Estrella Town Center - The Sekulovski Group€¦ · the presence or absence of contaminating...

The Sekulovski GroupRetail Investment Offering

Tony [email protected]

The Shops of Estrella Town Center 7500 W. Lower Buckeye Road

Phoenix, Arizona 85043

The Sekulovski Group

2944 North 44th Street, Suite 200Phoenix, AZ 85018

P. 602.476.8807F. 888.801.9381

300 South Wacker Drive, Suite 2300Chicago, IL 60606

P. 312.423.6662F. 888.801.9381

mailto:[email protected]


The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiv-ing it from The Sekulovski Group and should not be made available to any other person or entity without the written consent of The Sekulovski Group. This of-fering has been prepared to provide a summary of unverified 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 thor-ough due diligence investigation. The Sekulovski Group has not made any in-vestigation, 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, PCB’s or asbestos, the compliance with state and federal regulations, the physical condition of the im-provements thereon, or the financial condition or business prospects of any ten-ant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering has been obtained from sources we believe to be reliable; however, The Sekulovski Group has not veri-fied, and will not verify, any of the information contained herein, nor has The Sekulovski Group 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 ap-propriate measures to verify all of the information set forth herein.

ALL PROPERTY SHOWINGS

ARE BY APPOINTMENT ONLY.

PLEASE CONSULT THE SEKULOVSKI GROUP

FOR MORE DETAILS.

The Sekulovski GroupTony [email protected]

Confidentiality AgreementThe Shops of Estrella Town CenterPhoenix, AZ



Section 1 ................................................................. Investment Summary Investment Overview

Section 2 ................................................................. Pricing & Financial Analysis Income Expenses Financial Summary Rent Roll Tenant Profiles

Section 3 ................................................................. Property Description Location Overview Property Photos Location Maps Site Plan Aerial Photos

Section 4 ................................................................. Demographic Profile


Table of ContentsThe Shops of Estrella Town CenterPhoenix, AZ




Investment SummaryThe Shops of Estrella Town CenterPhoenix, AZ




Investment OverviewINVESTMENT HIGHLIGHTS

The Shops of Estrella Town CenterPhoenix, AZ

•Brand New 13,523 Sq. Ft. Strip Center

•Favorable Financing in Place (5.79% Int.)

•Across from Tuscano Town Center & WalMart Supercenter

•Rapidly Developing Retail Location

•At the Intersection of Lower Buckeye Road & 75th Avenue

The Sekulovski Group is pleased to present The Shops of Estrella Town Center, a brand new

13,523 square foot strip center in Phoenix, Arizona. This strip center is one phase of the Es-

trella Town Center. Currently under development, the Estrella Town Center will include

over 186,000 square feet of retail space on 27 acres. Featuring brand new, 2007 construction,

The Shops of Estrella Town Center is home to a strong tenant mix including Domino’s Pizza,

Checksmart and China Buffet. This asset is in a prime retail location directly across the street

from Tuscano Town Center, which is anchored by a new WalMart Supercenter. Estrella

Town Center will benefit from the traffic that WalMart generates, plus it is at the highly de-

sirable intersection of Lower Buckeye Road and 75th Avenue. National retailers in the im-

mediate area include Ace Hardware, Chase Bank, M&I Bank, Subway, Burger King, KFC/

A&W, Panda Express, Arby’s, Brake Masters, Jiffy Lube, Tutor Time, Checkers Auto Parts

and Del Taco.




