BROKER OPINION OF VALUE & MARKETING PLAN
4209 – 4211 S. 43rd Place
Phoenix, AZ 85040
Prepared For: Ms. Joyce Richards
Mr. Gerald Richards
Prepared By: Marc Pierce, Principal
Chris McClurg, Principal Brian Payne, Industrial Properties
3200 E. Camelback Road Suite 100
Phoenix, AZ 85018
DECEMBER 2016
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
TABLE OF CONTENTS
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
I. Subject Property Property Information Photos Map/Aerial II. Lee & Associates Arizona Services and Benefits Marketing Team Resumes References III. Marketing Strategy Marketing Overview Marketing Strategy/Process Prospecting IV. Sale Comparables V. Lease Comparables VI. Broker Opinion of Value Recommendations VII. Industrial Market Report
MARC PIERCE PRINCIPAL 602.954.3750 [email protected] CHRIS MCCLURG PRINCIPAL 602.954.3766 [email protected] BRIAN PAYNE INDUSTRIAL PROPERTIES 602.474.9571 [email protected] LEE & ASSOCIATES ARIZONA 3200 E. Camelback Road, Suite 100 Phoenix, AZ 85018 602.956.7777 www.leearizona.com
SUBJECT PROPERTY
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
PROPERTY: 4209 – 4211 S. 43rd Place Phoenix, AZ 85040
BUILDING SIZE: ±12,540 SF
LOT SIZE: 34,536 SF (.79 Acre)
TYPE: Freestanding industrial building with a generous sized yard
ZONING: A-1, City of Phoenix
PARCEL NUMBER: 124-54-006G
YEAR BUILT: 1979
PROPERTY TAXES: $13,851 (2016)
COMMENTS: » Excellent freeway accessibility » Ability to be two (2) suites » Large yard » Truckwell loading
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
SUBJECT PROPERTY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
LEE & ASSOCIATES ARIZONA
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
LEE & ASSOCIATES ARIZONA
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
Lee & Associates Arizona specializes in providing exceptional brokerage services for the industrial, office, multifamily, investment and land sectors of the Phoenix commercial real estate market. Our office was established in 1991 and is now recognized as one of the most successful brokerage firms in the nation. Every principal broker is an owner of the Arizona office, which means each broker is personally driven to delivering excellent results for its clients. Each of our 57 nationwide Lee & Associates offices is locally owned and combined with a powerful platform from the national Lee & Associates network.
Our philosophy is that clients are better served by giving talented Brokers a collaborative rather than competitive work environment.
Lee & Associates knows real estate. We help clients large and small navigate the complexities of the commercial real estate industry. Whether you need help finding, acquiring, selling, leasing, managing or consulting, you’ll benefit from our careful approach. Before offering any recommendations, we learn about your business goals to ensure that our strategies are in sync with your objectives. Our clients include the largest developers and holders of real estate in the marketplace. Clients differ as greatly in size as they do in variety, ranging from Fortune 100 companies to small, family-owned business. We use our knowledge and experience to support each client’s goals. In fact, our principals have completed over $15 billion in transaction volume in the past twenty-five years.
We leverage a national platform with local market
expertise to provide customized real estate solutions.
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
LEE & ASSOCIATES ARIZONA
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
SERVICES AND BENEFITS We have aggressively assembled a team of top professionals – brokers from various disciplines backed by highly knowledgeable experts. Our skills can be applied across the breadth of industrial and commercial applications from manufacturing plants to high-rise office properties, multi-family housing portfolios, bulk warehouse/distribution facilities to mixed-use projects, retail representation, land development and more. As Lee & Associates Arizona, we deliver a breadth and quality of service that is unparalleled in the industry. We are uniquely focused on the needs and trends of corporate real estate and have developed an extensive array of services to benefit our corporate clients. The entire process follows an organized and methodical approach to ensure ownership of the best possible economic deal terms through the least amount of risk and time. This process is tailored to your objectives and requirements. The result is a smooth and efficient transaction and a sold-out project.
We capture value. We perform financial due diligence, gather market intelligence, and pay attention to detail.
We do it all so our clients realize rewards.
PROJECT MARKETING AND LEASING SERVICES
• Evaluate the Project and surrounding submarket(s)
• Create Marketing Strategy • Identify and Pursue Target Prospects • Financial Proposal Analysis/Lease Analysis • Negotiation Strategy Development &
Implementation BENEFITS
• Maximize Value of Real Estate • Optimal Solutions to Meet Sale Objectives
and/or Cash Flow Projections • Expertise of a Professional Real Estate
Consultant at your Fingertips • Single Point of Contact and Accountability
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
LEE & ASSOCIATES ARIZONA
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
RESEARCH DEPARTMENT CAPABILITIES The Lee & Associates research department provides our clients with the most extensive research capabilities available. Our research analyst and team provide brokerage with the most relevant market information through market analysis, mapping and forecasting. Quarterly market reports and studies are produced using the latest third-party databases. Additionally, the department provides public relations and social media outreach, marketing proposals, broker opinions-of-value, binding and packaging and other marketing services
• Quarterly Market Reports • Market Rate Comparisons • Submarket Comparisons • Financial Analysis
• Sale/Lease Comparables • Ownership/Tenant Information • Property Features • Demographics
• CoStar/Loopnet • L & A Website • Comprehensive Email Marketing • Social Media/Press Releases
• Proposals • Presentations • Property Brochures • Marketing Collateral
MARKET STUDIES
BROAD DATABASE
INTERNET/ MEDIA
DESKTOP PUBLISHING
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
LEE & ASSOCIATES ARIZONA
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
REFERENCES
Mr. Randy Stalworthy RRS & Co. 21 E. 6th Street, Suite 706 Tempe, Arizona 85281 (480) 305.1956
Mr. Damian Bailey Cabot Industrial One Beacon Street, Suite 1700 Boston, MA 02108 (617) 305-6144
Ms. Janet Herlyck Metro Commercial Properties 1500 N. Priest Drive #132 Tempe, Arizona 85284 (602) 452.2584
Mr. Sean Babson Hewson Development 4636 E. University Phoenix, Arizona 85040 (480) 829.1773
Mr. David Sellers LGE Design Build 70 N. 52nd St. Phoenix, AZ 85008 (480) 966.4001
Mr. Tony Hepner Metro Commercial Properties 1500 N. Priest Dr. #132 Tempe, AZ 85271 (602) 452-2575
Mr. Jeff Foster Prologis 4555 E. Elwood Phoenix, AZ 85040 (480) 379-9919
Ms. Christine Mackay City of Phoenix Economic Development Officer 200 W. Washington Street, 20th Floor Phoenix, AZ 85003 (602) 261.8709
MARKETING STRATEGY
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
MARKETING STRATEGY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
Marketing and selling industrial property in a competitive and price-conscious environment requires a myriad of skills, market knowledge, insight and networking. Success is a function of exposure to active developer/buyer requirements, coupled with a well-thought out strategy to identify prospects. With over 45 years of sales experience in this submarket, our Lee team has the specific Sky Harbor and Southeast Valley experience and focus to handle this assignment complimented by a well-established track record of success. PROSPECTING
The team is committed to contacting building owners and tenants that are focused in this area. The Sky Harbor market is a well-established, desirable location for light industrial users that have proven capable of attracting businesses from within this submarket and beyond. The team is committed to contacting tenants and users in proximity to 43rd Place, as well as all brokers, and will continue our efforts on a park-by-park basis. Our years of marketing properties to end-users and brokers in this submarket bring familiarity with this Tenant base and decision makers. In addition to geographic calls, we will target specific industries that can utilize the features of the property. Immediately, we will focus on: Local and national tenants in the area
Neighboring building owners
Use industry specific SIC codes for build to suit opportunities
All industrial brokers both in this area and Metro Phoenix
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
MARKETING STRATEGY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
DEAL-MAKING ABILITY
Integral to the success in the selling of the 43rd Place property is the reputation and deal-making skills of the Lee & Associates marketing team with their prospective owners/clients. Equally as important as "seeing" deals is the ability to make them. The team has significant experience being the local "eyes and ears" of building owners and developers and guide them towards the highest possible value. As the overall metro market continues to gain momentum, this guidance will become imperative. Lee & Associates will provide quality comparables, analyze each transaction and get “inside” every deal we compete for. Our standard response is a call back within two hours and instant flyer/project information with the vertically integrated team described previously. BROCHURES
The Lee & Associates team will develop a brochure that consists of detailed aerials and maps that show the property’s proximity to Airport and I-10 Freeway. At the same time, this allows other brokers and buyers to have more specific information on the facility and provides potential users insight into the property. The overall brochure will be offered in hard copy, e-copy and downloads via CoStar, Loopnet, Xceligent. SIGNAGE
The Lee team will strategize to place the signs in the correct locations, such as hard corners for direct visibility by traffic, all entrances to the park should have specific signs and visible signage. Overall, signage and brochures are imperative for a successful and effective marketing campaign. The Lee & Associates team recognizes this importance and will prioritize both of these items. MAILINGS
Perhaps the most effective (and often underutilized) method of prospecting is direct mailings to end-users. The team will create a quality marketing brochure similar to the draft included herein. This brochure and fact sheet will be used in mailers to prospects for the Project. The key to success in any mailing campaign is follow-through. The team will conduct follow-up calls to the decision markets and can provide detailed feedback to ownership. This also serves as accountability and ensures ownership that calls are being made for the property.
