California Broker License #00431712 FOR SALE DESERT PLAZA SHOPPING CENTER 2750-80 S. PACIFIC AVENUE And 1960 E. Palo Verde Street YUMA, ARIZONA 85365 THE POLLARD COMPANY Investment and Development Real Estate Price: $3,390,000. Existing Improvements: 26,419 SF Multi-Tenant Retail Center Price/SF: $128.32 Price includes vacant Pad Investment Highlights: Current income plus upside potential through lease-up to remaining 35% of the space plus build-out of Vacant pad with up to 25,000 more square feet of improvements. Very attractive Architectural design. Land Area: 5.05 acres gross Year Built: 2004 Cap Rate: 7.23% (Actual in-place NOI) Parking Ratio: 5.5 spaces per 1,000 SF Current Occupancy: 65% Existing Tenants: EAT BUFFET (8,500 sf), SNAP FITNESS (5,000 sf) and others. Financing: Buyer to obtain new financing. Assessor s Parcel Number: 695-16-111 Location: Traffic Count: This dynamic site is located just 1/2 mile from the Yuma International Airport/Marine Corp Strike Air Base, where approximately$1 Billion of Capital Improvements are anticipated over the next six years. Over 3,000 engineers are expected work at the Marine Air Base when expansion completed. Wal-Mart Super Center is located next door to the South. Fallas Paredes is adjacent to west. High Traffic signalized intersection. 29,800 ADT s (Source: Yuma Metropolitan Planning Organization, www.ympo.org) CONTACT: HAL POLLARD, BROKER (619) 807-3434 The information contained herein was obtained from sources believed to be reliable, but it is not guaranteed. Prospective Purchasers/Tenants are strongly advised to independently verify all representations. phone: 858-384-7143 email: hpollardtwo@cox.net 1232 River Glen Row, Suite 54,, San Diego, California
SUBJECT YUMA INTERNATIONAL AIRPORT FALLAS PAREDES DESERT PLAZA WAL-MART CENTER
2750 S. Pacific Avenue 2780 S. Pacific Avenue 1960 E. Palo Verde St. EAT BUFFET Street side of 1960 E. Palo Verde St. Bldg. Panoramic view from center of parking lot with 2780 Bldg on left, 1960 Bldg in center and Fallas Paredes on right Panoramic View with 2750 Bldg on left, main entrance in middle and 2780 Bldg on right.
SITE PLAN AND UNIT LAYOUT PROPERTY TAX INFORMATION: Arizona appraises the property every couple of years and the value obtained is subject to negotiation. Land: $577,869 Improvements: $1,903,669 Assessed Value: $2,481,538 The real property taxes last year were $58,283.38. The property taxes were appealed and the value has been reduced to $1,836,760 which is a 26% reduction, so the projected property taxes for FY 2012 are anticipated to be $43,139.
