S J F. Camelback Frontage. Lloyd & Lois Kaipainen

Transcription

1 J F Camelback Frontage Approximately 600 Feet of Frontage Between wo Light ail tations at Camelback & 3rd Avenue.J. Fowler Commercial/Investment.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate 5060 N 40th treet, uite 120, Phoenix AZ Lloyd & Lois Kaipainen Lois: lknabel@cox.net Lloyd: Lloydofakron@sprintmail.com

2 able of Contents Camelback oad and 3rd Avenue Assemblage Assemblage and Comparable Projects 1 Camelback Corridor J 2 F MEO Light ail - Public ransportation 3 Light ail Alignment and tatistics 4 Development Potential 5 Management 6.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ CONFIDENIAL INFOMAION

3 J F he Assemblage his assemblage includes a number of contiguous parcels at the Northwest corner of Camelback oad and 3rd Avenue to create a 2.70 acre site that is well positioned for redevelopment. he property is in a Class A development area and is ideally situated for an infill, mixed-use, pedestrian-oriented environment located directly on the new Light ail transit route under construction and due for completion in Camelback oad construction is complete, but the trains will not run until December, he five parcels involved have approximately 600 feet of Camelback oad frontage. Parcel specifics are as follows: 444 Office Building, 444 W Camelback oad, one parcel, 30,000 F - 100% Occupied Orleans Office Building, 400 W Camelback oad, one parcel, 41,000 F - 100% Occupied Beefeater estaurant, 300 W Camelback, three parcels, 46,590 F - Vacant he new Light ail will pass directly in front of the property with stations at Camelback & Central and 7th Avenue & Camelback, both within walking distance of the assemblage. Pasadena Avenue Camelback oad Comparable Projects 3rd Avenue he redevelopment projects, condominium conversions, new condominiums, loft and luxury townhouses of the Camelback and Central Corridor have moved swiftly; many projects have sold out during the reservation phase. he average sale price for new upscale urban condos and lofts was approximately $424/F in Phoenix in 2007 with additional revenues from parking, view premiums and custom design features. ome projects, such as the Optima Biltmore at Camelback oad and 24th treet, sold for an average of $470/F in Century Plaza, a 15 story design with 143 units, is a few blocks farther outh and priced at $475/F. apestry on Central is a 280 unit complex on Encanto just off Central, with prices starting at $299/F. Chateau on Central is a Victorian design with only 21 units and four stories, nearing completion with unit sizes ranging from 5,100 sf to 8,200 sf, with starting prices of $318/F. Portland Place at Central and Portland, is a ten story, 190 unit complex with prices at starting at $533/F. he Landmark on Central is a conversion with 238 units and 17 stories, selling at $279/F. Page 1 of 6.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ CONFIDENIAL INFOMAION

4 J F he assemblage is located in an affluent North Central Avenue neighborhood, North Central is well known for its historic residential neighborhoods with tree-lined streets and jogging trails, local coffee shops, exclusive restaurants, first-rate public schools (Madison chool District) and exclusive private schools. here are numerous offices, shops and restaurants in the immediate area along with a ten story office building at the outheast corner of Camelback oad and Central Avenue, M & I Bank is the major tenant. A shopping center, anchored by arget, is located at Camelback and 7th Avenue. he property is located just a few miles West of the renowned Biltmore area at 24th treet and Camelback oad. he assemblage is conveniently located near the 51 and I-17, providing easy access to entertainment and employment venues throughout the Valley of the un. his neighborhood is also a job-rich area within the thriving economy of the fifth largest city in the United tates. he mixed-use development on the site will enable the popular live-work style units for small business owner/operators. With soaring fuel prices and approximately 350 new residents moving to the Phoenix area every day, the demand for urban housing has never been stronger. Keith Mishkin, a recognized Valley expert on urban living, is called upon by analysts and economists for market information. He states that People like that critical mass. It s what makes so many cities around the world great cities: that pedestrian lifestyle. o much of the architecture is the same out here. People love and appreciate architecture of urban living...if you look at any one of those cores, particularly downtown Phoenix, cottsdale and empe...that s where you re going to see a tremendous amount of density and critical mass, and more and more people flocking to them. etail will follow the roof tops here. Mishkin said, Nightlife will follow. here s enough space to create a really great newamerican City..J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ Page 2 of 6 CONFIDENIAL INFOMAION

5 J F MEO Light ail Phoenix is following the pattern of all major cities with the construction of the Light ail and with urban renewal. Given the exponential growth in Phoenix and the massive size of the Metro area, Phoenix is ripe for increased density in the heart of the city. As shown in the map below, a major Light ail tation at Central & Camelback will be well within walking distance of the assemblage and a second station, also with walking distance, will be located at Camelback oad and 7th Avenue. he Light ail will pass directly in front of the assemblage. Construction is complete on this segment of the Light ail and this is the ideal time to build. he Light ail route is available through the following link: 7th Avenue Camelback oad CentralAvenue 7th 7th Ave Ave && Camelback AION Central Ave & Camelback AION Population 5,833 Population 3,289 Employees 3,570 Employees 9,192 Households 2,834 Households 1,665 Avg. Household income $51,594 Avg. Household income $70,223 ource: 2000 Census (½ mile radius or 10 min.walk from station) ource: 2000 Census (½ mile radius or 10 min.walk from station) Page 3 of 6.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ CONFIDENIAL INFOMAION

