BBVA Compass bank Confidential Offering Memorandum 1101 east Florence boulevard, casa grande az
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BBVA Compass bank
Confidential Offering Memorandum
1101 east Florence boulevard, casa grande az
Exclusively Listed By:
Jamie A. Medress Mark J. Ruble
Senior Vice President Investments Vice President Investments
jmedress@marcusmillichap.com mruble@marcusmillichap.com
www.MarcusMillichap.com
expertise. relationships. Results. Offering Memorandum
The information contained in the following marketing brochure is proprietary and strictly confidential.
It is intended to be reviewed only by the party receiving it from marcus & Millichap and should not be made
available to any other person or entity without the written consent of marcus & Millichap. This marketing
brochure has been prepared to provide summary, 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 thorough due diligence investigation. Marcus & Millichap has not made any
investigation, 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 improvements thereon, or the
financial condition or business prospects of any tenant, or any tenant’s plans or intention to continue its
occupancy of the subject property. The information contained in this marketing brochure has been
obtained from sources we believe to be reliable; however, marcus & Millichap has not verified, and will not
verify, any of the information contained herein, nor has marcus & Millichap 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 appropriate measure to verify all
of the information set forth herein.
All property showings are by appointment only. Please consult your Marcus & Millichap
Agent for more details.
Confidentiality AGREEMENT
BBVA Compass
expertise. relationships. Results. Offering Memorandum
Executive Summary 4
Pricing & Financial Analysis 5
Property Description 6
demographics 19
Jamie A. Medress
Senior Vice President Investments
602.687.6778
jmedress@marcusmillichap.com
Mark J. Ruble
Vice President Investments
602.687.6766
mruble@marcusmillichap.com
TABLE OF CONTENTS
BBVA COMPASS
expertise. relationships. results. Offering Memorandum
Executive summary
PROPERTY ADDRESS: 1101 East Florence Boulevard, Casa Grande AZ 85222
YEAR BUILT: 1986
APPROXIMATE SIZE: 4,500 Square Feet
SITE AREA: .86 Acres
PRICE: $3,997,000
CAP RATE: 6.00%
TENANT: Compass Bank, an Alabama Banking Corporation
LEASE TYPE: Absolute Triple-Net (NNN)
LEASE COMMENCEMENT DATE: June 13, 2006
LEASE EXPIRATION DATE: June 12, 2026
RENEWAL OPTIONS: Four, Five Year Renewal Options
RENT INCREASES: 3% Annually
ANNUAL BASE RENT: $239,825.43
(as of June 2013)
EXECUTIVE SUMMARY BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
4
expertise. relationships. Results. Offering Memorandum
Financial summary Annualized operating data (as of June 2013)
Price $3,997,000 Year Monthly Rent Annual Rent
Down Payment 100% $3,997,000 2013-2014 $19,985.45 $239,825.43
Rentable Square Feet 4,500 2014-2015 $20,585.02 $247,020.19
Lot Size .86 Acres 2015-2016 $21,202.57 $254,430.80
Price/Square Foot $888.22 2016-2017 $21,838.64 $262,063.72
Cap Rate 6.00% 2017-2018 $22,493.80 $269,925.63
2018-2019 $23,168.62 $278,023.40
Net Cash Flow 6.00% $239,825.43
2019-2020 $23,863.68 $286,364.10
Year Built 1986
2020-2021 $24,579.59 $294,955.03
Lease Summary 2021-2022 $25,316.97 $303,803.68
Lease Type Absolute Triple-Net (NNN) 2022-2023 $26,076.48 $312,917.79
Roof and Structure Tenant Responsible 2023-2024 $26,858.78 $322,305.32
Tenant Compass Bank, an Alabama Banking Corporation 2024-2025 $27,664.54 $331,974.48
Lease Commencement Date June 13, 2006 2025-2026 $28,494.48 $341,933.71
Lease Expiration Date June 12, 2026
Base Rent $239,825.43
Effective Lease Term Remaining 13 Years
Net Operating Income (NOI) $239,825.43
Rent Increases 3% Annually
Total Return 6.00% $239,825.43
Renewal Options Four, Five Year Renewal Options (1)
(1) Renewal Options at fair market value but not less than 103% of the monthly base
rent payable during the immediate preceding lease year. During the remainder of the
extended term, the monthly base rent shall increase to a sum equal to 103% of the
monthly base rent during the preceding lease year.
