corporate headquarterspdf.leeazmail.com/pdfs/industrial/brochures/mds_om_cs6.pdfstreet map 87 85 60...

STEIN J. KOSS, [email protected]

TOM B. LOUER, [email protected]

OFFERING MEMORANDUM

CORPORATE HEADQUARTERS545 WEST JUANITA AVE. Mesa, Arizona 85210

KOSS LOUER TEAM

TABLE OF CONTENTS

03 EXECUTIVE SUMMARY

09 MARKET OVERVIEW


LEE & ASSOCIATES ARIZONA

TOM B. LOUER, [email protected]

2 545 W. JUANITA AVE.

EXECUTIVE SUMMARY

3OFFERING MEMORANDUM

Lee & Associates have been retained as the exclusive representative to offer qualified investors the opportunity to purchase a single Tenant office building located in Mesa, Arizona. Located one quarter mile South of US 60 and Country Club Drive 545 W. Juanita Avenue was built for MDS Communications in 2002.

MDS provides a complete array of telephone fundraising services for non-profit and political organizations. Outstanding results, unparalleled quality, reasonable prices and attentive customer service have led many of the nation’s largest and most respected non-profit and political organizations to partner with MDS Communications.

MDS Communications is one of the nation’s largest telephone fundraising providers. In fact, based upon state regulatory reporting websites, MDS has more registered non-profit clients than any other company in the country.

MDS was founded in 1992 by Jay Mount in Phoenix, Arizona. In 2010 MDS purchased the building it had been renting since 2002. MDS has over 400 employees. MDS utilizes state of the art technology in the services we provide our clients and is PCI compliant. We serve over 100 national and regional non-profit organizations, the vast majority of which have been with us for many years.

MDS’s specialty is telephone fundraising for non-profit and political organizations, both outbound and inbound. In fact that is our SOLE focus. We do not work in for-profit commercial sales for the simple fact that we want to be the best at what we do!

THE OFFERING


Address: 545 West Juanita Ave. Mesa, Arizona 85210

Property Type: Office Building

Total Size: + 17,920 SF

Site Acreage: + 2.5 acres (108,800 SF)

Parking: 6/1,000 SF - + 107 spaces

Year Built: June 2002

Occupancy: 545 West Juanita Ave. is 100% leased to a single tenant - MDS Communications Corp.

Lease Start Date: May 1, 2010

Lease End Date: April 30, 2020

Rent Schedule: 5/1/16 - 4/30/17 $20,537.70 Triple Net 5/1/17 - 4/30/18 $21,153.83 Triple Net 5/1/18 - 4/30/19 $22,788.44 Triple Net 5/1/19- 4/30/20 $22,442.09 Triple Net

NOI - As of May 2016: $246,452.40

Security Deposit: None

Tenant Responsibilities: 100% NNN Lease. Tenant responsible for all maintenance and repairs for life of the lease, including roof and structure. Options to Renew: Two (2) five (5) year options at Fair Market Value. Comments: Owner will consider extending lease term.

PROPERTY DESCRIPTION & LEASE ABSTRACT

5EXECUTIVE SUMMARY

• Building was built in 2002 for MDS Communications

• Seller will agree to extend lease to give buyer a five (5) year term

• 100%, Net Leased to Single Tenant

• Two (2) five (5) year renewal options at Fair Market Value

• Excellent East Valley Location One 1/4 mile south of Country Club and US60

INVESTMENT HIGHLIGHTS


FLOOR PLAN

STREET MAP

87

85 60

202

101

101

101

303

303

51

202

202

Sky HarborInt'l Airport

Falcon Field Airport

Phoenix-MesaGateway Airport

Pric

e Fw

y.P

ima

Fwy.

Sun

Val

ley

Pkw

y.

Grand Ave.

Papago Fwy.

Maricopa Fwy.

Bla

ck C

anyo

n Fw

y.

Red Mountain Fwy.

Sun Valley Pkwy.

Santan Fwy.South Mountain Fwy.

Baseline Rd.

Dea

n R

d.

Wat

son

Rd.

Mill

er R

d.

Oge

lsby

Rd.

VAL

VIS

TA D

R.

PO

WE

R R

D.

MESA

CHANDLERGILBERT

AHWATUKEE

SUNCITY

GLENDALE

LITCHFIELDPARK

SUNCITY

WEST

FOUNTAINHILLS

BUCKEYE

PEORIA

TOLLESON

Gila River

Salt River

PHOENIX MCDOWELL RD.

