GILBERT, AZ (PHOENIX MSA)
2FINANCIAL ANALYSIS ACE HARDWARE - GILBERT, AZPRICING & FINANCIAL ANALYSIS ANNUALIZED OPERATING DATA Year(s) Commencement Annual Increase 1-3 06/30/2018 $124,125 4 12/01/2021 $127,849 3.00% 5 12/01/2022 $131,685 3.00% 6 12/01/2023 $135,636 3.00% 7 12/01/2024 $139,705 3.00% 8 12/01/2025 $143,896 3.00% 9 12/01/2026 $148,213 3.00% 10 12/01/2027 $152,658 3.00% NET OPERATING INCOME $131,685 OFFERING SUMMARY Price $2,633,700 Cap Rate 5.00% Net Operating Income $131,685 Year Built 2002 Gross Leasable Area 14,603 SF Lot Size 2.23 Acres LEASE SUMMARY Lease Term 10.5 Years Lease Commencement 06/30/2018 Lease Expiration 11/30/2028 Remaining Term 6 Years Lease Type NN Roof & Structure Landlord Increases 3% Annually Options 2 x 5 with 3% Annual Increases For Financing Options, Please Contact: Greg Holley | Managing Partner High St Capital (O) 469-998-7200 | (C) gholley@highstcapital.com714.514.2990 Ace3223HardwareEGuadalupeRdGilbert,AZ85234
3PROPERTY DESCRIPTION ACE HARDWARE - GILBERT, AZTENANT OVERVIEW COMPANY SUMMARY Company Ace Hardware Corporation
Ownership Private Number of Locations 5,000+ Worldwide Years in Business 98 Years Headquarters Oak Brook, IL Website www.acehardware.com
FRANCHISEE SUMMARY
Name James “Jim” Wennersten About Jim Wennersten opened his 4th Ace Hardware store in the Phoenix Metro Area, this one a 14,603-Square-Foot standalone store in Gilbert, AZ
Ace Hardware Corporation is an American hardware company and retail cooperative. Ace Hardware was founded in Chicago, Illinois in 1924 but is now headquarted out of Oak Brook, Illinois. Today it operates over 5,000 locations worldwide. Ace Hardware stores offer a wide variety of paint, lawn and garden, tools, and local niche services.
4PROPERTY DESCRIPTION ACE HARDWARE - GILBERT, AZINVESTMENT HIGHLIGHTS SNAPSHOT• Rare Hard corner ACE with under market rents (Currently paying $8.75/ SF) • 3% Annual Increases Provide a Good Hedge Against Inflation (Next Rent Bump is December 2022) • Traffic counts combined on E Guadalupe Rd and Higley Rd exceed 48,000 VPD • Gilbert, Arizona was ranked as the #1 City Where Millennials are Buying Homes in 2020 by SmartAsset. (Click Here to Read More) •• Gilbert’s Top Employers Include Deloitte, GoDaddy, Merrill, Morgan Stanley, Banner MD Anderson Cancer Center, and More. (Click Here to Read More) • Surrounding National Retailers include Walgreens, O’Reilly Auto Parts, Chase Bank, CVS, Fry’s Food and Drug, McDonald’s, Starbucks and Many More. Population2010-2020Growth 4.98% AverageIncomeHousehold $117,942 Estimated Vehicle Per Day 48,081 5Population:MileRadius 368,370
5PROPERTY DESCRIPTION ACE HARDWARE - GILBERT, AZSITE PLAN VPD17,187 30,894 VPD
6MARKET OVERVIEW ACE HARDWARE - GILBERT, AZAERIAL MAP TUSCANYGILBERTVILLAGE VPD30,894 E GUADALUPE RD 17,187 VPD DEVELOPMENTFUTURE MEDIAN HOME VALUE: $374,373 GRAVITYDEVELOPMENT:FUTURECOFFEE
7MARKET OVERVIEW ACE HARDWARE - GILBERT, AZSTREET MAP E Guadalupe Rd 30,894HigleyRdVPD 17,187 VPD DEVELOPMENTFUTURE GRAVITYDEVELOPMENT:FUTURECOFFEE BANNER MEDICAL CENTER
8MARKET OVERVIEW ACE HARDWARE - GILBERT, AZREGIONAL MAP
Phoenix is the anchor of the Phoenix metropolitan area, also known as the Valley of the Sun. The metropolitan area is the 10th-largest by population in the United States, with approximately 4.95 million people as of 2020. Phoenix is the seat of Maricopa County and the largest city in the state at 517.9 square miles, making it one of the largest cities in the United States.
Phoenix is the capital and most populous city of the U.S. state of Arizona. With a 2021 population estimate of 1,733,630 people, Phoenix is the fifthmost populous city nationwide, the most populous state capital in the United States and the only state capital with a population of more than one million residents.
Phoenix was settled in 1867 as an agricultural community near the confluence of the Salt and Gila Rivers and was incorporated as a city in 1881. It became the capital of Arizona Territory in 1889.