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
MARKETING STRATEGY
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
BROKER COMMUNICATION
In addition to the marketing efforts, we will enlist the brokerage community to help us absorb the availability. Once the marketing materials have been developed, we will: Send bi-monthly e-mails to the brokers of all major brokerage firms:
WEB-BASED MARKETING
Although there is no such thing as “MLS” for commercial real estate, more and more brokers are using Internet databases such as CoStar and LoopNet to do availability surveys for their requirements. Although these databases are not the primary tools used to market opportunities, it is vital to have the information accurately listed on these sites that are used by so many brokers when they have requirements. The marketing team at Lee & Associates will be sure to keep the major web-based property databases informed and updated on all pertinent information and space availability at the Project.
SALE COMPARABLES
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 1
2206-2210 S 2nd Pl
Phoenix, AZ 85004
Class C Warehouse Building of 9,600 SF Sold on 5/19/2016 for$625,000 - Research Complete
buyer
Theodore F Sparks7010 E Halifax DrMesa, AZ 85207(480) 985-4109
Alan N. Premraj3101 S Park DrTempe, AZ 85282(480) 759-7234
seller
vital data
Sale Date: 5/19/2016
Days on Market: 405 days
Exchange: Yes
Conditions: 1031 Exchange
Land Area SF: 30,492
Acres: 0.7
$/SF Land Gross: $20.50
Year Built, Age: 1980 Age: 36
Parking Spaces: 15
Parking Ratio: 1.25/1000 SF
FAR 0.31
Lot Dimensions: 326x70
Frontage: -
Comp ID: 3599973
Sale Price: $625,000
Status: Confirmed
Building SF: 9,600 SF
Price/SF: $65.10
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $625,000
Pct Down: 100.0%
Doc No: 0342444
Trans Tax: -
Corner: No
Zoning: A-1, Phoenix
Percent Improved: 79.6%
Submarket: SC N of Salt River Ind
Property Type: Industrial
MultiTenancy:
Parcel No: 112-42-048
Map Page: Wide World of Maps, Inc. 148-164LW
Escrow/Contract: 30 days
income expense data
$11,129
$11,129
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Matthew McDougall, Chris McClurg
Buyer Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Matthew McDougall, Chris McClurg
prior sale
Date/Doc No:
Sale Price:
CompID:
3/31/2005
$560,000
1037371
financing
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Page 2
328 N 11th Way
Phoenix, AZ 85006
Class C Service Building of 8,400 SF Sold on 6/30/2016 for$350,000 - Research Complete
buyer
ABC 11th LLC820 N 3rd StPhoenix, AZ 85004
Coreif LLC39475 13 Mile RdNovi, MI 48377
seller
vital data
Sale Date: 6/30/2016
Days on Market: 80 days
Exchange: No
Conditions: -
Land Area SF: 24,002
Acres: 0.55
$/SF Land Gross: $14.58
Year Built, Age: 1955 Age: 61
Parking Spaces: -
Parking Ratio: -
FAR 0.35
Lot Dimensions: -
Frontage: -
Comp ID: 3641009
Sale Price: $350,000
Status: Affidavit
Building SF: 8,400 SF
Price/SF: $41.67
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $350,000
Pct Down: 100.0%
Doc No: 0461024
Trans Tax: -
Corner: No
Zoning: C-3
Percent Improved: 51.0%
Submarket: SC N of Salt River Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 116-26-119 [Partial List]
Map Page: -
Escrow/Contract: -
income expense data
$925
$925
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Luke Land Realty, LLC320 W Lone Cactus DrPhoenix, AZ 85027(602) 995-1936Mark Lewis, Luke Lewis
Buyer Broker
financing
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4802 S 35th St
Image SourcePhoenix, AZ 85040
Class C Warehouse Building of 9,475 SF Sold on 5/11/2016 for$630,000 - Research Complete
buyer
DBA LLC4814 S 35th StPhoenix, AZ 85040
BB & F LLC4166 E SuperiorPhoenix, AZ 85040(480) 998-0395
seller
vital data
Sale Date: 5/11/2016
Days on Market: -
Exchange: No
Conditions: -
Land Area SF: 30,187
Acres: 0.69
$/SF Land Gross: $20.87
Year Built, Age: 1984 Age: 32
Parking Spaces: 20
Parking Ratio: 2.19/1000 SF
FAR 0.31
Lot Dimensions: -
Frontage: 120 feet on 35th
Comp ID: 3593048
Sale Price: $630,000
Status: Affidavit
Building SF: 9,475 SF
Price/SF: $66.49
Pct Office: 10.0%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $50,000
Pct Down: 7.9%
Doc No: 0324327
Trans Tax: -
Corner: No
Zoning: IND PK, Phoenix
No Tenants: 2
Percent Improved: 75.4%
Submarket: S Airport N of Roeser Ind
Property Type: Industrial
MultiTenancy:
Parcel No: 122-72-085
Map Page: -
Escrow/Contract: -
income expense data
$14,010
$14,010
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Buyer Broker
prior sale
Date/Doc No:
Sale Price:
CompID:
2/5/2002
$630,000
624436
financing
1st Bank of America NA
Bal/Pmt: $580,000
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Page 4
3749 E Atlanta Ave
First Arizona Indst ParkPhoenix, AZ 85040
Class B Warehouse Building of 10,750 SF Sold on 9/22/2016 for$1,002,438 - Research Complete
buyer
Python Partners LLC16025 N 52nd PlScottsdale, AZ 85254
RML Electric, Inc.3749 E Atlanta AvePhoenix, AZ 85040(602) 244-2080
seller
vital data
Sale Date: 9/22/2016
Days on Market: 237 days
Exchange: No
Conditions: -
Land Area SF: 27,155
Acres: 0.62
$/SF Land Gross: $36.91
Year Built, Age: 1987 Age: 29
Parking Spaces: 16
Parking Ratio: 1.49/1000 SF
FAR 0.40
Lot Dimensions: 220x130
Frontage: -
Comp ID: 3714602
Sale Price: $1,002,438
Status: Confirmed
Building SF: 10,750 SF
Price/SF: $93.25
Pct Office: 51.2%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $192,438
Pct Down: 19.2%
Doc No: 0696550
Trans Tax: -
Corner: No
Zoning: IND.PK, Phoenix
No Tenants: 1
Percent Improved: 78.5%
Submarket: S Airport N of Roeser Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 122-74-131B
Map Page: Wide World of Maps, Inc. 148-168LY
Escrow/Contract: 58 days
income expense data
$12,140
$12,140
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
NAI Horizon2944 N 44th StPhoenix, AZ 85018(602) 955-4000Rick Foss
Buyer Broker
LevRose Real Estate4414 N Civic Center PlzScottsdale, AZ 85251(480) 947-0600Matt Leonard
prior sale
Date/Doc No:
Sale Price:
CompID:
6/6/2007
$1,284,000
1323613
financing
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Page 5
1309 E Elwood St
Cooling Tower ProductsPhoenix, AZ 85040
Class C Warehouse Building of 13,400 SF Sold on 10/31/2016for $650,000 - Research Complete
buyer
Robert Lanford4001 E ClaremontParadise Valley, AZ 85253(480) 840-4358
Jorja Leslie1309 Elwood StPhoenix, AZ 85040
seller
vital data
Sale Date: 10/31/2016
Days on Market: 616 days
Exchange: No
Conditions: -
Land Area SF: 43,560
Acres: 1
$/SF Land Gross: $14.92
Year Built, Age: 1985 Age: 31
Parking Spaces: 14
Parking Ratio: 1.1/1000 SF
FAR 0.31
Lot Dimensions: -
Frontage: -
Comp ID: 3742665
Sale Price: $650,000
Status: Confirmed
Building SF: 13,400 SF
Price/SF: $48.51
Pct Office: 17.9%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $650,000
Pct Down: 100.0%
Doc No: 0796959
Trans Tax: -
