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O F F E R I N G M E M O R A N D U M8110-8190 W. UNION HILLS DR.GLENDALE, ARIZONA 85308

UNION HILLSSQUARE

The information contained herein was compiled by

Newmark Grubb Knight Frank with the understanding

that it is proprietary and any reproduction or

unauthorized use is expressly forbidden without the

prior written consent of Newmark Grubb Knight Frank.

This package is presented with the understanding that

all negotiations relating to the purchase, exchange

or lease of the described property shall be conducted

through this office.

The information contained herein has been obtained

from the owner or from other sources we deem reliable.

We do not, however, guarantee its accuracy. A prospective

buyer is expected to carefully investigate not only the

information assembled herein, but also the property

itself. All figures, statements and assumptions should be

carefully verified for accuracy. Since the purchase of this

property depends in part on your investment objectives,

we encourage each investor to have their CPA, attorney

and/or financial advisor evaluate this information prior

to entering into a transaction.

Newmark Grubb Knight Frank and their respective agents

and employees, make no warranty or representation

regarding and disclaim any duty to evaluate (i) the

validity or accuracy of this method of analysis, (ii) the

accuracy of any estimates or assumptions upon which

this analysis is based, (iii) the future income that the

property will produce, or (iv) any tax consequences

arising from the acquisition or ownership of the property.

TABLE OF CONTENTSE

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Investment SummaryDAVID GUIDOManaging Director

Phoenix Office602.952.3875

[email protected]

TIM WESTFALLManaging Director

Phoenix Office602.952.3822

[email protected]

INVESTMENT SUMMARY 44

Area Overview

AREA OVERVIEW 55

Property Overview

Aerial

Site Plan

Comparative Property Set

PROPERTY OVERVIEW 66

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Sales Comparables

Income Expense

Key Assumptions & Investment Results

Cashflow Projection

Rent Roll

Demographics

ASSET VALUATION 1010

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INVESTMENT SUMMARY

Investment Highlights

AN OPPORTUNITY TO ACQUIRE A STABILIZED MULTI-TENANT RETAIL ASSET IN GLENDALE, ARIZONA.

Strategically developed on the northwest corner of Loop 101 and Union Hills Drive, Union Hills

Square offering is comprised of four buildings totaling approximately 52,247 square feet.

Union Hills Square is home to a balanced mix of tenants on triple net leases and is currently 97%

occupied. A strong demographic foundation in conjunction with well-known national users in the

immediate trade area make this center an attractive opportunity now, and for generations to come.

Average household incomes exceed $78,000 with a median age of 43.6. This retail center is a strong

mix of local, regional and national tenants providing an array of neighborhood offerings and services.

Union Hills Square is uniquely positioned within a low vacancy submarket. Demand for space in a

low supply market, along with below market rents, should contribute to dynamic income growth for

the prospective investor.

• Adjacent to Loop 101 Freeway

• Built in 2005

• Below market rents

• Highly visible with access to 42,000 vehicles per day

• Located within a competitive retail submarket

• Household incomes over $78,000 within one mile

• Can be purchased free and clear

OFFERING PRICE $10,800,000

CAP RATE (YEAR 1) 6.88%

NOI (YEAR 1) $743,120

CURRENT OCCUPANCY 97%

TOTAL BUILDING AREA 52,247 SF

TOTAL LAND AREA 4.59 ACRES

4Union Hills Square

AREA OVERVIEW

GLENDALE, ARIZONA

A dynamic city located in Greater Phoenix’s northwest valley, Glendale has earned a business-friendly

reputation by providing expedited, professional staff assistance, making strategic infrastructure investments,

and collaborating to leverage public-private partnerships. As Arizona’s sixth largest city with a population of

over 234,000, Glendale is the place for family and business.

STRATEGIC LOCATION - Glendale is accessible via the Loop 101, U.S. 60, Loop 303 and is three miles from

Interstates 10 and 17.

SPORTS & ENTERTAINMENT DESTINATION - Glendale has hosted two Super Bowls, three college football

championship games, the Fiesta Bowl and the upcoming 2017 NCAA Men’s Final Four.

AEROSPACE & DEFENSE HUB - Glendale’s Luke Air Force Base is home to the new F-35 training program.

BY THE NUMBERS

400M 6 771MGlendale has invested

more than $400 million in infrastructure

improvements in the western Loop 101

corridor

Home to six colleges and universities,

including ASU West, Glendale Community

College and Midwestern University

Glendale’s colleges and universities provide an

economic impact of $771 million

5Union Hills Square

PROPERTY OVERVIEW

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PROPERTY ADDRESS 8110-8190 W Union Hills Drive

