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					Albertsons Peoria Plaza
               peoria, arizona

  o f f e r i n g         m e m o r a n d u m

              Independently Owned and Operated
Albertsons Peoria Plaza

 1   Executive Summary
 3   Property Overview
 7   Financial Analysis
11   The Market

                 Ryan J. schubert
                  Senior Vice President
                    p 602.224.4472

                Michael P. Hackett
                  First Vice President
                   p 602.224.4449

            Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

                                                                                        the offering

                                                                                        Albertsons Peoria Plaza offers prospective investors the opportunity to own retail
                                                                                        shops attached to a high traffic grocery anchored shopping center located in
                                                                                        the heart of Peoria, AZ. It is being offered with a very attractive, below-market
                                                                                        assumable loan at 5.47%. The following summarizes the terms of this investment

                                                                                                                    8940 & 8960 West Bell Road
                                                                                         PRoPeRty AddRess
                                                                                                                    Peoria, Arizona 85382
executive summary                                                                        PRoPeRty tyPe              Grocery Anchored Neighborhood Center
the ProPerty

Albertsons Peoria Plaza is a grocery anchored neighborhood shopping center               yeAR built                 1997
located on Bell Road, less than 1 mile west of the full diamond interchange of the
Loop 101 freeway, one of the main arterial freeways in Metropolitan Phoenix.             APPRoxiMAte size           ±21,551 SF
Sitting at the NEC of 91st Avenue and Bell Road, this offering includes ±21,551
SF of shops attached to an Albertsons Food & Drug Store.                                 site AReA                  ±3.37 Acres

The excellent tenant mixture of the shops includes many national destination-            occuPAncy                  81.4%
oriented businesses such as Blockbuster, Starbuck’s, Liberty Tax, Cost Cutters,
Edward Jones, Sunshine Cleaners, Salon Rituals, Fuzzy’s Chicago Pizza, All               PRice                      $5,180,000
American Eye Glass Repair, Mr. Goodcents Subs, and Lan Nails. The building
layout for Albertsons Peoria Plaza creates excellent visibility along both 91st
                                                                                         cAP RAte                   7.5%
Avenue and Bell Road. The site was constructed in 1997 for maximum visibility
from both streets and the two pad buildings are situated to provide clean site
lines to the anchor from Bell Road. The shop space adjacent to Albertsons fronts         teRMs                      Cash to Existing Loan
Bell Road providing tremendous signage for these tenants. The clean parking
lot and comprehensive maintenance program shows a true pride of ownership                loAn bAlAnce               $4,405,154 (2/2009) - 85% LTV
from the current owner and ensures minimal capital expenditures for the next
owner. Along with the grocery anchor tenant, the diverse group of shop retailers         inteRest RAte              5.47%
creates a constant flow of traffic from the surrounding residential and employment
community. This consistent traffic contributes to the economic feasibility of all the    AMoRtizAtion               30-years (Due 10/2015)
retail tenants, providing a stable real estate investment opportunity.
                                                                                         AssuMPtion Fee             One Quarter Percent (0.25%), paid by Buyer
1 | Investment Property
                                                                                                                                               ExECuTIVE SuMMARy
investment highlights                                                     2007 Demogr APhics
The following are a few of the Asset’s key investment highlights:                           3-mile            5-mile                 10-mile
                                                                          Average HH Income $74,039           $80,029                $79,171
• Minimal down Payment - With a current loan balance of
                                                                          Total Population  13,120            98,175                 273,862
approximately $4.4 million, a potential buyer need only come up
with $780,000 cash down or 15% of the total value.
                                                                          tr Affic counts (91st Ave & Bell Road)
• Significant Upside- The current vacancy of approximately 20%            Bell Road (West of 91st Ave): 70,479 VPD
offers the next owner significant upside through lease-up. Further,       Bell Road (East of 91st Ave):  61, 487 VPD
the actual cash-on-cash return is over is.                       91st Ave (North of Bell Road): 11,332 VPD
                                                                          91st Ave (South of Bell Road): 8,523 VPD
• Below Market Assumable Loan- The excellent rate of 5.47% and
favorable terms allows the buyer to obtain secondary financing and
has no restrictions against an assumption by a Tenants In Common
• Established Credit Tenants- The property has a large percentage
of national/regional tenants. Tenants such as: Blockbuster, Starbuck’s,
Liberty Tax, Cost Cutters, and Edward Jones account for about 45%
of the Gross Leasable Area.
• Annual Rental Increases- All of the tenant’s leases contain annual
rental increases, ensuring increased investor returns each year.
• Encompassed by Disposable Income- Incomes levels of $74,039,
$80,029, and $79,179 within a 1, 3, and 5-mile radius, respectively,
provide substantial amounts of disposable income to the shopping
centers surrounding neighborhoods.
• Dense Trade Area- The property is located in a significant
employment corridor directly across from Bell Auto Mall and 2 miles
west of Arrowhead Town Center, the only regional mall in northwest
• Significant Traffic Counts- The property fronts the highly traveled
Bell Road with approximately 151,821 vehicles per day passing by.
Bell Road is the major east/west retail corridor in Phoenix, with every
major retailer holding at least one position.