PRICING & FINANCIAL ANALYSIS BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
5
expertise. relationships. Results. Offering Memorandum
Cap rate growth chart
9.00% 8.55%
8.30%
8.06%
8.00% 7.83%
7.60%
7.38%
7.16%
6.95%
7.00% 6.75%
6.56%
6.36%
6.18%
6.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
PRICING & FINANCIAL ANALYSIS BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
6
expertise. relationships. Results. Offering Memorandum
Investment Overview Investment Highlights
BBVA Compass is located at 1101 East Florence Boulevard, in Casa Grande, Arizona Absolute Triple-Net (NNN) Lease with 3% Annual Increases
between two signalized intersections. The subject is an approximate 4,500-square foot
single-tenant retail building on approximately .86 acres of land. This is an absolute Hard Corner Location with Direct Frontage Along the City’s Main Retail
triple-net (NNN) lease with Compass Bank dba BBVA Compass with 13 years remaining. Commercial Thoroughfare
The lease contains four, five-year renewal options, and three percent annual increases.
The landlord has zero responsibilities to maintain the land or building. BBVA Compass is Located in a Major Retail Corridor– Major Surrounding tenants include Wendy’s,
a leading U.S. banking franchise with operations throughout the Sunbelt Region and Big O Tires, Aaron’s, Food City, Jack in the Box, PepBoys, Burger King, Pizza Hut,
ranks among the top 20 largest U.S. commercial banks based on deposit market share. and KFC. Casa Grande Mall is located just west of the property with tenants
They operate 716 branches in Alabama, Arizona, California, Colorado, Florida, New including AT&T, Discount Tire, Big Lots, Kmart, Family Dollar, ACE Hardware, and
Mexico and Texas. Wells Fargo.
The property is situated on the hard corner of Florence Boulevard and Trekell Road. The Close Proximity to Interstate 10 and Highway 84– Interstate 10 is the main
property is located within the city’s main retail destination with direct frontage on the main connector through Phoenix and Tucson. Highway 84 is a major connector through
commercial thoroughfare. The property is surrounded by numerous retailers including Casa Grande
Wendy’s, Big O Tires, Aaron’s, Food City, Jack in the Box, PepBoys, Burger King, Pizza
Hut, and KFC. Casa Grande Mall is located just west of the property with tenants including Located Approximately 1 Mile from Casa Grande Regional Hospital– a 240-bed
AT&T, Discount Tire, Big Lots, Kmart, Family Dollar, ACE Hardware, and Wells Fargo. The full-service, non-profit, community-owned hospital
Promenade at Casa Grande, a 926,155-square foot mall is located three miles west of
the property. Anchors include Harkins Theatres, Target, JcPenney, Dillard's, Kohl's, Sports 3 Miles from the Promenade at Casa Grande– a 926,155-square foot mall
Authority, and Bed Bath & Beyond. Additionally, Casa Grande Regional Hospital, a anchored by Harkins Theatres, Target, JcPenney, Dillard's, Kohl's, Sports Authority,
240-bed full-service, non-profit, community-owned hospital is approximately one mile and Bed Bath & Beyond
from the property. The property benefits from its dense infill location with over 52,000
residents within a five mile radius of the property. The property is in close proximity to Located in Between Phoenix and Tucson
Interstate 10 and Highway 84 providing easy access and high traffic counts.
Casa Grande is strategically located at the intersection of two interstate highways (I-8 and 2011 1-Mile 3-Mile 5-Mile
I-10) in an area known as Arizona's Golden Corridor. Midway between Phoenix and Total Population: 11,012 39,319 52,420
Tucson, the city has grown to be the largest community in western Pinal County.
Average Household Income: $48,443 $48,089 $51,634
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
7
expertise. relationships. Results. Offering Memorandum
Tenant overview
BBVA Compass is a leading U.S. banking
franchise with operations throughout the
Sunbelt Region and ranks among the top 20
largest U.S. commercial banks based on
deposit market share. They operate 716
branches in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas. BBVA Compass
ranks among the largest banks in Alabama (3rd), Texas (4th) and Arizona (5th). In addition, BBVA
Compass has been recognized as one of the nation's leading Small Business Administration (SBA)
lenders, earning 'Lender of the Year' honors in 2009 and 2010.
