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Va l u e - a d d , m u lt i -t e n a n t i n v e s t m e n t o p p o r t u n i t ySWC Black Mountain Pkwy & Carefree Hwy | Phoenix, AZ
Table of Contents
INVESTMENT SUMMARYProperty Summary
PROPERTY OVERVIEWSite PlanRent RollProforma Rent
TENANT OVERVIEWKey Tenant Profiles
AREA OVERVIEWProperty PhotosAerialsRent ComparablesDemographics
CONTACT
4
5
10
12
21
3131 East Camelback Road, Suite 340Phoenix, Arizona 85016P 602-957-9800 F 602-957-0889www.pcainvestmentsales.com
Exclusively Listed by
Chad TiedemanSenior Managing Director(602) [email protected]
John SchweikertAssociate Vice President(602) [email protected]
PRIMARY CONTACT
4 | The Shops at Dove Valley
Property Summary Investment Highlights
Location highlights
OFFERING PRICE $6,250,000
NOI (PROFORMA) ±$624,655
PROFORMA CAP RATE 10.0%
TENANCY 18 Total Suites
PARCEL 211-60-969
OCCUPANCY 56% (Actual)
PRICE PER SF $160
LAND AREA ±1.88 Acres
ADDRESS
YEAR BUILT 2006-2007
BUILDING GLA ±38,925 SF
4705 E. Carefree Highway Cave Creek, AZ 85331
Notable tenants at the intersection including Fry’s grocery, Home Depot, Starbucks, UPS Store, Wendy’s, Papa John’s and Subway
Significant lease-up activity with three new leases and two lease expansions executed within the last 12 months totaling net absorption of 5,654 SF
Lease-up Trend – Ownership is currently negotiating LOI’s for an additional 5,000 feet of absorption – Rent growth momentum with 2017 new leases increasing to $16.44 from $13.74 in 2016
Value-add opportunity upon lease-up providing excellent potential to significantly increase NOI
Regional draw to the intersection with limited retail, restaurant and service-based retail in the immediate trade area
High quality, attractive construction with built-out suites ready for immediate occupancy
Significantly below replacement cost by nearly 40%
High income demographics with average household income over $127,000 within a 5-mile radius
Located within the 850 acre Dove Valley Ranch master-planned golf community
½-mile from the Dove Valley Ranch Golf Club, an 18-hole championship course
Strong daytime employment with nearly 14,000 employees and nearly 2,000 businesses within a 5-mile radius
Excellent access and visibility from both Black Mountain Parkway and Carefree Highway
The Shops at Dove Valley | 5
Site Plan
N
CLICK HERE FORPROPERTY VIDEO
site plan notdrawn to scale
N
SHOP SPACE AVAILABLESWC Black Mountain Pkwy & Carefree Hwy| Cave Creek, AZ
The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only, and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. [ ] AUG 18, 2017
ContactNick [email protected]
Site Plan
BLA
CK
MO
UN
TAIN
PAR
KW
AY
CAREFREE HIGHWAY ±21,315 VPD
1,308
SF1,2
39 SF
3,413
SF
2,261
SF1,2
60 SF
1,217 SF
PinkyNails
Dental
3,702 SF2,437 SF1,329 SF
6 | The Shops at Dove Valley
The Shops at Dove Valley | 7
8 | The Shops at Dove Valley
Rent Roll as of june 2017TENANT
NAMESQ.FT.