                                                                                                            Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

builDing sPecificAtions

                            8940 & 8960 W. Bell Road
                            Peoria, Arizona 85382
yeAR built                  1997
APPRoxiMAte size            ±21,551 SF
PARcel nuMbeR               200-42-941; 200-42-939
site AReA                   ±3.37 Acres
zoninG                      C-2
                            Concrete slab-on-grade system with continuous concrete spread footings at bearing walls, isolated pad
                            footings at columns
FRAMe                       Masonry block
inteRioR PARtition systeM   Metal studs with gypsum board cover
ceilinGs                    2 x 4 suspended grid with regular tile
RooF                        Wood roof joists and wood roof decking
WindoWs                     Glass and anodized aluminum

3 | Investment Property
                                               PROPERTy OVERVIEW
locAl mAP

            Independently Owned and Operated
AlbeRtsons PeoRiA centeR

site PlAn

                                                                            shoPs A                            sf
                                                                            101   Blockbuster                 ±4,862
                                                                            105   VACANT                      ±1,734
                                    89TH AVENUE
                                                                            106   VACANT                      ±960
                                                                            107   Edward D. Jones & Co.       ±1,200
                                     102                                    108   Salon Rituals               ±960
                    8940 Building
                    ±8,485 SF
                                     104                                    109   Sunshine Cleaners           ±1,660
                                     106                                    110   Fuzzy’s Chicago Pizza       ±1,690

                                                                            shoPs b

                                                                BELL ROAD
                                                                            101   Starbucks                   ±1,422
                                                                            102   Liberty Tax Services        ±1,040
                                                                            103   VACANT                      ±1,300
                                                                            104   Lan Nails                   ±1,040
                                                                            105   Cost Cutters                ±1,300
                                                                            106   All American Eye Glass Repair ±840
             8960 66 SF
             ±13 ,0                                                         107   Mr. Goodcents               ±1,543

                                                                            N             NOT A PART

                                                  91ST AVENUE

5 | Investment Property
                                                                 PROPERTy OVERVIEW

         91ST AVENUE


                              Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

rent roll
 suite    tenAnt                             sF               teRM              Rent/sF   Rent/yR         incReAses            oPtions
 A101     Blockbuster                      4,862       9/10/2002   12/31/2010   $23.00    $111,826                             One (1) Three (3) year at $26.45

 A107     Edward D. Jones & Co.            1,200      5/24/2006     8/31/2011   $24.40    $29,280    8/1/2009         $25.13   One (1) Five (5) year @ FMV
                                                                                                     8/1/2010         $25.89   3% annual increases

 A108     Salon Rituals                     960         2/4/1998    7/31/2010    $21.42   $20,563    8/1/2009         $22.49

 A109     Sunshine Cleaners                1,660        3/1/2005   8/31/2010    $22.00    $36,520                              Two (2) Five (5) year @FMV

 A110     Fuzzy’s Chicago Pizza            1,690       3/13/1997   9/30/2012    $23.69    $40,036    10/1/2009        $24.40   One (1) Five (5) year at FMV
                                                                                                     10/1/2010        $25.13
                                                                                                     10/1/2011        $25.89

 B101     Starbuck’s                       1,422      5/28/2003    9/30/2013     $27.60   $39,247                              Four (4) Five (5) year with
                                                                                                                               15% increases every 5 years

 B102     Liberty Tax Services             1,040       11/5/2007   4/30/2012     $27.69   $28,798    11/1/2009        $28.56   One (1) Five (5) year
                                                                                                     11/1/2010        $29.42   3% annual increases
                                                                                                     11/1/2011        $30.29

 B104     Lan Nails                        1,040        3/3/1998   7/31/2009    $22.52    $23,421

