4576 South Power Road Gilbert, Arizona - Bill Shrader John K. Jackson - Urban Property ...
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Investment Opportunity | Offering Memorandum 4576 South Power Road Gilbert, Arizona Bill Shrader John K. Jackson Founder & President Associate Vice President +1 619 851 0288 +1 602 222 5115 bill@upgsocal.com jk.jackson@colliers.com
Table of
Contents
03 Investment
Summary
05 Tenant
Overview
07 Property
Information
11 Planned
Development
15 Area
Overview
18 Confidentiality
Agreement
Investment Summary
Colliers International and Urban Property Team are pleased to offer the recently
constructed 10,000 square-foot multi-tenant net leased investment, home to
Mattress Firm & Gateway Fitness, in Gilbert, AZ. The asset is located in the eastern
portion of Gilbert, one of the most affluent and rapidly expanding submarkets in
the greater Phoenix area. The freestanding property is essentially an outparcel
adjacent to the 580,000 SF American Furniture Warehouse. Mattress Firm signed
an eleven year corporate backed, double net lease featuring two 5-year option
terms. With more than 3,500 company-operated and franchised stores across
49 states, Mattress Firm has the largest geographic footprint in the United States
among multi-brand mattress retailers. It is a wholly owned subsidiary of Steinhoff
International, a global retailer with over 40 local brands in 30 countries. Gateway
Fitness signed a ten year net lease with one 5-year option term. Gateway Fitness is
local to Arizona and continues to expand into new areas.
Property Summary
Price $5,250,000
Gross Leaseable Area 10,000 SF
Lot Size 60,408 SF (1.39 AC)
APN 304-39-958
Parking 51 spaces, including 4
handicap spaces
NOI $309,864
CAP Rate 6%
4576 S Power Road Offering Memorandum | Investment Summary | 3
Investment
Highlights
• Stable Credit/Income Stream
The asset has the ideal combination of a
credit tenant with a history of consistent,
stable income stream in the midst of the
phenomenal growth in Phoenix.
Neighboring Tenant
• Demographic Base
One of the most affluent and rapidly
expanding suburban submarkets in the
4576 S Power Road is located in the Phoenix Metropolitan Area with over 4,600,000 residents making it
greater Phoenix area.
the 12th largest Metropolitan Area in the nation by population. It is also one of the fastest growing major
metropolitan areas, gaining nearly 400,000 residents from 2010 to 2015, and more than 1.3 million since
2000. • Financing Opportunity
Located southeast of Phoenix, the Gilbert retail marketplace is one of the most attractive and active retail The asset will be delivered unencumbered,
submarkets in the western United States. The Loop 202/Power Road intersection is one of the dominant allowing a buyer to customize a financing
hubs of retail in the submarket. Gilbert Gateway (owned by Vestar) is a 700,000 SF power center on the package in today’s low interest rate
southwest corner of the intersection that includes SuperTarget, Wal-Mart Supercenter, Ross Dress for Less, environment.
Michael’s, Cost Plus World Market, Pier One Imports and Petsmart.
The site is also located only minutes east of San Tan Village (a regional mall owned by Macerich) which is • Lease Structure
more than 1.1 million square feet, including Dillard’s, Macy’s, Harkins Theaters, Dick’s Sporting Goods, and Corporate guarantee on 11- year Base Term
Best Buy as well as more than 1.5 million square feet of additional power center developments. Lease with two (2) five-year option periods.
The asset’s location is just north of a full-diamond interchange at Loop 202/Power Road and has full left-in,
left-out, and right-in, right-out access on Power Road via a controlled traffic signal at Nunnelley Road. The
site has excellent visibility to Power Road, one of the strongest north-south arterials in the Southeast Valley, • Strong Retail Trade Area
traversing the market north to Superstition Springs Mall and south down to Gilbert Gateway Airport and the Numerous national tenants in close
explosive residential growth in the San Tan Valley. Power Road carries more than 30,000 cars per day, and proximity to the site including Target,
the Loop 202 carries more than 55,000 cars daily. Michaels, Cost Plus World Market and more.
Encompassing 72.6 square miles, just southeast of Phoenix, Gilbert has transformed from an agricultural
community into a contemporary, urban community with a relaxed but vibrant atmosphere. Gilbert is home
to six golf courses, five major parks, four community pools, four community recreation centers, three
theatres, and an indoor ice arena. Throughout the year, Gilbert is host to numerous festivals, youth and
amateur sporting events, academic conferences, sports tournaments, an art walk, and farmers markets.