Through three major business units – Corporate Banking, Retail Banking, and Wealth Management – BBVA
Compass offers customers unique and industry-leading products and services with a focus on providing
customers with financial solutions to fit their lives. These products and services include commercial and
wholesale banking, treasury management, Small Business Administration loans, international services,
merchant processing, retail banking services, consumer loans, mortgages, home equity lines and loans,
credit cards, personalized Visa® Check Cards, securities brokerage, mutual funds and annuities, financial
counseling, wealth management, pension plan management and insurance.
BBVA Compass is a subsidiary of Compass Bancshares, Inc., a wholly owned subsidiary of BBVA
(NYSE: BBVA) (MAD: BBVA). BBVA is a financial services group with more than $740 billion in total
assets, 47 million clients, 7,400 branches and approximately 107,000 employees in more than 30
countries. BBVA ranks among the top 20 largest financial institutions in the world based on market
capitalization and 21st in Global Finance magazine's list of the "World's 50 Safest Banks" for 2010. BBVA
provides its customers around the world with a full range of financial services, including commercial and
wholesale banking, retail banking services, consumer loans, mortgages, credit cards, securities brokerage,
wealth management, pension plan management and insurance. The BBVA Group maintains a leadership
position in Spain, Mexico, Latin America and the Sunbelt Region of the United States, as well as operations
in China, France, Germany, Hong Kong, Italy, Japan, Singapore, Switzerland, Turkey, and the United
Kingdom.
S&P Rated BBB-
Source: www.bbvacompass.com
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
8
expertise. relationships. Results. Offering Memorandum
Location overview
CASA GRANDE is a dynamic, involved community, a modern city with rural heritage and old-fashioned values. Its economic base is a mix of retail trade, factory outlet
shopping, manufacturing and agriculture. Founded in 1879, Casa Grande was named for the famous Hohokam Indian Ruins 20 miles to the northeast. Midway between Phoenix
and Tucson, the city has grown to be the largest community in western Pinal County since its incorporation in 1915. Casa Grande is strategically located at the intersection of two
interstate highways (I-8 and I-10) in an area known as Arizona's Golden Corridor. Once dependent on agriculture and mining, the community has evolved into a diversified
full-service area with manufacturing, retail trade, government and tourist-related employment. All of Pinal County is a designated Enterprise Zone.
Scenic Attractions
Casa Grande's location, mild climate, and scenic attractions make it attractive to tourists and winter visitors. The Casa Grande Valley Historical Museum offers many historical
displays and facts about the area. The unique architecture of the historical railroad station and other historic buildings can be enjoyed on a walking tour of Casa Grande.
Named a Main Street city in 1992, Casa Grande is revitalizing the unique downtown area. The Casa Grande Art Museum hosts a number of shows each year featuring sculpture,
water-color, multimedia and Western art by Arizona artists. The Casa Grande Valley Players will begin a new season of community theater. The city is also the home of the Arizona
State Open Chili championship held every March.
The annual O'Odham Tash Celebration, a gathering of tribes, is held in mid-February and features Native American arts and crafts, ceremonial dances, rodeos, powwows and
parades.
Shopping and Entertainment
Casa Grande’s market area consists of more than 91,000 consumers. Casa Grande is the retail center for western Pinal County’s consumers, including local retailers, specialty
stores, antiques stores, and outlet shopping. Local retailers include: JC Penney; Target; Staples; Dillard’s; Walgreen’s; Bedmart, Inc.; Kmart; Wal-Mart Supercenter; Foxworth
Galbraith Lumber Company; Second Skin; Reva’s Western Wear; Lowe’s Store #2272; Gotcha Covered; Office Max, Warehouse Furniture Outlet; and numerous specialty retailers.
Albertson’s, Food City, Fry’s Food Stores of Arizona, Inc. and Safeway, as well as several other grocery stores, serve the citizens of the area.
Casa Grande is also the site of the Outlets at Casa Grande, with more than 42 quality retail outlet stores, which attracts more than two million shoppers per year. Our prize-winning
Casa Grande Main Street historical shopping district offers many unique shops for that one-of-a-kind gift.
