THE SHOPPES AT HIGLEY VILLAGE THE SHOPPES AT HIGLEY VILLAGE FOR MORE INFORMATION CONTACT: STABLE RETAIL INVESTMENT 24,580 SF 97% LEASED

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1 THE SHOPPES AT HIGLEY VILLAGE THE SHOPPES AT HIGLEY VILLAGE STABLE RETAIL INVESTMENT 24,580 SF 97% LEASED 5050 EAST UNIVERSITY DRIVE & 446 NORTH HIGLEY ROAD MESA, AZ FOR MORE INFORMATION CONTACT: DEREK BUESCHER O: C: ARI SPIRO O: C:

2 D I S C L A I M E R D I S C L A I M E R All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws. ORION Investment Real Estate 7328 East Stetson Drive Scottsdale, AZ

3 EXECUTIVE SUMMARY EXECUTIVE SUMMARY HIGHLIGHTS Walmart Neighborhood Market Shop Spaces Stabilized Investment, 97% Leased with Below Market Rents Strong In-place Rental Increases Well Maintained Property Newer Construction Strong Tenant Mix in Center Majority E-Commerce Resistant Tenants SALE PRICE $6,190,000 PRICE/SF $251.83/SF CAP RATE 6.5% BUILDING SIZE 24,580 SF OCCUPANCY 97% PARCEL SIZE 3.60 Acres YEAR BUILT 2005 ZONING C-2, Mesa CROSS STREETS Higley Road & University Drive TRAFFIC COUNT +/- 40,000 (Intersection) OVERVIEW The Shoppes at Higley Village is a Walmart Neighborhood Market (with Pharmacy and Drive-thru) anchored neighborhood center located in Mesa, Arizona. It is a stabilized multi-tenant center producing a steady income at an average rate of under $16 psf NNN. The center is currently 97% leased to a strong mix of tenants, specifically picked for this trade area. The current owner maintains the center to a high quality standard and takes pride in its appearance. A majority of the tenants are E-Commerce resistant, providing stability and strong income growth through scheduled rental increases. 3

4 EAST BASELINE ROAD GILBERT, AZ 85234

5 NOT A PART 3347 EAST BASELINE ROAD GILBERT, AZ

6 DRONE VIDEO CLICK TO VIEW UNIVERSITY DRIVE 15,069 VPD 6 HIGLEY ROAD 24,700 VPD

7 THE SHOPPES AT HIGLEY VILLAGE THE SHOPPES AT HIGLEY VILLAGE 7

8 PARCEL MAP PARCEL #: G & E TAXES (2018): $45, HIGLEY ROAD 24,700 VPD G E UNIVERSITY DRIVE 15,069 VPD 8

9 THE SHOPPES AT HIGLEY VILLAGE 9

10 MESA HIGHLIGHTS 3rd Largest City in Arizona after Phoenix and Tucson Two major airports and employment bases: Falcon Field and Phoenix Mesa Gateway Airport Access to three major freeways: Loop 101, Loop 202 (Red Mountain Freeway and the Santan Freeway, and State Rte. 60 (Superstition Freeway) Adjacent to other vibrant SE Valley communities: Tempe, Chandler, Gilbert and Queen Creek Home to 13 colleges including: ASU Polytechnic Campus, Mesa Community College (40,000+ Students Annually), East Valley Institute of Technology, A.T. Still University, Benedictine University and DeVry University In recent months, over 1,824,000 square feet of new employers are joining companies like MD Helicopters and Apple. In fact, Boeing will be shifting hundreds of jobs from Washington to Mesa in the next 2 years Mesa Downtown Core now has light rail and is redeveloping into a vibrant mixed-use corridor including the award-winning and popular Mesa Arts Center Master-planned community (by DMB), Eastmark, was named one of the Top 6 new communities in the country. Eastmark is located in far eastern Mesa close to the new Tech Corridor on Elliot Road. It leads the southeast valley of Maricopa County with new homes sales along with nearby Queen Creek Named Best Big City in the Southwest (Money Magazine 2016) 10