TENANTSINCE
LEASETERM
CURRENT ANNUAL
BASE RENT
ANNUAL RENT PER SF
ANNUAL ESTIMATED
NNN’S
INCREASES ON
INCREASESTO / BY
RENEWAL OPTIONS
Q to U BBQ* 2,401 Sep-16 Sep 2016 to Sep 2021 $33,614.00 $14.00 $11,823 Annually Up $0.50 None
Ray's Pizza 2,091 May-07 Jun 2016 to May 2021 $27,580.29 $13.19 $10,296 Annually 4% None
Yoga Breeze 2,640 Oct-12 Apr 2016 to Mar 2019 $34,320.00 $13.00 $11,304 Apr-18 $13.50 None
Zona's Oils* 1,269 Nov-16 Nov 2016 to Feb 2022 $16,497.00 $13.00 $5,960 Annually 3% None
Available 1,260 None
Ranch & Desert Realty* 950 Dec-16 Dec 2016 to Feb 2022 $12,350.00 $13.00 $4,494 Annually 10% None
Heart & Soul 5,225 Nov-12 May 2017 to Feb 2024 $82,868.50 $15.86 $17,162 Annually 3%Two, Five Yr Options
At FMV
Leslie's Pool 3,069 Jun-07 Dec 2017 to Dec 2022 $44,500.50 $14.50 $11,188 Annually 3%One, Five Yr Option
At FMV
Pinky Nails 2,379 Oct-10 Sep 2016 to Nov 2021 $36,826.92 $15.48 $6,798 Annually 3%One, Five Yr Option
At FMV
Abadi Dental 1,952 Jul-08 May 2017 to Jun 2023 $35,136.00 $18.00 $7,659 Annually 3% None
Available 1,308
Available 1,239
Available 1,323
Available 2,090
Available 2,261
Available 3,702
Available 2,437
Available 1,329
TOTAL SF 38,925 $323,693.21 $86,684
OCCUPANCY 56%
Total Base Rent $323,693
Expense Reimbursements $86,684
Total Income $410,377
Less Expenses $172,094
Net Operating Income $238,283
2016 Actual Expenses
CAM $66,018
Taxes $49,108
Insurance $14,896
Admin/Management $38,140
Non-Reimbursable Expenses $3,932
Total $172,094
*Reimbursements annualized based upon estimates in lease documents
The Shops at Dove Valley | 9
Proforma Rent RollTENANT
NAMESQ.FT.
TENANTSINCE
LEASETERM
CURRENT ANNUAL
BASE RENT
ANNUAL RENT PER SF
ANNUAL ESTIMATED
NNN’S
INCREASES ON
INCREASESTO / BY
RENEWAL OPTIONS
Q to U BBQ 2,401 Sep-16 Sep 2016 to Sep 2021 $33,614.00 $14.00 $11,823 Annually Up $0.50 None
Ray's Pizza 2,091 May-07 Jun 2016 to May 2021 $27,580.29 $13.19 $10,296 Annually 4% None
Yoga Breeze 2,640 Oct-12 Apr 2016 to Mar 2019 $34,320.00 $13.00 $11,304 Apr-18 $13.50 None
Zona's Oils 1,269 Nov-16 Nov 2016 to Feb 2022 $16,497.00 $13.00 $5,960 Annually 3% None
Projected Lease-Up 1,260 $22,680.00 $18.00 $5,632 None
Ranch & Desert Realty 950 Dec-16 Dec 2016 to Feb 2022 $12,350.00 $13.00 $4,494 Annually 10% None
Heart & Soul 5,225 Nov-12 May 2017 to Feb 2024 $82,868.50 $15.86 $17,162 Annually 3%Two, Five Yr Options
At FMV
Leslie's Pool 3,069 Jun-07 Dec 2017 to Dec 2022 $44,500.50 $14.50 $11,188 Annually 3%One, Five Yr Option
At FMV
Pinky Nails 2,379 Oct-10 Sep 2016 to Nov 2021 $36,826.92 $15.48 $6,798 Annually 3%One, Five Yr Option
At FMV
Abadi Dental 1,952 Jul-08 May 2017 to Jun 2023 $35,136.00 $18.00 $7,659 Annually 3% None
Projected Lease-Up 1,308 $23,544.00 $18.00 $5,846
Projected Lease-Up 1,239 $22,302.00 $18.00 $5,538
Projected Lease-Up 1,323 $23,814.00 $18.00 $5,913
Projected Lease-Up 2,090 $37,620.00 $18.00 $9,342
Projected Lease-Up 2,261 $40,698.00 $18.00 $10,106
Projected Lease-Up 3,702 $66,636.00 $18.00 $16,547
Projected Lease-Up 2,437 $43,866.00 $18.00 $10,893
Projected Lease-Up 1,329 $23,922.00 $18.00 $5,940
TOTAL SF 38,925 $628,775.21 $162,440
OCCUPANCY 100%
Total Base Rent $628,775
Expense Reimbursements $162,440
Total Income $791,215
Less Expenses $166,560
Net Operating Income $624,655
Estimated NNN Expenses*
CAM $54,005
Taxes $51,995
Insurance $15,350
Admin/Management $41,090
Non-Reimbursable Expenses $4,120
Total $166,560*Based on 2017 budget
10 | The Shops at Dove Valley
Key Tenant Profiles
Dubbed “The World’s Largest Retailer of Swimming Pool Supplies”, Leslie’s Swimming Pool Supplies offers comprehensive product lines and services aimed at offering the ultimate swimming pool experience. The retail chain boasts over 850 retail locations in 35 states across the U.S. and has been in business for over 50 years. Leslie’s has resided in the subject property for over 10 years.