Top Employers The top ten employers in Yuma County based on number of employees are: DEMOGRAPHICS #1 US Army Proving Ground (YPG) Activity: Military Employees: 2319 #2 Yuma Regional Medical Center Activity:HealthCare Employees: 2080 #3 Yuma Elementary School District Activity:Government Employees:1700 #4 Wal-Mart Stores Activity:Retail Employees: 1394 #5 City of Yuma Activity:Government Employees: 1388 #6 Yuma County Activity: Government Employees: 1350 #7 US Marine Corps Air Station (MCAS) Activity:Millitary Employees: 1350 #8 Bose Corporation Activity:Manufacturing Employees: 1300 #9 US Border Patrol Activity:Government Employees: 920 #10 ACT, Advanced Call Center Technologies Activity:Call Center
2750 S. Pacific Avenue
AREA OVERVIEW Yuma, AZ Yuma, Arizona is the principal city in and the County Seat of Yuma County MSA. A City of 100,000 residents, Yuma Occupies 107 square miles on the far southwest side Arizona, close to the US-Mexico border. Yuma s geography shaped the Southwest. Because this was the safest spot to cross the Colorado River at Yuma Crossing. All roads led to Yuma for travelers from Spanish explorers to early California Settlers. Today Yuma is a vibrant multi-cultural community that celebrates its rich heritage, surrounded by wide-open spaces and pristine desert scenery. With more sunshine than any other city on earth, Yuma boast a wide range of outdoor activities, from boating to golf to off-roading. Yuma s economy is definitively a product of its climate and location. Its abundance of land and sunshine make it an ideal place for agriculture, which is Yuma s dominant industry. Agriculture Being the Guiness World Record holder for the sunniest city in the world it should come as no surprise the agriculture is Yuma County s number one industry with annual gross economic returns of $3.2 Billion. Thanks to sediments deposited by the Colorado River over millions of years, Yuma boast some of the most fertile soil in the country. With great soil and the longest growing season in the county, the only mission component was water. Nature got a hand when the Yuma Siphon, a huge tunnel built under the river bed, was completed in 1912. Today, of the 230,000 acres of land utilized for agriculture in Yuma, 100% is laser-leveled, graded using GPS technology and irrigated completely by water from the Colorado River, making Yuma s Irrigation system one of the most efficient in the world. All of these factors combined lead to Yuma being #1 in Arizona and #3 in the country in vegetable production. 90% of all leafy vegetables grown in the US from November through March come from the Yuma region. Yuma has nine salad plants and 23 cooling plants supporting this exceptional production. Military With its history, it s no surprise how large of a role the US Military plays in Yuma s economy. Yuma is home to the US Army Proving Ground (YPG) and the Marine Corps Air Station (MCAS) Yuma. The military is the second largest contributor to the local economy after agriculture. At 1,300 square miles, YPG is one of the world s largest military installations, playing host to up to as many as 100 tests at the same time. Every year at YPG, 36,000 parachute drops take place, 4000 air sorties are flown and over 130,000 test miles are driven. With the extremely high number of tests conducted each year comes an equal number of personnel running the tests. YPG hosts more than 17,000 visitors annually, making it a substantial contributor to the local hospitality industry. Marine Corps Air Station Yuma MCAS Yuma is the busiest air station in the Marine Corps with 80% of all Marine air-to-ground aviation training taking place here and it is planned to increase by 39 percent in personnel and 15 percent in airfield operations and 17 percent in range use. Infrastructure improvements are expected to cost nearly $1 Billion. MCAS Yuma is noted for its access to 2.8 million acres of training ranges and nearly perfect flying conditions year round. Today, the air station is home to a myriad of squadrons and it is anticipated five additional operational F- 35B squadrons will be stationed here, the governments newest fighter jet. It also hosts over 14,000 personnel throughout the year for anywhere from a few days to seven weeks. Yuma Border Patrol With its proximity to the Mexican Border, and terrorist security concerns, it is only natural that the Border Patrol has a major presence in Yuma. In February of 2007, a new state-of-the-art station was completed and as a result Yuma Border Patrol Station has seen unprecedented growth in personnel, tactical infrastructure and control over its operational area of responsibility. It addition to having its own station, Yuma is home to the headquarters of the Yuma Border Sector. The Sector has responsibility for Yuma, La Paz and Mojave Counties in Arizona and the Eastern-most areas of Imperial, Riverside, and San Bernardino Counties in California and the entire State of Nevada. The Yuma sector is one of the fastest growing Border Patrol sectors in the country having doubled since 2004.
DESERT PLAZA S.C.
