SMOOTH BREW COFFEE E. MCDOWELL RD. PHOENIX, AZ Justin Horwitz Senior Advisor

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1 SMOOTH BREW COFFEE E. MCDOWELL RD. PHOENIX, AZ Justin Horwitz Senior Advisor Paul Borgesen III Advisor SVN Desert Commercial Advisors 5343 N. 16th Street, Suite 100, Phoenix, AZ OFFERING MEMORANDUM

2 Executive Summary OFFERING SUMMAR SUMMARY Y Sale Price: PROPER PROPERT TY O OVER VERVIEW VIEW $800,000 SVN is pleased to present for sale this two tenant NNN investment opportunity. The primary tenant is Smooth Brew Coffee, a staple coffee shop along the McDowell Rd. corridor. Smooth Brew opened in this location in 2015 following a Cap Rate: 7.29% complete renovation of the entire property including a convenient drive thru, a patio, an administrative office, and a separate building for prep space all on the the premises. Rounding out the remainder of the rent roll is a local law firm NOI: Lot Size: Building Size: $58, Acres 3,643 that also has operated in this location since This property is a perfect opportunity for an investor looking for good long term stability in market with major growth opportunity. PROPER PROPERT TY HIGHLIGHTS Prime McDowell Rd. Corridor Location Zoning: APN: C , 092 Direct Access to 51 and I-10 Freeways Immediate Proximity to Garfield and Downtown Phoenix Tremendous Traffic Volume SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 2

3 Property Details SALE PRICE $800, LOCATION INFORMATION Building Name Street Address Smooth Brew Coffee E. McDowell Rd. City, State, Zip Phoenix, AZ County/Township Market Submarket Cross Streets Maricopa Phoenix Downtown Phoenix SWC 15th St. and McDowell Rd. PROPERTY DETAILS Property Type Retail Property Subtype Street Retail Zoning C-2 Lot Size 0.33 Acres APN# , 092 BUILDING INFORMATION Building Size 3,643 SF Occupancy % 100% Tenancy Multiple Number Of Floors 1 Year Built 1930 Last Renovated 2014 Load Factor Yes SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 3

4 Additional Photos SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 4

5 Aerial Map SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 5

6 Regional Map Smooth Brew Coffee SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 6

7 Location Map Smooth Brew Coffee SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 7

8 City Information - Phoenix PHOENIX, AZ Downtown Phoenix is a center for employment, education, professional sports, living, arts and culture. The dramatic changes over the past five years provided a surge in momentum and even more development. In addition to large-scale projects such as the Phoenix Convention Center expansion, Valley Metro Light Rail and the Phoenix Biomedical Campus serving as major activity centers, there is a real grassroots effort by residents and employees to create a true downtown community. Home to numerous major employers, Downtown Phoenix boasts the highest concentration of employment in the state. TOP PHOENIX EMPL EMPLO OYERS COMPANY DT PHX HIGHLIGHTS # of EMPLOYEES 3,512 Businesses 63,494 Employees Banner Health 8,184 ±6,000 Multi Family Units Existing, Under Construction, or in Planning Apollo Group, Inc. 6,701 Over 800,000 SF of Retail Space 165+ Restaurants Honeywell 6, million SF of Office Space 880K SF of Convention Center Space American Express 5,880 St. Joseph's Hospital 4,109 Bank Of America 3,753 20,000+ Students at ASU, U of A, and NAU Downtown Campuses ±$721mm in Consumer Spending SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 8

9 Rent Roll TENANT NAME UNIT NUMBER UNIT SIZE (SF) LEASE START LEASE END ANNUALAL RENT PRICE PER SF/YR Copeland and Arora 1441-A /01/ /31/2018 $9,600 $12.11 DACC, LLC - Smooth Brew 1441-B /10/ /31/2023 $12,000 $15.00 DACC, LLC - Smooth Brew 1441-C /01/ /30/2022 $12,600 $14.00 DACC, LLC - Smooth Brew ,150 11/01/ /31/2023 $21,600 $18.78 Totals/Averages 3,643 $55,800 $15.32 SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 9

10 Income & Expenses INCOME SUMMARY IN PLACE ANALYSIS Rental Income $55,800 DACC, LLC Reimbursements $7,800 Copeland and Arora Reimbursements $1,860 Management Fee $2,760 Gross Income $68,220 EXPENSE SUMMARY IN PLACE ANALYSIS 2017 Property Tax $4,729 Insurance $3,120 Landscaping $1,320 Water $720 Gross Expenses $9,889 Net t Operating Income $58,331 SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 10

11 Financial Summary INVESTMENT OVERVIEWVIEW IN PLACE ANALYSIS Price $800,000 Price per SF $ CAP Rate 7.3% Cash-on-Cash Return (yr 1) 7.87 % Total Return (yr 1) $31,447 Debt Coverage Ratio 1.53 OPERATING DATA IN PLACE ANALYSIS Gross Income $68,220 Operating Expenses $9,889 Net Operating Income $58,331 Pre-Tax Cash Flow $20,257 FINANCING DATA A 65% LTV,, 5% INT., 25 YR. AMORT. IN PLACE ANALYSIS Down Payment $257,250 Loan Amount $542,750 Debt Service $38,074 Debt Service Monthly $3,172 Principal Reduction (yr 1) $11,190 SMOOTH BREW COFFEE E. MCDOWELL RD., PHOENIX, AZ SVN Desert Commercial Advisors Page 11