ALBERTSONS SHOPS

OFFERING MEMORANDUM

ALBERTSONS SHOPSAT RIVER & LA CAÑADA5075 - 5095 LA CAÑADA DRIVE | TUCSON, AZ

AFFILIATED BUSINESS DISCLOSURE

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of Albertsons Shops at River and La Cañada, 5075 - 5095 La Cañada Drive, Tucson, AZ 85704– (the ”Property”) by ‘Ownership’ (the “Seller”).

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (3/27/2020) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

2 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA

CONTENTS

EXECUTIVESUMMARY

01PROPERTY

DESCRIPTION

02FINANCIALANALYSIS

03AREA

OVERVIEW

04

01 EXECUTIVE SUMMARY

Smoke MAunni's Healthcare Services

Mei Spa

Albertsons Shops at River & La Cañada is ±16,650 sq ft of national and local credit retail shops attached to a high performing Albertsons grocery store in the northwestern part of Tucson. Currently 100% leased, this offering gives an investor stable, passive income at a favorable cap rate of 7.25%. Four of the ten tenants have been at the property since it was built in 1998, and two since 2011, pointing to the stability of the property and submarket. In addition, all of the tenants have annual increases, allowing for increased cash flow over time.

THE OFFERING


OFFERING PRICE $4,630,000

PRICE PER SF $278.08

IN-PLACE CAP RATE 7.25%

OCCUPANCY 100%

OFFERING SUMMARY

ALBERTSONS SHOPS AT RIVER & LA CAÑADA 5075 - 5095 North La Cañada DriveTucson, AZ 85704

16,650 SF Total Building Area

1998Year Built

0.81 ACRESLot Size

104-01-077B104-01-077C Parcel Number

$335,668In-Place NOI

THE OFFERING


LA C

AN

AD

A D

R. | 19,865 VPD

LA C

AN

AD

A D

R. | 19,865 VPD

RIVER RD. | 32,822 VPD


02 PROPERTY DESCRIPTION

NN


Mei Spa

Built in 1998, Albertsons Shops at River and La Cañada benefits from being shadow-anchored by a high performing grocer, being located on a hard corner, and having great visibility from La Cañada Dr. The close proximity to the I-10 freeway is important to note. Tucson lacks a major East/West thoroughfare from the interstate, making retail properties close to the interstate more desirable. Furthermore, the property is the only shopping center at the intersection, making it the primary shopping center for the immediate neighborhoods. Albertsons Shops at River and La Cañada offers great stable, passive income to an investor looking for a property with strong historical occupancy.

PROPERTY OVERVIEW

LA CANADA DR. | 19,865 VPD



SHADOW-ANCHORED 2ND MOST VISITED ALBERTSONS IN TUCSON*

STRONG TENANT HISTORYFOUR SINCE 1998, TWO SINCE 2011

CLOSE PROXIMITY TO I-10 FREEWAY

BUSY HARD CORNER LOCATION

CLOSE PROXIMITY TO TUCSON SHOPPING MALL AND AUTO MALL

FAVORABLE RATE OF RETURN WITH STABLE RENT ROLL

SEVERAL NATIONAL CREDIT TENANTS

INVESTMENT HIGHLIGHTS

NEW SIGNAGE RECENTLY INSTALLED

*According to Placer.ai data


±

W River Road

.d

vlB

ad

an

aC

aL

.N

NAP

NAPNAP

1 01A

701A

102B302B

B205

B207B206

B209

B211

Monument Sign

Monument Sign

Monument Sign

A103

/A10

5

Mei SpaSmoke-M

901A

SITE PLAN

SUITE TENANT SF

A101 Smoke'M 1,080

A103/A105/A109

Aunni's Health Care Services 3,000

A107 Mei Spa 1,200

B201 Nails Rap III 890

B203 Great Clips 900

B205 Frontline 24/7 Fitness

4,500

B206 Jackson Hewitt 1,480

B207 Subway 1,200

B209 Titlemax 1,200

B211 Papa John's 1,200


SUN RIVER APARTMENTS

294 UNITS





DOWNTOWN TUCSON


Mei Spa

NN

03 FINANCIAL ANALYSIS

ANNUALIZED OPERATING DATA ACTUAL PSF

GROSS REVENUE

Base Rental Revenue (Sep '21 - Aug '22) $351,194 $21.09

Reimbursement Revenue $143,857 $8.64

Total Gross Revenue $495,050 $29.73

Credit Loss/Vacancy Reserve 3% $(14,852)

Effective Gross Revenue $480,199 $28.84

EXPENSES (2021 BUDGET.)