 B105     Cost Cutters                     1,300       2/12/1996    7/31/2013   $22.00    $28,600    7/31/2009        $22.50   One (1) Five (5) year
                                                                                                     7/31/2010        $23.00
                                                                                                     7/31/2011        $23.50
                                                                                                     7/31/2012        $24.00

 B106     All American Eye Glass Repair     840       10/15/2004    3/31/2010   $22.50    $18,900    4/1/2009         $23.00   One (1) Five (5) year @FMV

 B107     Mr. Goodcents Subs and Pizza     1,543      8/25/2003    2/28/2013    $20.83    $32,141    3/1/2009         $21.45   Two (2) Five (5) year @FMV
                                                                                                     3/1/2010         $22.09   3% annual increases
                                                                                                     3/1/2011         $22.75
                                                                                                     3/1/2012         $23.43
                                                                                                     3/1/2013         $24.13
          occuPied totAl                  17,557 sF
          PeRcent occuPied                 81.4%

7 | Investment Property
vAcAnt suites

                                                                                                                       FINANCIAL ANALySIS
suite   tenAnt              sF       teRM   Rent/sF   Rent/yR   incReAses           oPtions
A105    Available Space    1,734            $20.00    $34,680

A106    Available Space     960             $20.00    $19,200

B103    Available Space    1,300            $20.00    $26,000

        VAcAnt totAl      3,994 sF                                 totAl PRoPeRty   size        21,551 sF
        PeRcent VAcAnt     18.6%

                                                                                    Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

scheDuleD rentAl income

                                                                                               2009                                 l                                        2010
existinG tenAnts                                sF        July       August     September      october     november    december         January    February      March        April          May            June         total
Blockbuster                                 4,862        $9,319      $9,319       $9,319       $9,319        $9,319      $9,319          $9,319      $9,319      $9,319      $9,319       $9,319           $9,319      $111,826

Edward D. Jones & Co                          1,200     $2,440       $2,513       $2,513       $2,513        $2,513      $2,513          $2,513     $2,513       $2,513      $2,513       $2,513           $2,513       $30,083

Salon Rituals                                  960       $1,714      $1,799       $1,799       $1,799        $1,799      $1,799          $1,799     $1,799      $1,799       $1,799       $1,799           $1,799       $21,505

Sunshine Cleaners                             1,660     $3,043       $3,043       $3,043       $3,043        $3,043     $3,043           $3,043     $3,043      $3,043       $3,043       $3,043           $3,043       $36,520

Fuzzy's Chicago Pizza                         1,690      $3,336      $3,336       $3,336       $3,436        $3,436     $3,436           $3,436     $3,436      $3,436       $3,436       $3,436           $3,436       $40,936

Starbuck's                                    1,422      $3,271      $3,271       $3,271       $3,271        $3,271     $3,271           $3,271     $3,271      $3,271       $3,271       $3,271           $3,271       $39,247

Liberty Tax Services                          1,040     $2,400       $2,400       $2,400       $2,400        $2,475     $2,475           $2,475     $2,475      $2,475       $2,475       $2,475           $2,475       $29,401

Lan Nails                                     1,040      $1,952      $1,952       $1,952       $1,952        $1,952      $1,952          $1,952      $1,952      $1,952      $1,952       $1,952           $1,952       $23,424

Cost Cutters                                1,300        $2,383      $2,438       $2,438       $2,438        $2,438     $2,438           $2,438     $2,438      $2,438       $2,438       $2,438           $2,438       $29,196
All American Eye Glass
Repair                                         840       $1,610      $1,610       $1,610       $1,610        $1,610      $1,610          $1,610      $1,610      $1,610      $1,610       $1,610           $1,610       $19,320
Mr. Goodcents Subs and
Pasta                                         1,543      $2,758      $2,758       $2,758       $2,758        $2,758     $2,758           $2,758     $2,758      $2,840       $2,840       $2,840           $2,840       $33,427

 existinG tenAnt totAl                   17,557       $34,226     $34,439      $34,439      $34,539       $34,614     $34,614       $34,614       $34,614     $34,696     $34,696      $34,696       $34,696         $414,884