Offering SummaryThe Shops of Estrella Town CenterPhoenix, AZ

Summary

Price: $5,320,000

Down Payment: $1,420,000

GLA in Sq Ft: 13,523

Price/SF: $393.40

NOI: $355,252

Cap Rate: 6.75%

Total Return: 9.39%

Financing

Loan Amount: $3,900,000

Loan Type: Assumption

Interest Rate: 5.79%

Amortization: 35 Years

Term: 10 Years

Maturity Date: May 11, 2017

Monthly Payment: $21,690

Operating Data

Scheduled Rent: $359,096

Expense Recapture: $62,711

Scheduled Income: $421,807

Expenses: $62,711

NOI: $359,096

Debt Service: $260,280

Cash Flow: 6.96% $98,816

Principal Reduction: $34,470

Total Return: 9.39% $133,286




Pricing and Financial AnalysisThe Shops of Estrella Town Center

Phoenix, AZ




Income

Current PSF

INCOME

Scheduled Rent $359,096 $26.55

GROSS POTENTIAL RENT $359,096 $26.55

Expense Recapture

Real Estate Taxes $27,046 $2.00

Insurance $10,142 $0.75

CAM $13,523 $1.00

Management Fee $12,000 $0.89

Total Expense Recapture $62,711 $4.64

Effective Gross Income $421,807 $31.19





ExpensesThe Shops of Estrella Town CenterPhoenix, AZ

Current PSF

EXPENSES

Real Estate Taxes $27,046 $2.00

Insurance $10,142 $0.75

CAM

Contract Services $13,523 $1.00

Management Fee $12,000 $0.89

Total Expenses $62,711 $4.64

Net Operating Income (NOI) $359,096 $26.55




Financial SummaryThe Shops of Estrella Town CenterPhoenix, AZ

7500 W. Lower Buckeye RoadPhoenix, AZ 85043

Price: $5,320,000

GLA in SF: 13,523

Price/SF: $393.40

Current CAP Rate: 6.75%

Year Built: 2007

Lot Size: 2.099 Acres

Parking: 105 Spaces

INCOME Current

Scheduled Rent $359,096

Gross Potential Rent $359,096

Total Expense Recapture $62,711

Effective Gross Income $421,807

Less: Expenses $62,711

Net Operating Income $359,096

Debt Service $260,280

Cash Flow After D/S 6.96% $98,816

Principal Reduction $34,470

Total Return 9.39% $133,286

EXPENSES Current

Real Estate Taxes $27,046

Insurance $10,142

CAM

TOTAL CAM $13,523

Management Fee $12,000

Total Expenses $62,711

Expenses/SF $4.64




Rent RollThe Shops of Estrella Town CenterPhoenix, AZ

Tenant GLA Rent Start Lease

Expiration

Annual Rent

Rent/SF Options

Vacant* 1,202 1 yr. from COE

$31,252 $26.00 N/A

Domino’s Pizza 1,200 4/1/2007 4/1/2012 $30,000 $25.00 (2) 5-Yr.

Checksmart 2,701 4/1/2007 4/1/2012 $78,329 $29.00 (2) 5-Yr.

China Buffet 6,498 6/18/2007 6/18/2015 $165,699 $25.50 (2) 5-Yr.

Pelican Bay Oyster Bar and Grill

1,922 8/15/2008** 5/15/2013 $53,816 $28.00 (1) 5-Yr.

*Seller will master lease vacant space for one (1) year from close of escrow.**Anticipated Rent Commencement Date




Tenant Profile/AnalysisThe Shops of Estrella Town CenterPhoenix, AZ

Tenant Lease Abstract:

Headquartered: Ann Arbor, MI

# of Locations: 8,300+

GLA: 1,200

Lease Commencement: 4/1/2007

Lease Expiration: 4/1/2012

Options to Renew: (2) 5-Year

Tenant Expense Recapture:

CAM Pro Rata

Real Estate Tax Pro Rata

Insurance Pro Rata

Management Fee Pro Rata

Roof/Structure Landlord

Tenant Base Rent Schedule:

Monthly PSF

Current $2,500.00 $25.00

4/1/08 $2,563.00 $25.63

4/1/09 $2,627.00 $26.27

4/1/10 $2,692.00 $26.92

4/1/11 $27.60 $27.60

Option 1 2.5% Annual Increases


Domino's (NYSE: DPZ) knows the rules of the pizza delivery game. The company is the world's #2 pizza chain, with more than 8,300 locations in more than 50 countries. Domino's menu features several different styles of pizza with a wide array of topping options, as well as additional items such as bread sticks, cheese bread, and chicken wings. Its stores are principally delivery locations and generally do not have any dine-in seating. The company owns and operates about 570 locations in the US and a handful of international restaurants, while the rest are franchised.

www.dominos.com



http://www.dominos.com

http://www.dominos.com




Headquartered: Dublin, OH

# of Locations: 217+

GLA: 2,701

Rent Commencement: 4/1/2007




CAM Pro Rata


Insurance Pro Rata

Management Fee Pro Rata

Roof/Structure Landlord

Checksmart offers financial services to customers who need cash immediately. Whether they are cashing a check or getting a payroll advance, that money is needed imme-diately. Checksmart offers financial services which include payroll advances, check cashing, bill pay services, wire transfers, money orders, pre-paid debit cards and phone cards both wireless & long distance. At Checksmart we provide our customers with short-term cash solutions along with great customer service. Checksmart currently has stores in Arizona, Florida, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Virginia, and Utah.