Janitorial Services $16,608 $1.00

Repairs & Maintenance $5,830 $0.35

Utilities $37,475 $2.25

Roads/Grounds/Security $16,050 $0.96

General & Administrative $870 $0.05

Parking Lot Operations $8,850 $0.53

Real Estate Taxes $32,561 $1.96

Real Estate Tax Appeal $2,500 $0.15

Insurance $5,760 $0.35

Accounting Fees $700 $0.04

Property Management 3.50% $17,327 $1.04

Total Operating Expenses $(144,531) $8.68

Net Operating Income $335,668 $20.16

Debt Service (example): $(190,623)

Pre Tax Cash Flow 8.95% $145,045

Plus Principal Reduction: $32,171

Total Return: 10.94% $177,216

PRICING INCOME & ANALYSISSUMMARY ACTUAL

List Price: $4,630,000

Down Payment (example): 35% $1,620,500

Current CAP: 7.25%

Rentable Square Feet: 16,650

Price per Square Foot: $278.08

Occupancy: 100%

FINANCING - EXAMPLE NEW LOAN ACTUAL

Loan Amount $3,009,500

Loan to Value 65%

Interest Rate 3.75%

Amortization 25

Term 10 Years

Monthly P & I Payments $15,473

Loan Constant 6.17%

Debt Yield 11.15%

DCR 1.81


RENT ROLL - ACTUAL

SUITE TENANT NAMESQUARE

FEET% OF

SPACEMONTHLY

RENTANNUAL

RENT

RENT PER SQ.

FT.

TYPE OF

LEASE

EST. MONTHLY

NNN

EST. ANNUAL

NNNANNUAL NNN PSF

LEASE BEGIN

LEASE END

INCREASE DATES

INCREASE AMOUNTS COMMENTS

B201 Nails Rap 3 890 5.3% $2,373 $28,476 $32.00 NNN $363.10 $4,357 $4.90 10/1/98 9/30/24 10/1/21 $2,444(3%) No options

B203 Great Clips 900 5.4% $1,591 $19,092 $21.21 NNN $367.18 $4,406 $4.90 9/19/98 9/30/23 10/1/21 $1,639(3%) One, five year option

B205 Frontline 24/7 Fitness 4,500 27.0% $6,000 $72,000 $16.00 NNN $1,835.90 $22,031 $4.90 3/1/21 2/28/27 3/1/23 $6,120(2%)

Free rent until 3/1/22 (Buyer credit at COE)

Two, five year options

B206 Jackson Hewitt 1,480 8.9% $2,287 $27,444 $18.54 NNN $603.81 $7,246 $4.90 8/15/19 6/30/24 11/1/21 $2,355(3%) Two, three year options

B207 Subway 1,200 7.2% $2,312 $27,744 $23.12 NNN $489.57 $5,875 $4.90 9/9/98 9/30/24 10/1/21 $2,370(2.5%) One, five year option

B209 Titlemax 1,200 7.2% $2,998 $35,976 $29.98 NNN $489.57 $5,875 $4.90 12/15/11 12/31/26 2/1/22$3,088

(3% starting 1/1/23)

One, five year option remaining

Rent abated 1/1/22- 1/31/22

B211 Papa John's 1,200 7.2% $2,886 $34,632 $28.86 NNN $489.57 $5,875 $4.90 8/8/98 8/31/23 9/1/21 $2,973(3%) No options

A101 Smoke 'M Tucson 1,080 6.5% $1,721 $20,654 $19.12 NNN $440.62 $5,287 $4.90 1/1/11 6/30/25 6/30/22 $1,773(3%) No options

A103/A105/A109

Aunni's Health Care Services 3,000 18.0% $3,875 $46,500 $15.50 NNN $1,223.93 $14,687 $4.90 5/1/20 10/31/25 11/1/21 $3,990

(3%)

Tenant occupies two suites. #A103/A105 is 1,800 SF. and

#A109 is 1,200 SF.No options

A107 Mei Spa 1,200 7.2% $1,970 $23,640 $19.70 NNN $489.57 $5,875 $4.90 5/30/14 11/30/24 12/1/21 $2,029(3%) No options

Parking Lot Phanton Fireworks $5,000 GROSS 12/20/19 7/10/24

Firework stand operates 12/20-1/10, and 6/20-7/10.

Tenant pays rent in two install-ments per year.