Superstition Fwy.

RU

RA

L R

D.

SC

OTT

SD

ALE

RD

.

BEELINE HWY.

LINCOLN DR.GLENDALE AVE.

OLIVE AVE. SHEA BLVD.

CAMELBACK RD.

MCDONALD DR.

AR

IZO

NA

AVE

.

McQ

UE

EN

RD

.

CO

OP

ER

RD

.

GR

EE

NFI

ELD

DR

.

BASELINE RD.

THUNDERBIRD RD.

BUCKEYE RD.YUMA RD.

BROADWAY RD. BROADWAY RD.

JAC

KR

AB

BIT

TR

.

CO

TTO

N L

N.

MIL

L AV

E.

ELLIOT RD.

CHANDLER BLVD.

RAY RD.

GUADALUPE RD.

WARNER Rd.

32N

D S

T.

HAY

DE

N R

D.

MCDOWELL RD.

UNIVERSITY DR.

CE

NTR

AL

AVE

.

44TH

ST.

24TH

ST.

43R

D A

VE

.

83R

D A

VE

.

59TH

AV

E.

DO

BS

ON

RD

.

TEMPE

PARADISEVALLEY

SCOTTSDALE

EL MIRAGE

LITC

HFI

ELD

RD

.

EL

MIR

AG

E R

D.

RE

EM

S R

D.

OLIVE AVE.

BELL RD.

MCDOWELL RD.

Rai

nbow

Val

ley

Rd.

PhoenixGoodyear Airport

BROADWAY RD.GOODYEAR

GLENDALE AVE.

NORTHERN AVE.

CAMELBACK RD.

MCDOWELL RD.

Est

rella

Fw

y.SURPRISE

WADDELL RD.

LukeAFB

PR

IES

T D

R.

W. HAPPY VALLEY RD. W. HAPPY VALLEY RD.

W. DEER VALLEY RD. W. DEER VALLEY RD.

E. PINNACLE PEAK RD.E. PINNACLE PEAK RD.

N. L

AKE

PLEA

SAN

T PK

WY.

BELL RD.

GREENWAY RD.

E. CAREFREE HWY.

PHOENIX SONORAN DESERT RESERVE

CAV

E C

RE

EK

RD

.

CAV

E C

REE

K R

D.

N. P

IMA

RD

.

7TH

ST.

LOWER BUCKEYE RD.

7TH

AV

E.

QUEEN CREEK RD.

GERMANN RD.

BELL RD.

ANTHEM

CAREFREE

CAVE CREEK

INDIAN BEND RD

545 W. JUANITA AVE.

7EXECUTIVE SUMMARY

60

CO

UN

TR

Y C

LUB

DR

.

VIN

EYA

RD

RD

.

BASELINE RD.

JEROME AVE.

IRON AVE.

JUANITA AVE.

EX

TE

NS

ION

RD

.

RE

VE

RE

ST.

CITY OF MESA PARK & RIDE

CITY OF MESA PARK


AERIAL MAP

MARKET OVERVIEWAs one of the fastest growing regions in the nation for the last several decades, Phoenix now stands as the nation’s fifth largest city and fourteenth largest metropolitan area. Phoenix has received tremendous press attention and numerous accolades over the last few years due to its growth, low cost of living and appealing business environment.

Mesa Offers:

• A diverse and sustainable economy that features a balance of base industries that creates high-quality jobs.

• An educated workforce.

• A partnership of government and industry that considers next generation technologies and products as economic opportunities.

• Business people who see Mesa as their home and the world as their marketplace.

For more information on Mesa click here

With more than 4.0 million people, Phoenix is the 6th largest city in the United States and the financial, commercial, cultural, entertainment and government center of Arizona. More than 550 square miles in size, one of the city’s many strengths is its 13 major employment centers, which each employ a workforce of between 400,000 to 1.1 million within a 25-minute commute.

Since 2008, Phoenix has seen growth in industries such as healthcare, software/technology and financial services. The Phoenix MSA has a GDP of $215 billion, and the top five industries are real estate (16%), financial services (11%), manufacturing (9%), health care (8%), and retail (8%). The Phoenix unemployment rate is 4.5% as of March 2016, down 120 bps over December 2014 and below the US unemployment rate of 5.0%. The 8,400-person, year-over-year drop in the jobless count in 2015 occurred despite a massive surge of individuals entering the labor force (up 48,000

over the past year). According to Witten Research, Phoenix’s employment growth over through 2018 is expected to exceed the US:

545 W. Juanita Ave is located in the Falcon Field/Apache Junction submarket, which is in the southeast portion of metropolitan Phoenix. Some of the benefits of the submarket are noted below.