4576 S Power Road Offering Memorandum | Investment Summary | 4
Rent Roll
Rent Roll
Monthly Annual
Space Est. SF Tenant Commence Expire CPI Options
Rent PSF Rent
1-5 @ $2.92
4576 A 6,000 SF 60.0% Mattress Firm 4/1/16 5/31/27 $2.92 $210,024
1-5 @ $3.08
4576 B 4,000 SF 40.0% Cross Fit 8/1/20 7/31/30 3% Annual 1-5 @ Same $2.08 $99,840
10,000 SF Total Square Feet $2.58 $309,864
4576 S Power Road Offering Memorandum | Tenant Overview | 5
Overview
Tenant Overview
Tenant
Mattress Firm Gateway Fitness
For the past 90 years, Mattress Firm and their family of companies have been Established in 2014.
delivering better sleep by matching you with your perfect mattress at the perfect After initial creation of CrossFit Obsession in 2014, Gateway Fitness has grown
price. What started as a few stores has grown into America’s largest specialty and expanded from Mesa-Queen Creek into Gilbert, where they now offer a
mattress store, with more than 2,400 neighborhood stores in 49 states. variety of fitness options for all.
They are also committed to serving the communit. Mattress Firm Foster Kids They are a form focused, high intensity, group training facility. They train a
initiative, a program of the Ticket to Dream Foundation, hosts three collection wide spectrum of ability levels from elite athletes to individuals that have never
drives throughout the year to ensure that foster children have the resources exercised before.
needed to get better sleep for a better future.
https://www.mattressfirm.com/ https://www.gateway-fitness.com/
4576 S Power Road Offering Memorandum | Tenant Overview | 6
Site Plan
Site Plan
Quiet rock at child care and both offices.
Insulation over child care and both offices, and to extend 8' past perimeter of rooms.
CHILD CARE
18'-3"
- 342 sf
18'-7" 46'-9"
VCT & RUBBER BASE
RUBBER GYM FLOORING & RUBBER BASE
42'-9"
138 sf 5'-3"
10'-2"
OFFICE
Existing Beam
(Can Ropes Hang?)
CARPET & RUBBER BASE
59'-0"
13'-7"
1 3'-7"
138 sf
OFFICE
10'-2" 2,495 sf
CARPET & RUBBER BASE
UTILITY SINK
SHOWER MOP SINK
STORAGE
82 sf 6'-0" DRINKING
FOUNTAIN 3'-6"
VCT & RUBBER BASE
15'-5"
8'-1"
LAUNDRY
7'-7"
5'-6" 412
2 sf 5'-6" 6'-2"
6
VCT & RUBBER BASE NEW 3'-0" X 7'-0"
7'-0"
STOREFRONT DOOR TO
EXISTING SIDEWALK
TROUGH STYLE SINK
MIRROR ABOVE SINK
EXISTING FINISHES TO REMAIN
4576 S Power Road Offering Memorandum | Property Information | 7
Property Photos
4576 S Power Road Offering Memorandum | Property Information | 8
Area Map
BANNER GATEWAY
MEDICAL CENTER
BASELINE RD
GUADALUPE RD
ELLIOT RD
WARNER RD
SITE
RAY RD CHANDLER
CENTER FOR ASU
±156,393 VPD
SANTAN VILLAGE
THE ARTS POLYTECHNIC
CAMPUS
PHOENIX-MESA
CHANDLER RD GATEWAY
SANTAN VILLAGE
MARKETPLACE AIRPORT
FRYE RD CHANDLER
GILBERT
PECOS RD
COMMUNITY
COLLEGE
±170,811 VPD
RI
GERMANN RD TT
EN
CHANDLER HO
MUNICIPAL US
E
AIRPORT RD
QUEEN CREEK
QUEEN CREEK RD MARKETPLACE
GREENFIELD RD
OCOTILLO RD
North
CHANDLER HEIGHTS RD
4576 S Power Road Offering Memorandum | Property Information | 9
TTE RD
OL RD
H RD
RD
RD
D
D
Trade Area Map
Cannon Beach
Surf Park
SITE
Power 202
Business Park
±61,337 VPD
Gallery Park
Ray Road
Higley Road
Recker Road
Power Road
Williams Field Road
SkyBridge
Arizona
4576 S Power Road Offering Memorandum | Property Information | 10SITE
Planned Development
Cannon Beach
Lot Size: 37.08 Acres
Targeted Opening: 2022
The development envisioned with San Diego and Santa Monica-inspired
architecture and a coastal theme would include water, entertainment and
recreation, along with a four-story 150-room hotel, retail shops and office
space on about 40 acres. Another 20 acres at the south end of the property
would be developed separately as light industrial space.
