Value Add Shopping Center Investment · Seller and Broker make no representations or warranties as...

2415 E Camelback Road, Suite 400 Phoenix, AZ 85016

602-682-8100www.VelocityRetail.com

Darren PittsVelocity Retail [email protected]

For more information, please contact:

Richard [email protected]

Value Add Shopping Center Investment

OFFERING MEMORANDUM

NEC Van Buren St. & Litchfield Rd. Goodyear, AZ



Executive Summary

PROFORMA NOI

$432,508NOI

$210,919

PRICE PER SF

$69.45SITE AREA

5.49 ACRES

BUILDING SF

50,394

YEAR REMODELED

1996

IN PLACE CAP RATE

6.02%PRO FORMA CAP RATE

9.1%

PRICE

3.5M



Investment Highlights

Velocity Retail Group and Beta are pleased to offer to the retail investment marketplace this net leased value-add investment in Goodyear, Arizona. This is an excellent opportunity for an investor to acquire an attractive, low-risk asset located in the highly desirable Estrella Regional Trade area. The 50,394 +/- square foot building, on a 5.49 acre parcel was built in 1996.

Value Add Opportunity | Acquiring this asset allows an investor to realize existing cash flow from a recently renewed Big Lots store (5 year term) plus increased cash flow and value by leasing the vacant 22,894 square feet adjacent to Big Lots. The space can be taken by a single user, or demised into two spaces with two separate prominent entrances.

Retail Trade Area Overview | Goodyear is located in the southwest quadrant of Metropolitan Phoenix, only 20 minutes from downtown. The city has an expansive geography spanning nearly 25 miles from north to south. The northern boundary begins north of Interstate 10 at Camelback Road and extends south into the Estrella and Maricopa mountains. On the southern side of Interstate 10 is the Estrella Mountain Ranch master planned community which encompasses roughly 20,000 acres, and will have 50,000 housing units upon completion. On the north side of Interstate 10 are Pebble Creek, and Palm Valley two established 55+ master planned communities spanning roughly 5,000 acres each.

Goodyear | Boasts a strong employment base of varied industries including health care, aerospace / aviation, internet fulfillment, distribution, and manufacturing. Amazon and Macy’s have large fulfillment operations in Goodyear which employ over 2,000 people. Cancer Treatment Centers of America and Abrazo West Campus employ more than 1,800 people. The I-10 Corridor and the Loop 303 Corridor are garnering employers relocating from California to escape rising costs and governmental restrictions. The Interstate 10 Freeway has 169,700 cars per day at the full diamond interchange at Litchfield Road. Van Buren Street has 32,960 cars per day, and Litchfield Road has 42,084 cars per day.

Goodyear offers the advantages of a small community, with all the cultural and entertainment resources of metro Phoenix nearby.



Big Lots Lease Summary

TENANT: PNS STORES, INC., dba Big Lots

LOCATION: 409 N. Litchfield Road , Goodyear, AZ 85338

PREMISES: 27,500 SF

LEASE TERM: Big Lots original Ten-year lease Term: February 1, 2009 through January 31, 2019

OPTIONS:4 (5) year optionsTenant has 2 additional five year options to renew under the terms of this lease

RENTAL INCREASES: 10% Every 5 Years

LEASE COMMENCEMENT DATE: February 1, 2009

LEASE EXPIRATION DATE: January 31st, 2024

North America’s #1 broad-line closeout retailer with 1,400+ locations (34 in Arizona), generating $5.3 billion in sales revenue (Fiscal Year End 2017).

Big Lots was founded in 1967 as a community retailer by Sol Shenk, now considered one of the true visionaries in the discount retail marketplace. In 2001 an array or store names and company identities were converted to a single national brand: Big Lots. A common national brand represents consistency and buying power, as well as providing a shared nation-wide company culture.

Since their entrance into discount retailing, Big Lots core purpose of helping people save money on all kinds of products has stayed the same. Today, they offer an extensive assortment of brand-name items and quality products to meet the expanded needs of their customer, while fulfilling their mission to “serve everyone like family”.

Tenant Summary



# OF LOCATIONS

1,416

FOUNDED

1967

# OF EMPLOYEES

35,000

2017 SALES

5.3B



Phoenix Metro Location Map



Trade Area Aerial

Parcel Map

= Parcel = Building

N. L

ITC

HFI

ELD

RD

.

W. VAN BUREN ST.



VACANT

Site Plan



= Parcel = Building

VACANT

Demographics



Offering Disclaimer



The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsi-ble. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, expressed or im-plied, is being made by Velocity Retail Group, LLC. And Beta Retail, Inc (“Brokers”) or 409 North Litchfield Road, LLC (“Seller”) or any of their respective representatives, affiliates, officers, employees, partners and directors, as to the accuracy or completeness of the information contained herein nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire. All projections have been developed by Broker or Seller, and are based upon assumptions relating to the general economy, competition and other factors beyond Broker’s control, which there-fore make the contents of same subject to variation. Broker or Seller make no representation as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Seller, its agents and employees, disclaim any responsibility for inaccuracies and suggest prospective purchasers exercise independent due diligence in verifying all such information. Further, Broker, Seller, its agents and employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a represen-tation that there has been no change in the business or affairs of the Property since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained herein is solely the responsibility of the prospective purchaser. 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 outline some of the principal provisions contained therein. Neither the Brokers nor Seller shall have any liability whatsoever for the accuracy or completeness of the information contained or any other written or oral communication or information transmitted to 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. Interested buyers should be aware that the seller is selling the property in its “as is” condition with all faults, without representations or warranties of any kind or nature. Prior to and after contracting to purchase, as appropriate, buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of the buyer’s choosing. The information provided herein and which may hereafter be provided with respect to the property being marketed was obtained from a variety of sources. Neither Seller nor Broker have made any independent investigation or verification of the information presented or to be presented with respect to the property. Seller and Broker make no representations or warranties as to the accuracy or completeness of such information. Recipient acknowledges that it will solely rely upon the results of its own investigations notwithstanding the delivery of these materials.

Velocity Retail Group, LLC is a licensed real estate broker in the State of Arizona.

Investment Broker Profiles



Richard RizikaBeta

Partner & Co-Founderd 310-430-7790 x101

m 310-710-8175e [email protected]

Darren PittsVelocity Retail Group, LLCExecutive Vice President

d 602-682-6050m 602-300-2020

e [email protected]

Value Add Shopping Center Investment · Seller and Broker make no representations or warranties as...

Documents

Transcript of Value Add Shopping Center Investment · Seller and Broker make no representations or warranties as...