goodyear village 378-432 n litchfield road goodyear, az ......goodyear village property description:...

Goodyear Village

378-432 N Litchfield Road

Goodyear, AZ 85338

Offering Memorandum:

A Value Add Retail Opportunity: For Sale

Prepared by: Cam Stanton First Vice President 602.735.5545 [email protected]

This letter/proposal is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred herein unless and until a definitive agreement has been fully executed and delivered by the parties. The parties agree that this letter/proposal is not intended to create any agreement or obligation by either party to negotiate a definitive lease/purchase and sale agreement and imposes no duty whatsoever on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any way other than at arm’s length. Prior to delivery of a definitive executed agreement, and without any liability to the other party, either party may (1) propose different terms from those summarized herein, (2) enter into negotiations with other parties and/or (3) unilaterally terminate all negotiations with the other party hereto.

TABLE OF CONTENTS

I. Disclaimer ........................................................ 3

II. Property and Executive Summary ...................... 4

III. Narrative ......................................................... 8

IV. Brochure ........................................................ 18

V. Available Properties ....................................... 20

VI. Demographic Report ...................................... 30

CBRE | OFFERING MEMORANDUM

Disclaimer

PAGE 3

Disclaimer CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.


Property and Executive Summary

PAGE 4


Executive Summary

Goodyear Village

Property Description: Goodyear Village is located on the north west corner of

Van Buren Street and Litchfield Road. The Primary frontage

is on Litchfield Road.

Property Address: 378-432 N Litchfield Road

Goodyear, AZ 85338

Property Type: Shadow Anchor Shopping Center. The vacant Fry’s Food

Store anchor is not a part of the Offering.

Building Size: 36,208 square feet

Land Size: 176,249 square feet or 4.05 Acres

Occupancy: 60% ± 14,483 square feet vacant

Year Built: 1989

Current NOI: $197,000 Projected NOI: $405,000 Stabilized @ 90% Listing Price: Best Offer Terms: All Cash



PAGE 5



PAGE 6



PAGE 7


Narrative

PAGE 8

Narrative

Subject Property:

The Subject property is located at the intersection of Litchfield Road and Van Buren

Street in Goodyear, Arizona. Goodyear is a western suburb in the Metro Phoenix Area.

Goodyear has a population of 70,000 and is the home of many businesses,

corporations and the Luke Air Force Base which is a major economic factor generating

some two billion dollars into the local economy. This property is located one half mile

South of I-10 Freeway, where there is a diamond interchange which allows easy access

to most areas of Metro Phoenix and in particular West Phoenix, Glendale, Avondale,

Buckeye, Peoria and Litchfield Park. Please review the enclosed traffic counts and

demographics. This is a heavily retailed area, both North and South of the Freeway,

with many of the top retailers and big box users being represented in the trade area.


Narrative

PAGE 9

Property Description:

The Subject Property is located on the Northwest Corner of the intersection. The

improvements contain approximately 36,208 square feet of retail buildings. The center is

currently 65% occupied with a variety of daily need tenants. The property was developed

in l989 with the anchor being Fry’s Food Stores, a division of The Kroger Company. The

Fry’s store contains approximately 61,250 square feet and is currently vacant as Fry’s

closed this store in October, 2012. The closure was the result of Fry’s opening two new

stores in the opposite ends of the trade area, thus the resulting affect was the

cannibalization of sales from the Fry’s store in Goodyear Village. One of the newer Fry’s

stores is located to the east of the Subject Property at Avondale Blvd and I-10 and the

other is located west of the Subject Property at Watson and Yuma Road. The Fry’s

building in Goodyear Village is owned by an out of state investor. The Subject Property

has ten tenants including O’Reilly Auto Parts, Enterprise Rental Car, H&R Block, Little

Caesar’s Pizza and Cosmo Prof, which is the “to the trade only” division of Sally Beauty

Supply. Other tenants include three restaurants, a nail salon, a hair salon and smoke

shop. Most of these tenants have been in the center for many years and have developed

a loyal customer following over that period of time. A description of each of the tenants

and their current status is provided in the package. There are also four pads at

Goodyear Village, all with separate owners.

The pads are occupied by an Arby’s, Burger King (recently remodeled), Angry Crab

(formerly a JB’s) and one vacant pad which is owned by Circle K. Access to the center is


Narrative

PAGE 10

from three drives off Litchfield Road, two drives on the South side and one drive from the

North. The road on the north leads to a new Marriott Town Place Suite hotel and a new

Cancer Center of America Treatment Center. To the east of the Subject Property is a

multi-dealer Auto Plex and a Room Store Furniture Outlet. The Cancer Center is a

250,000+ SF facility which has 48 beds consisting of both treatment beds and on site

accommodations.

