JUDI BUTTERWORTH O: 480.750.1215 C: 602.315.2541judi.butterworth@orionprop.com

EXCLUSIVELY LISTED BY:

ROSS WALGREENS SHOPPING CENTER234 EAST BELL ROAD | PHOENIX, AZ 85022

FIRST TIME OFFERED FOR SALE

JUDI BUTTERWORTH O: 480.750.1215 C: 602.315.2541judi.butterworth@orionprop.com

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D ISCLA IMER //

EXECUT IVE SUMMARY

±48,000 VPD

The Ross Walgreen’s Center was purchased by the current owner while it was under construction in 1994. The original tenants were CraftMart (local), Ross Dress for Less, Big Lots and Walgreen’s.

Years later, CraftMart closed all of their stores including this one. Big Lots took the former CraftMart space and went from 21,137 sf to 28,500 sf. A consignment store took the former Big Lots space during the last economic downturn.

Meanwhile, the entire North Phoenix trade area consistently enjoyed enormous growth in both multi-family and single-family residences.

To serve this new population, the retail square footage at 7th Street and Bell Road grew to over 1 million square feet, making it one of the few “Power Intersections” in Metropolitan Phoenix: Having more than 1 million square feet of retail without being across from a major mall.

Big boxes have experienced a resurgence at the intersection and are quickly filled by even better retailers and tenants. Just in the last 5 years, the intersection has welcomed Sprouts Farmers Market, Tuesday Morning, Planet Fitness, Michael’s, Marshall’s, Hobby Lobby, LA Fitness, WinCo, and Bealls Outlet.

SALE PRICE: $13,880,000

PRICE PER SF: $147.07

CAP RATE: 6.00%

LOT SIZE: 7.89 Acres

BUILDING SIZE: 94,375 SF

YEAR BUILT: 1994-95

ZONING: C-2

PARKING RATIO: 4.00/ 1,000 SF

CROSS STREETS: Bell Rd & 3rd St

PROPERTY H ISTORY ABOUT THE PROPERTYRoss Walgreens Shopping Center offers

great visibility, ingress and egress, excellent parking and a huge monument sign. The shopping center has had the same property management company

since it was constructed.

Triple net charges are an amazing $3.27 per square foot.

The center is in pristine condition and was partially renovated with new roofs and HVAC

(2011-12), new landscaping (2015), and a new parking lot (2017).

Few trade areas have seen a

resurgence of popularity like 7th Street

and Bell Road. In 2016, Evergreen

Development bought a two-story office

building and several acres east of the

NEC of the intersection. New homes

are currently under construction, a

new luxury apartment complex was

completed, and new retail buildings

were fully leased in record time.

Traffic counts in front of the Ross

Walgreens Shopping Center are

48,000 vpd, and there are an

additional 38,000 vpd going north on

7th Street as well.

SUBJECT

SUBJECT

AER IAL MAP

±48,000 VPD

BELL ROAD

BELL ROAD

3RD STREET

±38,000 VPD

NORTH

CLICK TO VIEW DRONE VIDEO

PARCEL MAP

BELL ROAD

3RD STREET

±48,000 VPD

208-11-001C 208-11-001F

PARCEL #: 208-11-001C, 208-11-001FTAXES (2018): $147,478.42

NORTH

PHOENIX IS HOT!Phoenix, Arizona (Maricopa County) is the vibrant center of one of the fastest growing job markets in the country. Phoenix is emerging in the new economy with strength in high technology, manufacturing, bioscience research and advanced business services. As a top market for skilled and available workforce, companies are growing in Phoenix because it’s not only a thriving business environment, but a great place to live life. Phoenix is #1 in Entrepreneurial Activity for a reason – Phoenix is Hot!

M A J O R EMPLOYMENT

H U B

• This is a very stable trade area which includes post-high school education facilities, primary schools, manufacturing and light-industrial buildings, office buildings and retail buildings contributing to a significant daytime employment figure for a 5 mile radius of 131,843.

• Bell Road is the major east-west arterial in North Phoenix which stretches from Scottsdale to Surprise, Arizona and becomes the Sun Valley Parkway, eventually meeting I-10 in Buckeye, Arizona.

• In this immediate area of Bell Road, shoppers can find a majority of national retailers: Walmart Supercenter, Kohl’s, WinCo Grocers, Sam’s Club along with over 1 million square feet of retail at the intersection.