                                                                                            2009                                l                                         2010
AVAilAble suites                         sF            July       August      September     october      november     december       January       February     March      April       May          June             total
A105                     $20.00         1,734         $2,890      $2,890       $2,890       $2,890        $2,890       $2,890           $2,890      $2,890     $2,890     $2,890      $2,890       $2,890           $34,680
A106                     $20.00          960          $1,600      $1,600       $1,600       $1,600        $1,600       $1,600           $1,600      $1,600     $1,600     $1,600      $1,600       $1,600           $19,200
B103                     $20.00         1,300         $2,167      $2,167       $2,167       $2,167        $2,167       $2,167           $2,167      $2,167     $2,167     $2,167      $2,167       $2,167           $26,000
Vacant suite total                      3,994         $6,657      $6,657       $6,657       $6,657        $6,657       $6,657           $6,657      $6,657     $6,657     $6,657      $6,657       $6,657           $79,880

estiMAted totAl                         21,551        $40,882     $41,095      $41,095      $41,195      $41,271      $41,271        $41,271       $41,271     $41,353    $41,353     $41,353      $41,353         $494,764

9 | Investment Property
                         12 - month net income AnAlysis

                                                                                                                                                  FINANCIAL ANALySIS
                                July 2009 - June 2010
   income 1
   Signed Leases                                  81.4 %        17,557 SF                        $414,884
   Available Space                                18.6 %         3,994 SF                         $79,880
                                                                21,551 SF
   Reimbursement Income                                                                          $123,000
   Gross Potential Income                                                                         $617,764
   Actual Vacancy                                                                                ($79,880)
   Effective Gross Income                                                                        $537,884
   Less Operating Expenses 2                                                       per SF
   Electric                                                        $5,808        ($0.27)
   Water                                                          $20,412        ($0.95)
   Trash Removal                                                   $5,242        ($0.24)
   Repair & Maintenance                                            $4,453         ($0.21)
   Fire Safety                                                      $360         ($0.02)
   Cleaning                                                        $7,560        ($0.35)
   Extermination                                                    $350         ($0.02)
   Landscaping                                                     $9,978        ($0.46)
   Property Taxes                                                 $67,963         ($3.15)
   Insurance                                                       $5,776        ($0.27)
   Management Fee (4%)                                            $21,363        ($0.88)
   Total Operating Expenses                                      $149,265        ($6.93)        ($149,265)
   Net Operating Income                                                                           $388,619

   Price                                                                                       $5,180,000
   Capitalization Rate                                                                                 7.5%

   Less Assumed Debt Service: 3                                                                 ($308,986)
   Cash Flow Before Taxes:                                                                        $79,633
   1st Year Cash on Cash Return:                                                                    10.3%
   Principal Reduction:                                                                           $65,000
   1st Year Total Return:                                                                           19.6%
Footnotes      (1) 12-Month Net Income Analysis includes all scheduled rent increases and assumes renewal of
                   leases expiring before the end of first year analysis.
               (2) Operating expenses are based on 2007 actual figures.
               (3) Loan balance to be assumed is $4,405,154 (as of 02/2009), 5.47% interest, 30-year
                   amortization. Due 10/08/2015, 0.25% assumption fee.
                                                                                                               Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

locAtion overvieW
Peoria, located in Maricopa County, Arizona, is one of Phoenix’s major                The Challenger Space Center of Arizona: The Center is a working memorial to
suburbs. Estimated in 2005, the city had a population of 138,200, showing             the astronauts that lost their lives in the ill fated space shuttle Challenger STS –
a growth of over 12% in the previous three years. With growth rates of                51L flight on January 28, 1986.The Challenger Space Center of Arizona has a
this magnitude, Peoria has secured its standing among the ten largest cities          unique affiliation with the Smithsonian Institute which offers access to national
in Arizona. Between 1990 and 2000, Peoria was the fifth largest growing               quality museum exhibits right here in Peoria. The center also offers educational
city in the united States. The city is exploding with numerous new business           programs for individuals, families and schools as well as camps, stargazing, and
locations and is attracting a variety of new employment opportunities. Peoria         corporate programs and rentals. And don’t forget to stop into the Galaxy Gift
has outstanding recreational and extra-curricular activities, a reasonable cost       Shop while you are there.
of living, and a young, intelligent workforce. In the future this desert oasis will
be identified as a resort and leisure location.

mAJor trenDs
The Peoria Sports Complex: The first Major League Baseball spring training
and player development facility in the country that is shared by two teams.
Built in 1994, the San Diego Padres and Seattle Mariners, through 20 year
leases, utilize the Peoria Sports Complex all year round for Spring Training
and player development.

