ARI SPIRO | 480.634.8596 | [email protected]
EXCLUSIVELY LISTED BY:
SEAN STUTZMAN | 480.634.8194 | [email protected]
SCOTTSDALE SHOPS
29 ,156 S F | LOOP 101 & RA INTREE CORR IDOR
SCOTTSDALE SHOPS
8698 EAST RAINTREE DRIVE | SCOTTSDALE, ARIZONA 85260
AT N O R T H S I G H T
D ISC LA IMER
All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, expressed or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws.
ORION Investment Real Estate7328 East Stetson Drive | Scottsdale, AZwww.orionprop.com
SALE PRICE $9,670,000
PRICE PER SF $331.66
CAP RATE 6.26%
OCCUPANCY 100%
BUILDING SIZE 29,156 SF
TOTAL LAND SIZE 3.49 Acres
YEAR BUILT 2004
ZONING C-2
PARKING RATIO 7.35/1,000 SF
CROSS STREETS Pima Road & Raintree Drive
TRAFFIC COUNTS 15,843 VPD (Pima)31,100 VPD (Raintree)
140,000 VPD (Loop 101 - Raintree Exit)
P ROPERTY OVERV I EW
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Scottsdale Shops at Northsight is a rare opportunity to purchase a fully leased retail building in the heart of one of North Scottsdale’s prominent retail destinations. With nearly 160,000 residents and an average household income in excess of $135,000, this core location is at the center of numerous major arterials, including Hayden Road, Raintree Drive, Northsight Boulevard, Frank Lloyd Wright Boulevard, and the Loop 101 Freeway. This strategic location has attracted major retailers as Walmart, Kohl’s, Best Buy, The Home Depot, Costco, Chick-fil-A, Party City, Dunkin Donuts, Bank of America, Pei Wei, and many more.
The surrounding area has also attracted notable tenants, such as the 130,000 square foot At Home Furniture Superstore adjacent to the site, and has spurred the development of YAM Circle, a class-A retail center one half mile away.
Within five miles of the subject property, there are over 310,000 residents, 17,000 businesses and 150,000 daytime employees. This well-established Class A location continues to thrive since its construction in 2004, and the nearby resident base and density continue to thrive with the newly constructed 282-unit Core Scottsdale Apartment Home Community (within walking distance of the subject property). Also planned on the adjacent parcel is a 300 +/- Luxury Apartment Home Community.
With over 1,000 new residents projected within walking distance to the subject property, Scottsdale Shops at Northsight has become more than a premier destination site with a robust daytime population; it has become a 24/7 submarket attracting notable entertainment concepts, such as Studio Movie Grill, State 48 Brewery, OH-SO, Four Peaks Grill & Tap, Twin Peaks, Loco Patron, Skeptical Chymist, K O’Donnell’s, and Butter’s Pancake and Café.
Visible from the Loop 101 Freeway, Scottsdale Shops at Northsight’s tenants benefit from two monument signs, including one on the Loop 101 which is visible to 140,000 vehicles per day. The property’s over-sized 3.5 acre parcel has abundant parking with over 7 spaces per 1,000 square feet.
With countless destination tenants as draws, a strong mix of executive and Scottsdale Airpark employees, and a burgeoning young resident population, Scottsdale Shops at Northsight should provide stable cash flow for years to come with the opportunity to improve upon its low average rental rate of $20.67 NNN.
■ Core North Scottsdale Retail Trade Area with Freeway Signage
■ 17,000 Businesses and 150,000 Daytime Employees within 5 Miles
■ Adjacent to Planned 300 Luxury Apartment Homes
■ Average Household Income in Excess of $135,000
■ Near World’s Largest Harley Davidson Dealership (+/- 150,000 SF)
■ Low Average Rental Rate of $20.67 per square foot NNN
■ 7.35 Parking Spaces per 1,000 Square Feet on 3.5 Acre Site
PROPERTY PHOTOGRAPHS
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S I T E P LAN
PIM
A R
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COMING SOON
LOCAT ION MAPS
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SCOTTSDALE SHOPSAT NORTHS IGHT
SCOTTSDALE SHOPS
SCOTTSDALE SHOPSAT NORTHS IGHT
SCOTTSDALE SHOPS
PARCE L MAP
8
215-52-034L
PARCEL #: 215-52-034LLOT SIZE: 3.49 ACRES
9
AER IA L IMAGERY
SCOTTSDALE SHOPSAT NORTHS IGHT
SCOTTSDALE SHOPS
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AER IA L IMAGERY
SCOTTSDALE SHOPSAT NORTHS IGHT
SCOTTSDALE SHOPS
POPULATION102,972
AVERAGE HOUSEHOLD
INCOME$125,216
MEDIAN AGE
YEARS OLD42.9
$600,532AVERAGE HOME VALUE
North Scottsdale is currently the most actively developed area of Scottsdale, as it was historically the least built up. This portion of the city also claims many of the most expensive houses in Arizona, with many ±$5 million in value. The city’s borders are rapidly expanding to the east and west in this area, containing the McDowell Mountain range.