Corner: No
Zoning: A-1, Phoenix
No Tenants: 1
Percent Improved: 82.0%
Submarket: SC S of Salt River Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 113-23-002G
Map Page: -
Escrow/Contract: 75 days
income expense data
$16,673
$16,673
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
CBRE2415 E Camelback RdPhoenix, AZ 85016(602) 735-5555Cooper Fratt, Jerry McCormick
Buyer Broker
CBRE2415 E Camelback RdPhoenix, AZ 85016(602) 735-5555Cooper Fratt, Jerry McCormick
prior sale
Date/Doc No:
Sale Price:
CompID:
6/10/1992
$345,000
85504
financing
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Page 6
2415 W Erie Dr
Interstate Commerce CenterTempe, AZ 85282
Class B Warehouse Building of 12,101 SF Sold on 4/21/2016 for$978,122 - Research Complete (Part of Multi-Property)
buyer
RW Partners, LLC2944 N 44th StPhoenix, AZ 85018(602) 852-3442
Turner Development Corp.1500 Quail StNewport Beach, CA 92660(949) 955-9131
seller
vital data
Sale Date: 4/21/2016
Days on Market: -
Exchange: Yes
Conditions: 1031 Exchange
Land Area SF: 86,427
Acres: 1.98
$/SF Land Gross: $11.32
Year Built, Age: 1988 Age: 28
Parking Spaces: 30
Parking Ratio: 2.5/1000 SF
FAR 0.14
Lot Dimensions: -
Frontage: -
Comp ID: 3574351
Sale Price: $978,122
Status: Allocated
Building SF: 12,101 SF
Price/SF: $80.83
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: -
Pct Down: -
Doc No: 0266582
Trans Tax: -
Corner: No
Zoning: GID
No Tenants: 1
Percent Improved: -
Submarket: Tempe Southwest Ind
Property Type: Industrial
SingleTenancy:
Parcel No: -
Map Page: -
Escrow/Contract: -
income expense data
$9,022
$9,022
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Cushman & Wakefield2375 E Camelback RdPhoenix, AZ 85016(602) 954-9000Bob Buckley, Steve Lindley, Tracy Cartledge
Buyer Broker
No Buyer Broker on Deal
prior sale
Date/Doc No:
Sale Price:
CompID:
5/28/2013
$5,003,100
2758721
financing
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Page 8
2515 W Erie Dr
Bldg 2 - Interstate Commerce CenterTempe, AZ 85282
Class C Warehouse Building of 8,372 SF Sold on 4/21/2016 for$676,708 - Research Complete (Part of Multi-Property)
buyer
RW Partners, LLC2944 N 44th StPhoenix, AZ 85018(602) 852-3442
Turner Development Corp.1500 Quail StNewport Beach, CA 92660(949) 955-9131
seller
vital data
Sale Date: 4/21/2016
Days on Market: -
Exchange: Yes
Conditions: 1031 Exchange
Land Area SF: 28,658
Acres: 0.66
$/SF Land Gross: $23.61
Year Built, Age: 1985 Age: 31
Parking Spaces: 21
Parking Ratio: 2.5/1000 SF
FAR 0.29
Lot Dimensions: -
Frontage: -
Comp ID: 3574351
Sale Price: $676,708
Status: Allocated
Building SF: 8,372 SF
Price/SF: $80.83
Pct Office: 27.5%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: -
Pct Down: -
Doc No: 0266582
Trans Tax: -
Corner: No
Zoning: GID, Tempe
Percent Improved: -
Submarket: Tempe Southwest Ind
Property Type: Industrial
SingleTenancy:
Parcel No: -
Map Page: Wide World of Maps, Inc. 149-170LY
Escrow/Contract: -
income expense data
$9,022
$9,022
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Cushman & Wakefield2375 E Camelback RdPhoenix, AZ 85016(602) 954-9000Bob Buckley, Steve Lindley, Tracy Cartledge
Buyer Broker
No Buyer Broker on Deal
prior sale
Date/Doc No:
Sale Price:
CompID:
5/28/2013
$5,003,100
2758721
financing
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Page 10
2522 W Geneva Dr
3D Machines - Eaton Fwy Business ParkTempe, AZ 85282
Class C Warehouse Building of 10,296 SF Sold on 8/5/2016 for$787,644 - Research Complete
buyer
3D Machine LLC1560 E Hope StMesa, AZ 85203(480) 239-8254
Joshua M. Sunshine315-503 E Watkins StPhoenix, AZ 85004(602) 258-6400
seller
vital data
Sale Date: 8/5/2016
Days on Market: 492 days
Exchange: No
Conditions: -
Land Area SF: 43,560
Acres: 1
$/SF Land Gross: $18.08
Year Built, Age: 1984 Age: 32
Parking Spaces: 42
Parking Ratio: 3.91/1000 SF
FAR 0.24
Lot Dimensions: -
Frontage: -
Comp ID: 3668559
Sale Price: $787,644
Status: Confirmed
Building SF: 10,296 SF
Price/SF: $76.50
Pct Office: 29.1%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $119,944
Pct Down: 15.2%
Doc No: 0559344
Trans Tax: -
Corner: No
Zoning: I-2, Tempe
No Tenants: 1
Percent Improved: 66.6%
Submarket: Tempe Southwest Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 123-28-109A
Map Page: Wide World of Maps, Inc. 149-170LY
Escrow/Contract: -
income expense data
$13,121
$13,121
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
NAI Horizon2944 N 44th StPhoenix, AZ 85018(602) 955-4000Rick Foss
Buyer Broker
No Buyer Broker on Deal
prior sale
Date/Doc No:
Sale Price:
CompID:
12/10/2002
$678,378
719323
financing
1st Wells Fargo Bank NA
Bal/Pmt: $667,700
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Page 11
2318 S Industrial Park Ave
Broadway Industrial ParkTempe, AZ 85282
Class C Warehouse Building of 14,396 SF Sold on 9/30/2016 for$985,000 - Research Complete
buyer
Arizona Refrigeration Service, Inc.1009 W Broadway RdTempe, AZ 85282(602) 244-9900
Twenty Three "T" LLC5820 W Robinson WayChandler, AZ 85226(480) 752-8550
seller
vital data
Sale Date: 9/30/2016
Days on Market: -
Exchange: No
Conditions: -
Land Area SF: 72,000
Acres: 1.65
$/SF Land Gross: $13.68
Year Built, Age: 1967 Age: 49
Parking Spaces: -
Parking Ratio: 6.8/1000 SF
FAR 0.20
Lot Dimensions: 200x360
Frontage: -
Comp ID: 3720164
Sale Price: $985,000
Status: Confirmed
Building SF: 14,396 SF
Price/SF: $68.42
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $985,000
Pct Down: 100.0%
Doc No: 0715801
Trans Tax: -
Corner: No
Zoning: GID
No Tenants: 1
Percent Improved: 51.3%
Submarket: Tempe Southwest Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 123-35-068 [Partial List]
Map Page: Wide World of Maps, Inc. 149-171LY
Escrow/Contract: 30 days
income expense data
$19,456
$19,456
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Buyer Broker
Colton Commercial2206 S Priest DrTempe, AZ 85282(480) 894-3636Dan Colton
prior sale
Date/Doc No:
Sale Price:
CompID:
12/4/2002
$612,000
712905
financing
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 12
3669 E La Salle St
Eaton 40 St Business ParkPhoenix, AZ 85040
Class B Warehouse Building of 14,730 SF Sold on 11/30/2016for $1,237,320 - Research Complete
buyer
Martin-2136 LLC2136 E Indian School RdPhoenix, AZ 85016(623) 847-3605
Gregory David Cohen, Tr10624 Bradbury RdLos Angeles, CA 90064(310) 231-9500
seller
vital data
Sale Date: 11/30/2016
Days on Market: 125 days
Exchange: Yes
Conditions: 1031 Exchange
Land Area SF: 48,787
Acres: 1.12
$/SF Land Gross: $25.36
Year Built, Age: 1981 Age: 35
Parking Spaces: 20
Parking Ratio: 0.4/1000 SF
FAR 0.30
Lot Dimensions: -
Frontage: -
Comp ID: 3768038
Sale Price: $1,237,320
Status: Confirmed
Building SF: 14,730 SF
Price/SF: $84.00
Pct Office: 20.4%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $185,620
Pct Down: 15.0%
Doc No: 00883307
Trans Tax: -
Corner: No
Zoning: Ind PK