LOCATION North/South Street – 81st Avenue & East/West Street – Union Hills Drive

PROPERTY TYPE Retail

TOTAL BUILDING SF ±52,247 SF

LAND ACRES ±4.59 Acres

TAX PARCEL NUMBER 200-30-971B, 200-30-971C

PROPERTY TAXES $121,893

ZONING C-2

YEAR BUILT 2005

100 BUILDING – ±18,069 SF

DAYCAREPLAYGROUNDS FUN ZONE & CAFESYLVAN LEARNING CENTERKATZ & DOGS WELLNESS CLINICARTHERAPY FOR MEKIKU SUSHI


BLACKSTONE FINANCIALBEYOND DONUTSTRADERS SMOKE SHOPCELEBRITY TANNINGSINFUL SKIN TATTOOEL JEFE CROSSFIT


iNAILSHOME XPRESSIONSBACK IN ACTIONMIKEY’S BARBERSHOPPRIMETIME SPORTS GRILL


ADAM’S LOUNGEUNION HILLS FAMILY DENTISTRY

UNION HILLS DRIVE

6Union Hills Square

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PROPERTY OVERVIEW

UNION HILLS DRIVE

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PROPERTY OVERVIEW

Property Name Property Location GLA/SF Available Vacancy Asking Rates (PSF) Major Tenants

Union Hills Square8110 W Union Hills Dr Glendale, AZ 85308

52,247 SF/1,400 SF 3% $18.00

Sylvan Learning Center, Playgrounds Fun Zone & Café, Times 3 Sports Grill, UnionHills Family Dentistry

Arrowhead Gateway17560-17570 N 75th Ave Glendale, AZ 85308

35,684 SF/1,774 SF 5% $22.00 Salon Boutique, Red Mountain Weight Loss, Armed Forces Recruiting, Light Rx

Il Palazzo5940 W Union Hills Dr Glendale, AZ 85308

25,384 SF/4,160 SF 14% $24.00 Medifast, Cactus Children's Clinic, Rita's Italian Ice, Farmer's Insurance

Paradise View Plaza18969 N 83rd Ave Peoria, AZ 85382

11,422 SF/4,000 SF 35% $25.00 Hall of Frames, Nail Haven, Massage Haven

Northwest Valley Marketplace

9245 W Union Hills Dr Peoria, AZ 85382

36,457 SF/10,773 SF 29% $14-$18Subway, Streets of New York, Westbrook Animal Hospital, Maria's Hair

Glendale Northwest Center

8251 W Union Hills Dr Glendale, AZ 85308

14,822 SF/3,467 SF 25% $28.00 Rita's Italian Ice, Sport Clips, GameStop, Starbucks, Goodwill Donation Center

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ASSET VALUATION

Address Date Sold Price Cap Rate Land Area (±SF) RBA (±SF) Price PSF

Union Hills Square 8110-8190 W Union Hills Drive Glendale, AZ

TBD $10,800,000 6.88% 305,939 52,247 $206.71

4030 E Greenway Road Phoenix, AZ

January 2016 $5,950,000 7% 170,381 33,494 $177.64

1241 E Chandler Blvd Phoenix, AZ

April 2016 $3,125,000 7% 97,662 20,192 $154.76

Arrowhead Gateway 17570 N 75th Ave Glendale, AZ

May 2016 $10,100,000 7.04% 187,308 35,684 $283.04

Bell West Ranch Shops 16846 W Bell Road Surprise, AZ

8/15/2016 $3,985,000 7% 127,195 20,225 $197.03

Southshore Town Center 4105-4245 S Arizona Avenue Chandler, AZ

3/16/2016 $13,125,000 6.5% 264,844 40,651 $322.87

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ASSET VALUATION

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Summary

List Price: $10,800,000.00

CAP @ List: 6.88%

Approximate Gross Sq. Ft.: 52,247

Price Per Gross Sq. Ft.: $206.71

Annual Rent Per Sq. Ft.: $14.16

Annual Expenses Per Sq. Ft.: $5.07

Year Built: 2005

Approximate Lot Size: 7.02 acres

Annualized Pro-Forma Operating Data

Scheduled Gross Income: $786,515.00

Plus Overage:

Plus CAM Reimbusements: $253,538.00

TOTAL INCOME: $1,040,053.00

Less Vacancy Factor: 3% $31,870.00

GROSS OPERATING INCOME: $1,008,183.00

Less Operating Expenses: $265,063 .00

NET OPERATING INCOME: $743,120.00

Annualized Pro-Forma Expenses:

Taxes $121,893.00

Operating Expenses $115,394.00

MANAGEMENT $27,776.00

REIMBURSABLE EXPENSES $265,063.00

TOTAL EXPENSES PER SQ. FT. $5.07

PARCEL NUMBER200-30-971B200-30-971C


ASSET VALUATION

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SUMMARY OF KEY ASSUMPTIONS & INVESTMENT RESULTSPage 1

8110 W UNION HILLS, GLENDALE AZ 85308

Timing & Area Measurement Cost Assumptions over Holding Period INVESTMENT RESULTSRentable Square Feet 52,247 Purchase Price $10,800,000 $207 psf Sensitivity AnalysisAnalysis Start Date 10/1/2017 Closing Costs 0.00% $0 $0 psfAnalysis End Date 9/30/2027 Total Acquisition Costs $10,800,000 $207 psf Total Acquisition Costs $10,800,000 Total Shortfall $206,109Analysis Period (Hold Period) 120 mos 10 Years Ending Month 9 Total Capital Expenditures (See Cash Flow) Holding Period (yr) 0 1 2 3 4 5 6 7 8 9 10