Casa Grande’s newest addition is its 1,000,000-square-foot shopping mall, The Promenade at Casa Grande, which includes a number of well-known national retail stores and
restaurants and a multi-plex movie theater.
Community Facilities
Casa Grande offers a broad range of community facilities including two senior centers, two museums, a library, a bowling center, a fitness and racquet club, one pool, four golf
courses, an archery range, and rodeo facilties. There are more than 18 parks, many with ramadas, handball courts, tennis courts, softball diamonds, and playgound equipment.
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
9
expertise. relationships. Results. Offering Memorandum
Location overview– Continued
MAJOR EMPLOYERS
Casa Grande is located in Pinal County, Arizona, which was recently recognized by CNN as experiencing more job growth
than any other county in the United States. In just eight years, Pinal County has increased its job base by 96%.
Businesses are flocking to Pinal County because of a talented labor pool, cheap housing and nearby amenities (not only
in Casa Grande, but also in the Phoenix and Tucson metropolitan areas). Many large-scale and highly respected
corporations conduct major operations in Casa Grande.
Some of these businesses include:
Other regionally significant employers include:
Casa Grande also enjoys a strong retail employment base due to its regional mall, historic downtown, and wide variety of
grocery stores.
www.casagrandeaz.gov
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
10expertise. relationships. Results. Offering Memorandum
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
11expertise. relationships. Results. Offering Memorandum
property photos
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
12expertise. relationships. Results. Offering Memorandum
Surrounding Retail
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
13expertise. relationships. Results. Offering Memorandum
Local map
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
14expertise. relationships. Results. Offering Memorandum
rEgional map
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
15expertise. relationships. Results. Offering Memorandum
aerial photo
BBVA Compass Bank
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
16expertise. relationships. Results. Offering Memorandum
aerial photo
BBVA Compass Bank
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
17expertise. relationships. Results. Offering Memorandum
aerial photo
BBVA Compass Bank
PROPERTY DESCRIPTION BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
18expertise. relationships. results. Offering Memorandum
demographics
1 Miles: 3 Miles: 5 Miles:
Population
2016 Projection 14,430 51,132 68,218
2011 Estimate 11,012 39,319 52,420
Growth 2011 - 2016 31.03% 30.04% 30.14%
2000 Census 8,567 24,603 29,125
Daytime Population
2011 Estimate 5,903 14,980 18,958
Households
2016 Projections 4,566 17,100 22,900
2011 Estimate 3,714 14,069 18,757
Growth 2011 - 2016 22.94% 21.54% 22.09%
2000 Census 2,887 8,741 10,269
2011 Est. Households by Income
$200,000 or More 1.36% 1.07% 1.26%
$150,000 - $199,999 0.38% 1.41% 1.47%
$100,000 - $149,999 7.33% 6.21% 7.58%
$75,000 - $99,999 9.75% 11.01% 12.52%
$50,000 - $74,999 16.13% 17.23% 18.34%
$35,000 - $49,999 16.69% 17.60% 17.10%
$25,000 - $34,999 12.07% 15.78% 15.60%
$15,000 - $24,999 16.96% 14.80% 13.12%
$10,000 - $14,999 8.07% 6.29% 5.63%
Under $9,999 11.32% 8.68% 7.43%
Income
2011 Est. Average Household Income $48,443 $48,089 $51,634
2011 Est. Median Household Income $36,370 $38,437 $42,278
2011 Est. Per Capita Income $17,060 $18,206 $19,197
DEMOGRAPHICS BBVA COMPASS
This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as the accuracy of the information. References to square footage or age are approximate.
Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2011 Marcus & Millichap
19
Current year data is for the year 2010, 5 year projected data is for the year 2015. More About Our Data. Demographic data © 2008 by Experian/Applied Geographic Solutions. Crime data ©
2008 by Experian/Applied Geographic Solutions. Traffic Count data © 2008 by DataMetrix. All rights reserved. Business List data © 2008 by D&B®. All rights reserved.Exclusively Listed By:
Jamie A. Medress Mark J. Ruble
Senior Vice President Investments Vice President Investments
Senior Director, National Retail Group Senior Director, Net Leased Properties Group
Tel: (602) 687-6778 Tel: (602) 687-6766
Fax: (602) 687-6717 Fax: (602) 687-6710
jmedress@marcusmillichap.com mruble@marcusmillichap.com
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