DESERT PLAZA SHOPPING CENTER SHOPPING CENTER RENT COMPARABLES Site # Photo Shopping Center Asking Monthly Rent Range Occupancy SF in Center Anchors Desert Plaza Shopping Center $.80 NNN to $1.60 NNN 65% 26,419 Snap Fitness 2750 2780 S. Pacific Avenue EAT Buffet 1960 E. Palo Verde St Yuma, Arizona 1 Yuma Mesa Shopping Center $1.00 NNN to $1.25 NNN 99% 85,995 Del Sol Market 301 West. 16th Street Big Lots Yuma, Arizona RAC 2.9 miles from Subject by road. 2 Plaza Del Rio Shopping Center $1.00 NNN to $1.50 NNN 91% 120,000 Dollar Tree 2600 West 16th Street Food City (Bashas) Yuma, Arizona 3 Yuma Palms Regional Center $.75 NNN to $1.50 NNN 80% 550,000 Best Buy 1305 South Yuma Palms Parkway Ross Yuma, Arizona Target 1.5 miles from Subject by road. 4 Big Curve Shopping Center $1.25 NNN to $2.80 NNN 100% 126,000 Albertsons 252 West 32nd Street VA Clinic Yuma, Az Michaels 1.75 miles from Subject by Road. 5 Palo Verde Village Shopping Ctr $.50 NNN to $1.00 NNN 88% 195,000 Walmart Adjacent to Subject Sally Beauty Payless Shoes Peter Piper Pizza DISCLAIMER: While this information was obtained from sources believed to be reliable, it is not guaranteed.
RENT COMPS LOCATOR MAP #3 #2 #1 DESERT PLAZA #5 #4
Desert Plaza, Yuma, AZ Pro Forma at Actual Occupancy Rate Projected Purchase Price: $ 3,390,000 Projected Capitalization Rate: 7.23% Desert Plaza Price per Square Foot: $ 128.32 Price Matrix Net Rentable Square Feet: 26419 Price Cap Rate $/SF Actual Gross Annual Income: $ 444,106 Projected Vacancy Factor: 35.00% $ (155,437) $3,390,000 7.23 $ 128.32 $3,300,000 7.43 $ 124.91 Effective Gross Income: $ 288,669 $3,200,000 7.66 $ 121.12 Expense Reimbursement: First Year 65% $ 81,019 $3,100,000 7.90 $ 117.34 Gross Revenue: $ 369,688 $3,000,000 8.17 $ 113.55 Monthly Expenses: % Per S.F. Annual Property Taxes: $ 0.14 $ 43,139 PRO FORMA AT 90% OCCUPANCY Insurance: 1.50% $ 8,788 Price Cap Rate $/SF Property Management: 3.00% $ 8,660 Maintenance: $ 3,778 $3,390,000 11.04 $ 128.32 A/C Heating: $ 6,600 $3,300,000 11.34 $ 124.91 Fire Safety: $ 2,260 $3,200,000 11.69 $ 121.12 Pest Control: $ 250 $3,100,000 12.07 $ 117.34 Landscape/Walks $ 9,600 $3,000,000 12.47 $ 113.55 Landscape/Other: $ 4,500 Backflow Testing: $ 150 General Repairs: $ 3,600 Exterior Lighting: $ 4,200 Parking Lot Repair: $ 2,100 Electricity: $ 8,580 Trash Removal: $ 900 Water & Sewer: $ 6,000 Telephone for Fire Monitoring $ 3,060 Landscape Maintenance: $ 2,600 Security: $ 2,280 Contingency: $ 3,600 Sub-total: $ 0.39 $ 124,645 NET OPERATING INCOME: $ 245,043 DISCLAIMER: This information is based upon assumptions which may or may not occur and may not be relied upon to indicate actual results which will be obtained from this investment.