Much of the residential boom in North Scottsdale is driven by available land to build coupled with the fast growth of Scottsdale Airpark, the second largest employment center in the Phoenix metropolitan. A record number of businesses and employees have moved into Scottsdale’s bustling Airpark corridor, which is emerging as a one of the Phoenix area’s major hubs for urban growth. More than 55,000 employees work for about 3,000 companies within the Scottsdale Airpark area, which covers about 5 square miles in north Scottsdale and Phoenix’s Kierland neighborhood.
LOCAT ION OVERV I EW
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Tenant Name Unit SqftLeaseStart
LeaseEnd
MonthPSF
AnnualPSF
MonthlyRent
AnnualRent
LeaseType
RentalDate
IncreaseAmount
Ski Pro 8,331 11/01/2015 10/31/2021 1.04$ 12.44$ 8,597.76$ 103,600$ NNN 11/01/19 $8,812.70No Options Remaining 11/01/20 $9,033.02
Boot Barn 10,043 11/01/2013 10/01/2023 1.27$ 15.23$ 12,750.00$ 153,000$ NNN 11/01/20 $13,123.50No Options Remaining 11/01/21 $13,526.48
11/01/22 $14,350.24
Enterprise Bank & Trust 3,283 11/01/2015 04/30/2023 2.75$ 33.00$ 9,028.25$ 108,339$ NNN 05/01/19 $9,165.04Two, 5-Year Options 05/01/20 $9,301.83
05/01/21 $9,438.6305/01/22 $9,575.4205/01/23 Option 105/01/28 Option 2
Massage Envy 3,499 10/01/2014 09/30/2020 2.61$ 31.37$ 9,080.70$ 109,773$ NNN 10/01/19 $9,353.12One, 5-Year Option 10/01/20 Option 1
Brooklyn Bedding 4,000 09/01/2014 08/31/2024 2.67$ 32.00$ 10,666.67$ 128,000$ NNN 09/01/20 $11,333.33One, 10-Year Option 09/01/22 $12,000.00
09/01/24 Option 1
Fire Access Hallway 288
Total 29,156 1.72$ 20.67$ 50,123.38$ 602,712$ NNN
RENT ROL L
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Tenant January February March April May June July August September October November December Total
Ski Pro 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,598$ 8,813$ 8,813$ 103,603$
Boot Barn 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 12,750$ 153,000$
Enterprise Bank & Trust 9,028$ 9,028$ 9,028$ 9,028$ 9,165$ 9,165$ 9,165$ 9,165$ 9,165$ 9,165$ 9,165$ 9,165$ 109,433$
Massage Envy 9,081$ 9,081$ 9,081$ 9,081$ 9,081$ 9,081$ 9,081$ 9,081$ 9,081$ 9,353$ 9,353$ 9,353$ 109,786$
Brooklyn Bedding 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 10,667$ 128,000$
Total 50,123$ 50,123$ 50,123$ 50,123$ 50,260$ 50,260$ 50,260$ 50,260$ 50,260$ 50,533$ 50,748$ 50,748$ 603,822$
RENT PRO JECT IONS
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INCOME & EXPENSE
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April 2019 Year Forward Income
Scheduled Rental Revenue 605,070$
CAM Recapture 151,237$
Scheduled Gross Income 756,307$
Operating ExpensesAccounting 5,830$ $0.20 psfAlarm 695$ $0.02 psfElectricity (Common Area) 3,157$ $0.11 psfInsurance 10,177$ $0.35 psfLandscaping 4,602$ $0.16 psfLegal 12,014$ $0.41 psfProperty Management (estimated at 3%) 22,500$ $0.77 psfReal Estate Tax 81,379$ $2.79 psfRepair & Maintenance 2,718$ $0.09 psfTrash 3,954$ $0.14 psfWater 3,954$ $0.14 psfOutside Services 258$ $0.01 psf
Total Operating Expense 151,237$ $5.19 psf 151,237$
Net Operating Income 605,070$
List Price of $9,670,000 $331.66 per Square Foot Cap Rate of 6.26%
Retail8698 East Raintree Drive Scottsdale, AZ 85260
Bank
Listing Price: $9,670,000
Loan To Value:
75%
Loan Amount:
$7,252,500
Loan Program:
3/3010 Years Maturity
Interest Rate:
4.63%
Monthly Payment:
$37,310
Recourse: Yes
CMBS
Listing Price: $9,670,000
Loan To Value:
75%
Loan Amount:
$7,252,500
Loan Program:
5/305 Years Maturity
Interest Rate:
5.28%
Monthly Payment:
$40,183
Recourse: No
Debt Fund
Listing Price: $9,670,000
Loan To Value:
75%
Loan Amount:
$7,252,500
Loan Program:
7/307 Years Maturity
Interest Rate:
5.24%
Monthly Payment:
$40,004
Recourse: No
POWERED BY
ORION INVESTMENT REAL ESTATE IS PROVIDING QUOTES FOR INFORMATION PURPOSES ONLY. FOR ADDITIONAL INFORMATION ON THE LARGEST COMMERCIAL REAL ESTATE LENDING MARKETPLACE, VISIT: WWW.COMMLOAN.COM.