Lake Pleasant: Located on the northern end of Peoria and about 45 minutes
from downtown Phoenix, Lake Pleasant covers 10,000 acres. utilized as
a holding lake, its water comes from two sources, Central Arizona Project
Canal and the Aqua Fria River. Lake Pleasant is Arizona’s second largest lake
and offers a wide variety of recreational activities. General camping, RV
accommodations, boating, sailing, water and jet skiing, and fishing are just
some of the activities offered at the lake.

11 | Investment Property
                                                                                   From 1999 through 2005, population growth averaged 3.1 percent per year, a
                                                                                   boom-level rate even more impressive considering the MSA’s population of 3.7

                                                                                                                                                                         THE MARkET
                                                                                   million. Over the last five years the Phoenix metro area residency increased
                                                                                   by more than half a million. Growth has been strong in a number of areas,
                                                                                   including high-end Scottsdale to Phoenix’s east and northeast, now aided by
                                                                                   new highway development, and the Mesa- Gilbert-Chandler-Tempe area in
                                                                                   the metro southeast, where high-tech expansion—and subsequent high-tech
                                                                                   contraction—have been central factors. For instance, Chandler, dubbed “Silicon
                                                                                                         cited as the Phoenix Population
                                                                                   Desert,” recently was Greater nation’s fastest-growing city. Growth

                                                                                                     greAter PhoeniX PoPulAtion groWth
the market                                                                                            1990 2000       2005      2008 2010               2012
The City of Phoenix is the largest city in Arizona and the fifth largest city in
                                                                                                        ProJecteD PoPulAtion groWth
the nation. The Phoenix economy is vibrant and strong, attracting many new
businesses and people, and making Phoenix the anchor of a metropolitan area
                                                                                                                 Source: Claritas Inc, Growth
                                                                                                       Projected Population2005.
that has grown 44.7 percent in the last fifteen years, according to Claritas
Inc, a demographic research company. The Greater Phoenix population is                 12,000,000                                                           10,712,397
projected to grow at more than twice the national rate for the next couple             10,000,000
                                                                                                       Projected Population Growth
of decades. The u.S. Census Bureau projects Arizona to be the second
fastest growing state over the next 25 years with an estimated population of            8,000,000                                      4,762,000 10,712,397
10,712,397 in 2030. Greater Phoenix currently accounts for more than 60                 6,000,000       3,613,032      3,728,649
percent of Arizona’s population.                                                        4,000,000
                                                                                        8000000                                      4,762,000
                                                                                        6000000        3,613,032     3,728,649
                                                                                                         2005           2006             2015                  2030
                                                                                                                                   Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

mAricoPA county & metro PhoeniX                                                      Interstate 10. From there, it heads north Glendale, passing the university of
According the Arizona Department of Commerce, more than half of the                  Phoenix Stadium and Arena. Continuing through Peoria, it passes
state’s population resides in Maricopa County, which includes the cities of          the Peoria Sports Complex before heading east just past the Arrowhead Towne
Phoenix, Mesa, Glendale, Scottsdale, Tempe, Chandler, Peoria, and Gilbert.           Center mall. The Loop 101 encircles the City of Phoenix, and the Loop 202
This metropolitan area is the state’s major center of political and economic         provides a route from Downtown around the perimeter of the southeast part
activity. In addition to housing the state capital, the county is home to a          of the metro area. In addition, State Route 51 connects I-10 through Downtown
growing high-tech industry; manufacturing and agricultural industries; various       Phoenix to the north part of the City.
cultural attractions; 15 institutions of higher learning; and Phoenix Sky Harbor
International Airport, fifth busiest in the world with over 1,400 daily flights.     Both Union Pacific and Burlington Northern Santa Fe Railroads serve Phoenix.
Good schools, affordable housing, and a progressive mindset help explain             Both have intermodal facilities in Phoenix that are convenient to the airport with
why Greater Phoenix is one of the nation’s fastest-growing regions for the           Trailer and Flat Car and Container on Flat Car capabilities.
past 50 years. More than 3.7 million people, with a median age of 32.9
years, call Greater Phoenix home.                                                    The Southwest industrial submarket is establishing itself as an extension of the
                                                                                     Port of Long Beach and the Port of Los Angeles California. This trend is largely
Greater Phoenix, America’s premier boom town is reasserting itself with              due to the West Valley’s proximity to California as well as the relatively lower
continued strong growth. The current year ranks as the number one employment         cost of doing business in Arizona.
gainer of metropolitan areas over 1 million residents. Phoenix’s commercial
real estate markets are in a full expansion with millions of square feet under       Phoenix is the headquarters for uS Airways Airlines and a major hub for
construction and millions more planned. Revived demand has driven the                Southwest Airlines. Phoenix Sky Harbor Airport provides non-stop service to
vacancy rates to record lows while pushing asking rental rates to new highs.         108 domestic and international destinations with over 1,400 daily flights.
Geographically speaking, development activity is mostly increasing in the
suburban west, north and east.                                                       For general aviation service, the Phoenix Deer Valley airport is located in North
                                                                                     Phoenix. Phoenix Deer Valley Airport is classified as a general aviation reliever
mAJor trenDs                                                                         airport for Phoenix Sky Harbor. It is the busiest three-runway airport in the
The City of Phoenix is served by two interstates. Interstate 10 leads into           world, according to Airport Technology of SPG Media, averaging 370,000
Phoenix from Los Angeles on the west, and continues southeast through the            takeoffs and landings per year. Deer Valley has an 8,500-foot runway and is
City and on to Tucson and El Paso. Interstate 17 provides a north-south route        home to more than 900-based aircraft.
through the City and is a key industrial corridor. I-17 leads north out of Phoenix
to Flagstaff where it intersects with Interstate 40. Phoenix is also developing
an extensive urban freeway network that includes approximately 155 miles
of roadway and will greatly enhance accessibility within the urban area.
New segments are being opened on a regular basis, with a significant part
of the system already complete. The major components of the system include
the Loop 101 and 202. The Loop 101 begins west of Phoenix, in Tolleson at