Tenant Improvements $457,967 $9 psf Unleveraged IRR 3.63% 6.94% 7.06% 8.56% 9.41% 9.56% 9.67% 9.47% 9.65% 9.44%Key Rates Leasing Commissions $338,739 $6 psf Leveraged IRR -0.93% 10.54% 10.96% 15.23% 17.13% 17.12% 17.03% 16.30% 16.40% 15.74%

General Inflation 3.00% Additional Leasing Costs $0 $0 psf Lev. IRR w/Reserves -0.93% 10.41% 10.88% 14.89% 16.67% 16.67% 16.64% 15.96% 15.98% 15.36%Market Inflation 3.00% Additional Capital Expenditures $89,843 $2 psf Cash Multiple w/Reserves 0.99x 1.20x 1.32x 1.64x 1.98x 2.24x 2.53x 2.73x 3.06x 3.24xExpense Inflation 3.00% Total Capital Expenditures $886,549 $17 psfGeneral Vacancy 5.00% Free and Clear Return (Unleveraged) 6.46% 5.52% 7.12% 6.02% 6.83% 7.20% 8.02% 8.67% 7.45% 9.28%

Total Project Costs Before Int. $11,686,549 $224 psf Cash on Cash Return (Leveraged) 6.52% 3.36% 8.69% 5.04% 7.74% 8.96% 11.70% 13.86% 9.80% 15.91%Market Leasing Assumptions < 3000 RSF > 3000 RSF Debt Service $4,870,046 $93 psf Cash on Cash Return w/ Reserves 5.65% 1.84% 8.17% 3.00% 6.17% 8.00% 11.00% 13.03% 8.29% 14.95%

Renewal Probability 80% 80% Total Project Costs $16,556,595 $317 psf NOI Yield on Acquisition 6.88% 6.98% 7.28% 7.29% 7.82% 8.34% 8.67% 8.98% 9.02% 9.50%Market Base Rent $16.50 $16.00Rent Step-up 3.00% 3.00%Downtime 6 Months 9 Months Sources & UsesTenant Improvements $7 / $3.5 $10 / $5 Loan Proceeds $7,560,000 $145 psfLeasing Commissions 6% / 3% 6% / 3% Net Operating Income $8,723,547 $167 psfFree Rent 1 Mon 3 Mons Shortfall Reserves $206,109 $4 psfReimbursement Equity $3,240,000 $62 psf Unleveraged IRR Matrix Leveraged IRR Matrix

Operating Expenses NET NET Total Sources $19,729,655 $378 psf $192 psf $199 psf $207 psf $214 psf $221 psf $192 psf $199 psf $207 psf $214 psf $221 psfReal Estate Taxes NET NET $10,040,000 $10,420,000 $10,800,000 $11,180,000 $11,560,000 $10,040,000 $10,420,000 $10,800,000 $11,180,000 $11,560,000

Acquisition Cost $10,800,000 $207 psf 6.50% 11.12% 10.56% 10.03% 9.52% 9.04% 6.50% 19.25% 18.03% 16.87% 15.74% 14.65%Term Length 5 Years 7 Years Capital Expenditures $886,549 $17 psf 6.75% 10.81% 10.26% 9.73% 9.22% 8.74% 6.75% 18.71% 17.48% 16.30% 15.15% 14.05%

Debt Service $4,870,046 $93 psf 7.00% 10.53% 9.97% 9.44% 8.93% 8.45% 7.00% 18.19% 16.94% 15.74% 14.58% 13.46%Financing Assumptions (See Schedule) Project Costs $16,556,595 $317 psf 7.25% 10.25% 9.69% 9.16% 8.66% 8.17% 7.25% 17.69% 16.42% 15.20% 14.02% 12.88%Tranche 1 Distributions $3,173,060 $61 psf 7.50% 9.99% 9.43% 8.90% 8.39% 7.91% 7.50% 17.19% 15.91% 14.67% 13.47% 12.31%

Funding Date 10/1/2017 Total Uses $19,729,655 $378 psfLoan Proceeds 70% $7,560,000Index 5.00%Spread 0.00% Shortfall ReservesForward 0.00% Reserve Through 120 Months 10 YearsInterest Rate 5.00% Reserved Shortfall $206,109 $4 psf Price Unleveraged IRR Price Leveraged IRRAmmortization Period (Years) 30 Additional Shortfall $0 $0 psf 11.44% 10.44% 9.44% 8.44% 7.44% 17.74% 16.74% 15.74% 14.74% 13.74%Constant 6.44% Total Shortfall $206,109 $4 psf 6.50% $9,831,483 $10,507,718 $11,247,608 $12,058,089 $12,946,937 6.50% $10,619,339 $10,828,501 $11,056,567 $11,305,497 $11,577,475Term (Maturity) 120 9/30/2027 6.75% $9,638,723 $10,296,921 $11,016,899 $11,805,377 $12,669,891 6.75% $10,507,671 $10,706,970 $10,924,205 $11,161,233 $11,420,119

7.00% $9,459,731 $10,101,180 $10,800,000 $11,570,716 $12,412,634 7.00% $10,403,979 $10,594,119 $10,800,000 $11,027,273 $11,274,002Tranche 2 Disposition 1 9/30/2027 7.25% $9,293,084 $9,918,940 $10,603,213 $11,352,239 $12,173,119 7.25% $10,307,439 $10,489,051 $10,686,867 $10,902,551 $11,137,963