• This trade area has access to three (3) major freeways. Loop 101 encircles central Phoenix and travels from Tolleson to the Southeast Valley connecting with Interstate 10 which goes to Tucson. Interstate 17 is the major north-south freeway on the westside of the metro area which goes from Flagstaff through Phoenix to the SE Valley and Southern Arizona via I-10. State Route 51, also known as the Piestewa Freeway, connects Interstate 10 just outside Downtown Phoenix with Loop 101 on the north side of Phoenix.

• I-17 has significant national and global businesses located along its corridor like: American Express, PetSmart Corporate, Honeywell, HonorHealth, USAA, Xerox, Discover Card and many more.

• Deer Valley Airport 5 miles to the north and is home to many businesses serving the region.

• The population is dense with 140,347 people in a 3 mile radius to the intersection. There are 2.43 persons per household with a median age of 36.9 years. The average household income in 2 miles is a strong $74,442 based on 2018 US Census Figures. These great demographics support why the vacancy rate at this intersection has been consistently low for years.

TRADE AREA H IGHL IGHTS

F INANCIAL ANALYS IS

Suite TenantSquareFootage

Start Date End Date Rate

per Month Rate

per Year Monthly

Rent Annual

RentPercentage

Rent Breakpoint CAM Insurance

PropertyTaxes

CAM Total 2018

CAM/SFNext Increase

220 Ross 27,200 28.8% 09/01/95 01/31/21 0.65$ 7.75$ 17,566.67$ 210,800$ 2.0% Annual Rent 33,334$ 2,454$ 42,824$ 78,612$ 2.89$ at option $11.25 PSF

Options/Notes: One, 5-year Option Remaining; Renewed 3 previous options.204 Walgreens 17,486 18.5% 07/24/95 08/31/55 1.13$ 13.50$ 19,671.75$ 236,061$ 2.0%/1.0%/0.5% $262,500 cap 20,710$ 4,764$ 28,049$ 53,523$ 3.06$ -

Options/Notes: Seven, 5-year options beginning 9/1/2020.230 Big Lots! 28,552 30.3% 08/12/94 01/31/22 0.65$ 7.77$ 18,481.50$ 221,778$ 1.5% 13,775,000$ 31,955$ 3,754$ 45,793$ 81,502$ 2.85$ at option $10.93 PSF

Options/Notes: Two, 5-year Options Remaining; Renewed 3 previous options. Relocated/Upsized within Center in October 2011.210 Bealls Outlet 21,137 22.4% 03/01/14 01/31/25 0.75$ 9.00$ 15,852.75$ 190,233$ 3,804,660$ 26,631$ 5,790$ 33,901$ 66,322$ 3.14$ 03/01/22 $10.00 PSF

Options/Notes: Two, 5 Year Options. One time conditional termination right on 08/30/21 with 6 months advance notice and a $50,000 penalty.

Totals 94,375 SF 0.76$ 9.10$ 71,572.67$ 858,872$ 112,630$ 16,762$ 150,567$ 279,959$ 2.97$

RENT ROLL

INCOME/EXPENSE Current Income

Base Rent 858,872$CAM & Insurance Reimbursement 279,959$ (91%)Total Revenue 1,138,831$

Estimated Operating ExpensesMaintenance Personnel 24,460$ $0.26 psfPressure Washing 6,640$ $0.07 psfTrash Collection 200$ $0.00 psfRepair and Maintenance 8,435$ $0.09 psfSignage 200$ $0.00 psfParking Lot 17,460$ $0.19 psfPest Control 576$ $0.01 psfLandscaping 19,290$ $0.20 psfSecurity 5,460$ $0.06 psfFire Protection 645$ $0.01 psfElectricity 10,158$ $0.11 psfWater/Sewer 13,671$ $0.14 psfManagement Fees 27,600$ $0.29 psfMiscellaneous 900$ $0.01 psfReal Estate Taxes 151,734$ $1.61 psfInsurance 20,955$ $0.22 psf

Total Operating Expenses 308,384$ $3.27 psf (308,384)$

Net Operating Income 830,447$ 6.00% CAP

S ITE P LAN

BELL ROAD

3RD STREET

TENANT PROF I LES

Founded in Chicago, Illinois in 1901, The Walgreen Company (or Walgreens) is an American company that operates as the second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling prescriptions, health and wellness products, health information, and photo services. As of June 28, 2018, Walgreens operates approximately 9,800 drugstores with a presence in all 50 states (241 stores in Arizona), the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

In 2014, Walgreens merged with European-based Alliance Boots to form Walgreens Boots Alliance, Inc., the first global pharmacy-led, health and well-being enterprise. Combining Walgreens with the Boots pharmacy chain and pharmaceutical distributor Alliance Healthcare has created opportunities to bring global beauty brands to Walgreens U.S. customers and offer more value to pharmacy patients through global pharmaceutical supply chains and group purchasing.