13 | Investment Property
infr Astructure ProJects                                                             an arterial street. With additional vehicles, the system will ultimately have the

                                                                                                                                                                           THE MARkET
Sky Harbor Airport is currently underway with its planned West Terminal              capacity to carry the equivalent number of people as a six-lane freeway – or
redevelopment and Automated People Mover (APM) construction. The new                 12,000 to 15,000 people per hour.
terminal would replace terminal 2, the oldest at the airport.
                                                                                     Light rail will be the spine of our regional public transportation system, and
The APM light rail system will be constructed to connect the new East parking        is designed to connect seamlessly with bus service. Groundbreaking for the
area to all terminals with two new stations in terminals 3 and 4. A connection       facility took place in the summer of 2004 and the site is scheduled to be ready
to the new car rental facility is part of phase two. The first phase of the APM      for vehicle delivery in summer 2008.
project will cost between $400-500 million. A tentative completion date for
the work has been set at 2013.                                                       Light rail is powered by electricity from overhead wires, which makes it much
                                                                                     safer than other rail systems that receive their power at track level. Electrically
There are many other small infrastructure improvement projects underway in           powered vehicles are virtually pollution free–a major benefit for a region with
2007 and there will be much construction activity around the airport until at        air quality concerns. Light rail vehicles are also extremely quiet and make about
least 2009. DMJM Aviation is providing project management services and               as much noise as a late model passenger truck. Light rail will operate on two
Holder Construction is providing cabling and infrastructure redevelopment            sets of tracks, with trains of up to three cars traveling in each direction.
                                                                                     reDeveloPment of DoWntoWn PhoeniX
mAJor Public ProJects                                                                eXPAnDing economic Drivers
The Valley’s light rail system opening in 2008 will offer riders a speedy link       The 90-block core of downtown Phoenix known as Copper Square, is undergoing
between the cities of Phoenix, Tempe, Mesa and Glendale and will be an               a $2 billion revitalization project over the next three years. A host of new
integral part of a comprehensive Valley-wide transit system. The light rail          “activity generators” include:
system in the Phoenix metropolitan area will operate at street level in its own
lane separated from automobile traffic and have priority at traffic signals.         • A new urban campus for 15,000 Arizona State university undergraduate and
This dedicated guideway gives light rail vehicles the ability to travel much         graduate students.
faster than local buses, offering a reliable travel time over the long term          • A new Phoenix campus for the university of Arizona, College of Medicine
competitive with automobile travel times during peak periods today. Light            – expected to create a minimum of 14,000 new jobs.
rail will travel at posted speed limits on city streets and can reach 55 mph in      • A 1,000-room Sheraton Hotel to serve conventioneers and business travelers
future freeway corridors.                                                            • More than 1,700 new high-density residential condominiums and apartments
                                                                                     to satisfy the increasing demand for urban living.
Light rail trains will operate 20 hours per day, every day of the week, stopping     • A new 20-mile light rail transportation system that will service all of the
at stations about every 10 minutes during peak hours and about every 20              above.
minutes off-peak. Light rail is truly mass transportation, with the ability to
carry up to 450 passengers in a single three-car train. Initially, the system will
carry 3,000-5,000 passengers per hour during peak hours, the equivalent of