www.checksmart.com


Monthly PSF

Current $6,527.42 $29.00

4/1/08 $6,723.24 $29.87

4/1/09 $6,925.81 $30.77

4/1/10 $7,132.89 $31.69

4/1/11 $7,346.72 $32.64

Option 1 3% Annual Increases




The Sekulovski GroupTony Sekulovski

[email protected]



GLA: 6,498

Rent Commencement: 6/18/2007




CAM Pro Rata


Insurance Pro Rata

Management/Admin Fee Pro Rata

Roof/Structure Tenant


Monthly PSF

Current $13,808.25 $25.50

6/18/08 $14,153.46 $9.00

6/18/09 $14,507.29 $26.79

6/18/10 $14,869.98 $27.46

6/18/11 $15,241.72 $28.15

6/18/12 $15,622.77 $28.85

6/18/13 $16,013.36 $29.57

6/18/14 $16,413.67 $30.31



China Buffet serves authentic Chinese food in an all-you-can-eat buffet in our superbly appointed restaurant. Tradi-tional Chinese take-out foods are also available. The friendly atmosphere and surroundings will make your visit to our restaurant a memorable occasion.

China Buffet



The Sekulovski GroupTony Sekulovski

[email protected]



GLA: 1,922

Rent Commencement: 8/15/2008*




CAM Pro Rata


Insurance Pro Rata

Management/Admin Fee Pro Rata

Roof/Structure Tenant


Monthly PSF

Current $4,484.67 $28.00

8/15/09 $4,373.21 $28.84

8/15/10 $4,758.55 $29.71

8/15/11 $4,901.10 $30.60

8/15/12 $5,048.45 $31.52


Pelican Bay Oyster Bar and Grill offers a vast daily menu including a selection of fresh oysters and other seafood fa-vorites. You can also choose from the extensive drink menu, which includes everything from wine to martinis.

Pelican Bay Oyster Bar and Grill

*Anticipated Rent Commencement Date




Property DescriptionThe Shops of Estrella Town CenterPhoenix, AZ




Location OverviewThe Shops of Estrella Town CenterPhoenix, AZ

LOCATION HIGHLIGHTS

•Adjacent to New Wal-Mart Super-

Center

•5th Largest City in the Nation

•Strong Growth in Immediate Area (23% Growth Projected for 2012 in

5-Mile Radius)

The subject property is located on the northwest corner of 75th Avenue and Lower Buckeye

Road in Phoenix, Arizona. As Phase F of the development, this asset is part of the planned

186,000 square foot Estrella Town Center. In addition to the subject property, this community

center will include Ace Hardware, Jiffy Lube, Brake Masters, Tutor Time, M&I Bank, KFC/

A&W, as well as four additional pad buildings and inline shop space. Tuscano Town Center,

which is anchored by a new Wal-Mart Super Center, is across the street on Lower Buckeye

Road. Other retailers in the area include Checker Auto Parts, Chase Bank, Subway, Burger

King and Del Taco.

Thousands of people move to the greater Phoenix area every year to take advantage of the

area's climate and business community. Phoenix continues to grow rapidly and has become

the nation's fifth-largest city, with a strong and vibrant economy. Phoenix is young by his-

torical standards but now ranks as one of the fastest-growing cities in the nation. Visitors,

residents and businesses will find that Phoenix offers just about everything in the way of

sports, recreation, arts, culture, dining, lodging and financial opportunities.




Property PhotosThe Shops of Estrella Town CenterPhoenix, AZ




Tenant Profile/AnalysisLocation MapsThe Shops of Estrella Town CenterPhoenix, AZ




ElevationsThe Shops of Estrella Town CenterPhoenix, AZ




Site PlanThe Shops of Estrella Town CenterPhoenix, AZ




Site PlanThe Shops of Estrella Town CenterPhoenix, AZ

Subject Property




Tenant Profile/AnalysisAerial PhotoThe Shops of Estrella Town CenterPhoenix, AZ

75th Avenue

Aerial Photo

Subject Property

Lower Buckeye Road

Future Phase


Demographic ProfilesThe Shops of Estrella Town CenterPhoenix, AZ




Demographic Profile1 Mile Radius




The Shops of Estrella Town Center 7500 W. Lower Buckeye Road

Phoenix, Arizona 85043

Tony [email protected]

The Sekulovski Group

2944 North 44th Street, Suite 200Phoenix, AZ 85018

P. 602.476.8807F. 888.801.9381

300 South Wacker Drive, Suite 2300Chicago, IL 60606

P. 312.423.6662F. 888.801.9381



Estrella Town Center - The Sekulovski Group€¦ · the presence or absence of contaminating...

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