the information provided herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by the Agent prior to delivery of this offering memorandum.

The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solelyresponsible. The material contained herein is based on information and sources deemed to be reliable but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or oral communication or information transmitted or make available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for anyreason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest oroffers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions to Seller’s obligations hereunder have been satisfied or waived.

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