The development would open to the public once the surf lagoon and hotel
are completed, targeted for 2022, Cannon said. After that, restaurants, retail
shops and other amenities would fill in, he said.
4576 S Power Road Offering Memorandum | Planned Development | 11SITE
Planned Development
Power 202 Business Park
Lot Size: ±19 Acres
Targeted Opening: Late Summer 2021
Power 202 Business Park is a 330,000-square-foot Class A industrial park on
approximately 19 acres on Power Road just north of Loop 202 in Mesa’s Gateway
Area.
The development will include three buildings designed for office, warehouse,
and light industrial uses divisible into spaces from 5,000 to 146,000 square feet.
Building A, with frontage on Power Road directly north of Roberts Tire Sales,
will include 70,000 square feet of space and is well positioned for businesses
interested in retail quality exposure along a major arterial road. Buildings B and C,
146,000 square feet and 114,000 square feet respectively, will cater to businesses
including last-mile distributors and light manufacturers, which are on the rise in
the southeast valley. Each building is designed with varying clear heights, building
depths, and quantities of dock high and drive-in doors in order to provide
maximum flexibility to businesses in the Mesa Gateway area.
4576 S Power Road Offering Memorandum | Planned Development | 12SITE
Planned Development
Gallery Park
Lot Size: 40 Acres
Targeted Opening: 2022
The new mixed-use destination developed by VIVO Partners and located on 40 acres
southeast of the 202 Freeway and Power Road is set to begin construction in Spring 2019.
Gallery Park will include approximately 400,000 square feet of Class A office, two hotels,
420 luxury apartment units and condos situated above restaurant/retail space and a movie
theater, or other entertainment uses. At full build-out, it is expected to be home to more
than 3,000 employees and residents.
With easy-access and visibility from Loop 202, Gallery Park is within a five-mile radius of
more than 223,000 consumers with a household income of more than $101,000. Within
a 10-mile radius are more than 920,000 people. The development is minutes from the
Phoenix-Mesa Gateway Airport and Arizona State University’s Polytechnic Campus.
4576 S Power Road Offering Memorandum | Planned Development | 13SITE
Planned Development
SkyBridge Arizona
Lot Size: ±350 Acres
Longterm Development Project
SkyBridge Arizona is a 360-acre, long-term development at Phoenix-Mesa Gateway Airport that
will allow U.S. Customs and Border Protection and Mexican Customs officers to work side by
side to jointly inspect and process shipments in preparation for international transit.
SkyBridge is a $230 million commercial development that will have 2 million square feet
of warehouse space, 1 million square feet of office space, 800,000 square feet of air cargo
operations, 900,000 square feet of light industrial and flex space, and 100,000 square feet
of retail and restaurants. It is also expected to increase cargo flights out of Phoenix-Mesa
Gateway to 2,000 per year, a number that will skyrocket to 10,000 by 2036.
The leaders of SkyBridge estimate 10,000-12,000 new jobs will be created within the next
decade on site, based on the mixed use of the 3.5 million square feet slated for development,
and that’s just within Phoenix-Mesa Gateway Airport.