WEBSITE www.lesliespool.com
OWNERSHIP Private
# OF LOCATIONS 850 Locations
GUARANTEE Corporate
Zona’s Oils offers a wide range of essential oil products and knowledge to assist with healthcare maintenance and spiritual well-being.
WEBSITE www.shopzonas.com
OWNERSHIP Private
# OF LOCATIONS 1 Location
GUARANTEE Personal
Ray’s Pizza is a local, family owned pizzeria that has been serving Cave Creek locals out of this location for over 10 years.
WEBSITE www.rayspizzaofcavecreek.com
OWNERSHIP Private
# OF LOCATIONS 4 Locations
GUARANTEE Personal
Yoga Breeze is an all-level yoga studio focusing on healing and wellness since 2012. With a 4.5 Yelp rating, Yoga Breeze proves itself as a reputable yoga studio in the Cave Creek area.
WEBSITE www.yogabreeze.com
OWNERSHIP Private
# OF LOCATIONS 1 Location
The Shops at Dove Valley | 11
Tenant Profiles
Award winning, slow smoked BBQ - your neighborhood family owned BBQ joint.
Ranch & Desert is a real estate company with 25 years’ experience focusing on relationship building and results for all clients.
Heart & Soul Café is a well-renowned, one-stop café for breakfast, lunch, and dinner. The restaurant has been featured on the Food Network and has won multiple awards at both local and state levels since its inception in 2012. Heart & Soul Café has since expanded within the shopping center.
Pinky Nails & Spa is Cave Creek’s local salon for all manicure & pedicure needs. Operating out of this location since 2010, Pinky Nails has since expanded within the shopping center.
WEBSITE www.q-to-u-bbq.com
OWNERSHIP Private
# OF LOCATIONS 1 Location
GUARANTEE Personal
WEBSITE www.ranchanddesert.com
OWNERSHIP Private
# OF LOCATIONS 1 Location
GUARANTEE Personal
WEBSITE www.heartandsoulcafeaz.com
OWNERSHIP Private
# OF LOCATIONS 1 Location
GUARANTEE Personal
WEBSITE N/A
OWNERSHIP Private
# OF LOCATIONS 1 Location
GUARANTEE Personal
14 | The Shops at Dove Valley
The Shops at Dove Valley | 15
16 | The Shops at Dove Valley
48TH STCAREFREE HWY
± 21,315 VPD
BLACK MOUNTAIN PKWY
The Shops at Dove Valley | 17
51
CAREFREE HWY
HAPPY VALLEY RD CAVE
CRE
EK R
D
SCOTTSD
ALE RD
UNION HILLS DR
E BELL RD
Shops at Norterra
Happy Valley Towne Center
Desert RidgeMarketplace
101 & Scottsdale
7TH ST
Deer Valley Airport
18 | The Shops at Dove Valley
SUN CITY WEST
PHOENIX
AVONDALE
PARADISEVALLEY
SCOTTSDALE
GLENDALE
PEORIA
SURPRISE
TEMPE
CHANDLER
GILBERT
MESA
QUEEN CREEK
GOODYEAR
LAVEEN
AHWATUKEE
FOUNTAINHILLS
DEER VALLEYAIRPORT
SCOTTSDALEAIRPARK
FALCONFIELD
PHOENIX-MESAGATEWAYAIRPORT
CHANDLERMUNICIPALAIRPORT
LUKEAIRFORCE
BASE WESTGATE
DESERT RIDGEMARKETPLACE
KIERLAND/SCOTTSDALE
QUARTER
SCOTTSDALEFASHION SQUARE
TEMPE MARKETPLACE
DANA PARK
SANTANVILLAGECHANDLER
FASHION CENTER
BILTMOREFASHION PARK
PHOENIXSKY HARBORINT. AIRPORT
ARROWHEAD
PHOENIXPREMIUMOUTLETS
SUPERSTITIONSPRINGS
MESA RIVERVIEW
PARADISEVALLEYMALL
1 2
45
6 7
3
SiteRent comps map
The Shops at Dove Valley | 19
SUN CITY WEST
PHOENIX
AVONDALE
PARADISEVALLEY
SCOTTSDALE
GLENDALE
PEORIA
SURPRISE
TEMPE
CHANDLER
GILBERT
MESA
QUEEN CREEK
GOODYEAR
LAVEEN
AHWATUKEE
FOUNTAINHILLS
DEER VALLEYAIRPORT
SCOTTSDALEAIRPARK
FALCONFIELD
PHOENIX-MESAGATEWAYAIRPORT
CHANDLERMUNICIPALAIRPORT
LUKEAIRFORCE
BASE WESTGATE
DESERT RIDGEMARKETPLACE
KIERLAND/SCOTTSDALE
QUARTER
SCOTTSDALEFASHION SQUARE
TEMPE MARKETPLACE
DANA PARK
SANTANVILLAGECHANDLER
FASHION CENTER
BILTMOREFASHION PARK
PHOENIXSKY HARBORINT. AIRPORT
ARROWHEAD
PHOENIXPREMIUMOUTLETS
SUPERSTITIONSPRINGS
MESA RIVERVIEW
PARADISEVALLEYMALL