Parking Lot Just Churros $325 $3,900 GROSS 4/1/2020 MTM Food truck tenant on a MTM

lease

ANCHOR Albertsons (CAMs Only) $3,938.65 $47,264

PAD Whataburger (CAMs Only) $476.96 $5,724

PAD Diamond Shamrock (CAMs Only) $779.62 $9,355

TOTAL 16,650 100% $28,338 $345,058 $22.40 $11,988 $143,857 $4.90

OCCUPIED 16,650 100%

AVAILABLE 0 0%

This information 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.14 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA

12 MONTH RENT PROJECTION SUITE TENANT SEP-21 OCT-21 NOV-21 DEC-21 JAN-22 FEB-22 MAR-22 APR-22 MAY-22 JUN-22 JUL-22 AUG-22 TOTAL

B201 Nails Rap 3 $2,373.00 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $29,253

B203 Great Clips $1,591.00 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $19,621

B205 24/7 Fitness $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $72,000

B206 Jackson Hewitt $2,287.00 $2,287.00 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $28,126

B207 Subway $2,312.00 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $28,384

B209 Titlemax $2,998.00 $2,998.00 $2,998.00 $2,998.00 $2,998.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $36,606

B211 Papa John's $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $35,671

A101 Smoke 'M Tucson $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,773.00 $1,773.00 $1,773.00 $20,808

A103/A105/A109

Aunni's Health Care Services $3,875.00 $3,875.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $47,650

A107 Mei Spa $1,970.00 $1,970.00 $1,970.00 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $24,174

Parking Lot Phanton Fireworks $2,500.00 $2,500.00 $5,000

Parking Lot Just Churros $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $3,900

TOTAL $351,194

This information 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.


ALBERTSONS BIOGRAPHY

Albertsons was founded in 1939 and is still headquartered in Boise, Idaho where the first location opened. Within two years, two other stores opened their doors. Over 80 years later, the company is the second largest food and drug retailer in North America (after Kroger) with over 2,200 stores across 35 states. The Albertsons Companies brand has 21 subsidiaries including Albertsons, Safeway, Vons, and Jewel Osco.

This Albertsons location on La Cañada Drive, is ranked number two in Tucson for number of store visits and number three for number of customers, according to Placer.ai data.

0

50

100

150

200

250

300

350

400

N La CanadaDr

N SilberbellRd

E Grand Rd N La ChollaBlvd

E BroadwayBlvd

N CampbellAve

Albertsons Customers in Tucson

Est # Customers (in thousands) Est # of Visits (in thousands)

C L I C K H E R E TO R E A D T H E A R T I C L E


https://www.supermarketnews.com/retail-financial/albertsons-marks-transformational-year-fiscal-2020

TENANT BIOS

Great Clips is the world's largest hair salon brand. It is 100% franchised with 4,400 salons throughout the United States and Canada. Great Clips was established in 1982 in Minneapolis, and this location in Tucson opened in 1998.

Subway was started in the 1970's as a small sandwich shop in Connecticut. Today, Subway is the world's largest submarine sandwich chain. They have over 40,000 franchised locations around the world. The Subway location in this center opened in 1998.

TitleMax was founded in 1998 and opened this Tucson location in 2011. They are privately owned and one of the nation's largest title lending companies. TitleMax has more than 1,100 stores across 16 states.

Papa Johns opened it's first location over 30 years ago in Indiana as a small business. Now there are over 5,000 locations worldwide. This location at River Village was opened in 1997.

Aunni's Healthcare Services is a company specializing in home care services for the developmentally disabled population including illness or injury. Aunni's provides habilitation assistance, attendant care, and respite care. This location opened in May 2020.

Based in New Jersey and founded in 1982, they are the second-largest tax preparations service in the United States. With over 6,000 franchised and company-owned locations and nearly half located in Walmart stores, this location has been open since 2019.

New in 2021 to River Village, Frontline 24/7 Fitness is open 24 hours a day 7 days a week. With nearly 100 pieces of equipment and four trainers on site, this gym is both accessible and busy.


04 AREA OVERVIEW

Originally founded as a Spanish military fort, Tucson is the second largest city in Arizona with a population of over 993,000. Despite its smaller population, the metro boasts a world-class employer base with a disproportionate concentration in high paying industries including aerospace & defense, high tech manufacturing, education and healthcare. Drawn by the unique combination of the University of Arizona and two major military-bases, Tucson is a hub of academic, military and defense contractor research and application in aerospace and optics technologies used in satellites, missiles, military aircraft and space exploration.

Honoring its martial history, the largest employers are the United States Air Force housing nearly 12,000 airmen and civilian employees at Davis-Monthan Air Force Base, the United States Army with 11,500 personnel at Fort Huachuca and Raytheon Technologies employing 9,700 residents in the metro. Other top employers include Fortune 500 companies such as Texas Instruments, Freeport-McMoRan, IBM, Honeywell, Intuit, GEICO and Caterpillar, which recently completed a regional corporate headquarters. This economic base is compliment by several major healthcare networks including Banner and Carondelet Healthcare, as well as the approximately 46,000 students and 3,500 staff members that comprise the University of Arizona.

Tucson’s pleasant climate, beautiful landscape and wealth of cultural and entertainment offerings draw over 3.5 million visitors every year, representing $2.5 billion in tourism spending annually. In addition to a rich nightlife, the city hosts numerous annual events like the Festival of Books, Tucson Folk Festival, The Tucson Rodeo, and the Gem & Mineral Show, one of the largest in the world.

AREA OVERVIEW

LA CANADA DR. | 19,865 VPDLA CANADA DR. | 19,865 VPD

RIVE

R RD

. | 32

,822

VPD

RIVE

R RD

. | 32

,822

VPD

Demographic Profile5075 La Canada Dr Prepared by Esri5075 N La Canada Dr, Tucson, Arizona, 85704 Latitude: 32.29874Rings: 1, 3, 5 mile radii Longitude: -110.99707

1 mile 3 miles 5 milesPopulation Summary

2021 Total Population 11,341 85,955 204,4242026 Total Population 11,770 88,729 210,6622010-2020 Annual Growth Rate 1.05% 0.67% 0.55%2021-2026 Annual Growth Rate 0.75% 0.64% 0.60%2021 Median Age 44.1 38.7 37.9

2021 Male Population (Esri) (%) 47.61% 48.72% 49.15%2021 Female Population (Esri) (%) 52.39% 51.28% 50.85%

Daytime Population2021 Total Daytime Population 11,258 91,565 214,341

Workers 5,006 44,376 106,194Residents 6,252 47,189 108,147

2021 Total Businesses 317 3,466 8,1852021 Total Employees 5,081 44,079 95,482

Household Summary2021 Households 4,784 37,131 89,0442026 Total Households 4,962 38,322 91,9272010-2020 Annual Growth Rate 1.13 0.67 0.582021-2026 Annual Growth Rate 0.73 0.63 0.642021 Average Household Size 2.32 2.29 2.26

Income Summary2021 Average Household Income $62,387 $62,701 $70,7122026 Average Household Income $71,309 $72,359 $80,5682021 Median Household Income $46,446 $41,724 $48,3682026 Median Household Income $52,238 $49,161 $54,8022021 Per Capita Income $27,470 $27,064 $30,7412026 Per Capita Income $31,389 $31,220 $35,075

Educational AttainmentTotal 2021 Population 25+ 8,428 60,427 142,688Less than 9th Grade 4.4% 5.5% 4.3%9th - 12th Grade, No Diploma 5.0% 8.1% 6.6%High School Graduate 26.1% 20.1% 16.6%GED/Alternative Credential 4.7% 4.3% 3.9%Some College, No Degree 26.5% 25.1% 24.6%Associate Degree 8.1% 8.8% 8.4%Bachelor's Degree 14.5% 16.2% 20.1%Graduate/Professional Degree 10.7% 11.8% 15.5%

EmploymentTotal 2021 Population 16+ 5,135 39,039 96,872

White Collar 61.1% 59.8% 65.4%Services 16.3% 18.9% 18.0%Blue Collar 22.6% 21.3% 16.6%

Race/EthnicityTotal 2021 Population 11,342 85,955 204,423

White Alone 75.5% 71.6% 71.7%Black Alone 2.2% 3.3% 3.7%American Indian Alone 2.0% 2.2% 2.6%Asian Alone 4.4% 4.2% 4.4%Pacific Islander Alone 0.1% 0.2% 0.2%Some Other Race Alone 11.9% 14.1% 13.0%Two or More Races 4.0% 4.4% 4.4%

Hispanic Origin 34.9% 39.1% 36.9%Diversity Index 68.8 73.0 72.3

Source: Esri, Esri and Infogroup

DEMOGRAPHICS


Tucson International Airport

Davis-MonthanAir Force Base

T U C S O N

ORO VALLEY

CATALINA FOOTHILLS

MARANATWIN PEAKS RD

INA RD

CORTERO FARMS RD

TANGERINE RD

SWAN

RD

CAM

PBEL

L AVE

SPEEDWAY BLVD

BROADWAY BLVD

BENSON HWY

SILVERBELL RD

6TH

AVE

AJO WAY

Universityof Arizona

Dow ntown

GOLF LINKS RD

VALENCIA RDVALENCIA RD

TUCSON-AJO HWY

ALBERTSONS SHOPSAT RIVER & LA CAÑADA

5075 - 5095 LA CAÑADA DRIVE | TUCSON, AZ


CHASE DORSETT Associate Director

602.952.3844 [email protected]

JESSE GOLDSMITH Senior Managing Director


STEVE JULIUS Senior Managing Director


EXCLUSIVELY LISTED BY

ALBERTSONS SHOPS

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