Cotton, cattle, citrus, climate and copper were known locally as the “Five C’s” anchoring Phoenix’s economy. These remained the driving forces of the city until after World War II, when high-tech companies began to move into the valley and air conditioning made Phoenix’s hot summers more bearable.
9MARKET OVERVIEW ACE HARDWARE - GILBERT, AZMARKET SUMMARY
Phoenix and the surrounding area is home to a broad range of cultural activities including the performing arts, museums and events. One noteworthy music venue is the Phoenix Symphony Hall, while a notable museum in the area is the Heard Museum north of downtown. Additionally, Phoenix is home to several professional sports franchises, including representatives of all four major professional sports leagues in the U.S. Phoenix also serves as a central point to many of the sights around the state of Arizona, such as the Grand Canyon, Lake Havasu, Meteor Crater, the Painted Desert and many more.
Several Fortune 500 and Fortune 1000 companies have their international headquarters in the area, including Avnet, PetSmart, Apollo Education Group, Republic Services, ON Semiconductor, Insight Enterprises, and Sprouts Farmers Market. Other Fortune 500 companies with significant presence include Banner Health, the state’s largest private employer, American Airlines, which merged with Tempe-based US Airways, American Express, Wells Fargo, Boeing, and Intel, which has a large regional campus in Chandler.
QUICK STATSOVERVIEW
Phoenix, AZ 5th Most-populous city in the United States 1 st Most-populous state capital in the United States 4 Fortune 500 Companies call Phoenix home 19M Over 19 million people visit the Phoenix area every year 9th Busiest airport in the nation, Sky Harbor Airport, in 2020
10MARKET OVERVIEW ACE HARDWARE - GILBERT, AZDEMOGRAPHIC STATISTICS Demographic data © CoStar 2021 1 Mile 3 Mile 5 Mile Population2010Population 10,574 94,012 275,689 2021 Population 17,022 139,155 368,370 2026 Population Projection 17,869 144,636 385,728 Annual Growth 2010-2020 4.98% 3.94% 4.71% Annual Growth 2021-2026 2.40% 2.40% 2.40% Median Age 33.9 36.1 39.5 Bachelor's Degree or Higher 41% 36% 31% U.S. Armed Forces 8 51 117 Population by Race White 10,512 94,999 283,925 Black 338 4,912 14,050 American Indian/Alaskan Native 133 1,400 5,306 Asian 1,056 6,581 15,912 Hawaiian & Pacific Islander 29 317 1,121 Two or More Races 369 3,847 10,778 Hispanic Origin 1,704 18,123 62,884 HousingMedian Home Value $374,373 $323,858 $271,942 Median Year Built 1998 1996 1993 1 Mile 3 Mile 5 Mile Households:2010Households 3,137 33,308 105,109 2021 Households 5,823 48,687 128,429 2026 Household Projection 6,203 51,148 136,007 Annual Growth 2010-2020 1% 1.00% 0.90% Annual Growth 2021-2026 6.53% 5.05% 5.90% Owner Occupied 3,574 31,733 101,205 Renter Occupied 600 12,936 42,258 Avg Household Size 3.4 2.8 2.6 Avg Household Vehicles 2 2 2 Total Consumer Spending $168.5M $1.5B $4.3B Income2021Avg Household Income $117,942 $115,661 $103,483 2021 Median Household Income $94,970 $90,336 $79,516 < $25,000 159 3,824 16,114 $25,000 - 50,000 368 6,140 26,220 $50,000 - 75,000 451 7,397 25,619 $75,000 - 100,000 597 5,943 17,680 $100,000 - 125,000 654 5,277 14,885 $125,000 - 150,000 542 3,688 9,593 $150,000 - 200,000 362 3,729 9,213 $200,000+ 595 3,866 8,470
The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from STRIVE and it should not be made available to any other person or entity without the written consent of STRIVE. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to STRIVE. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. STRIVE has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, STRIVE has not verified, and will not verify, any of the information contained herein, nor has STRIVE conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
CONFIDENTIALITY AGREEMENT
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2017 STRIVE
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT STRIVE AGENT FOR MORE DETAILS.
STRIVE hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, STRIVE has not and will not verify any of this information, nor has STRIVE conducted any investigation regarding these matters. STRIVE makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.
Net Lease Disclaimer
As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. STRIVE expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.
By accepting this Marketing Brochure you agree to release STRIVE and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:
• Must not, unless specifically authorized in writing to do so by the party, disclose: ӽ that the owner will accept a price less than the written asking price; ӽ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and ӽ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.
TYPES OF REAL ESTATE LICENSE HOLDERS: BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker ’s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client’s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by th e seller or seller ’s agent.
Regulated by the Texas Real Estate Commission Information available at www.trec.texas.gov
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AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:
• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.
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Information About Brokerage Services IABS 1-0
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer ’s agent.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
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• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
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• Must treat all parties to the transaction impartially and fairly; • May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and • buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction.
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exclusively469.844.8880listedSTRIVERE.COM