7328 East Stetson DriveScottsdale, AZ 85251
800.485.5679
DEBT QUOTE
15
TENANT PROF I L ES
16
Ski Pro, Incorporated is an Arizona corporation that operates in the Metropolitan Phoenix area. Founded in 1980, Ski Pro continues to expand throughout Arizona, providing experience and excellence to an ever-growing sporting community. Ski Pro is a specialty sports shop which focuses on snow skis and snowboards, snowsport-related clothing, and equipment repair and rental. Their products and knowledge have also expanded
to include water sports, skateboarding, in-line skating, and other extreme sports.
Founded in 1978, Boot Barn is the largest and fastest-growing lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S. Boot Barn epitomizes the American dream of hard work, honesty and value with operating over 200 stores in 29 states.
They have stocked their shelves with quality, name brand western and work gear for their customers with over 8,000 styles of boots, jeans, shirts, hats, belts, jewelry and more.
Enterprise Bank & Trust was founded over 30 years ago on the idea of serving the lifetime financial needs of privately-held businesses, their owner families and other success-minded individuals. They tailor their services to fit the needs of their clients and have all the capabilities of the largest
financial companies, with the personal relationship orientation of a community bank. They offer a comprehensive array of banking, trust and financial advisory services. Headquartered in Clayton, MO, Enterprise Bank & Trust operates 28 branch offices in the St. Louis, Kansas City, and
Phoenix metropolitan areas.
Massage Envy is a nationwide wellness franchise providing massage and skin care services. They believe that regular massages and facials are an integral part of total body wellness. Founded in 2002, the Massage Envy brand was built on the foundation of helping people feel their
best. Massage Envy has made therapeutic massage services and skin care solutions accessible to a network of more than 1.5 million members in franchised locations across the United States.
Originally founded as R&S Mattress in 1995, Brooklyn Bedding offers a wide selection of mattresses in terms of composition, firmness, thickness, and price-point. They currently offers six individual mattress models (Brooklyn Signature, Brooklyn Aurora, Brooklyn Spartan, Brooklyn Bloom
Hybrid, Brooklyn Bowery, and Brooklyn Bowery Hybrid). Brooklyn Bedding operates 19 brick-and-mortar showrooms, 17 in Arizona and two in Utah, and the mattresses are sold in other stores nationwide.
DEMOGRAPH ICS
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2018 SUMMARY (ESRI) ONE MILE THREE MILE FIVE MILE
DAYTIME POPULATION 29,884 157,928 312,138
POPULATION 9,080 70,285 165,697
AVERAGE HOUSEHOLD SIZE 2.04 2.24 2.23
AVERAGE HOUSEHOLD INCOME $111,951 $135,678 $91,098
MEDIAN AGE 41.3 45.5 46.8
AVERAGE HOUSEHOLD
INCOME$135,678*3 Mile Radius
AGE41.3*1 Mile Radius
DAYTIME POPULATION
312,138*5 Mile Radius
MEDIAN
SCOTTSDALE SHOPS
EXCLUS IVE LY L I S T ED BY:
SCOTTSDALE SHOPSAT N O R T H S I G H T
ARI SPIRO O: 480.634.8596 M: [email protected]
SEAN STUTZMAN O: 480.634.8194 M: [email protected]