Percent Improved: 71.1%
Submarket: S Airport S of Roeser Ind
Property Type: Industrial
MultiTenancy:
Parcel No: 122-76-034
Map Page: -
Escrow/Contract: 45 days
income expense data
$20,630
$20,630
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Cushman & Wakefield2375 E Camelback RdPhoenix, AZ 85016(602) 954-9000Tom Atkinson, James Harper
Buyer Broker
Atlantis Commercial, Inc.3104 E Camelback RdPhoenix, AZ 85016(602) 840-2535Mark DiSabato
prior sale
Date/Doc No:
Sale Price:
CompID:
2/1/2002
$1,630,018
627155
financing
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 13
901 E Madison St
Phoenix, AZ 85034
Class C Manufacturing Building of 12,400 SF Sold on 9/14/2016for $875,000 - Research Complete
buyer
Norris Design, Inc1101 Bannock StDenver, CO 80204(303) 892-1166
Francisco and Josefa Gonzalez Trust3675 Santa Elena CirCorona, CA 92882(951) 741-3319
seller
vital data
Sale Date: 9/14/2016
Days on Market: -
Exchange: Yes
Conditions: 1031 Exchange
Land Area SF: 17,376
Acres: 0.4
$/SF Land Gross: $50.36
Year Built, Age: 1925 Age: 91
Parking Spaces: 12
Parking Ratio: 1.01/1000 SF
FAR 0.71
Lot Dimensions: 125x139
Frontage: -
Comp ID: 3704876
Sale Price: $875,000
Status: Confirmed
Building SF: 12,400 SF
Price/SF: $70.56
Pct Office: 24.2%
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: -
Pct Down: -
Doc No: 0667226
Trans Tax: -
Corner: No
Zoning: A-1, Phoenix
Percent Improved: 74.8%
Submarket: SC N of Salt River Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 116-41-076A
Map Page: -
Escrow/Contract: 60 days
income expense data
$12,280
$12,280
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Scott Smith, T.J. Swearengin
Buyer Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777T.J. Swearengin, Scott Smith
prior sale
Date/Doc No:
Sale Price:
CompID:
8/7/2014
$670,000
3093076
financing
1st Firstbank
Bal/Pmt: $1,808,000
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 14
915 E Madison St
Phoenix, AZ 85034
Class C Warehouse Building of 12,200 SF Sold on 2/1/2016 for$800,000 - Research Complete (Part of Multi-Property)
buyer
Cowley Companies, Inc.c/o Rory Blakemore1242 E Jackson StPhoenix, AZ 85034(602) 385-4200
Willie Itule Produce, Inc.926-930 E Jackson StPhoenix, AZ 85034(602) 252-7258
seller
vital data
Sale Date: 2/1/2016
Days on Market: -
Exchange: No
Conditions: -
Land Area SF: 13,939
Acres: 0.32
$/SF Land Gross: $57.39
Year Built, Age: 1956 Age: 60
Parking Spaces: 11
Parking Ratio: -
FAR 0.88
Lot Dimensions: -
Frontage: -
Comp ID: 3508777
Sale Price: $800,000
Status: Allocated
Building SF: 12,200 SF
Price/SF: $65.57
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: -
Pct Down: -
Doc No: 0075217
Trans Tax: -
Corner: No
Zoning: A-1, Phoenix
Percent Improved: -
Submarket: SC N of Salt River Ind
Property Type: Industrial
SingleTenancy:
Parcel No: -
Map Page: Wide World of Maps, Inc. 148-165LV
Escrow/Contract: -
income expense data
$12,342
$12,342
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Stein Koss, T.J. Swearengin
Buyer Broker
No Buyer Broker on Deal
prior sale
Date/Doc No:
Sale Price:
CompID:
4/17/2006
$1,200,000
1124822
financing
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 15
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 16
3730 E Superior Ave
Phoenix, AZ 85040
Class C Warehouse Building of 11,253 SF Sold on 12/14/2016for $1,063,850 - Research Complete
buyer
Eric Edenholm2007 E Carriage DrDesert Hills, AZ 85086
RRE, LLC3730 E Superior AvePhoenix, AZ 85040(602) 454-9022
seller
vital data
Sale Date: 12/14/2016
Days on Market: 274 days
Exchange: No
Conditions: -
Land Area SF: 37,989
Acres: 0.87
$/SF Land Gross: $28.00
Year Built, Age: 2005 Age: 11
Parking Spaces: -
Parking Ratio: -
FAR 0.30
Lot Dimensions: -
Frontage: -
Comp ID: 3780018
Sale Price: $1,063,850
Status: Confirmed
Building SF: 11,253 SF
Price/SF: $94.54
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $212,000
Pct Down: 19.9%
Doc No: 0922387
Trans Tax: -
Corner: No
Zoning: A-1
No Tenants: 1
Percent Improved: 76.9%
Submarket: North Airport Ind
Property Type: Industrial
MultiTenancy:
Parcel No: 122-05-022C
Map Page: -
Escrow/Contract: 60 days
income expense data
$23,606
$23,606
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Peter Batschelet, Ken McQueen
Buyer Broker
Lee & Associates3200 E Camelback RdPhoenix, AZ 85018(602) 956-7777Ken McQueen, Peter Batschelet
financing
1st RRE LLC
Bal/Pmt: $857,000
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 17
4551 E University Dr
Phoenix, AZ 85034
Class B Service Building of 15,000 SF Sold on 5/6/2016 for$985,000 - Research Complete
buyer
John Kenny
(480) 966-1595
Fried Living Trust2124 W PinchotPhoenix, AZ 85015(602) 255-0635
seller
vital data
Sale Date: 5/6/2016
Days on Market: -
Exchange: No
Conditions: -
Land Area SF: 43,560
Acres: 1
$/SF Land Gross: $22.61
Year Built, Age: 1984 Age: 32
Parking Spaces: 23
Parking Ratio: 2/1000 SF
FAR 0.34
Lot Dimensions: 136x348
Frontage: -
Comp ID: 3590191
Sale Price: $985,000
Status: Affidavit
Building SF: 15,000 SF
Price/SF: $65.67
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $5,000
Pct Down: 0.5%
Doc No: 0311905
Trans Tax: -
Corner: No
Zoning: A-1, Phoenix
No Tenants: 1
Percent Improved: 57.5%
Submarket: North Airport Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 124-52-029A
Map Page: -
Escrow/Contract: -
income expense data
$18,126
$18,126
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Buyer Broker
prior sale
Date/Doc No:
Sale Price:
CompID:
8/23/1994
$588,240
88616
financing
1st BOKF NA
Bal/Pmt: $499,250
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 18
3811 E Wier Ave
Phoenix, AZ 85040
Class B Distribution Building of 12,400 SF Sold on 3/29/2016for $875,000 - Research Complete
buyer
Robert & Catherine Baum990 Garrido DrInglewood, CA 90310(909) 593-8332
Len Ronson4806 40th StPhoenix, AZ 85040(602) 942-2137
seller
vital data
Sale Date: 3/29/2016
Days on Market: 522 days
Exchange: No
Conditions: -
Land Area SF: 19,998
Acres: 0.46
$/SF Land Gross: $43.75
Year Built, Age: 1985 Age: 31
Parking Spaces: 25
Parking Ratio: 1.1/1000 SF
FAR 0.62
Lot Dimensions: -
Frontage: 118 feet on E. Wier
Comp ID: 3553897
Sale Price: $875,000
Status: Confirmed
Building SF: 12,400 SF
Price/SF: $70.56
Pro Forma Cap Rate: -
Actual Cap Rate: -
Down Pmnt: $875,000
Pct Down: 100.0%
Doc No: 0203091
Trans Tax: -
Corner: No
Zoning: IND PK, Phoenix
Percent Improved: 79.4%
Submarket: S Airport N of Roeser Ind
Property Type: Industrial
SingleTenancy:
Parcel No: 122-74-025B [Partial List]
Map Page: -
Escrow/Contract: 60 days
income expense data
$16,255
$16,255
Total Expenses
- Operating Expenses
- TaxesExpenses
Listing Broker
Colton Commercial2206 S Priest DrTempe, AZ 85282(480) 894-3636Dan Colton
Buyer Broker
Kasten Long Commercial Group5110 N 40 StPhoenix, AZ 85018(602) 445-4141Arvle Knight
prior sale
Date/Doc No:
Sale Price:
CompID:
11/5/1996
$516,200
163344
financing
Copyrighted report licensed to Lee & Associates - 316473. 12/22/2016
Page 19
LEASE COMPARABLES
Comparison Report LEASE COMPARABLESDecember 22, 2016
Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Features Comments
Address Landlord Start Date Effective Rate Expenses
Phoenix Star Commerce
Park-Building B
2140 S. 7th Ave.
Sky Harbor Allied Wire & Cable
The Realty Associates
Fund X, LP
11-14-2016
11-14-2016
13,146 SF 50 Mos. Mos. 1-2 $0.000
Mos. 3-12 $0.530
Mos. 13-24 $0.550
Mos. 25-36 $0.570
Mos. 37-48 $0.585
Mos. 49-50 $0.610
Eff. Rate: $0.54
$3.00 SF NNN Truckwell
Grade Level
Year Built: 2002
Ceiling Height: 24'
Holly 25 Center
2006-2014 N. 25th Dr.
Sky Harbor Creative Litho, Inc.
Presson P.V. Twelve,
LLC
10-13-2016
08-01-2017
10,000 SF 36 Mos. Mos. 1-12 $0.450
Mos. 13-24 $0.480
Mos. 25-36 $0.510
Eff. Rate: $0.48
As-Is MOD GRS Grade Level
A/C
Year Built: N/A
Clear Height: N/A
Elwood Airport Center
4346 E. Elwood St.
Sky Harbor The Paradies Shops,
LLC
Cohen Asset
Management, Inc.
09-23-2016
10-01-2016
14,014 SF 90 Mos. Mos. 1-3 $0.000
Mos. 4-12 $0.550
Mos. 13-24 $0.570
Mos. 25-36 $0.590
Mos. 37-48 $0.610
Mos. 49-60 $0.630
Mos. 61-72 $0.650
Mos. 73-84 $0.670
Mos. 85-90 $0.690
Eff. Rate: $0.60
$3.00 SF NNN Truckwell
Grade Level
Sprinklered
EVAP
Year Built: 2002
Clear Height: 20'
Maricopa Freeway Center
4246 E. Wood St.
Sky Harbor CJMFG, LLC dba CJ
Manufacturing
Zimmerman II, LLC
09-21-2016
12-01-2016
8,095 SF 63 Mos. Mos. 1-1 $0.000
Mos. 2-3 $0.275
Mos. 4-15 $0.550
Mos. 16-27 $0.580
Mos. 28-39 $0.610
Mos. 40-51 $0.640
Mos. 52-63 $0.670
Eff. Rate: $0.59
$12.00 SF MOD GRS Grade Level
Sprinklered
A/C
Year Built: 1975
Clear Height: 14'
New carpet, paint, restrooms, offices,
lighting & compressor cage. 100%
HVAC
8464 S. Kyrene Rd.
8464 S. Kyrene Rd.
Tempe Fimco
The Red Headed
Stepchild Son of Son of
Bakala, LLC
09-20-2016
11-01-2017
13,056 SF 36 Mos. Mos. 1-36 $0.570
Eff. Rate: $0.57
As-Is IND GRS N/A Year Built: 1974
Clear Height: 16'-18'
3 year renewal. Option rates set in
2016.
Page 1/3
Comparison Report LEASE COMPARABLESDecember 22, 2016
Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Features Comments
Address Landlord Start Date Effective Rate Expenses
Broadway Industrial Park
1233 W. Geneva Dr.
Tempe MEI Rigging and
Crating, LLC
DCT - AZ 2004 RN
Portfolio, LLC
07-01-2016
07-01-2016
12,056 SF 36 Mos. Mos. 1-12 $0.500
Mos. 13-24 $0.510
Mos. 25-36 $0.530
Eff. Rate: $0.51
As-Is NNN Truckwell
Grade Level
Sprinklered
EVAP
Year Built: 1981
Clear Height: 14'
Fenced lot.
Prologis Sky Harbor
Distribution Center
1710 E. Grant St.
Sky Harbor FM Solutions, Inc.
Prologis, LP
06-27-2016
07-01-2016
12,480 SF 62 Mos. Mos. 1-2 $0.000
Mos. 3-12 $0.450
Mos. 13-24 $0.460
Mos. 25-36 $0.470
Mos. 37-48 $0.490
Mos. 49-60 $0.500
Eff. Rate: $0.46
As-Is NNN Dock Hi
Sprinklered
Year Built: 1998
Clear Height: 24'
3535 E. Wier Ave.
3535 E. Wier Ave.
Sky Harbor Metal Magic, LLC
Dunbar Real Estate
Investments
06-09-2016
08-16-2016
10,000 SF 24 Mos. Mos. 1-12 $0.615
Mos. 13-24 $0.625
Eff. Rate: $0.62
As-Is GROSS Truckwell
Grade Level
Sprinklered
EVAP
Year Built: 1984
Clear Height: 18'
Renewal
Phoenix Star Commerce Park
2130 S. 7th Ave.
Sky Harbor Goodman
Manufacturing
TA Realty
06-01-2016
06-01-2016
11,773 SF 60 Mos. Mos. 1-2 $0.000
Mos. 3-12 $0.550
Mos. 13-24 $0.560
Mos. 25-36 $0.584
Mos. 37-48 $0.600
Mos. 49-60 $0.618
Eff. Rate: $0.56
$2.55 SF NNN Truckwell
Grade Level
EVAP
Year Built: 2002
Clear Height: 24'
Lease is a Renewal.
Broadway Industrial Park
455 West 21st Street
Tempe American Fitness
Wholesale
Clarion Partners
05-11-2016
08-01-2016
11,244 SF 64 Mos. Mos. 1-4 $0.000
Mos. 5-16 $0.530
Mos. 17-28 $0.543
Mos. 29-40 $0.556
Mos. 41-52 $0.569
Mos. 53-64 $0.583
Eff. Rate: $0.52
As-Is NNN Dock Hi
Sprinklered
Year Built: 1997
Clear Height: 20'
TI: Paint, Carpet, Floorboards
Page 2/3
Comparison Report LEASE COMPARABLESDecember 22, 2016
Building Name Submarket Tenant Trans. Date Size Term (Mos.) Rate Structure T.I. Lease Type Features Comments
Address Landlord Start Date Effective Rate Expenses
Parkland Center
7307 S. Harl Ave.
Tempe BPG Designs, LLC
DCT Tempe Industrial
Park
05-01-2016
05-01-2016
13,640 SF 24 Mos. Mos. 1-12 $0.680
Mos. 13-24 $0.700
Eff. Rate: $0.69
As-Is GROSS Grade Level
Sprinklered
A/C
Year Built: 1982
Clear Height: 16'
Lease is an expansion.
Sky Harbor Business Park
1918 W. 3rd St.
Tempe Renature, Inc
EJM Development Co.
04-04-2016
05-01-2016
10,107 SF 36 Mos. Mos. 1-12 $0.500
Mos. 13-24 $0.515
Mos. 25-36 $0.530
Eff. Rate: $0.52
As-Is NNN Truckwell
Grade Level
Sprinklered
EVAP
Year Built: 1986
Clear Height: 15'
Elwood Airport Center
4346 E. Elwood St.
Sky Harbor Applied Industrial
Technologies
4346 Elwood Industrial,
LLC
04-01-2016
05-01-2016
13,663 SF 63 Mos. Mos. 1-3 $0.000
Mos. 4-12 $0.660
Mos. 13-24 $0.700
Mos. 25-36 $0.720
Mos. 37-48 $0.740
Mos. 49-63 $0.760
Eff. Rate: $0.69
As-Is NNN Truckwell
Grade Level
EVAP
Year Built: 2002
Clear Height: 20'
3321 E.Atlanta Ave.
3321 E. Atlanta Ave.
Sky Harbor Ace Home Services
SF Hotel 447 LP
02-09-2016
03-01-2016
12,000 SF 60 Mos. Mos. 1-12 $0.516
Mos. 13-24 $0.527
Mos. 25-36 $0.537
Mos. 37-48 $0.548
Mos. 49-60 $0.559
Eff. Rate: $0.54
As-Is NNN Truckwell
Grade Level
Yard
EVAP
Heavily improved freestanding
masonry with 4:1000 parking.