Desert Plaza, Yuma, AZ TEN YEAR INTERNAL RATE OF RETURN CALCULATION Projected Price: $ 3,390,000 Projected Going In Cap Rate: 7.23% Year 1 2 3 4 5 6 7 8 9 10 Projected Annual Rent Increase 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Projected Value at Years End: $3,332,583 $3,399,235 $3,467,219 $3,536,564 $3,607,295 $3,679,441 $3,753,030 $3,828,090 $3,904,652 $3,982,745 Projected Going Out Cap Rate: 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% 7.50% Projected Sales Cost (Percentage): 4.50% Projected Sales Cost (Dollars): $179,224 Loan Balance at 120th Month: $1,273,895 Proposed Transaction Structure Purchase Price: $3,390,000 Interest Rate: 5.500% Net Equity at 120th Month: $2,529,627 Financing: 50.00% $1,695,000 Term in Years: 25 Equity Down Payment: 50.00% $1,695,000 Monthly Payments: ($10,408.78) Loan Origination Costs: 1.00% $16,950 Total Initial Investment: $1,711,950 Cash Flow: Annual Net Operating Income: $245,043 $249,944 $254,943 $260,041 $265,242 $270,547 $275,958 $281,477 $287,107 $292,849 Annual Loan Payments: ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) ($124,905) Annual Cash Flow Before Income Taxes: $120,137 $125,038 $130,037 $135,136 $140,337 $145,642 $151,053 $156,572 $162,201 $167,944 As a percent of Initial Investment: 7.02% 7.30% 7.60% 7.89% 8.20% 8.51% 8.82% 9.15% 9.47% 9.81% Annual Principal Reduction in Loan: $32,491 $34,324 $36,260 $38,306 $40,466 $42,749 $45,160 $47,708 $50,399 $53,242 As a percent of Initial Investment: 1.90% 2.00% 2.12% 2.24% 2.36% 2.50% 2.64% 2.79% 2.94% 3.11% Annual Appreciation before sales cost: $66,652 $67,985 $69,344 $70,731 $72,146 $73,589 $75,061 $76,562 $78,093 3.89% 3.97% 4.05% 4.13% 4.21% 4.30% 4.38% 4.47% 4.56% Annual Total Return before Income Taxes: $226,014 $234,282 $242,786 $251,535 $260,537 $269,802 $279,340 $289,162 $299,278 13.20% 13.69% 14.18% 14.69% 15.22% 15.76% 16.32% 16.89% 17.48% Net Cash (Outlay)/Received This Year ($1,591,813) $125,038 $130,037 $135,136 $140,337 $145,642 $151,053 $156,572 $162,201 $2,697,570 INTERNAL RATE OF RETURN: 12.77% Disclaimer: The above projections are based on assumptions which may or may not occur and may not be relied upon to indicate actual results which will be obtaind from this investment.
Desert Plaza, Yuma, AZ Percentage Sq. Ft. Percentage Sq. Ft. Rental Rate Monthly CAM Lease Expiration Suite Tenant Name Occupied Occupied Vacant Vacant Per SF/Mo. Rent Start Date Date 1980 Eat Buffet. NOTE 1 32.19% 8,504 $ 1.60 $13,632 $3,633.37 10/2/2008 10/2/2018 2780A Vacant 10.22% 2700 $ 1.50 4,050 $662.50 2780B Snap Fitness 18.93% 5,000 $ 1.30 6,500 $2,237.31 11/1/2012 10/31/2018 2750A Vacant 5.62% 1484 $ 0.80 1,187 $262.50 2750B State Farm Insurance 8.99% 2,375 $ 1.26 3,000 None 12/3/2010 12/3/2015 2750C Keny's Salon 4.40% 1,162 $ 1.25 1,453 None 4/14/2014 2750D Vacant 6.00% 1584 $ 1.25 1,980 $845.96 2750E Vacant 5.25% 1386 $ 1.35 1,871 $208.25 2750F Yuma Safety Center (M-T-M) 8.42% 2224 $ 1.50 3,336 $208.25 Month to Month Build-to-suit Pad Vacant Totals: 64.50% 17041 35.50% 9378 $1.40 $37,009 $8,058.14 Building Total Net Rentable Area: 26419 $ 444,105.60 NOTE 1. $15,000 per year reduction in rent to offset slow summer months calculated into $1.75NNN rate brings monthly rate to $1.60.