                                                                                                                                    Independently Owned and Operated
                                                                                       receive their power at track level.
                                                                                       Electrically powered vehicles are
                                                                                       virtually pollution free–a major benefit
                                                                                       for a region with air quality concerns.
                                                                                       Light rail vehicles are also extremely
   AlbeRtsons PeoRiA PlAzA                                                             quiet and make about as much noise
                                                                                       as a late model passenger truck.

                                                                                       Light rail will operate on two sets of
                                                                                       tracks, with trains of up to three cars
                                                                                       traveling in each direction.
    lAbor force AnD emPloyment
    Phoenix has a diverse and large economy. Transportation, wholesale trade,                          • Greater Phoenix experienced 3.7 percent job growth during the 1-year
    high-technology manufacturing, back-office insurance and financial operations,                     period ending October 2006
          tourism are all drivers of the economy. wholesale trade, high-technology manufacturing,
    and has a diverse and large economy. Transportation,Employment has increased over
                                                                                                       • This
    100 percent in the Greater Phoenix area over the drivers of the economy. Employment has ranks the area 3rd in nonagricultural job gains among metro areas with
back-office insurance and financial operations, and tourism are allpast 20 years, resulting in
increased over 100 percent labor Greater Non-farm employment grew from 983,400 large and than 1,000,000 workers, according to the Blue Chip Job Growth update
    a large and diverse in the pool. Phoenix area over the past 20 years, resulting in a
    in 1990 to Non-farm employment grew from According to to over 1.7 million in 2005. According
diverse labor pool.over 1.7 million in 2005.          983,400 in 1990 the March 2004 issue
to the March 2004 issue of Plants Sites & Parks Magazine, Greater Phoenix was named the fourth best city is due in part to the area’s impressive employment growth of over 108
    of Plants Sites & Parks Magazine, Greater Phoenix was named the fourth                             • This
for expansions and relocations within the United States. Phoenix is also projected to be the 2nd largest “job
    best city for expansions and relocations within the united States. Phoenix is                      percent in the last 20 years, compared to 40 percent nationally
engine” in the U.S. through 2025, according to Newsweek Magazine. Increases in employment are largely
                              the 2nd largest “job people and the u.S. through 2025,
    also projected to be quality of life, which attractsengine” in companies from around the world.
due to the area’s exceptional
    according to Newsweek Magazine. Increases in employment are largely due                            unemPloyment
    to the area’s exceptional quality of life, which attracts people and companies                     Historically, Greater Phoenix offers an unemployment rate that is consistently
    from around the world.    Projected Non-farm Labor Force                                           lower than the national average and with jobs increasingly growing, the
                                                                                                       outlook remains positive. Rapid growth in population has caused a greater
     2010                                                                                              demand for employment opportunities. Within the past year Phoenix has cut its
     2009                                                                                              unemployment rate by more than one half percent.
                                                                                                                                                                       Unemployment Rates
   2007                                                                                                                             1996    1997    1998    1999    2000    2001    2002    2003    2004    2005    2006    As of Sept. 2007

   2006                                                                                                                   Greater
                                                                                                                                    3.40%   3.60%   3.00%   2.90%   2.70%   3.90%   5.30%   4.90%   4.40%   4.00%   3.60%        2.90%

                                                                                                                          Arizona   5.10%   5.50%   4.60%   4.40%   4.00%   4.70%   5.80%   5.60%   5.00%   4.60%   4.20%        3.30%
   2005                                                                                                                   United    5.60%   5.40%   4.90%   4.20%   4.00%   4.80%   5.80%   6.00%   5.50%   4.90%   4.60%        4.70%

        1500      1600        1700         1800             1900              2000             2100        2200
                                         ( In Thousands)
                                     Source: Greater Phoenix Economic Council; 2005.
   greAter PhoeniX emPloyment stAts:
   • About 80,000 new jobs were created in Greater Phoenix between 2005
   and October of 2006

   • About 717,000 non-farm jobs have been created in Greater Phoenix since
   1990, representing a 72.9 percent increase in total employment
   Greater Phoenix has averaged 50,000 new jobs per year since 1990