Yard is 20,000 SF.
Year Built: 1986
Clear Height: 20'
Elwood Industrial Center
4202 E. Elwood St.
Sky Harbor R2EWaste LLC
Presson Corporation
01-29-2016
02-11-2016
10,050 SF 36 Mos. Mos. 1-3 $0.240
Mos. 4-12 $0.480
Mos. 13-24 $0.510
Mos. 25-36 $0.540
Eff. Rate: $0.49
$0.50 SF IND GRS Truckwell
Grade Level
EVAP
Year Built: 1985
Clear Height: 16'
3814 E. Roeser Rd.
3814 E. Roeser Rd.
Sky Harbor GHX Industrial LLC
Desert Frontiers
Properties LI
01-07-2016
03-01-2016
11,340 SF 24 Mos. Mos. 1-12 $0.520
Mos. 13-24 $0.530
Eff. Rate: $0.53
As-Is IND GRS Truckwell
Grade Level
EVAP
Year Built: 1985
Clear Height: 14'
Page 3/3
BROKER OPINION OF VALUE
LEE & ASSOCIATES BROKER OPINION OF VALUE & MARKETING PLAN
BROKER OPINION OF VALUE
4209 – 4211 S. 43rd Place, Phoenix, AZ 85040
The building located at 4209 South 43rd Place consists of approximately 12,540 square feet, built in 1979. The facility has excellent curb appeal considering the age and also has a highly desired zoning (A-1). This zoning is broad and allows many end users to occupy this type of facility. The building is located adjacent to the I-10 freeway with easy access on and off as well as access to Sky Harbor International Airport. The facility is also located in a desirable submarket and should see early traffic with buyers and tenants. As the listing brokerage team, we would be committed to exposing the opportunity to as many users as possible. At the same time, other brokers will be exposed to the property. The following is our opinion of value for the property: SUGGESTED LIST SALES PRICE:
$83.00/SF - $85.00/SF
ACHIEVABLE SALES PRICE: $78.00/SF - $80.00/SF
SUGGESTED LEASE RATE: $0.58 NNN (retrofit tenant improvement allowance)
MARKETING TIME FRAME:
3 - 6 Months
MARKETING STRATEGY:
» Focus on all developers in the Phoenix marketplace » Focus on users in a lease scenario who can now own » CoStar & Loopnet marketing » Lee & Associates signs » Bi-monthly e-blast to over 300 Brokers
MARC PIERCE Principal
602.954.3750 [email protected]
CHRIS MCCLURG Principal
602.954.3766 [email protected]
BRIAN PAYNE Industrial Properties
602.474-9571 [email protected]
INDUSTRIAL MARKET REPORT
Q320162016 PHOENIX METRO PHOENIX METRO
INDUSTRIALINDUSTRIAL
CELEBRATING 1991 - 2016I N A R I Z O N A
MARKETMARKETREPORTREPORT
Q3 2016 | Phoenix Industrial Market Overview
Positive Direction Continues for Industrial, Best Since ‘07
Total Sales
$432.5MQ2 16: $419.5M
No. of Transactions
125Q2 16: 178
Average PSF
$73.30Q2 16: $68.12
Average Cap Rate
7.48%Q2 16: 7.73%
Q3 2016 Top Industrial Leases
Q3 2016 Top Industrial Sales
Tenant Name Property Name Address Submarket Type SF LeaseNestle Water 42rd Ave. Logistics Cente3r 1635 S. 43rd Ave., Phoenix SW S of Buckeye Manufacturing 394,775 NewOHL 10 West Logistics Center-A 6200 W. Van Buren St., Phoenix SW N of Buckeye Warehouse 295,695 NewWestern Window Systems I-10 Buisness Park 2200 E. Riverview St., Phoenix S Apt. N of Roeser Distribution 169,685 NewRace Pro Products 2929 NW Grand Ave 2929 NW. Grand Ave., Phoenix W Phx N of Thomas Distribution 140,651 NewTrane Metro East Valley Com. Park 720 E. Auto Center Dr., Mesa Chandler/N Gilbert Warehouse 110,588 New
Property Address Buyer Seller Type Sales Price SF PSF6835 W. Buckeye Rd., Phoenix Seera Investment Bank Duke Realty Corp. Distribution $74,750,000 1,009,351 $74.0616920 W. Commerce Ln., Goodyear (2) Hines Global REIT II Gramercy Prop. Trust Distribution $56,200,000 820,384 $68.509081 W. Washington St., Tolleson Cohen Asset Mgmt. VEREIT, Inc. Distribution $48,000,000 466,418 $102.917037 W. Van Buren St., Phoenix Westcore Properties XPO Logistics, Inc. Distribution $32,828,000 552,330 $59.44670 S. 91st Ave., Tolleson CT Realty Investors States Logistics Services Distribution $27,352,800 417,600 $65.50
( ) No. of buildings in transaction.
Absorption/Vacancyin SF, 2006-2016
14.2%
16.9%
9.7%
12.6% 10.6%
0.0%
4.0%
8.0%
12.0%
16.0%
20.0%
-6.00
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
06 07 08 09 10 11 12 13 14 15 16YTD
Absorption Vacancy
Buyer TypeQ3 16 Sales
3%
9%
38%
7%
43%
User Public/REITPrivate Private EquityInstitutional
Rental RatesPer month, 2006-2016
$0.66
$0.62
$0.48 $0.50$0.52
$0.56
$0.40
$0.45
$0.50
$0.55
$0.60
$0.65
$0.70
06 07 08 09 10 11 12 13 14 15 16YTD
Asking Triple Net Rates Per Month
Economic Indicatorsas of Q3 2016
Source: Bureau of Labor Sta s cs, Bureau of Economic Analysis of the U.S. Dept. of Commerce.
Unemployment U.S. Down 4.9% Arizona Down 6.0% Phoenix Metro Down 5.0%
Consumer Price Index Up 0.2%U.S. GDP Up 1.4%
( ) No. of buildings in transaction.
The Phoenix industrial market continues to improve in 2016 besting several key indicators as the year progresses. The sector continues at a pace that is steady and reassuring to both investors and landlords. This market thankfully does not resemble the overheated market of 2005-2007. It clearly is not at that level of intensity and its risk-reward potential, but it is also without the inherent risks that come from such a meteoric market.
The Valley’s industrial sector is seeing more and more California companies searching for space in the Valley to help mitigate the expensive and limited vacancy in the Los Angeles/Orange County/Inland Empire industrial sectors. Availabilities are hard to come by as lease renewals continue to dominate in those markets. Buyers are also more attracted to the higher investment potential in Arizona considering
how low cap rates are in California.
Phoenix industrial vacancy continues to decline even as 4.8 million SF of new inventory was delivered in 2016. Vacancy levels posted at 10.6% this quarter, the lowest level they’ve been since Q1 2008. Even though it is just a 10-basis point drop from last quarter, the modest decrease is due to the high number of deliveries this quarter adding new inventory that is not yet fi lled. Since 2008 over 40 million SF has been added to the Phoenix industrial sector.
Construction remains strong with 2,513,228 SF of mostly distribution space is in the pipeline. Sky Harbor Airport and East Valley submarket sectors are seeing the most market activity. Absorption this quarter was strong at 1,159,965 SF after a less than impressive Q2. Absorption stands at 3.3 million year-
to-date and should top out in the 5 to 5.5 million-range by the end of 2016. That will be down from last year, but still on pace as a historically successful year.
Rental rates have remained steady these past few quarters, but are expected to tick up next year as availabilities begin to decline.
