Subject Property 4932 W. Pasadena Ave. Glendale, AZ 85301

Transcription

1 DAUM OFFERING MEMORANDUM Subject Property 4932 W. Pasadena Ave. Glendale, AZ Exclusively Listed By: Carl Johnson Vice President DAUM Commercial Real Estate Services 1702 E. Highland Ave. Suite 120 Phoenix, AZ D/AQ Corp. #

2 DAUM TABLE OF CONTENTS Executive Summary I Offering Summary Investment Highlights Offer Submission Process Property Description II Site Description Site Plan Area Map Local Aerial Financial Overview III Financial Overview Cash Flows Rent Roll Market Overview IV DAUM Research-Third-Quarter 2015 Industrial $1,000,000-$3,000,000 Investment Properties Offered for Sale Area Overview Glendale, AZ Demographic Profile V

3 DAUM CONFIDENTIAL MEMORANDUM AND DISCLAIMER DAUM has been retained as the exclusive advisor and broker regarding the sale of 4932 West Pasadena, Glendale, AZ (the Property ). This Offering Memorandum has been prepared by DAUM for use by a limited number of parties and does not purport to provide a completely accurate summary of the Property or any of the documents related thereto, 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 DAUM, the Owner, and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and, therefore, are subject to variation. No representation is made by DAUM or Owner 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 correct, Owner and Owner s employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, DAUM, Owner, and owner s employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omission from, this Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. This Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the package. Analysis and verification of the information contained in this package is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the Property will be made available upon written request from interested and qualified prospective investors. Owner and DAUM each expressly reserve the right, at their sole discretion, to re-ject any and all expressions of interest or offers regarding the Property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase of the Property has been fully executed, delivered, and approved by Owner and its legal counsel, and any conditions to Own-er s obligations thereunder have been satisfied or waived. DAUM is not authorized to make any representations or agree-ments on behalf of Owner. This Offering Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein are called the Contents ), are of a confidential nature. By accepting the package, you agree (i) to hold and treat it in the strictest confidence, (ii) not to photocopy or duplicate it, (iii) not to disclose the package 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 Owner or DAUM, (iv) not use the package or any of the contents in any fashion or manner detrimental to the interest of Owner or DAUM, and (v) to return it to DAUM immediately upon request of DAUM or Owner. If you have no further interest in the Property, please return this Offering Memorandum forthwith. DAUM Commercial Real Estate 1702 E. Highland Ave., Suite 120 Phoenix, AZ 85016

4 Section 1 EXECUTIVE SUMMARY

5 DAUM EXECUTIVE SUMMARY Offering Summary Actual Income Pricing: $2,100,000 Total GLA: 50,000 SF In-Place NOI: $168,000 In -Place Cap-Rate: 8% Price PSF: $/ SF No. of Tenants: 1 Occupancy: 100% Site Area: 5 Acres Year Built: 1973 The subject property consists of a 50,000+ square foot, masonry building situated on 5 acres. All utilities are at the site and the property is zoned M-2, (Glendale Heavy Industrial). This property is leased to PROLOGIX, a logistics and supply chain company specializing in transportation, warehousing and distribution. PROLOGIX has over 1,900 employees and operates out of 16 Distribution Centers, 1.7 million square feet of warehouse area and 56 Depots across North America. PROLOGIX, or a predecessor company, has continuously occupied this facility since The facility serves PROLOGIX S needs well and we expect the company to remain in this facility for the foreseeable future. The 5 acre site is not fully utilized by the building and approximately 2 acres remain undeveloped. At typical industrial building coverage of 35%, this site could accommodate a 76,000 square foot building. Conversely, should the purchaser of this investment property desire to sell the excess acreage, its value today is approximately $435,000 ($5/SF). The Offering Price of $2,100,000 ($42/SF) is significantly below its replacement cost, $28/SF below the Third Quarter 2015 Phoenix Industrial Market $70/SF average sales price, and less than half of the average PSF offering price of comparable industrial investment properties in the Greater Phoenix Area! In the opinion of the Exclusive Listing Agent, $14,000 per month NNN is at market. Effective September 2015, PROLOGIX extended its lease for an additional 3 years, through October 31, The average rent of this three year term produces an 8% CAP RATE and judging by the past 40+ years, we expect PROLOGIX to remain. With the Greater Phoenix Area real estate market and business climate improving, we expect the net income produced by this asset to grow along with this dynamic Sun Belt market.

6 DAUM INVESTMENT HIGHLIGHTS Attractive Investment Opportunity Features Quality tenant Tenants Continuing Occupancy Since 1972 NNN Lease Asking Price Significantly Below Replacement Cost $336,000 Property Restoration Tenant Improvement in 2013 Centrally Located Land for expansion / additional parking

7 DAUM OFFER SUBMISSION PROCESS Offers should include information on the Buyer and description of funding for the transaction. Any information on other similar properties acquired or owned would be helpful. Please submit all requests and offers to: Carl Johnson Vice President

8 Section 2 PROPERTY DESCRIPTION

9 DAUM SITE DESCRIPTION Property Address: 4932 W. Pasadena Ave. Glendale AZ Year Built: 1973 Land Size Parcel APN: Building SF: Power: Current Zoning: Type of Construction: 5 Acres (217,800 SF) C 50,000 SF 1,600 Amps, 3 Phase M-2 (Glendale Heavy Industrial) Masonry

10 DAUM PARCEL MAP

11 DAUM AREA MAPS

12 DAUM LOCAL AERIAL

13 DAUM PROPERTY PHOTOGRAPHS

14 DAUM FINANCIAL PROPERTY OVERVIEW PHOTOGRAPHS FINANCIAL OVERVIEW Dock High Loading & Covered Storage Area Loading Dock with (7) 10 x 10 Doors

15 Section 3 FINANCIAL OVERVIEW

16 DAUM FINANCIAL OVERVIEW Daum Commercial Real Estate Services 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.

17 DAUM TENANT OVERVIEW ABOUT PROLOGIX ProLogix is an end-to-end logistics and supply chain partner specializing in transportation, warehousing and distribution. Our 1,900 plus employees work across the country in our Distribution Centers, Depots, and offices ensuring the efficient and timely movement of our customers' inventory from point A to point B and back if necessary. Prologix has been supplying retailers across North America with magazines and books on a weekly basis since ProLogix By the Numbers 16 Distribution Centers in the US 1.7 Million Square Feet of Warehouse Space 56 Depots 587 Delivery Vehicles 1.2 Million Annual Deliveries

18 Section 4 MARKET OVERVIEW

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26 Sort By: City = Phoenix Address City Property Info Sale Info N 18th Dr Phoenix 4006 S 21st St Phoenix 1930 N 22nd Ave Phoenix N 23rd Ave Phoenix N 27th Ave Phoenix 2 N 35th Ave Phoenix 3439 S 40th St Phoenix 4239 S 43rd Pl Phoenix 3324 E Atlanta Ave Phoenix 3617 W Cambridge Ave Phoenix 2727 W Grovers Ave Phoenix 3143 W Lewis Ave Phoenix W Lone Cactus Dr Phoenix 1720 W Parkside Ln Phoenix 2113 W Parkside Ln Phoenix 12,243 SF Industrial Building Sale Price: $1,493,646 25,884 SF Industrial Building Sale Price: $2,303,676 30,158 SF Industrial Building Sale Price: $1,250,000 22,467 SF Industrial Building Sale Price: $1,950,000 10,293 SF Industrial Building Sale Price: $1,100,000 36,624 SF Industrial Building Sale Price: $2,160,816 20,238 SF Industrial Building Sale Price: $1,800,000 34,448 SF Industrial Building Sale Price: $2,950,000 21,400 SF Industrial Building Sale Price: $1,950,000 20,851 SF Industrial Building Sale Price: $1,812,000 22,875 SF Industrial Building Sale Price: $3,000,000 24,780 SF Industrial Building Sale Price: $1,825,000 14,636 SF Industrial Building Sale Price: $1,600,000 18,640 SF Industrial Building Sale Price: $2,670,730 22,618 SF Industrial Building Sale Price: $2,600,000 Copyrighted report licensed to DAUM Commercial Real Estate Services /19/2015 Page 1

27 Address City Property Info Sale Info Sort By: City = Phoenix E Wood St Phoenix 20,280 SF Industrial Building Sale Price: $1,550,000 Copyrighted report licensed to DAUM Commercial Real Estate Services /19/2015 Page 2

28 Address City Property Info Sale Info Sort By: City = Tempe S Hohokam Dr Tempe 2317 W Huntington Dr Tempe 22,280 SF Industrial Building Sale Price: $1,900,000 12,220 SF Industrial Building Sale Price: $1,270,000 Copyrighted report licensed to DAUM Commercial Real Estate Services /19/2015 Page 3

29 Section 5 AREA OVERVIEW

30 DAUM AREA OVERVIEW Glendale, AZ Demographics As of the census of 2000, there were 218,812 people, 75,700 households, and 54,352 families residing in the city. The population density was 3,929.5 people per square mile (1,517.3/km²). There were 79,667 housing units at an average density of 1,430.7 per square mile (552.4/km²). The racial makeup of the city was 75.54% White, 4.70% Black or African American, 1.45% Native American, 2.74% Asian, 0.13% Pacific Islander, 11.97% from other races, and 3.47% from two or more races % of the population were Hispanic or Latino of any race. There were 75,700 households out of which 39.9% had children under the age of 18 living with them, 53.5% were married couples living together, 12.8% had a female householder with no husband present, and 28.2% were non-families. 21.3% of all households were made up of individuals and 5.8% had someone living alone who was 65 years of age or older. The average household size was 2.85 and the average family size was In the city the population was spread out with 30.1% under the age of 18, 10.8% from 18 to 24, 31.9% from 25 to 44, 19.9% from 45 to 64, and 7.4% who were 65 years of age or older. The me-dian age was 31 years. For every 100 females there were 99.6 males. For every 100 females age 18 and over, there were 97.1 males.

31 DAUM AREA OVERVIEW Glendale, AZ In the late 1800s what is now known as Glendale, Arizona, was all desert. William John Murphy, a native of New Hartford, New York who resided in the town of Flagstaff in what was then known as the territory of Arizona, was in charge of building a 40-mile long Arizona Canal from Granite Reef to New River for the Arizona Canal Company. He completed the canal, which would bring water to the desert land, in Murphy was deep in debt, since he had agreed to be paid in Arizona Canal Company stock and bonds and land instead of cash. Arizona's Antique Capital Glendale bills itself as "Arizona's Antique Capital", with support for its claim from both Sunset magazine (2004 ) and a 1998 article in USA Today. Glendale is home to the popular Arrowhead Towne Center mall in the northwest part of the city. Glendale also is home to Midwestern University, metropolitan Phoenix's first medical school, as well as a major post-graduate international business school: the Thunderbird School of Global Management. An extension of METRO light rail service is planned to serve the city, opening in 2026, reprising a role played by the Phoenix Street Railway between 1911 and Glendale is the site of two major sports venues: University of Phoenix Stadium and Gila River Arena. Both venues are part of the Glendale Sports and Entertainment District development plan, meant to spur growth in the sparsely inhabited Yucca district. Both venues are owned by the City of Glendale. University of Phoenix Stadium is the home field of the Arizona Cardinals of the NFL. The team formerly played at Sun Devil Stadium on the campus of Arizona State University in nearby Tempe, and in 2006 they moved to University of Phoenix Stadium. Designed by architect Peter Eisenman, the stadium was featured on The History Channel TV series, Modern Marvels because of its roll-out natural grass. Gila River Arena (formerly Glendale Arena, then Jobing.com Arena) and Westgate City Center is adjacent to University of Phoenix Stadium, and is the home of the Arizona Coyotes of the National Hockey League (NHL). It was also the home of the now defunct Arizona Sting of the National Lacrosse League (NLL). The inaugural Street League Skateboarding event was held in the summer of 2010 in Glendale, Arizona at the Gila River Arena. This street skateboarding competition returns to Glendale annually.

32 DAUM AREA OVERVIEW Glendale, AZ EMPLOYMENT Organization Employees Description Private Employers Banner Health System 3,000 Hospital Arrowhead Hospital 1,000 Hospital CSAA/AAA 1,067 Auto Service Administrative Office Honeywell Aerospace 830 Satellite and Space Systems mfg Humana Healthcare 849 Mail Order Pharmacy Empereon Constar 800 Customer Service operation Midwestern University 661 Medical University Ace Building Maintenance Co 600 Building and office cleaning services Bechtel Corporation 375 Administrative Office Conair Corporation 320 Consumer Products Retail Employers Arrowhead Mall 2,650.0 Regional Mall Wal-Mart - multiple locations 2,175.0 Department stores Westgate 1,175.0 Entertainment District Tanger Outlets 1,200.0 Outlet Mall Sanderson Ford Auto Dealership Public Employers US Air Force - Luke AFB 5,100 F-16/F-35 training base DVUSD #97 1,594 Elementary and secondary schools GU High School Dist. #205 1, 974* Secondary schools Glendale Community College 1,948 Colleges and universities GE School District #40 1,400 Elementary and secondary schools *District wide Source: City of Glendale

33 DAUM OFFERING MEMORANDUM LOS ANGELES, CALIFORNIA 801 S. Figueroa Street, Suite 600 Los Angeles, CA LOS ANGELES NORTH, CALIFORNIA Burbank Boulevard, Suite 175 Woodland Hills, CA SANTA CLARITA VALLEY, CALIFORNIA Westinghouse Place, Suite 312 Valencia, CA SAN GABRIEL VALLEY, CALIFORNIA Crossroads Pkwy. N, Suite 175 City of Industry, CA SOUTH BAY, CALIFORNIA 1025 W. 190th Street, Suite 420 Gardena, CA ORANGE COUNTY, CALIFORNIA 4400 MacArthur Boulevard, Suite 950 Newport Beach, CA VENTURA & SANTA BARBARA, CALIFORNIA 751 Daily Drive, Suite 105 Camarillo, CA INLAND EMPIRE, CALIFORNIA 3595 E. Inland Empire Boulevard, Bldg. 5 Ontario, CA PHOENIX ARIZONA 1702 E. Highland Avenue, Suite 120 Phoenix, AZ MID-COUNTIES, CALIFORNIA Center Court Drive, Suite 220 Cerritos, CA DAUM