6 Alignment and tats J F 1 9 BEHANY HOME D H A V E CAMELBACK D Camelback Frontage C E N A L A V EC McDOWELL D OOEVEL WAHINGON JEFFEON 2 4 H PHOENIX Light ail Alignment (in yellow) 4 4 H P I E D EMPE -202 MEA D O B O N D 7th Ave & Camelback MEO Light ail AION AIIC Connecting Cities Phoenix, empe, Mesa ail Length ravel ime Operation Frequency he Light ail will be able to carry up to 600 passengers in each three-car train. During peak hours, the system is projected to carry 3,000 to 5,000 passengers per hour initially. he system will have the capacity to carry up to 12,000 people per hour, which is the equivalent of a six-lane freeway. In addition, the Light ail will operate on a dedicated lane, will have priority at traffic signals and will travel at posted speeds. It will also connect seamlessly with the current city bus transport system. he cost of the initial 20 mile Metro line is $1.4 billion dollars, approximately 41% of which will be funded by a federal grant. ix extensions to the initial line were approved by voters in three separate transportation elections. he egional ransportation Plan approved by voters in 2004 includes 27.7 miles of future light rail extensions in Phoenix, empe and Mesa. he most comprehensive report to date on light rail and property values was conducted in 2002 by the University of North exas on the DA light rail system in Dallas. he study found that property values near light rail stations had a 50 percent greater increase in value than comparable properties in other areas without light rail. Vacant land values appreciated five times fasteraround DA stations. One year after DA service began, retail sales jumped more than 12 percent in the Central Business District versus less than a one percent increase city-wide. According to a report from the U.. Department of ransportation, the potential for growth in transit zone population is % in expanding, large and new start areas. his is due to household growth and the emergence of transit as a viable mode of transportation. his report also projects Phoenix to have a household growth of 725 by 2025, as the transit system expands. 20 miles total 1 hr one end to end 23 min Phx. to empe hrs / day 7 days / week min. wait peak min. wait off-peak.j. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ Page 4 of 6 CONFIDENIAL INFOMAION

7 J F he City of Phoenix has established a ransit-oriented Development (OD) District to encourage a pattern of development characterized by a mix of uses surrounding a transit station where streets have a high level of connectivity, blocks are small and buildings and uses cater to the pedestrian. he purpose is to make access to and from the transit station walk-able and accessible in an environment that is human-scaled and provides for a mix of compatible and complementary land uses which facilitate transit rider-ship. Additional information is available in a brochure published by the City of Phoenix in conjunction with Metro Light ail. he parcels on Camelback oad are presently zoned C-2 and used for office and retail space and are in the ransit Overlay Plan. All of the neighboring parcels around the project also have commercial or multifamily zoning with the exception of one single family rental home which is located on the outheast corner of 3rd Avenue and Pasadena. Adjoining properties to the West have already obtained density and height variances with no substantial opposition from neighborhood groups. While it is always necessary to meet with neighborhood coalitions and work with the neighbors during zoning changes, both the Councilman and the Village Planner indicated that they would expect support from the neighborhood groups as long as neighborhood and traffic concerns are addressed in a constructive manner. he owners are not pursuing the zoning variances to keep all options open, and allow a developer who can design the site and buildings according to their own market intelligence and product strategy. he ultimate profitability will depend on the design of the final product. Underground parking will ensure optimization of construction, but it does add to the cost of the finished product. Alternatively, spacious luxury units would also be highly marketable in this outstanding location. Comparable luxury units in the Biltmore and cottsdale Waterfront areas are commanding $600 to $1,000 per square foot! Page 5 of 6.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ CONFIDENIAL INFOMAION

8 J F eresa Welborn is the principle investor in the assemblage. he is President of Desert Homes Property Management Corporation (DHPM) which manages several of the adjacent apartment properties. Ms. Welborn has been a real estate investor for over 30 years. Over the last several years Ms. Welborn has purchased or led investor groups to purchase a number of apartment communities in the Phoenix area. Ms. Welborn s business experience includes management consulting and operating several small businesses. here are numerous other investors involved in the assemblage, however Ms. Welborn has full decision authority for the property. Both office buildings are occupied with excellent occupancy. he Beef Eater s estaurant is being offered for lease, all or part. he owners may be willing to continue to manage the buildings for a twelve to twentyfour month period while the new owner pursues the zoning variances. Below is an illustration of the potential income: Camelback & 3rd Avenue Assemblage Property Income/Expense ummary Proforma Gross Market ents Adjusted Gross Inc Expenses (40%) NOI F Buildings F Land Zoning Current Occupancy Beef Eater s estaurant $204,000 $204,000 riple Net- $204,000 17,881 46,590 C-2 Occupied Orleans 33 uites $210,000 $199,500 $79,800 $119,700 19,815 41,000 C-2 95% 444 Office 4 Floors $130,500 $123,975 $49,590 $74,385 11,089 30,000 C-2 95% otal $544,500 $527,475 $129,390 $398,085 48, ,590.J. Fowler/eal Estate Inc. DBA.J. Fowler/GMAC eal Estate, 5060 N 40th treet, uite 120, Phoenix AZ Page 6 of 6 CONFIDENIAL INFOMAION