Uses at the intersection as a follows:

SWC: Goodyear Financial Center: 80,000 SF of Class A space which is 70% leased.

NEC: Palm Valley Shopping Center: That is over 108,000 square feet and is about 98%

leased. Tenants include Big Lots!, Rent-A-Center, Auto Zone, Circle K, Palm Valley

Church, Hope Closet Thrifts and a Schlotsky’s deli in a freestanding building.

SEC: Goodwill Center. The center contains 82,541 SF and is 100% leased. Tenants

include; Goodwill, Glidden Paints, Vineyard Church, and Pawn First.


Narrative

PAGE 11


Narrative

PAGE 12

The Tenants:

The existing rent roll represents a variety of retailers and it is interesting to note

that no tenant other than the smoke shop has asked for a rent reduction. The landlord

has extended the lease with the smoke shop for a renewal of three years at the annual

rent of $14.00 NNN. There are currently two tenants in the center which will be vacating

around the end of 2014 after fulfilling their respective lease terms The first is a dentist

who occupies 1,630 SF and he is moving his practice out of the trade area. The second is

a jewelry store which leases 2,000 SF and will be vacating to occupy a freestanding

building which they are constructing. H & R Block has just extended for one year.

Ramiro’s just extended for another five years. Also, Little Caesars is expanding to the end

cap on the north end of the center. The cost is $40,000 plus a commission. CBRE has


Narrative

PAGE 13

interviewed the remaining tenants and feel their business has stabilized over the two

years since Fry’s has vacated and there have been two renewals (Enterprise and O’Reilly

last year) along with a new tenant, Cosmo Prof, which moved into the center in

December, 2013. Enterprise Rent A Car caters to the customers of the car dealerships

along I-10, as well as to Luke Air Force personnel and visitors. O’Reilly does extremely

well at this site and just renewed for five more years. Besides their retail business, this

O’Reilly store maintains wholesale accounts with various auto dealerships and other auto

repair shops. This tenant is producing sales close to their break point.

We have estimated the achievable rent on the vacant spaces to between $13.00

and $15.00 per square foot plus NNN. We have also incorporated for a $10.00 PSF

improvement allowance for each vacant space as part of the economics of the center.

The owner of the Fry’s building, is a private party based in California who

purchased the Fry’s building as a net leased investment, and they have recently hired

CBRE to lease the space, either to one tenant or to subdivide the space to accommodate

several retailers. The owners of the Fry’s building have finally become pro-active in their

efforts to re-lease the space as their lease with Fry’s will expire in early 2016. Until

recently, Fry’s had a real estate broker attempting to find a sublease tenant, but their

unwillingness to invest in any leasehold improvements made any transaction difficult at

best. If the owners of the Fry’s building are willing to meet market terms and have the

capital to invest, we feel confident they will be successful in finding replacement tenant(s)

to enhance the center and provide a new anchor tenant for the center which will be

advantageous for the owner of the Subject Property.


Narrative

PAGE 14

Tenant Profiles:

H&R Block is one the world’s largest tax service providers, utilizing more than 100,000 highly

trained tax professionals and having prepared more than 550 million tax returns worldwide

since 1955. Brothers Henry W. Bloch and Richard A. Bloch founded the company in 1955 and

grew the business to become a brand and franchising icon. In addition to the company

providing tax return preparation services in-person, through H&R Block At Home online and

desktop software products, the company also offers financial products to support its tax

business through the H&R Block Bank. The bank offers traditional and alternative banking

solutions to H&R Block tax clients and associates and serves customers at its branch location

in H&R Block world headquarters in Kansas City, Mo., as well as online and via phone. As the

company has evolved and achieved significant milestones, H&R Block has remained

committed to superior customer service, a pledge to stand behind our work and a commitment

to serving clients. H&R Block is dedicated to being the most trusted, state-of-the-art tax

preparation firm at the best value.

O’Reilly Automotive, Inc. is a publicly traded chain of auto parts stores that started with one

store in Springfield, Missouri in 1957. The corporation is currently headquartered in

Springfield. The long range plans and stability of the company were solidified by a public

offering of company stock in April 1993. Since that time, the company has grown through the

opening of new stores, as well as through numerous mergers and acquisitions, and currently

operates more than 4,000 stores in 42 states, including Alaska and Hawaii. The company

continues to plan for growth and expansion, projecting the addition of 200 new locations in

2014. Throughout this time the underlying spirit and philosophy of O’Reilly Automotive, Inc.,

has been one of growth and progress, both for the company and its team members.