Funding Date 10/1/2017 Reversion NOI (Year 11) $1,021,605 $20 psf 7.50% $9,137,546 $9,748,848 $10,417,055 $11,148,327 $11,949,571 7.50% $10,217,334 $10,390,988 $10,580,064 $10,786,145 $11,010,992Loan Proceeds $0 Exit Cap Rate 7.00%Index 0.00% Value $14,594,362 $279 psf Price PSF Unleveraged IRR Price PSF Leveraged IRRSpread 0.00% 11.44% 10.44% 9.44% 8.44% 7.44% 17.74% 16.74% 15.74% 14.74% 13.74%Forward 0.00% Cost of Sale 3.00% $437,831 $8 psf 6.50% $188 $201 $215 $231 $248 6.50% $203 $207 $212 $216 $222Interest Rate 0.00% Proceeds $14,156,531 $271 psf 6.75% $184 $197 $211 $226 $242 6.75% $201 $205 $209 $214 $219Ammortization Period (Years) 30 7.00% $181 $193 $207 $221 $238 7.00% $199 $203 $207 $211 $216Constant 3.33% Remaining Loan Balance Tranche 1 $6,149,958 $118 psf 7.25% $178 $190 $203 $217 $233 7.25% $197 $201 $205 $209 $213Term (Maturity) 1/0/1900 10/1/2017 Remaining Loan Balance Tranche 2 $0 $0 psf 7.50% $175 $187 $199 $213 $229 7.50% $196 $199 $203 $206 $211

Remaining Loan Balance Tranche 3 $0 $0 psfTranche 3 Cash From Sale $8,006,573 $153 psf Going-in Cap Rate Unleveraged IRR Going-in Cap Rate Leveraged IRR

Funding Date 10/1/2017 11.44% 10.44% 9.44% 8.44% 7.44% 17.74% 16.74% 15.74% 14.74% 13.74%Loan Proceeds $0 6.50% 7.56% 7.07% 6.61% 6.16% 5.74% 6.50% 7.00% 6.86% 6.72% 6.57% 6.42%Index 0.00% Funds Available 6.75% 7.71% 7.22% 6.75% 6.29% 5.87% 6.75% 7.07% 6.94% 6.80% 6.66% 6.51%Spread 0.00% From Operations $3,173,060 $61 psf 7.00% 7.86% 7.36% 6.88% 6.42% 5.99% 7.00% 7.14% 7.01% 6.88% 6.74% 6.59%Forward 0.00% From Capital Event $8,006,573 $153 psf 7.25% 8.00% 7.49% 7.01% 6.55% 6.10% 7.25% 7.21% 7.08% 6.95% 6.82% 6.67%Interest Rate 0.00% Total Funds Available $11,179,633 $153 psf 7.50% 8.13% 7.62% 7.13% 6.67% 6.22% 7.50% 7.27% 7.15% 7.02% 6.89% 6.75%Ammortization Period (Years) 30Constant 3.33%Term (Matuirty) 1/0/1900 10/1/2017 Equity Multiple 3.24x

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All information furnished is from sources deemed reliable, no representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, changes, or withdrawal without notice, and any special listing conditions.
















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ASSET VALUATIONCASH FLOW PROJECTION

Page 28110 W UNION HILLS, GLENDALE AZ 85308

9/30/2018 9/30/2019 9/30/2020 9/30/2021 9/30/2022 9/30/2023 9/30/2024 9/30/2025 9/30/2026 9/30/2027 9/30/2028

Oct 17 Oct 18 Oct 19 Oct 20 Oct 21 Oct 22 Oct 23 Oct 24 Oct 25 Oct 26 Oct 27 TOTALPeriod Ending Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 23 Sep 24 Sep 25 Sep 26 Sep 27 Sep 28

Rental RevenuePotential Base Rent 830,097 835,858 843,761 872,864 925,968 980,142 1,009,122 1,039,507 1,070,323 1,101,006 1,135,166 10,643,814 Absorption & Turnover Vacancy (40,930) (34,174) (1,854) (29,722) (25,101) (22,316) (13,724) (2,149) (37,371) (7,088) (41,449) (255,878)Free Rent (2,652) (9,162) (371) (8,172) (6,255) (6,158) (2,226) (874) (10,366) (503) (11,724) (58,463)Scheduled Base Rent 786,515 792,522 841,536 834,971 894,612 951,668 993,172 1,036,483 1,022,586 1,093,415 1,081,993 10,329,473

Other Tenant RevenueExpense Recoveries 253,538 262,844 280,621 280,026 290,949 301,519 313,784 327,054 325,007 345,402 343,911 3,324,657

Potential Gross Revenue 1,040,053 1,055,366 1,122,157 1,114,997 1,185,561 1,253,187 1,306,956 1,363,537 1,347,593 1,438,817 1,425,904 13,654,129

Vacancy & Credit LossVacancy Allowance (31,870) (28,534) (54,346) (39,135) (42,184) (43,617) (52,310) (66,135) (36,361) (65,207) (47,367) (507,065)