   15 | Investment Property
mAJor emPloyers

                                                                                                                    THE MARkET
The State of Arizona has 49,958 employees making them the largest employer
in Greater Phoenix. Other major employers in Phoenix include:

• Wal-Mart Stores Inc. employs 28,246 residents.
• Banner Health Systems employs 19,250
• City of Phoenix employs 13,844
• Maricopa County employs 13,022
• Wells Fargo employs 11,553
• Arizona State university employs 11,202
• u.S. Postal Service employs 11,000

imPAct issues
Growth is a sign of economic health. It creates opportunities as well as
challenges – the biggest challenge of growth is keeping up with it by creating
development plans to manage our growth by providing infrastructure to
service it and implementing an effective arterial street system.

The passage of Proposition 400 in November of 2004 extended the already
half-cent sales tax for another 20 years to support expansion of the regional
freeway system. The Plan lays out 20 years of transportation improvements

• 344 miles of new and improved freeways and highways.
• More transportation choices across all transportation types, including the
  proposed light rail system.
• More bus service and public transportation options, more often.
• Rubberized asphalt and noise walls for quieter neighborhoods.

                                                                                 Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA

rent comPAr Ables

   #        Property                       year built   Asking Rates(Average)   Anchor Tenants
   1        Albertsons Peoria Plaza        1997         $26.00                  Albertsons
   2        Glendale Northwest             2008         $34.00                  Super-Walmart
   3        Fry’s Center                   1999         $22.00                  Fry’s
   4        Fitness Center I               1995         $26.00                  Walgreens
   5        Ventana Lakes Village Center   2003         $28.00-$30.00           Basha’s

17 | Investment Property

                                                              THE MARkET

               BELL ROAD

                           Independently Owned and Operated
AlbeRtsons PeoRiA PlAzA


19 | Investment Property
AlbeRtsons PeoRiA PlAzA
                 conFidentiAl                                           MeMoRAnduM And disclAiMeR
  Grubb & Ellis | BRE Commercial, LLC (“Agent”) has been engaged as the exclusive agent for the sale of 8940 & 8960 West Bell Road, located on the NEC of 91st Avenue and Bell
  Road, Peoria, Arizona (the “Property”), by the owner of the Property (“Seller”).

  The Property is being offered for sale in an “as-is, where-is” condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained
  in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers
  of the interest described herein. Neither the enclosed materials nor any information contained herein is to be used for any other purpose or made available to any other person
  without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed, should be registered with Grubb & Ellis Company | BRE Commercial,
  LLC as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor.” The use of this Offering Memorandum and the information provided
  herein is subject to the terms, provisions and limitations of the confidentiality agreement furnished by Agent prior to delivery of this Offering Memorandum.

  The enclosed materials are being provided solely to facilitate the prospective investor’s own due diligence for which it shall be fully and solely responsible. The material contained
  herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by Agent or Seller or any of their respective
  representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained
  herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions
  contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or any other written or
  oral communication or information transmitted or make available or any action taken or decision made by the recipient with respect to the Property. Interested parties are to make
  their own investigations, projections and conclusions without reliance upon the material contained herein.
  Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly
  reserves the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity
  at any time, with or without notice. This offering is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without
  notice. Agent is not authorized to make any representations or agreements on behalf of Seller.

  Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to
  purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions
  to Seller’s obligations thereunder have been satisfied or waived.

  By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature
  and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants
  of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or Agent; and (c) no portion
  of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller or Agent or as otherwise provided in the Confidentiality and/or
  Registration Agreement executed and delivered by the recipient(s) to Grubb & Ellis | BRE Commercial, LLC.

  If you have no interest in the Property at this time, please return this Offering Memorandum immediately to:

                                                                      Grubb & Ellis | BRE Commercial, LLC
                                                                        Commercial Real Estate Services
                                                                       2375 East Camelback Road #300
                                                                           Phoenix, Arizona 85016

20 | Investment Property
  Albertsons Peoria Plaza                   peoria, arizona

                                 Ryan J. schubert                  Michael P. Hackett
                                   Senior Vice President             First Vice President
                                     p 602.224.4472                   p 602.224.4449

                                            Independently Owned and Operated

2375 East Camelback Road, Suite 300 • Phoenix, Arizona 85016 • p 602.954.9000 • f 602.468.8588 •

Description: Real Estate Peoria Arizona Map document sample