The largest lease transaction for the quarter was Nestle Water signing for 394,775 SF at 1635 S. 43rd Ave, Phoenix. A logistics company, OHL, leased 295,695 SF at 10 West Logistics Center, 6200 W. Van Buren St., Phoenix.
The largest sales transaction in Q2 was for $74,750,000 at 6835 W. Buckeye Rd., Phoenix. Seera Investment Bank of Bahrain and The Koll Co. were the buyers. The price per SF was listed at $74.06. The building is leased to Amazon.com.
Sales by the Numbers: Q3 2016
Industrial Total Net Absorption Under Asking ChangeSubmarkets Inventory Total SF Q3 16 Q3 16 YTD Total Construction Q3 16 YTD Total NNN Rate from Q2 16
Sky Harbor AirportDistribution/Warehouse 34,150,182 3,486,415 10.2% (89,011) 62,559 912,737 147,480 977,508 $0.57 -0.1%
Manufacturing 8,801,359 836,368 9.5% 44,420 (49,781) - 41,252 41,252 $0.50 -1.3%
Flex 4,911,956 936,145 19.1% 21,369 (59,854) 107,187 - - $1.11 4.7%
Total 47,863,497 5,258,928 11.0% (23,222) (47,076) 1,019,924 188,732 1,018,760 $0.67 0.0%
Northeast ValleyDistribution/Warehouse 6,713,250 426,658 6.4% 29,319 50,855 54,372 - - $0.83 -2.4%
Manufacturing 3,005,922 94,218 3.1% (200) 7,449 - - - $0.87 1.2%
Flex 5,168,633 453,516 8.8% 25,965 54,479 - - - $0.97 0.0%
Total 14,887,805 974,392 6.5% 55,084 112,783 54,372 - - $0.91 0.4%
Northwest ValleyDistribution/Warehouse 38,353,040 2,298,829 6.0% 214,616 796,606 556,095 - 963,855 $0.57 1.8%
Manufacturing 11,412,118 316,607 2.8% 99,453 472,440 - - 384,377 $0.56 12.0%
Flex 6,288,793 719,133 11.4% (46,528) (75,880) - - - $0.85 3.6%
Total 56,053,951 3,334,569 5.9% 267,541 1,193,166 556,095 - 1,348,232 $0.59 2.0%
Southeast ValleyDistribution/Warehouse 49,633,718 4,838,746 9.7% 225,530 813,622 367,743 225,600 785,635 $0.57 0.0%
Manufacturing 24,226,557 3,206,114 13.2% 162,221 69,262 - - 64,000 $0.59 3.5%
Flex 15,289,116 2,228,646 14.6% (9,990) 36,980 - 177,000 177,000 $1.11 11.0%
Total 89,149,391 10,273,506 11.5% 377,761 919,864 367,743 402,600 1,026,635 $0.71 4.4%
Southwest ValleyDistribution/Warehouse 75,698,077 9,547,351 12.6% 395,837 927,872 515,094 1,000,000 1,349,224 $0.37 0.0%
Manufacturing 11,363,494 1,905,201 16.8% 87,089 195,818 - - - $0.32 3.2%
Flex 1,359,484 233,531 17.2% (125) 19,366 - - 85,794 $0.55 0.0%
Total 88,421,055 11,686,083 13.2% 482,801 1,143,056 515,094 1,000,000 1,435,018 $0.36 0.0%
Total SubmarketsDistribution/Warehouse 204,548,267 20,597,999 10.1% 776,291 2,651,514 2,406,041 1,373,080 4,076,222 $0.48 -2.0%
Manufacturing 58,809,450 6,358,508 10.8% 392,983 695,188 - 41,252 489,629 $0.46 0.0%
Flex 33,017,982 4,570,971 13.8% (9,309) (24,909) 107,187 177,000 262,794 $1.05 1.9%
Phoenix Metro Total 296,375,699 31,527,478 10.6% 1,159,965 3,321,793 2,513,228 1,591,332 4,828,645 $0.56 0.0%
Vacancy Building Completions
Q3 2016 Phoenix Industrial Market Stats
Sky HarborInt'l Airport
GRAND AVE.
RED MOUNTAIN FWY.
SANTAN FWY.
.South Mountain Fwy.
87
NE RD.
VAL
VIS
TA D
R.
POW
ER R
D.
CHANDLERGILBERT
GLENDALE
PEORI A
Gila River
Salt R iver
PHOENIX
NO
RTH
MCDOWEL L RD.
ARUR
L.
DR
PIM
A FW
Y.
LINCOLN DR.GLENDALE AVE.
OLIVE AVE. SHE A BLVD.
CAMELBACK RD.
MCDONALD DR.
ARIZ
ON
A AV
E.
McQ
UEE
N R
D.
COO
PER
RD.
GRE
ENFI
ELD
DR.
BASELINE RD.
THUNDERBIRD RD.
BUCKEYE RD.YUMA RD.
BROAD WAY RD. BROAD WAY RD.
JACK
RABB
IT T
R.
COT
TON
LN
.
MIL
L AV
E.
ELLIO T RD.
CHANDLER B LVD.
RAY RD.
GUADALUPE RD.
WARNER Rd.
32N
D S
T.
HAY
DEN
RD
.
MCDOWEL L RD.CEN
TRA
L AV
E.
44TH
ST.
24TH
ST.43
RD A
VE.
83RD
AVE
.
59TH
AVE
.
.DR
NOSB
OD
TEMPE
85 60
202
101
101
SCOTTSDALE
LITC
HFI
ELD
RD
.
EL M
IRAG
E RD
.
REEM
S RD
.
OLIVE AVE.
BEL L RD.
PhoenixGoodyear Airport
GLENDALE AVE.
NORTHERN AVE.
CAMELBACK RD.
MCDOWEL L RD.
101
303
WADDEL L RD.
51
LukeAFB
.RD TSEI RP
W. HAPPY VALLEY RD. W. HAPPY VALLEY RD.
W. DEER VALLEY RD. W. DEER VALLEY RD.
E. PINNACLE PEAK RD.E. PINNACLE PEAK RD.
BEL L RD.
CAVE
CRE
EK R
D.
N. P
IM
7TH
ST.
LOWER BUCKEYE RD.
202
7TH
AVE
.
GERMANN RD.
202
BEL L RD.
INDIAN BEND RD.
PARADISEVALLEY
MESA
FOUNTAINHILLS
TOLLESON
GOODYEAR
OADWAY RD.
EL MIRAGE
SURPRISE
SUNCITYWEST
SUN CITY
MCDOWELL RD. BEELINE HWY.
ESTR
ELLA
FW
Y.
PAPAGO FWY.
BLAC
K CA
NYO
N F
WY.
PIES
TEW
A FW
Y.
UNIVERSITY DR.
.
PRIC
E FW
Y.
AGU
A FR
IA F
WY.
MARICOPA FWY. 143
SUPERSTITION FWY.
.
3
15
2
4
Sky HarborInt'l Airport
GRAND AVE.
South Mountain Fwyww.yy
NE RD.
GLENDALE
PEORI A
Gilal River
Saltl R ivii ev r
PHOENIX
NO
RTH
ARUR
L.
DR
PIM
AFW
Y
LINCOLN DR.GLENDALE AVE.AA
OLIVE AVE.AA SHE A BA LVD.LL
CAMELBACK RD.
MCDONALD DR.
BASELINE RD.
THUNDERBIRD RD.
BUCKEYE RD.YUMA RD.A
BROAD WAWW YAA RD.
JACK
RABB
ITTR
.
COT
TON
LN
.
MIL
LAV
E.AA
D32
NDD
ST.
HAY
DEN
RD
.AA
MCDOWEL L RD.
ENTR
ACE
LAV
E.AA
TH S
44T
T.
H S
24TH
T.43RD
AVE.
AA
83RD
AVE.
AA
59TH
AVE.
AA
TEMPE
85
202
101
101
SCOTTSDALE
LITC
HFI
ELD
RD
.
EL M
IRAG
E RD
.
REEM
S RD
.
OLIVE AVE.AA
BEL L RD.
PhoenixGoodyear Airport
GLENDALE AVE.AA
NORTHERN AVE.AA
CAMELBACK RD.
MCDOWEL L RDD.
101
303
WADDELWW L RD.
51
LukeAFB
.RD
TSEI RP
W. HAPPY VALLEY RD. W
W. DEER VALLEY RD. W. DEER VR VALLEY RD.
E. PINNACLE PEAK RD.E. PINNACLE PEAK RD.AK
K RD
.CA
VE C
REEK
RD
.