INTERSECTION CORNER TENANT RENT TYPE SIZE
1 Black Mountain Pkwy and Carefree Hwy SEC Fry's $18.00-$31.00 NNN 1,283-2,015
2 Cave Creek Rd and Carefree Hwy W NWC NA $28.00 NNN 6,000
3 Tom Darlington and Carefree Hwy SWC Formerly Albertson's $20.00-$29.00 NNN 1,168-1,520
4 Cave Creek Rd and Desert Willow Pkwy SEC NA $18.00-$20.00 NNN 1,200-3,700
5 Cave Creek Rd and Lone Mountain Rd NEC Tutor Time $16.00-$18.00 NNN 1,200-1,679
6 Tatum and Cave Creek Rd NWC Safeway $22.00 NNN 1,200-4,500
7 Tatum and Cave Creek Rd SEC Fry's $24.00 NNN 1,000
Rent comparables
20 | The Shops at Dove Valley
Demographics
POPULATION GROWTH 10-MILE
2000
2010
2016
2021
86,601
162,486
179,912
194,701
HOUSEHOLD GROWTH 10-MILE
2000
2010
2016
2021
33,961
63,938
70,025
75,603
AVERAGE HOUSEHOLD INCOME 2016
BUSINESSES / EMPLOYEES 10-MILE
POPULATION BY AGE 10-MILE
Businesses
Employees
0-4
5-9
10-14
15-24
25-34
35-44
45-54
55-64
65-74
75-84
85+
6,795
66,651
6.2%
7.1%
7.1%
9.4%
10.5%
16.0%
16.0%
14.3%
8.9%
3.5%
1.0%
AVERAGE HOME VALUE 2016
1-Mile
3-Mile
5-Mile
10-Mile
$458,735
$541,065
$576,084
$513,448
1-Mile
3-Mile
5-Mile
10-Mile
$104,629
$125,037
$127,406
$125,119
The Shops at Dove Valley | 21
This Confidential Offering Memorandum has been prepared by Phoenix Commercial Advisors (PCA) for use by a limited number of parties whose sole purpose is to evaluate the possible purchase of the subject property. This Memorandum has been prepared to provide summary, 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 thorough due diligence investigation.
The information contained in this Memorandum has been obtained from sources we believe to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty, or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used, are for example only, and do not represent the current or future performance of the property. The value of this transaction to you depends on taxes and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine, to your satisfaction, the suitability of the property for your needs. All potential buyers must take appropriate measures to verify all of the information set forth herein. Both Phoenix Commercial Advisors (PCA) and the Owner disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. The contained information is subject to change at any time and without notice. The recipient of the Memorandum shall not look to the Owner or Phoenix Commercial Advisors (PCA) for the accuracy or completeness of this Memorandum.
A prospective purchaser must make its own independent investigations, projections, and conclusions regarding the acquisition of the property without reliance on this Memorandum or any other Confidential Information, written or verbal, from the Broker or the Seller. The Owner expressly reserves the right, at its sole discretion, to reject any offer to purchase the property or to terminate any negotiations with any party, at any time, with or without written notice. Only a fully-executed Real Estate Purchase Agreement, approved by Seller, shall bind the property. Each prospective purchaser and/or broker proceeds at its own risk.
All property showings are by appointment only.
Confidentiality StatementChad TiedemanSenior Managing Director(602) [email protected]
Exclusively Listed by
3131 East Camelback Road, Suite 340Phoenix, Arizona 85016P 602-957-9800 F 602-957-0889www.pcainvestmentsales.com
Chad TiedemanSenior Managing Director
(602) [email protected]
John SchweikertAssociate Vice President
(602) [email protected]
PRIMARY CONTACT