4576 S Power Road Offering Memorandum | Planned Development | 14Area Overview
The most recent estimates by Claritas state Gilbert was a prime farming community, Within a 30-minute commute from Gilbert:
that Gilbert is a young, affluent community in fueled by the construction of the Roosevelt • 70% of the Phoenix Metro’s high tech workforce
central Arizona. Incorporated on July 6, 1920, Dam and the Eastern and Consolidated • 60% of the Phoenix Metro’s healthcare workforce
Gilbert is a relatively new community that Canals in 1911. It remained an agriculture • 73% of the Phoenix Metro’s engineering workforce
has seen tremendous growth during the past town for many years, and was known as • 70% of the Phoenix Metro’s advanced business
services workforce
two decades. In 1902, the Arizona Eastern the “Hay Capital of the World” until the late
Railway asked for donations of right of way 1920s. Gilbert began to take its current
In addition, in Gilbert there are four top employers:
in order to establish a rail line between shape during the 1970s when the Town
1,093 1,350
Phoenix and Florence. A rail siding was Council approved a strip annexation that
established on property owned by William encompassed 53 square miles of county
“Bobby” Gilbert. The siding, and the town land. Although the population was only 1,971
Dignity Health Walmart/Sam’s Club
that sprung up around it, eventually became in 1970 the Council realized that Gilbert
Employees Employees
known as Gilbert. would eventually grow and develop much
2,800 3,600
like the neighboring communities of Tempe,
Mesa, and Chandler. This proved to be a
farsighted decision as Gilbert positioned
itself for growth in the 1980s and beyond. Banner Health Gilbert School District
Employees Employees
4576 S Power Road Offering Memorandum | Area Overview | 15Make your way to Gilbert, Arizona. The Today, you will find the downtown
welcoming town is just southeast of bustling with shops, restaurants, a
Phoenix and only a short drive away theater, and art galleries.
from the Phoenix-Mesa Gateway Gilbert offers several shopping venues
Airport. One of the best places to live in from unique boutiques in the Heritage
America, Gilbert boasts sunny weather, District to the SanTan Village Shopping
safe neighborhoods and an exceptional Center. At SanTan Village, you can find
school system, as well as a wide array everything from Macys, Dillards, Apple,
of outdoor and cultural attractions. and Coach to Sephora and Barnes &
Gilbert, Arizona has evolved into one Noble, along with many delicious dining
of the fastest growing communities options to satisfy everyone’s taste.
and the largest town in the United Gilbert is home to six golf courses, five
States. Encompassing 72.6 square major parks, four community pools,
miles, just southeast of Phoenix, Gilbert three community recreation centers,
has transformed from an agricultural one regional library, three theatres,
community into a contemporary, urban and an indoor ice arena. Throughout
community with a relaxed but vibrant the year, Gilbert is host to numerous
atmosphere. festivals, youth and amateur sporting
The iconic water tower stands tall in events, academic conferences, sports
downtown Gilbert in an area that once tournaments, an art walk, and farmers
housed little more than the post office. markets.
Gilbert Overview
4576 S Power Road Offering Memorandum | Area Overview | 16Local Demographics
With attractive demographics, award-winning amenities, Gilbert boasts one of the highest median incomes in the
strategically identified business incentives and high- state of Arizona at $80,080 and a population of three
profile developments, Gilbert offers immediate, attainable persons per household. From 2009 to December 2014,
economic opportunity for industry-leading companies. With Gilbert led the Phoenix Metro Area with 9,468 issued
a median age of 32.5 and 77.6% of the population under single family permits, making Gilbert the fastest growing
the age of 50, Gilbert provides an abundant pipeline of city in Arizona and among the Nation’s Fastest Growing
workers to support the growth of business and industry. Communities.
Gilbert-based businesses have access to a specialized
Gilbert has a focus on attracting, retaining and growing
and educated workforce with over 255,000 residents. In
jobs within STEM occupations (Science, Technology,
addition, employers have access to a workforce of 1.6
Engineers and Math). From 2010 – 2015, Gilbert has seen
million individuals within a 30 minute commute.
a 14% growth in STEM workforce, outpacing the Phoenix
metropolitan area, as a whole.