N. P
IM
7TH
ST.
LOWER BUCKEYE RD.
202
7TH
AVE
.
BEL L RD.
INDIAN BEND RD.
PARADISEVALLEY
TOLLESON
GOODYEAR
OADWAY RD.
EL MIRAGE
SURPRISE
SUNCITYWEST
SUN CITY
MCDOWELL RD.
ESTR
ELLA
FW
Y.
PAPAGO FWY.
BLAC
K CA
NYO
N F
WY.
PIES
TEW
A FW
Y.
.
PRIC
E FW
Y.
AGU
A FR
IA F
WY.
MARICOPA FWY. 143
3
15
Sky HarborInt'l Airport
GRAND AVE.
RED MOUNTAIN FWY.
SANTAN FWY.
.South Mountain Fwy.
87
NE RD.
VAL
VIS
TA D
R.
POW
ER R
D.
CHANDLERGILBERT
GLENDALE
PEORI A
Gila River
Salt R iver
PHOENIX
NO
RTH
MCDOWEL L RD.
ARUR
L.
DR
PIM
A FW
Y.
LINCOLN DR.GLENDALE AVE.
OLIVE AVE. SHE A BLVD.
CAMELBACK RD.
MCDONALD DR.
ARIZ
ON
A AV
E.
McQ
UEE
N R
D.
COO
PER
RD.
GRE
ENFI
ELD
DR.
BASELINE RD.
THUNDERBIRD RD.
BUCKEYE RD.YUMA RD.
BROAD WAY RD. BROAD WAY RD.
JACK
RABB
IT T
R.
COT
TON
LN
.
MIL
L AV
E.
ELLIO T RD.
CHANDLER B LVD.
RAY RD.
GUADALUPE RD.
WARNER Rd.
32N
D S
T.
HAY
DEN
RD
.
MCDOWEL L RD.CEN
TRA
L AV
E.
44TH
ST.
24TH
ST.43
RD A
VE.
83RD
AVE
.
59TH
AVE
.
.DR
NOSB
OD
TEMPE
85 60
202
101
101
SCOTTSDALE
LITC
HFI
ELD
RD
.
EL M
IRAG
E RD
.
REEM
S RD
.
OLIVE AVE.
BEL L RD.
PhoenixGoodyear Airport
GLENDALE AVE.
NORTHERN AVE.
CAMELBACK RD.
MCDOWEL L RD.
101
303
WADDEL L RD.
51
LukeAFB
.RD TSEI RP
W. HAPPY VALLEY RD. W. HAPPY VALLEY RD.
W. DEER VALLEY RD. W. DEER VALLEY RD.
E. PINNACLE PEAK RD.E. PINNACLE PEAK RD.
BEL L RD.
CAVE
CRE
EK R
D.
N. P
IM
7TH
ST.
LOWER BUCKEYE RD.
202
7TH
AVE
.
GERMANN RD.
202
BEL L RD.
INDIAN BEND RD.
PARADISEVALLEY
MESA
FOUNTAINHILLS
TOLLESON
GOODYEAR
OADWAY RD.
EL MIRAGE
SURPRISE
SUNCITYWEST
SUN CITY
MCDOWELL RD. BEELINE HWY.
ESTR
ELLA
FW
Y.
PAPAGO FWY.
BLAC
K CA
NYO
N F
WY.
PIES
TEW
A FW
Y.
UNIVERSITY DR.
.
PRIC
E FW
Y.
AGU
A FR
IA F
WY.
MARICOPA FWY. 143
SUPERSTITION FWY.
.
3
15
2
4
Sky HarborInt'l Airport
GRAND AVE.
RED MOUNTAIN FWY.
SANTAN FWY.
.South Mountain Fwy.
87
NE RD.
VAL
VIS
TA D
R.
POW
ER R
D.
CHANDLERGILBERT
GLENDALE
PEORI A
Gila R iver
Salt R iver
PHOENIX
NO
RTH
MCDOWEL L RD.
ARUR
L.
DR
PIM
A FW
Y.
LINCOLN DR.GLENDALE AVE.
OLIVE AVE. SHE A BLVD.
CAMELBACK RD.
MCDONALD DR.
ARIZ
ON
A AV
E.
McQ
UEE
N R
D.
COO
PER
RD.
GRE
ENFI
ELD
DR.
BASELINE RD.
THUNDERBIRD RD.
BUCKEYE RD.YUMA RD.
BROAD WAY RD. BROAD WAY RD.
JACK
RABB
IT T
R.
COT
TON
LN
.
MIL
L AV
E.
ELLIO T RD.
CHANDLER B LVD.
RAY RD.
GUADALUPE RD.
WARNER Rd.
32N
D S
T.
HAY
DEN
RD
.
MCDOWEL L RD.CEN
TRA
L AV
E.
44TH
ST.
24TH
ST.43
RD A
VE.
83RD
AVE
.
59TH
AVE
.
.DR
NOSB
OD
TEMPE
85 60
202
101
101
SCOTTSDALE
LITC
HFI
ELD
RD
.
EL M
IRAG
E RD
.
REEM
S RD
.
OLIVE AVE.
BEL L RD.
PhoenixGoodyear Airport
GLENDALE AVE.
NORTHERN AVE.
CAMELBACK RD.
MCDOWEL L RD.
101
303
WADDEL L RD.
51
LukeAFB
.RD TSEI RP
W. HAPPY VALLEY RD. W. HAPPY VALLEY RD.
W. DEER VALLEY RD. W. DEER VALLEY RD.
E. PINNACLE PEAK RD.E. PINNACLE PEAK RD.
BEL L RD.
GREENWAY RD.
CAVE
CRE
EK R
D.
N. P
IM
7TH
ST.
LOWER BUCKEYE RD.
202
7TH
AVE
.
GERMANN RD.
202
BEL L RD.
INDIAN BEND RD.
PARADISEVALLEY
MESA
FOUNTAINHILLS
TOLLESON
GOODYEAR
OADWAY RD.
EL MIRAGE
SURPRISE
SUNCITYWEST
SUN CITY
MCDOWELL RD. BEELINE HWY.
ESTR
ELLA
FW
Y.
PAPAGO FWY.
BLAC
K CA
NYO
N F
WY.
PIES
TEW
A FW
Y.
UNIVERSITY DR.
.
PRIC
E FW
Y.
AGU
A FR
IA F
WY.
MARICOPA FWY. 143
SUPERSTITION FWY.
.
PhoenixGatewayAirport
FalconField
ScottsdaleMunicipalAirport
PhoenixDeer ValleyAirport
1. Airport Area Submarket - N. Airport - S. Airport N. of Roeser - S. Airport S. of Roeser - SC. N. of Salt River - SC. S. of Salt River
2. Northeast Submarket - Central Phoenix - Scottsdale Airpark - Scottsdale/Salt River
3. Northwest Submarket - Deer Valley/Pinnacle Peak - Glendale - Grand Ave. - N. Black Canyon - N. Glendale/Sun City
- W. Phx N. of Thomas Rd. - W. Phx S. of Thomas Rd.
4. Southeast Submarket - Chandler - Chandler Airport - Chandler N./Gilbert - Falcon Field/Apache Jct. - Mesa - Tempe East - Tempe Northwest - Tempe Southwest
5. Southwest Submarket - Goodyear - SW. N. of Buckeye Rd. - SW. S. of Buckeye Rd. - Tolleson
Phoenix Industrial Submarket Map
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Q320162016
The information and details contained herein have been obtained from third-party sources believed to be reliable; however, Lee & Associates Arizona has not independently verifi ed its accuracy. Lee & Associates Arizona makes no representations, guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information and details provided herein, including but not limited to the implied warranty of suitability and fi tness for a particular purpose.
Interested parties should perform their own due diligence regarding the accuracy of the information. The information provided herein, including any sale or lease terms, is being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal without notice, by third-party data source providers.
The Lee & Associates Phoenix Industrial Market report compiles relevant market data by using a third-party database for the proprietary analysis of specifi c warehouse, distribution, manufacturing and Flex properties in the Phoenix Metropolitan Area.
© Copyright 2016 Lee & Associates Arizona. All rights reserved.
Market report analysis by: Matt DePinto, Senior Research Analyst
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