DYNAMIC GROWTH

Within a five-mile radius of the Property, population grew by 5.2% between 2010 and 2015 and is expected to grow another 5.2% between 2015 and 2020. This consistent, steady growth is nearly 50% greater than that of the nation and portends a strong future business climate for the area. Generally strong growth dictates further construction, more potential customers for existing businesses and a larger employee pool from which to hire.

WITHIN MINUTES OF PHOENIX’S EXTENSIVE TRANSPORTATION NETWORK

545 W. Juanita Ave is located within minutes of Phoenix’s US 60 and Country Club Road which provides easy, direct access to the rest of the metropolitan area. Also, the Property is within a short commute of Sky Harbor International Airport, Falcon Field and Phoenix-Mesa Gateway Airport. Sky Harbor International Airport serves as a focal point for businesses in the area and is one of the busiest airports in the nation for passenger traffic, generating $79 million daily economic impact for the area. Phoenix-Mesa Gateway Airport serves as a reliever airport for Sky Harbor and serves more than 35 cities, contributing $1.3 billion annually to Arizona’s economy. Falcon Field also serves as a reliever for Sky Harbor International Airport.

NO NEW COMPETITIVE OFFICE PRODUCT UNDER CONSTRUCTION

Currently no new projects are under construction in the submarket where 545 W. Juanita Ave is located. The lack of new construction indicates that all future positive net absorption will serve to decrease vacancies which will lead to upward pressure on rental rates.

9MARKET OVERVIEW

OFFICE LEASE COMPARABLESTENANT NAME SIZE TERM RATE DATE COMMENTSADDRESS (SF)

Squaretwo Financial Services7420 South Kyrene RoadTempe, Arizona

20,000 SF

80 Mos.

Mos. 1-5 $0.00Mos. 6-12: $14.00 NNN$0.50 annual increases

3/2015

$15.00 retrofit TI6:1,000 parking

Avention (formerly OneSource)1146 N. Alma School Road Bldg 6, Phase IMesa, Arizona

22,000 SF

65 Mos.

Mos. 1-5: $0.00Mos. 6-12:$18.00 SF $0.50 annual increases

9/2014

Minimal TI’sSublease of Mitel space $7.00 Expense Stop

Flagship Credit Acceptance4425 South WendlerTempe, Arizona

23,740 SF

78 Mos.

Mos. 1-6: $0.00Mos. 7-12: $21.42 MG Mos. 13-24: $21.92 MG Mos. 13-24: $21.92 MGMos. 25-36: $21.42 MGMos. 37-48: $21.92 MGMos. 49-60: $21.42 MGMos. 61-72: $23.92 MGMos. 73-78: $24.42 MG

10/2015

$46.00/SF TIA7:1,000 parking

AZ Priority Care585 N. Juniper DriveChandler, Arizona

24,896 SF

46 Mos.

Mos. 1-12:$19.00 FS$0.50 annual increases

10/2014

1st 12 mos. paying on 8,661 RSF Then paying on entire SF for remaining term. 5:1,000 parking


* 545 West Juanita Ave. is currently occupied by MDS Communications with a flat lease rate currently above comparable properties.

OFFICE LEASE COMPARABLES

TENANT NAME SIZE TERM RATE DATE COMMENTSADDRESS (SF)

* 545 West Juanita Ave. is currently occupied by MDS Communications Corporation with a flat lease rate currently above comparable

Impact Suicide Precention Ctr914 South 52nd StreetTempe, Arizona

25,350 SF

84 Mos.

Mos. 1-4: $0.00Mos. 5-24: $12.00 NNN $0.50 annual increases

4/2016

$20.00/SF TI

International Rectifier1333 S. Spectrum Blvd. Chandler, Arizona

25,941SF

38 Mos.

3/2015

$15.00 retrofit TI

6:1,000 parking

Arvato Digital Services, LLC145 South 79th StreetChandler, Arizona

33,048 SF

72 Mos.

Mos. 1-6: $0.00Mos. 7-18: $1.04 SF $0.50 annual increases

12/2015

$5.00/SF TIA on 4,900 SF of the premises and $40.00/SF on the remaining 28,148 SF.

