Offering Memorandum · 10 Frito Lay - is an American subsidiary of PepsiCo that manufactures,...

Offering Memorandum

OPPORTUNITY ZONE!INDUSTRIAL DEVELOPMENT SITE

716 W ASH AVE., CASA GRANDE, ARIZONA

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation 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 duediligence 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, thefuture 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 orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure 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 mattersand 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 ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CASA GRANDE INDUSTRIAL DEVELOPMENT SITE- OPPORTUNITY ZONE!Casa Grande, AZACT ID ZAA0460047

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CASA GRANDE INDUSTRIAL DEVELOPMENT SITE-OPPORTUNITY ZONE!

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INVESTMENT

OVERVIEW

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Walmart 1,140BANNER RESEARCH INSTITUTE 625

City of Casa Grande 456

Border Patrol Station 366

Abbott Nutrition 325

UPS 321

Frito-Lay 300

At Home Solutions LLC 276

Casa Grande Clinic 264

Casa Grande Union High School 200

Casa Verde High School 200

Head Start Program 200

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 3,492 31,330 51,040

2010 Census Pop 3,242 29,194 47,377

2018 Estimate HH 1,047 11,148 18,412

2010 Census HH 990 10,521 17,252

Median HH Income $35,842 $41,062 $46,261

Per Capita Income $14,591 $19,850 $21,487

Average HH Income $48,486 $55,511 $59,366

* # of Employees based on 5 mile radius

THE OFFERING

Property Casa Grande Industrial Development Site- Opportunity Zone!

Price $1,138,000

Property Address 716 W Ash Ave, Casa Grande, AZ

Assessors Parcel Number 507-12-025J

Zoning I-1

Lot Size Dimensions 631 x 775

Utilities Water, electric, sewer and gas

Ingress/Egress TBD

SITE DESCRIPTION

Lot Size (SF) 490921

Price/SF 2.31

Lot Size (Acres) 11.27

PUBLIC UTILITIES

Sanitary Sewer City of Casa Grande

Storm Sewer City of Casa Grande

Potable Water Arizona Water

Gas Southwest Gas


OFFERING SUMMARY

I-1, Industrial Zoning (Garden & Light Industrial)

Electric, water, sewer and gas utilities all available on on-site

Located in a FEDERAL OPPORTUNITY ZONE, providing capital gains tax

advantages

INVESTMENT HIGHLIGHTS

The subject property, located at the northeast corner of Ash Avenue and Florence Street in Casa Grande, Arizona is an 11.27+/- acre development site. Currently zoned I-1

(Garden & Light Industrial), the site is ideal for uses including warehouse, fabrication, light manufacturing and food manufacturing. Neighboring sites include businesses

such as Monsanto, Daisy Diary Products, Walmart Distribution, Tractor Supply Distribution, and the new Lucid Motors manufacturing plant, a $700 million facility expected to

bring 4,800 future jobs and over $32 billion in economic benefit to the region. The property is located less than one mile from the downtown business core and is in close

proximity to rail and interstate infrastructure as well as many new residential developments.

Casa Grande is a city of 55,477 people located in south-central Arizona, 45 miles southeast of Phoenix and 50 northwest of Tucson. Recently, the traditional agricultural

based economy has been undergoing a shift towards the service and manufacturing industries. This recent growth in the area has been fueled by Urbanites from Tucson

and Phoenix looking for a quieter place to live and raise families while still commuting to the large metro areas for work. Also, proximity to transportation and supply chains

has increased activity and growth in the manufacturing and warehouse industries in the area.

INVESTMENT OVERVIEW

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LOCATION OVERVIEW

CLOSE PROXIMITY TO:

716 W Ash Ave, Casa Grande, AZ 85193

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMECASA GRANDE INDUSTRIAL DEVELOPMENT SITE-OPPORTUNITY ZONE!

PRICING AND VALUATION MATRIX


LOCATION OVERVIEW

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LOCAL MAP


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AERIAL PHOTO


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Subject Property

Distribution Center


Industrial Development Map

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Industrial Players Profile


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Frito Lay - is an American subsidiary of PepsiCo that manufactures, markets, and sells corn chips, potato chips, and other snack foods (Local presence= 20,335 sq. ft.; Warehouse Built in 1983)

Abbott Laboratories, S.A. – is an American medical devices and health care company. (Local presence= 440,812 Sq. ft.; Warehouse built in 1984)

Bull Moose Tube – is a division of Caparo Bull Moose®, Inc. Founded in 1962, Bull Moose Tube boasts more than a half-century of steadfast commitment to serving customers requiring steel pipe and tube (Local presence= 111,600 Sq. ft.; Warehouse Built in 1987)