Effective Gross Revenue 1,008,183 1,026,832 1,067,810 1,075,862 1,143,378 1,209,570 1,254,646 1,297,402 1,311,232 1,373,610 1,378,537 13,147,065

Operating ExpensesInsurance 22,874 23,560 24,267 24,995 25,745 26,517 27,313 28,132 28,976 29,845 30,741 292,966 Real Estate Taxes 121,893 125,550 129,316 133,196 137,192 141,307 145,547 149,913 154,410 159,043 163,814 1,561,181 Day Porter Contract 10,812 11,136 11,470 11,815 12,169 12,534 12,910 13,297 13,696 14,107 14,530 138,478 Sweeping Contract 6,000 6,180 6,365 6,556 6,753 6,956 7,164 7,379 7,601 7,829 8,063 76,847 Steam Cleaning 2,165 2,230 2,297 2,366 2,437 2,510 2,585 2,663 2,743 2,825 2,910 27,729 Signage/Directory 163 168 173 178 183 189 195 200 206 213 219 2,088 Backflow 614 632 651 671 691 712 733 755 778 801 825 7,864 Pest Control 2,823 2,908 2,995 3,085 3,177 3,273 3,371 3,472 3,576 3,683 3,794 36,156 Landscape Contract 9,300 9,579 9,866 10,162 10,467 10,781 11,105 11,438 11,781 12,134 12,498 119,112 Parking Lot Repair/Maint 814 838 864 889 916 944 972 1,001 1,031 1,062 1,094 10,426 Lights Contract 471 485 500 515 530 546 562 579 597 615 633 6,032 Lights Repair/Maint 2,366 2,437 2,510 2,585 2,663 2,743 2,825 2,910 2,997 3,087 3,180 30,303 Roofing 1,174 1,209 1,245 1,283 1,321 1,361 1,402 1,444 1,487 1,532 1,578 15,036 Alarm Monitoring 2,394 2,466 2,540 2,616 2,694 2,775 2,859 2,944 3,033 3,124 3,217 30,662 Electric - Common Area 21,392 22,034 22,695 23,376 24,077 24,799 25,543 26,309 27,099 27,912 28,749 273,984 Water 8,339 8,589 8,847 9,112 9,386 9,667 9,957 10,256 10,564 10,881 11,207 106,804 Water - Irrigation 1,981 2,040 2,102 2,165 2,230 2,297 2,365 2,436 2,509 2,585 2,662 25,372 Sewer 10,366 10,677 10,997 11,327 11,667 12,017 12,378 12,749 13,131 13,525 13,931 132,766 Trash 7,777 8,010 8,251 8,498 8,753 9,016 9,286 9,565 9,852 10,147 10,452 99,606 Dump/Disposal 926 954 982 1,012 1,042 1,073 1,106 1,139 1,173 1,208 1,244 11,860 Management Fee 30,245 30,805 32,034 32,276 34,301 36,287 37,639 38,922 39,337 41,208 41,356 394,412 Postage 174 179 185 190 196 202 208 214 220 227 234 2,229

Total Operating Expenses 265,063 272,667 281,153 288,868 298,591 308,506 318,024 327,719 336,797 347,593 356,932 3,401,913

Net Operating Income $743,120 $754,165 $786,658 $786,994 $844,787 $901,065 $936,622 $969,684 $974,435 $1,026,018 $1,021,605 $9,745,152

Leasing CostsTenant Improvements $21,279 $86,417 $5,663 $73,745 $56,521 $65,919 $34,900 $13,797 $92,050 $7,678 $120,042 $578,009Leasing Comissions 15,836 63,790 4,239 54,350 41,637 48,888 26,125 10,328 67,800 5,747 88,818 427,557

Capital ExpendituresReplacement Reserves $7,837 $8,072 $8,314 $8,564 $8,821 $9,085 $9,358 $9,639 $9,928 $10,226 $10,532 100,375

- - - - - - - - - - -Total Leasing & Capital Costs $44,951 $158,279 $18,217 $136,659 $106,978 $123,892 $70,382 $33,764 $169,777 $23,650 $219,393 $1,105,942

Acquisition Less Closing Costs ($10,800,000) - - - - - - - - - - - ($10,800,000)

Sale Proceeds - - - - - - - - - 14,156,531 - 14,156,531

CASH FLOW BEFORE DEBT SERVICE 9.44% ($10,800,000) $698,169 $595,886 $768,441 $650,336 $737,808 $777,172 $866,240 $935,920 $804,658 $15,158,899 - $11,193,528

Debt ServiceProceeds $7,560,000 - - - - - - - - - - - $7,560,000Interest (375,467) (369,760) (363,762) (357,457) (350,829) (343,862) (336,538) (328,840) (320,748) (312,242) - ($3,459,506)Principal (111,538) (117,244) (123,243) (129,548) (136,176) (143,143) (150,466) (158,164) (166,256) (174,762) - ($1,410,540)Repayment - - - - - - - - - ($6,149,958) - ($6,149,958)Total Debt Service $7,560,000 ($487,005) ($487,005) ($487,005) ($487,005) ($487,005) ($487,005) ($487,005) ($487,005) ($487,005) ($6,636,962) - ($3,460,003)