Within 3 Miles
Total Projected Total Daytime Total Avg. Household Avg. Household
Population (2020) Population (2025) Population Households (2020) Income (2020) Income (2025)
76,914 86,673 65,390 24,590 $111,051 $126,443
4576 S Power Road Offering Memorandum | Area Overview | 17Confidentiality Agreement & Disclaimer
This Offering Memorandum contains select information pertaining to the business Colliers International hereby advises all prospective purchasers of Net Leased property
and affairs of Mattress Firm, Gilbert, AZ. It has been prepared by Colliers International. as follows:
This Offering Memorandum may not be all-inclusive or contain all of the information a
The information contained in this Marketing Brochure has been obtained from sources
prospective purchaser may desire. The information contained in this Offering Memorandum
we believe to be reliable. However, Colliers International has not and will not verify any
is confidential and furnished solely for the purpose of a review by a prospective purchaser
of this information, nor has Colliers International conducted any investigation regarding
of the Property. It is not to be used for any other purpose or made available to any other
these matters. Colliers International makes no guarantee, warranty or representation
person without the written consent of Seller or Colliers International. The material is based in
whatsoever about the accuracy or completeness of any information provided. As the
part upon information supplied by the Seller and in part upon financial information obtained
Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm
from sources it deems reliable. Owner, nor their officers, employees, or agents makes any
the accuracy and completeness of all material information before completing any
representation or warranty, express or implied, as to the accuracy or completeness or this
purchase. This Marketing Brochure is not a substitute for your thorough due diligence
Offering Memorandum or any of its contents and no legal liability is assumed or shall be
investigation of this investment opportunity. Colliers International expressly denies
implied with respect thereto. Prospective purchasers should make their own projections and
any obligation to conduct a due diligence examination of this Property for Buyer. Any
form their own conclusions without reliance upon the material contained herein and conduct
projections, opinions, assumptions or estimates used in this Marketing Brochure are for
their own due diligence.
example only and do not represent the current or future performance of this property.
By acknowledging your receipt of this Offering Memorandum from Colliers, you agree: 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.
1. The Offering Memorandum and its contents are confidential;
Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a
2. You will hold it and treat it in the strictest of confidence; and
careful, independent investigation of any net leased property to determine to your
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this satisfaction with the suitability of the property for your needs. Like all real estate
Offering Memorandum or its contents in any fashion or manner detrimental to the investments, this investment carries significant risks. Buyer and Buyer’s legal and
interest of the Seller. financial advisors must request and carefully review all legal and financial documents
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject related to the property and tenant. While the tenant’s past performance at this or other
any and all expressions of interest or offers to purchase the Property and to terminate locations is an important consideration, it is not a guarantee of future success. Similarly,
discussions with any person or entity reviewing this Offering Memorandum or making an the lease rate for some properties, including newly-constructed facilities or newly-
offer to purchase the Property unless and until a written agreement for the purchase and acquired locations, may be set based on a tenant’s projected sales with little or no record
sale of the Property has been fully executed and delivered. 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
If you wish not to pursue negotiations leading to the acquisition of Mattress Firm, Gilbert, fail to comply with other material terms of the lease; cash flow may be interrupted in part
AZ or in the future you discontinue such negotiations, then you agree to purge all materials or in whole due to market, economic, environmental or other conditions. Regardless of
relating to this Property including this Offering Memorandum. tenant history and lease guarantees, Buyer is responsible for conducting his/her own
A prospective purchaser’s sole and exclusive rights with respect to this prospective investigation of all matters affecting the intrinsic value of the property and the value
transaction, the Property, or information provided herein or in connection with the sale of the of any long-term lease, including the likelihood of locating a replacement tenant if the
Property shall be limited to those expressly provided in an executed Purchase Agreement and current tenant should default or abandon the property, and the lease terms that Buyer
shall be subject to the terms thereof. In no event shall a prospective purchaser have any other may be able to negotiate with a potential replacement tenant considering the location of
claims against Seller or Colliers International or any of their affiliates or any of their respective the property, and Buyer’s legal ability to make alternate use of the property.
officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or By accepting this Marketing Brochure you agree to release Colliers International and
causes of action relating to this solicitation process or the marketing or sale of the Property. hold it harmless from any kind of claim, cost, expense, or liability arising out of your
This Offering Memorandum shall not be deemed to represent the state of affairs of the investigation and/or purchase of this net leased property.Property since the date this
Property or constitute an indication that there has been no change in the state of affairs of Offering Memorandum.
the Property since the date this Offering Memorandum.
4576 S Power Road Offering Memorandum | Confidentiality Agreement | 18Investment Opportunity | Offering Memorandum
4576 Colliers International AZ, LLC
South Power Road 2390 E. Camelback Rd. Ste. 100
Phoenix, AZ 85016
Gilbert, Arizona +1 602 222 5000
www.colliers.com/arizona
This document has been prepared by Colliers for advertising and general information only. Colliers makes no guarantees,
representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of
content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers
excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability
for loss and damages arising there from. This publication is the copyrighted property of Colliers and /or its licensor(s). © 2021. All rights
reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers International AZ, LLC.You can also read