The merger also gave Walgreens the opportunity to think in a new way about their business. During the first phase of this transformation, they have made significant progress to bring their pharmacy services to more patients, improve the shopping experience in their stores and manage costs across their company. Most recently, they completed their acquisition of more than 1,900 Rite Aid drugstores in the U.S., making Walgreens quality health care accessible to more customers and patients.

www.walgreens.com

WALGREENS (NYSE & NASDAQ: WAG, $118B)

Ross Stores, Inc. is an American chain of off-price department stores headquartered in Dublin, California, officially operating under the brand name, Ross Dress for Less. It is the largest off-priced retailer in the U.S. There are 1,412 Ross Dress for Less stores in 37 states, the District of Columbia and Guam, with more on the way. Ross Department Store was first opened in San Bruno, California in 1950. In 1982, a group of investors, including Mervin Morris, founder of the Mervyns chain of department stores, purchased the six existing Ross Department Stores in San Francisco and changed the format to off-price retail units. Their focus has been toward bringing their customers a constant stream of high quality department and specialty store brands at extraordinary savings a.k.a. bargains, while providing an easy, fun and organized shopping experience.

Over the past 30+ years, Ross Stores, Inc. has grown from a six-store chain into a $12.9 billion, Fortune 500 Company. Ross operates off price businesses in a way that keeps costs low so they can pass the savings to their customers. With this model, they’ve been able to grow and open new stores across the country. In fact, their sales growth has outpaced traditional retailers for the past three years.

www.rossstores.com

ROSS (NASDAQ: ROST, $14B)

TENANT PROF I LES

Headquartered in Columbus, Ohio, Big Lots, Inc. is a community retailer operating more than 1,400 Big Lots stores in 47 states; 34 of those stores are located in the Phoenix Metro area. From their closeout store roots to their entrance into discount retailing, their core purpose of helping people save money on all kinds of products has stayed the same.

Due to the needs of their customers expanding drastically, they currently offer an extensive assortment of brand-name items and quality products, including food, furniture, seasonal items, electronics and accessories, home décor, toys, and gifts. Big Lots supports the communities it serves through the Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare, and education.

www.biglots.com

Founded in 1915, Bealls Outlet is a privately held company, rich in tradition, owned by the founding family and its employees. Bealls, Inc. is the parent company of Bealls Outlet Stores, Inc. The retail holding company operates through subsidiaries Bealls Department Stores, Bealls Outlet, and Burke’s Outlet Stores in a dozen states. The multi-brand retailer has more than 500 department and outlet stores (about 200 are in Florida) located throughout states in the southern and western US, including Arizona, California, Georgia, Louisiana, and Texas. There are currently 3 stores in Phoenix.Customers can find brand name apparel and accessories for the entire family at up to 70% off other stores prices every day. In addition, most stores carry shoes, home furnishings, gifts, and toys. Their stores are designed to serve customers of all ages and income levels. They pride themselves in offering great assortments at great prices every day.Privately-owned Bealls rings ups more than $1 billion in sales annually.

www.beallsoutlet.com

BIG LOTS (NYSE: BIG, $5.3B) BEALLS OUTLET

AVERAGE HOUSEHOLD

INCOME$74,442

*2 Mile Radius

AGE36.9*3 Mile Radius

2018 POPULATION

335,557*5 Mile Radius

MEDIAN

2018 SUMMARY (SOURCE: ESRI) TWO MILE THREE MILE FIVE MILE

DAYTIME EMPLOYEES 13,087 46,148 131,843

POPULATION 71,242 140,347 335,557

AVG HOUSEHOLD SIZE 2.39 2.43 2.50

AVG HOUSEHOLD INCOME $74,442 $71,942 $70,537

MEDIAN AGE 37.9 36.9 36.6

DEMOGRAPHICS

JUDI BUTTERWORTH O: 480.750.1215 C: 602.315.2541judi.butterworth@orionprop.com

EXCLUSIVELY LISTED BY:

ROSS WALGREENS SHOPPING CENTER234 EAST BELL ROAD | PHOENIX, AZ 85022

BELL ROAD

FIRST TIME OFFERED FOR SALE