Founded in 1957, Enterprise Rent-A-Car is an internationally recognized brand with more

than 6,500 neighborhood and airport locations in the United States, Canada, the U.K.,

Ireland, Germany, France and Spain, as well as franchise locations throughout the world.

Through tremendous leadership and the entrepreneurial spirit of our employees, we have built

the largest car rental brand in North America, known for exceptionally low rates and

outstanding customer service. Today, Enterprise offers a wide variety of car leasing,

replacement rentals, vanpooling, car sharing and hourly rental programs – and local car

rental customers are picked up at no extra cost. In addition, the Enterprise Holdings

Foundation has contributed more than $200 million to thousands of local non-profits focused

on community improvement, education and environmental stewardship.


Narrative

PAGE 15

Ramiros Locally owned and family operated along with another location in Peoria. Recent cosmetic

upgrades were made in the suite. Serving large portions of filling Mexican style staples…a

local favorite with a very busy drive through

Smoke M’ This Goodyear Village location of a locally owned and operated smoke shop multi-store

operation has been a presence at the shopping center since taking over from the defunct

Cigarettes Cheaper operation in 2004.

Vega Salon Also locally owned and operated, the tenant, already established in Goodyear relocated to

the center in 2011 after several years of operation in a nearby shopping center.

Diva Nails A nail salon has been a part of the shopping center since 2001. The current operator has

owned the business since 2013.

Forever Florist Tenant has a Kiosk in the American Cancer Center north of the site and this is their first retail

location. They are affiliated with a local funeral home.


Narrative

PAGE 16

City of Goodyear:

Goodyear is a city on the move! The 6th fastest growing city in Arizona, Goodyear’s

population has jumped from just over 21,000 in 2000 to more than 70,000 in 2014.

With growth comes amenities and Goodyear is seeing that in all phases, from residential

subdivisions to commercial, retail and recreational opportunities.

Residents and businesses of all types call this great city home because of its:

Business-friendly attitude

Outstanding quality of life

Available land and business parks

Affordable housing in master planned communities

Access to largest labor pool in Arizona

Excellent school districts

Goodyear maintains a strong economic base with both large and small industries

ranging from aerospace to healthcare. Corporate partners and businesses such as Dick’s

Sporting Goods Distribution Center, Macy’s Online Fulfillment Center and the city’s

major healthcare facilities such as Cancer Treatment Centers of America and West Valley

Hospital all call Goodyear home. Goodyear is proud of its crown jewel, the state-of-the-

art ballpark that is the centerpiece of a future mixed use development complex. This site

illustrates one of the many attractive opportunities that Goodyear has to offer to the

development community. Future development on the horizon includes the 1.1 million

square foot Estrella Falls Regional Mall scheduled to open in the Fall of 2016. This will be

a great addition to the many amenities that Goodyear already has to offer and will

continue to position this city as a destination where residents and businesses alike

enjoying working, playing and calling Goodyear home.


Narrative

PAGE 17

Business Incentives:

As a key employment center, Goodyear and the state of Arizona offer great business

incentives.

Redevelopment Area

Businesses located within Goodyear’s redevelopment area, a 7-square miles in the heart

of Goodyear, can take advantage of a series of real property tax abatements and

reductions offered by the State of Arizona.

Goodyear’s Enhanced Customer Experience

Goodyear provides faster turnaround times and the customer friendly experience that

Goodyear is known for. All of the Development Services divisions work together as one

team to guide you through the process of your project every step of the way. We know

that your time is valuable and we are here to help. We offer great amenities such as

“building safety permits by e-mail”, “engineering electronic plan reviews” and “tracking

permits online”. No more driving down to the city or waiting in line thanks to these great

programs! Likewise, we also offer “over the counter” business permits. The less time you

spend with us, the more time you have to focus on your business or project!


Brochure

PAGE 18

Brochure


Brochure

PAGE 19


Available Properties

PAGE 20




PAGE 21



PAGE 22



PAGE 23



PAGE 24



PAGE 25



PAGE 26



PAGE 27



PAGE 28



PAGE 29


Demographic Report

PAGE 30

Demographic Report

goodyear village 378-432 n litchfield road goodyear, az ......goodyear village property description:...

Documents