11 TENANT PROFILES TENANT PROFILES Linda s Hoosier Café Tenant since This Midwest Basketball-themed restaurant is a local institution and has been voted Best Breakfast in Mesa. Great Clips Tenant since Great Clips is the world s largest hair salon brand with more than 4300 salons across North America. Cricket Wireless Tenant since Cricket Wireless is a wholly-owned subsidiary of AT&T Inc. and provides wireless communication services across the United States. Medical Super Center Tenant since A division of Medassure Inc., Arizona s largest locally-owned provider of durable medical equipment as well as home medical equipment and supplies. Bahama Bucks Tenant since A multi-state franchise company with over 100 locations specializing in shaved ice (over 90 proprietary flavors), smoothies and other frozen treats. Mike s Bikes Tenant since Mike s Bikes has been providing service and sales in East Mesa for more than 15 years. Provides highest quality servicing and repairs by master bicycle mechanics, and sales of custom and pre-owned cycles. Has been voted Best Bicycle Shop in Mesa. Marco s Pizza Tenant since A multi-state franchise company founded in 1978 specializing in pizza and Italian-American cuisine with more than 900 locations across 35 states and 4 countries. Follow Your Heart Pet Hospital Tenant since A comprehensive veterinary pet hospital run by skilled professionals with compassion, optimism, integrity, love, and an uncompromising desire to assist animals in need. Affiliate of 501(c)(3) organization Follow Your Heart Animal Rescue. NAAM Yoga of Arizona Tenant since A beautiful yoga, meditation and healing center offering yoga classes and workshops, yoga teacher training, therapeutic treatment rooms and more, and retail clothing and jewelry sales. 11

12 TENANT PROFILES TENANT PROFILES Angel Touch Nails by Anne Tenant since This well-established salon provides a full range of manicure, pedicure, nail polishing, waxing and related services. Lisa s Doghouse Pet Grooming Tenant since A modern studio providing a full range of high quality pet grooming services backed by over 30 years experience as a professional pet groomer. IBrow Threading Tenant since Specializes in eyebrow threading and other licensed facial-related services and products with locations in Tempe, Mesa and Chandler. Healing Path Massage and Reflexology Tenant since This well-appointed studio provides Chinese therapeutic massage therapies and reflexology treatments. Custom Tailoring by Cynthia Tenant since A Master Tailor providing a full range of hand-crafted tailoring services for weddings, proms, and other special occasions as well as everyday clothing alterations and repairs. Higley Nutrition Tenant since An Herbalife-affiliated Nutrition Club offering nutritional weight-management shakes & teas and other products, coaching and supportive programs to promote healthful habits of diet and exercise, and personal care products. Wal-Mart Neighborhood Market (Not A Part) NOT A PART Wal-Mart has expanded its fleet of smaller-format stores, called Neighborhood Markets, now with over 700 locations in addition to their 3,565 standard Wal-mart locations. The Markets, which are one fifth of the size of Wal-Mart Supercenters, pose a major threat to traditional supermarkets like Whole Foods, Kroger, and Trader Joe s, according to Moody s analysts. The advantages of the Neighborhood Market concept will be difficult to beat back, Moody s Vice President Charles O Shea said in a recent note to clients. The Markets are like mini Supercenters. The interior of some of the stores is very similar to Wal-Mart s big warehouses, with exposed ceiling beams, wide aisles and fluorescent lighting. The Markets put a strong focus on three of Wal-Mart s strongest categories groceries, pharmacies, and fuel. And they have a wide selection of fresh produce. 12