DSCR 1.43x 1.22x 1.58x 1.34x 1.51x 1.60x 1.78x 1.92x 1.65x 2.06x 0.00x

CASHFLOW AFTER DEBT SERVICE 15.74% ($3,240,000) $211,164 $108,881 $281,437 $163,331 $250,804 $290,168 $379,235 $448,916 $317,653 $8,521,936 - $7,733,525

ReservesReserves ($206,109) ($206,109)Shortfall - $16,476 $45,410 - $59,843 $38,169 $14,400 - - $31,811 - - $206,109Total Reserves ($206,109) $16,476 $45,410 - $59,843 $38,169 $14,400 - - $31,811 - - $0

CASHFLOW AFTER RESERVES 15.36% ($3,446,109) $227,640 $154,291 $281,437 $223,174 $288,973 $304,567 $379,235 $448,916 $349,464 $8,521,936 - $7,733,525

Cash Flow from Operations $3,173,060 $227,640 $154,291 $281,437 $223,174 $288,973 $304,567 $379,235 $448,916 $349,464 $515,363 - $3,173,0600

Free and Clear Return (Unleveraged) $10,800,000 6.46% 5.52% 7.12% 6.02% 6.83% 7.20% 8.02% 8.67% 7.45% 9.28% 9.46%Cash on Cash Return (Leveraged) $3,240,000 6.52% 3.36% 8.69% 5.04% 7.74% 8.96% 11.70% 13.86% 9.80% 15.91% 31.53%Cash on Cash Return After Reserves (Leveraged) $3,446,109 5.65% 1.84% 8.17% 3.00% 6.17% 8.00% 11.00% 13.03% 8.29% 14.95% 29.65%

NOI Yield on Acquisition 6.88% 6.98% 7.28% 7.29% 7.82% 8.34% 8.67% 8.98% 9.02% 9.50% 0.00%NOI Yield On Total Costs (Cumulative) 6.85% 6.88% 7.27% 7.20% 7.75% 8.25% 8.62% 8.95% 8.88% 9.48% 0.00%



Ren

t Ro

ll

ASSET VALUATION

TENANT INFORMATION LEASE SCHEDULED RENT

Suite Tenant SF % Project Lease Expiration Rent PSF (Monthly)

Rent PSF (Yearly)

Actual Monthly Rent

Actual Annual Rent

100 Bernau Enterprises, LLC dba Playgrounds Fun Zone & Café 5,604 10.73% 3/31/2022 $1.03 $12.36 $5,772.12 $69,265.44

120 Educate Arizona dba Sylvan Learning Center 2,733 5.23% 1/31/2018 $1.00 $12.00 $2,733.00 $32,796.00

130 Bernau Enterprises, LLC dba Playgrounds Fun Zone & Café 4,132 7.91% 4/30/2021 $1.00 $12.00 $4,132.00 $49,584.00

145 Katz & Dogs Wellness Clinic, Inc 1,400 2.68% 2/28/2019 $1.39 $16.68 $1,946.00 $23,352.00

150 Artherapy for Me, LLC 1,400 2.68% 10/31/2018 $1.15 $13.80 $1,610.00 $19,320.00

155 Kenny & Amy Hong dba Kiku Sushi 2,800 5.36% 12/31/2022 $1.45 $17.40 $4,060.00 $48,720.00

200 Finance America 3,644 6.97% 1/31/2023 $1.34 $16.00 $4,882.96 $58,595.52

208 Beyond Donuts & Café 1,600 3.06% 9/30/2017 $1.42 $17.04 $2,272.00 $27,264.00

210 Mark & Mary Schroeder dba Traders Smoke Shop 1,400 2.68% 7/31/2019 $1.16 $13.92 $1,624.00 $19,488.00

220 VACANT 1,400 2.68% $- $1,400.00 $16,800.00

230 Celebrity Tanning, LLC 1,401 2.68% 6/30/2019 $1.29 $15.48 $1,807.29 $21,687.48

240 Jeffrey & Kathleen Herron dba Sinful Skin Tattoo, LLC 1,271 2.43% 2/29/2020 $1.39 $16.68 $1,766.69 $21,200.28

250 El Jefe Crossfit 7,269 13.91% 4/30/2021 $1.03 $12.36 $7,487.07 $89,844.84

300 Duc Huynh dba My INails 1,400 2.68% 8/31/2022 $0.69 $8.28 $1,922.67 $23,072.04

310 Home Xpressions 1,401 2.68% 6/30/2022 $1.33 $15.96 $1,863.33 $22,359.96

320 Back In Action of Scottsdale, LLC 2,801 5.36% 1/31/2021 $1.29 $15.48 $3,613.29 $43,359.48

340 Mikey's Barber Shop 1,283 2.46% 2/28/2021 $1.42 $17.04 $1,821.86 $21,862.32

350 Primetime Sports Bar & Grill 4,000 7.66% 10/31/2018 $1.55 $18.60 $6,200.00 $74,400.00

410 Adam's Lounge 2,550 4.88% 7/31/2022 $1.50 $18.00 $3,825.00 $45,900.00

430 Union Hills Family Dentistry, LLC 2,758 5.28% 5/31/2019 $1.84 $22.08 $5,074.72 $60,896.64

PAD Alltel Communications of the Southwest, LP 0 0.00% 7/14/2022 $- $847.00 $10,164.00