Lease commencement 6/1/2015

Hot Chalk1721 E. Rio Salado ParkwayTempe, Arizona

40,000 SF

84 Mos.

Mos. 1-4: $13.40 MGMos. 5-16: $26.80 MG Mos. 17-28: $27.30 MG Mos. 29-38: $27.80 MG

12/2015

$10.00/SF retrofit TI

6.5:1,000 parking

Mos. 1-5: $0.00Mos. 6-17: $15.00 NNN $0.50 annual increases

11MARKET OVERVIEW

BASELINE RD.

GUADALUPE RD.

ELLIOT RD.

WARNER RD.

RAY RD.

CHANDLER BLVD.

DO

BS

ON

RD

.

ALM

A S

CH

OO

L R

D.

AR

IZO

NA

AV

E.

MC

QU

EE

N R

D.

CO

OP

ER

RD

.

GIL

BE

RT

RD

.

LIN

DS

AY R

D.

VA

L V

ISTA

DR

.

GR

EE

NFI

ELD

DR

.G

RE

EN

FIE

LD R

D.

HIG

LEY

RD

.

RE

CK

ER

RD

.

PO

WE

R R

D.

SOUTHERN AVE.

BROADWAY RD.

MAIN ST.

UNIVERSITY DR.5

4

1

2

6

3

7

8143

6060

202

202

101

202

LEASE COMPARABLES


SALE COMPARABLES

2

3

1

4

2345 S. Alma School Rd.

1755 S. Val Vista Drive

4700 - 4702 E. Southern Ave.

1845 S. Dobson Rd.

Greg Ziverberg

Lewis Kennedy

2003

19,705 SF

1/28/2016

$2,632,000

$132.90

Single Story, 4 (Tenants)

Jaclyn E. & Jeffrey S. Knoll

HEC Engineering, LLC

19,820 SF

06/25/2015

$3,470,000

$175

Two Story

Mark Fowler

Mercury Trading Company

1983

21,936 SF

08/31/2015

$2,225,000

$101.43

Two Story, 18 (Tenants)

BUYER

SELLER

YEAR BUILT

BLDG SF

SALE DATE

SALE PRICE

PSF

COMMENTS

BUYER

SELLER

YEAR BUILT

BLDG SF

SALE DATE

SALE PRICE

PSF

COMMENTS

Dennis Paquette

Buy the Sun Group Inc.

1987

21,710 SF

02/26/2016

$2,400,000

$110

Two Story, 18 (Tenants)

13MARKET OVERVIEW

SALE COMPARABLES

6

7

5

8

9280 South Kyrene Rd.

4700 S. McClintock Dr.

875 North Greenfield Rd.

7254 E. Southern Ave.

Cornel & Maria Isfan

Speros Enterprises Inc.

1987

23,055 SF

2/1/2016

$2,800,000

$121.45


Vereit

Howard Simon

2001

28,489 SF

10/7/2015

$7,000,000

$245.71


Mark Fowler

Sunridge Properties

2000

15,249 SF

8/31/2015

$2,020,000

$132.47


BUYER

SELLER

YEAR BUILT

BLDG SF

SALE DATE

SALE PRICE

PSF

COMMENTS

BUYER

SELLER

YEAR BUILT

BLDG SF

SALE DATE

SALE PRICE

PSF

COMMENTS

Ryan Sandell

OakPoint Real Estate

1998

31,962 SF

2/20/2015

$3,330,000

$104.18



BASELINE RD.

GUADALUPE RD.

ELLIOT RD.

WARNER RD.

RAY RD.

CHANDLER BLVD.

DO

BS

ON

RD

.

ALM

A S

CH

OO

L R

D.

AR

IZO

NA

AV

E.

MC

QU

EE

N R

D.

CO

OP

ER

RD

.

GIL

BE

RT

RD

.

LIN

DS

AY R

D.

VA

L V

ISTA

DR

.

GR

EE

NFI

ELD

DR

.G

RE

EN

FIE

LD R

D.

HIG

LEY

RD

.

RE

CK

ER

RD

.

PO

WE

R R

D.

SOUTHERN AVE.

BROADWAY RD.

MAIN ST.

UNIVERSITY DR.

1

5

2

7

6

4

8

3

143

6060

202

202

101

202

SALE COMPARABLES

15MARKET OVERVIEW


TOM B. LOUER, [email protected] KOSS LOUER TEAM

corporate headquarterspdf.leeazmail.com/pdfs/industrial/brochures/mds_om_cs6.pdfstreet map 87 85 60...

Documents