13 RENT ROLL RENT ROLL Tenant Suite Square Footage Current Lease Start Date Lease End Date Base Rate per Month Base Rate per Year Base Monthly Rent Base Annual Rent CAM/SF CAM Total Rental Increase Date Annual Base Rent Increase Amount Hoosier Café /102 2,213 01/01/16 12/31/20 $ 1.46 $ $ 3,227 $ 38,727 $ 5.05 $ 11,176 01/01/19 $ 40,941 01/01/20 $ 43,154 Ibrow Threading ,035 11/01/14 10/31/21 $ 1.58 $ $ 1,639 $ 19,665 $ 5.05 $ 5,227 11/01/19 $ 20,441 11/01/20 $ 21,218 Healing Path Massage ,180 08/01/16 07/31/19 $ 1.50 $ $ 1,770 $ 21,240 $ 5.05 $ 5,959 Great Clips ,107 07/01/12 10/31/21 $ 1.67 $ $ 1,845 $ 22,140 $ 5.05 $ 5,590 11/01/19 $ 22,970 11/01/20 $ 23,801 Cricket Wireless ,107 04/01/14 09/30/19 $ 1.58 $ $ 1,753 $ 21,033 $ 5.05 $ 5,590 Angel Touch Nails by Anne ,100 08/01/11 08/31/19 $ 1.64 $ $ 1,803 $ 21,636 $ 5.05 $ 5,555 09/01/18 $ 22,285 Custom Tailoring by Cynthia A /01/15 07/31/18 $ 1.59 $ $ 1,049 $ 12,584 $ 5.05 $ 3,328 Vacant B 659 $ - $ - $ - $ - $ - $ - $ - Lisa's Dog House ,401 06/01/17 11/30/22 $ 1.38 $ $ 1,926 $ 23,117 $ 5.05 $ 7,075 12/01/19 $ 23,817 12/01/20 $ 24,518 12/01/21 $ 25,218 Medical Super Center /111/112 2,700 04/01/14 03/31/19 $ 1.10 $ $ 2,977 $ 35,721 $ 5.05 $ 13,635 Naam Yoga Arizona /114 2,400 08/01/17 01/31/21 $ 0.75 $ 9.00 $ 1,800 $ 21,600 $ 5.05 $ 12,120 02/01/19 $ 28,800 02/01/20 $ 33,600 Mike's Bikes ,771 09/01/13 08/31/21 $ 1.25 $ $ 2,214 $ 26,565 $ 5.05 $ 8,944 09/01/19 $ 27,893 09/01/20 $ 29,222 Bahama Bucks ,860 07/01/13 06/30/23 $ 1.45 $ $ 2,695 $ 32,344 $ 5.05 $ 9,393 07/01/19 $ 33,314 07/01/20 $ 34,314 07/01/21 $ 35,343 07/01/22 $ 36,403 Higley Nutrition ,540 07/01/18 06/30/23 $ 1.42 $ $ 2,182 $ 26,180 $ 5.05 $ 7,777 07/01/19 $ 26,950 07/01/20 $ 27,720 07/01/21 $ 28,490 07/01/22 $ 29,260 Follow Your Heart Pet Hospital /104 2,280 03/01/17 05/31/28 $ 1.00 $ $ 2,280 $ 27,360 $ 5.05 $ 11,514 04/01/19 $ 36,480 04/01/20 $ 37,620 04/01/21 $ 38,760 04/01/22 $ 39,900 04/01/23 $ 41,040 04/01/24 $ 42,180 04/01/25 $ 43,320 04/01/26 $ 44,460 04/01/27 $ 45,600 Marco's Pizza ,568 05/01/16 04/30/21 $ 1.42 $ $ 2,221 $ 26,656 $ 5.05 $ 7,918 05/01/19 $ 27,440 05/01/20 $ 28,224 Totals 24,580 SF $ 1.28 $ $ 31,381 $ 376,568 $ 120,801 Current Occupied Suites 23, % Vacant Suites % 13