TOTALS 52,247 100.00% $23.02 $276.16 $61,669.83 $740,037.96


Site MapUnion Hills Square Prepared by Esri8110 W Union Hills Dr, Glendale, Arizona, 85308 Latitude: 33.65285Rings: 1, 3, 5 mile radii Longitude: -112.23381

September 13, 2017

©2017 Esri Page 1 of 1

DEMOGRAPHICS


September 13, 2017



September 13, 2017


Union Hills Square

81st Avenue & Union Hills Drive | Northwest CornerPhoenix, AZ 85248Ring: 1, 3, 5 Miles

Latitude: 33.65285Longitude: -112.23381


Demographic and Income ProfileUnion Hills Square Prepared by Esri8110 W Union Hills Dr, Glendale, Arizona, 85308 Latitude: 33.65285Ring: 1 mile radius Longitude: -112.23381

Summary Census 2010 2017 2022Population 12,526 13,529 14,434Households 5,421 5,847 6,239Families 3,456 3,663 3,874Average Household Size 2.30 2.30 2.30Owner Occupied Housing Units 2,947 2,945 3,089Renter Occupied Housing Units 2,474 2,902 3,149Median Age 38.8 39.7 40.3

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 1.30% 1.41% 0.83%Households 1.31% 1.35% 0.79%Families 1.13% 1.27% 0.71%Owner HHs 0.96% 1.32% 0.72%Median Household Income 1.57% 1.84% 2.12%

2017 2022 Households by Income Number Percent Number Percent

<$15,000 468 8.0% 477 7.6%$15,000 - $24,999 383 6.6% 375 6.0%$25,000 - $34,999 456 7.8% 414 6.6%$35,000 - $49,999 888 15.2% 823 13.2%$50,000 - $74,999 1,328 22.7% 1,414 22.7%$75,000 - $99,999 990 16.9% 1,141 18.3%$100,000 - $149,999 818 14.0% 980 15.7%$150,000 - $199,999 304 5.2% 363 5.8%$200,000+ 213 3.6% 252 4.0%

Median Household Income $61,055 $66,011Average Household Income $76,968 $85,238Per Capita Income $33,447 $37,028

Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent

0 - 4 674 5.4% 680 5.0% 728 5.0%5 - 9 684 5.5% 699 5.2% 706 4.9%10 - 14 746 6.0% 743 5.5% 772 5.3%15 - 19 812 6.5% 767 5.7% 790 5.5%20 - 24 973 7.8% 978 7.2% 1,053 7.3%25 - 34 1,824 14.6% 2,088 15.4% 2,156 14.9%35 - 44 1,448 11.6% 1,601 11.8% 1,798 12.5%45 - 54 1,870 14.9% 1,738 12.8% 1,673 11.6%55 - 64 1,483 11.8% 1,761 13.0% 1,855 12.8%65 - 74 1,000 8.0% 1,327 9.8% 1,556 10.8%75 - 84 660 5.3% 725 5.4% 911 6.3%

85+ 352 2.8% 423 3.1% 438 3.0%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 10,591 84.6% 11,020 81.5% 11,391 78.9%Black Alone 390 3.1% 505 3.7% 613 4.2%American Indian Alone 112 0.9% 141 1.0% 167 1.2%Asian Alone 610 4.9% 802 5.9% 997 6.9%Pacific Islander Alone 17 0.1% 18 0.1% 20 0.1%Some Other Race Alone 412 3.3% 520 3.8% 611 4.2%Two or More Races 393 3.1% 523 3.9% 635 4.4%

Hispanic Origin (Any Race) 1,454 11.6% 1,784 13.2% 2,095 14.5%Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022.

September 13, 2017



AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2

0Population Households Families Owner HHs Median HH Income

20172022

Population by AgePopulation by Age

Perc

ent

14

12

10

8

6

4

2

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2017 Household Income 2017 Household Income

<$15K8.0%

$15K - $24K6.5%

$25K - $34K7.8%

$35K - $49K15.2%

$50K - $74K22.7%

$75K - $99K16.9%

$100K - $149K14.0%

$150K - $199K5.2%

$200K+3.6%

2017 Population by Race2017 Population by Race

Perc

ent

80

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+

2017 Percent Hispanic Origin: 13.2%


September 13, 2017


DEMOGRAPHICS

1 MILE


DEMOGRAPHICS

3 MILES





<$15,000 3,208 7.2% 3,270 7.0%$15,000 - $24,999 3,357 7.6% 3,248 6.9%$25,000 - $34,999 3,527 8.0% 3,196 6.8%$35,000 - $49,999 6,277 14.2% 5,690 12.1%$50,000 - $74,999 9,241 20.9% 9,639 20.5%$75,000 - $99,999 6,297 14.2% 7,151 15.2%$100,000 - $149,999 7,416 16.7% 8,779 18.7%$150,000 - $199,999 2,927 6.6% 3,493 7.4%$200,000+ 2,070 4.7% 2,558 5.4%



0 - 4 4,724 4.8% 4,765 4.5% 5,080 4.5%5 - 9 5,357 5.4% 5,172 4.8% 5,226 4.6%10 - 14 6,598 6.7% 5,979 5.6% 5,928 5.2%15 - 19 6,554 6.6% 5,969 5.6% 5,820 5.1%20 - 24 5,351 5.4% 5,992 5.6% 5,548 4.9%25 - 34 10,163 10.2% 12,765 12.0% 14,433 12.7%35 - 44 12,198 12.3% 11,469 10.7% 12,944 11.4%45 - 54 14,527 14.6% 13,703 12.8% 12,640 11.1%55 - 64 12,593 12.7% 14,109 13.2% 14,505 12.8%65 - 74 9,831 9.9% 13,220 12.4% 15,252 13.4%75 - 84 7,371 7.4% 8,402 7.9% 10,637 9.4%

85+ 3,907 3.9% 5,231 4.9% 5,550 4.9%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 87,259 88.0% 91,339 85.5% 94,773 83.5%Black Alone 2,297 2.3% 2,957 2.8% 3,596 3.2%American Indian Alone 569 0.6% 719 0.7% 851 0.7%Asian Alone 3,719 3.7% 4,919 4.6% 6,162 5.4%Pacific Islander Alone 115 0.1% 143 0.1% 168 0.1%Some Other Race Alone 2,687 2.7% 3,330 3.1% 3,891 3.4%Two or More Races 2,530 2.6% 3,373 3.2% 4,123 3.6%



September 13, 2017



AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2


20172022


Perc

ent

12

10

8

6

4

2

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K7.2%

$15K - $24K7.6%

$25K - $34K8.0%

$35K - $49K14.2%

$50K - $74K20.9%

$75K - $99K14.2% $100K - $149K

16.7%

$150K - $199K6.6%

$200K+4.7%


Perc

ent

80

70

60

50

40

30

20

10




September 13, 2017



DEMOGRAPHICS

5 MILES





<$15,000 8,143 7.8% 8,525 7.7%$15,000 - $24,999 8,931 8.6% 8,801 8.0%$25,000 - $34,999 9,689 9.3% 9,028 8.2%$35,000 - $49,999 14,934 14.4% 13,719 12.4%$50,000 - $74,999 21,467 20.7% 22,418 20.3%$75,000 - $99,999 14,063 13.5% 16,003 14.5%$100,000 - $149,999 15,849 15.3% 18,738 17.0%$150,000 - $199,999 6,215 6.0% 7,434 6.7%$200,000+ 4,513 4.3% 5,630 5.1%



0 - 4 11,747 4.9% 11,968 4.7% 12,803 4.7%5 - 9 13,138 5.5% 12,852 5.0% 13,137 4.8%10 - 14 15,582 6.6% 14,245 5.5% 14,489 5.3%15 - 19 16,047 6.8% 14,277 5.6% 14,130 5.2%20 - 24 13,309 5.6% 14,547 5.7% 13,167 4.8%25 - 34 24,805 10.4% 31,591 12.3% 34,873 12.7%35 - 44 28,364 11.9% 27,309 10.6% 31,405 11.5%45 - 54 34,630 14.6% 31,923 12.4% 29,575 10.8%55 - 64 30,161 12.7% 34,247 13.3% 35,039 12.8%65 - 74 23,421 9.9% 31,966 12.4% 37,171 13.6%75 - 84 17,358 7.3% 20,064 7.8% 25,330 9.3%

85+ 9,095 3.8% 11,946 4.6% 12,591 4.6%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 204,987 86.3% 214,964 83.7% 223,110 81.5%Black Alone 6,436 2.7% 8,350 3.2% 10,161 3.7%American Indian Alone 1,836 0.8% 2,330 0.9% 2,760 1.0%Asian Alone 7,973 3.4% 10,524 4.1% 13,143 4.8%Pacific Islander Alone 308 0.1% 381 0.1% 441 0.2%Some Other Race Alone 9,849 4.1% 12,072 4.7% 13,986 5.1%Two or More Races 6,267 2.6% 8,313 3.2% 10,108 3.7%



September 13, 2017



AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2


20172022


Perc

ent

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K7.8%

$15K - $24K8.6%

$25K - $34K9.3%$35K - $49K

14.4%

$50K - $74K20.7%

$75K - $99K13.5%

$100K - $149K15.3%

$150K - $199K6.0%

$200K+4.3%


Perc

ent

80

70

60

50

40

30

20

10




September 13, 2017



DEMOGRAPHICSTraffic Count Map - Close UpUnion Hills Square Prepared by Esri8110 W Union Hills Dr, Glendale, Arizona, 85308 Latitude: 33.65285Rings: 1, 3, 5 mile radii Longitude: -112.23381

Source: ©2017 Kalibrate Technologies

September 13, 2017


Traf

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2398 E. Camelback Road, Suite 950 | Phoenix, Arizona 85016 | Main 602.952.3800 | www.ngkf.com

union hills square€¦ · as arizona’s sixth largest city with a population of over 234,000,...

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