Franklin Foods – As a full-line manufacturer Franklin Foods products consist of Cultured Cream Cheese, Cream Cheese, Bakers Cheese, Mascarpone, Flavored Dips and Spreads, Baking Cheese Blend, Reduced Fat, Neufchatel Cheese, Whipped Cream Cheese, Organic Cream Cheese, Yogurt & Cream Cheese, and the industry's first Greek Cream Cheese. (Local presence= 87,203 Sq. ft.; Warehouse Built in 1995)

Ehrmann – Is an international and family-owned dairy company. (Local presence= 61,601 Sq. ft. Warehouse Built in 2013)

Hexcel – is an American public industrial materials company, based in Stamford, Connecticut. The company develops and manufactures structural materials including carbon fiber, specialty reinforcements, resins, honeycomb, adhesives, engineered honeycomb composite structures, and prepregs. (Local presence= 115,878 Sq. ft.; Warehouse Built in 1973 and 2005)

Tractor Supply Co – is an American retail chain of stores that offers products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care. (Local presence= 615,446 Sq. ft.; Warehouse Built in 2015)

National Vitamin Company – National Vitamin Company is a leading manufacturer and distributor of vitamins and minerals, herbs, OTC products, nutritional supplements and enriched skin care products. Our products ship under a variety of labels to destinations all over the world. (Local presence= 239,694 Sq. ft.; Warehouse Built in 1986)

LKQ – is an American provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. (Local presence= 107,000 Sq. ft.; Warehouse built in 2018)

Industrial Players Profile


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Lucid Motors – Lucid Motors (formerly Atieva) is an electric vehicle startup located in California. The company's CTO, Peter Rawlinson, is the former Tesla Model S chief engineer and their first vehicle is an electric luxury sedan designed to compete with gas poweredofferings like the Mercedes “S Class”. The company is financed by several Chinese investors and a recent $1 billion investment from a Saudi Arabian equity fund. (Local presence= Phase 1- 820,000 Sq. ft.; Warehouse/manufacturing plant to be completed late 2020)

Daisy Dairy Products – For more than four generations, Daisy Brand has been a family-owned company committed to providing the freshest, most wholesome dairy products. The company is headquartered in Dallas, Texas with manufacturing facilities in Garland, Texas, Casa Grande, Arizona, and Wooster, Ohio. (Local presence= 154,024 Sq. ft.; Warehouse Built in 2007)

Walmart Distribution Center – is an American multi-national retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores, headquartered in Bentonville, Arkansas. (Local presence= 488,600 Sq. ft.; Warehouse Built in 2002)

Monsanto (Owned by Bayer) – an American agrochemical and agricultural biotechnology corporation founded in 1901. In 2018, it was acquired by Bayer as part of its crop science division. It was headquartered in Creve Coeur, Missouri. (Local presence= 37,500 Sq. ft.; Warehouse built in 2008)


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MARKET

COMPARABLES

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SALES COMPARABLES

Avg. $2.65

$0.00

$0.40

$0.80

$1.20

$1.60

$2.00

$2.40

$2.80

$3.20

$3.60

$4.00

Ash Ave. &Florence

Street

CentralArizona

CommercePark

Lawrence &Thornton

Thornton Rd& Hwy 84

Average Price Per Square Foot

Avg. $115,526

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

Ash Ave. &Florence

Street

CentralArizona

CommercePark

Lawrence &Thornton

Thornton Rd& Hwy 84

Average Price Per Acre

ON MARKET COMPARABLES ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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ON MARKET COMPARABLES

Asking Price $1,138,000

Down Payment $1,138,000

Down Payment % 100%

Price/SF $2.32

Lot Size (Acres) 11.27 acre(s)

Price/Acre $100,976

ASH AVE. & FLORENCE STREET716 W Ash Ave, Casa Grande, AZ, 85193

ENTITLED: NO | PERMIT READY: NO

1

On Market

Days On Market 210

List Price $2,200,000

Zoning I-1

Price/SF $3.05


Price/Acre $132,850

CENTRAL ARIZONA COMMERCE PARKBurris Road & Peters Road, Casa Grande , AZ, 85193

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On Market


Price/SF $2.97

Lot Size (Acres) 17

Price/Acre $129,412

LAWRENCE & THORNTONNW Lawrence St & Thornton Dr, Casa Grande, AZ, 85222

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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ON MARKET COMPARABLES

3

On Market


Price/SF $1.94


Price/Acre $84,317

THORNTON RD & HWY 84Sw Corner of Thornton Rd and Hwy 84, Casa Grande, AZ, 85122


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MARKET

OVERVIEW

MARKET OVERVIEW

PHOENIXOVERVIEW

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The Phoenix metro is often referred to as the Valley of the Sun andconsists of Maricopa and Pinal counties. The region is hemmed in bymountains to the north and east. American Indian reservations to theeast and south limit development in those directions, leaving thesoutheastern corridor and western half of the metro as the primarygrowth areas. The most populous city is Phoenix, which encompassesabout 520 square miles, is the capital city and boasts a population ofnearly 1.6 million. Interstate 10 is a major trucking route directlyconnecting the region to Southern California, which is supporting agrowing distribution industry. Various rail and air lines connect themetro to cities around the world.

MARKET OVERVIEW

METRO HIGHLIGHTS

EMPLOYMENT GROWTHJob gains will increase faster than the national rate during the next five years, drawing new residents to the metro.

HIGH-TECH MANUFACTURING BASEIntel Corp., Motorola Inc., Honeywell and others have large Phoenix operations, attracting additional companies serving these corporations.

ACTIVE TOURISM INDUSTRYWarm winters and amenities including golf courses and resorts draw vacationers.


MARKET OVERVIEW

ECONOMY Phoenix claims multiple Fortune 500 headquarters, including Freeport-McMoRan, Magellan

Health, Republic Services, ON Semiconductor, Insight Enterprises and Avnet. The construction, high-tech manufacturing, healthcare and tourism industries dominate the

Phoenix economy. Healthcare is a critical industry, with around 20 hospitals and the UA medical school located in

the metro. Also, the Mayo Clinic has added multiple facilities located throughout the Valley.

MAJOR AREA EMPLOYERS

Banner Health

JPMorgan Chase & Co.

Arizona State University

Wells Fargo

Intel Corp.

Mayo Clinic Hospital

Arizona Public Service

Freeport-McMoRan

Bank of America

American Express * Forecast

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HEALTH SERVICESEDUCATION AND

AND UTILITIESTRADE, TRANSPORTATION

+19%

SHARE OF 2018 TOTAL EMPLOYMENT

MANUFACTURING6%

GOVERNMENT

OTHER SERVICES 3%

LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES

CONSTRUCTION

PROFESSIONAL ANDBUSINESS SERVICES

2%INFORMATION

17%

6%

11% 11% 9%

15%

MARKET OVERVIEW

DEMOGRAPHICS

SPORTS

EDUCATION

ARTS & ENTERTAINMENT

The metro is expected to add almost 475,000 people over the next five years, resulting in the formation of nearly 200,000 households.

A median home price of nearly $275,000 allows 62 percent of households to own a home, which is slightly below the national homeownership rate.

Roughly 29 percent of people age 25 and older hold bachelor’s degrees and 10 percent also obtained a graduate or professional degree.

Phoenix offers a lower cost of living than other metros its size, a moderate climate and a

variety of recreational and cultural options. In addition to outdoor activities, 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.

Phoenix is home to the world-famous Heard Museum and Frank Lloyd Wright’s Taliesin

West. Music venues include Phoenix Symphony Hall and the Orpheum Theatre. Higher-

education institutions include Arizona State University, Grand Canyon University and

community colleges.

QUALITY OF LIFE

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* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau


2018 Population by Age

0-4 YEARS

7%5-19 YEARS

20%20-24 YEARS

7%25-44 YEARS

27%45-64 YEARS

24%65+ YEARS

15%

36.62018

MEDIAN AGE:

U.S. Median:

38.0

$59,3002018 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:

$58,800

4.7M2018

POPULATION:

Growth2018-2023*:

10.0%

1.7M2018

HOUSEHOLDS:

11.4%

Growth2018-2023*:

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2019 Experian

Created on January 2020

POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 3,671 34,756 59,236

2018 Estimate


2010 Census


2000 Census


Daytime Population

2018 Estimate 4,194 36,020 56,698

HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 1,144 12,757 21,916

2018 Estimate


Average (Mean) Household Size 3.09 2.78 2.74

2010 Census

Total Households 990 10,521 17,252

2000 Census


HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate

$250,000 or More 0.71% 0.93% 1.07%

$200,000 - $249,999 0.67% 0.61% 0.54%

$150,000 - $199,999 0.37% 1.99% 2.59%

$125,000 - $149,999 1.60% 2.50% 2.79%

$100,000 - $124,999 5.86% 6.77% 7.15%

$75,000 - $99,999 9.85% 10.95% 12.16%

$50,000 - $74,999 16.86% 18.91% 20.35%

$35,000 - $49,999 15.07% 14.30% 15.01%

$25,000 - $34,999 12.09% 12.02% 12.70%

$15,000 - $24,999 16.33% 13.74% 11.49%

Under $15,000 20.58% 17.29% 14.15%

Average Household Income $48,486 $55,511 $59,366

Median Household Income $35,842 $41,062 $46,261

Per Capita Income $14,591 $19,850 $21,487

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PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS


Created on January 2020

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population by Age

0 to 4 Years 6.26% 5.62% 5.45%

5 to 14 Years 16.01% 14.19% 13.85%

15 to 17 Years 4.90% 4.16% 4.09%

18 to 19 Years 2.72% 2.38% 2.29%

20 to 24 Years 7.65% 6.73% 5.98%

25 to 29 Years 6.64% 6.56% 5.82%

30 to 34 Years 5.44% 5.48% 5.38%

35 to 39 Years 5.44% 5.25% 5.38%

40 to 49 Years 13.09% 11.29% 11.05%

50 to 59 Years 12.76% 12.51% 12.32%

60 to 64 Years 4.72% 5.81% 6.29%

65 to 69 Years 4.43% 5.92% 6.85%

70 to 74 Years 3.36% 5.16% 5.88%

75 to 79 Years 2.61% 3.99% 4.40%

80 to 84 Years 1.63% 2.53% 2.67%

Age 85+ 2.35% 2.45% 2.30%

Median Age 35.36 39.67 41.60

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population 25+ by Education Level

2018 Estimate Population Age 25+ 2,181 20,972 34,878

Elementary (0-8) 11.74% 6.00% 5.72%

Some High School (9-11) 17.82% 12.75% 11.13%

High School Graduate (12) 31.79% 31.20% 30.30%

Some College (13-15) 22.72% 25.14% 26.35%

Associate Degree Only 4.55% 7.84% 8.41%

Bachelors Degree Only 5.77% 9.32% 10.39%

Graduate Degree 3.26% 5.93% 6.16%

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IncomeIn 2019, the median household income for your selected geography is$35,842, compare this to the US average which is currently $58,754.The median household income for your area has changed by 20.19%since 2000. It is estimated that the median household income in yourarea will be $39,581 five years from now, which represents a changeof 10.43% from the current year.

The current year per capita income in your area is $14,591, comparethis to the US average, which is $32,356. The current year averagehousehold income in your area is $48,486, compare this to the USaverage which is $84,609.

PopulationIn 2019, the population in your selected geography is 3,492. Thepopulation has changed by 2.25% since 2000. It is estimated that thepopulation in your area will be 3,671.00 five years from now, whichrepresents a change of 5.13% from the current year. The currentpopulation is 47.95% male and 52.05% female. The median age of thepopulation in your area is 35.36, compare this to the US averagewhich is 37.95. The population density in your area is 1,111.70 peopleper square mile.

HouseholdsThere are currently 1,047 households in your selected geography. Thenumber of households has changed by 1.85% since 2000. It isestimated that the number of households in your area will be 1,144five years from now, which represents a change of 9.26% from thecurrent year. The average household size in your area is 3.09persons.

EmploymentIn 2019, there are 1,590 employees in your selected area, this is alsoknown as the daytime population. The 2000 Census revealed that42.31% of employees are employed in white-collar occupations in thisgeography, and 58.25% are employed in blue-collar occupations. In2019, unemployment in this area is 8.71%. In 2000, the average timetraveled to work was 18.00 minutes.

Race and EthnicityThe current year racial makeup of your selected area is as follows:52.91% White, 4.56% Black, 0.34% Native American and 0.47%Asian/Pacific Islander. Compare these to US averages which are:70.20% White, 12.89% Black, 0.19% Native American and 5.59%Asian/Pacific Islander. People of Hispanic origin are countedindependently of race.

People of Hispanic origin make up 64.68% of the current yearpopulation in your selected area. Compare this to the US average of18.01%.

PROPERTY NAME

MARKETING TEAM


HousingThe median housing value in your area was $116,475 in 2019,compare this to the US average of $201,842. In 2000, there were 615owner occupied housing units in your area and there were 413 renteroccupied housing units in your area. The median rent at the time was$405.


DEMOGRAPHICS

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DEMOGRAPHICS

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TRAFFIC COUNT

YEAR COUNT

2016 9,224

2016 3,106

2016 962

MARKETING PLAN

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LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX


PRICING AND VALUATION MATRIX


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MARKET OVERVIEW


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Offering Memorandum · 10 Frito Lay - is an American subsidiary of PepsiCo that manufactures,...

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