14 RENT PROJECTIONS RENT PROJECTIONS M O N T H LY B A S E R E N T B Y T E N A N T Tenant Name April May June July August September October November December January February March Total Hoosier Café $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,412 $ 3,596 $ 3,596 $ 3,596 $ 41,494 Ibrow Threading $ 1,665 $ 1,665 $ 1,665 $ 1,665 $ 1,665 $ 1,665 $ 1,665 $ 1,715 $ 1,715 $ 1,715 $ 1,715 $ 1,715 $ 20,230 Healing Path Massage $ 1,770 $ 1,770 $ 1,770 $ 1,770 $ 1,823 $ 1,823 $ 1,823 $ 1,823 $ 1,823 $ 1,823 $ 1,823 $ 1,823 $ 21,665 Great Clips $ 1,776 $ 1,776 $ 1,776 $ 1,776 $ 1,776 $ 1,776 $ 1,776 $ 1,845 $ 1,845 $ 1,845 $ 1,845 $ 1,845 $ 21,656 Cricket Wireless $ 1,753 $ 1,753 $ 1,753 $ 1,753 $ 1,753 $ 1,753 $ 1,805 $ 1,805 $ 1,805 $ 1,805 $ 1,805 $ 1,805 $ 21,348 Angel Touch Nails $ 1,857 $ 1,857 $ 1,857 $ 1,857 $ 1,857 $ 1,913 $ 1,913 $ 1,913 $ 1,913 $ 1,913 $ 1,913 $ 1,913 $ 22,675 Custom Tailoring by Cynthia $ 1,080 $ 1,080 $ 1,080 $ 1,080 $ 1,113 $ 1,113 $ 1,113 $ 1,113 $ 1,113 $ 1,113 $ 1,113 $ 1,113 $ 13,221 Vacant $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Lisa's Dog House $ 1,926 $ 1,926 $ 1,926 $ 1,926 $ 1,926 $ 1,926 $ 1,926 $ 1,926 $ 1,985 $ 1,985 $ 1,985 $ 1,985 $ 23,350 Medical Super Center $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 3,066 $ 36,793 Naam Yoga Arizona $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,400 $ 2,800 $ 2,800 $ 29,600 Mike's Bikes $ 2,214 $ 2,214 $ 2,214 $ 2,214 $ 2,214 $ 2,324 $ 2,324 $ 2,324 $ 2,324 $ 2,324 $ 2,324 $ 2,324 $ 27,340 Bahama Bucks $ 2,695 $ 2,695 $ 2,695 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 2,776 $ 33,071 Higley Nutrition $ 2,182 $ 2,182 $ 2,182 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 2,246 $ 26,757 Follow Your Heart Pet Hospital $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 3,040 $ 36,480 Marco's Pizza $ 2,221 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 2,287 $ 27,375 Totals $ 33,057 $ 33,122 $ 33,122 $ 33,267 $ 33,353 $ 33,519 $ 33,572 $ 33,691 $ 33,749 $ 33,934 $ 34,334 $ 34,334 $ 403,055 *For Analysis Purposes, Rental Rate Increases at 3% at Expiration 14

15 FINANCIAL ANALYSIS FINANCIAL ANALYSIS INCOME/EXPENSE INFORMATION Actual Occupancy Base Rent $ 403,055 CAM & Insurance Reimbursement $ 120,897 Total Revenue $ 523,951 Less Vacancy (Actual/3%) Actual Adjusted Gross Revenue $ 523,951 Estimated Operating Expenses Utilities $ 16,500 $0.67 psf Portering - Parking Lot - Sidewalks $ 9,339 $0.38 psf Landscaping $ 8,219 $0.33 psf Repair & Maintenance $ 2,000 $0.08 psf Trash $ 6,769 $0.28 psf Fire/Life Safety $ 2,447 $0.10 psf Management $ 18,000 $0.73 psf Insurance $ 7,612 $0.31 psf Property Taxes $ 45,764 $1.86 psf Reserves $ 7,374 $0.30 psf Total Operating Expenses $ 124,024 $5.05 psf $ (124,024) Net Operating Income $ 399,927 Pricing Analysis: Pricing $/PSF Actual Cap Rate Price Of: $6,190,000 $ % 15

16 DEMOGRAPHIC HIGHLIGHTS DAYTIME POPULATION 367,402 *5 Mile Radius AVERAGE HOUSEHOLD INCOME $76,237 *5 Mile Radius MEDIAN AGE 41.4 *5 Mile Radius 2018 SUMMARY (ESRI) ONE MILE THREE MILE FIVE MILE DAYTIME POPULATION 17, , ,402 POPULATION 15, , ,572 AVG HOUSEHOLD SIZE AVG HOUSEHOLD INCOME $65,001 $67,141 $76,237 MEDIAN AGE

17 THE SHOPPES AT HIGLEY VILLAGE THE SHOPPES AT HIGLEY VILLAGE 5050 EAST UNIVERSITY DRIVE & 446 NORTH HIGLEY ROAD MESA, AZ FOR MORE INFORMATION CONTACT: DEREK BUESCHER O: C: ARI SPIRO O: C: