ALBERTSONS SHOPS
Transcript of ALBERTSONS SHOPS
OFFERING MEMORANDUM
ALBERTSONS SHOPSAT RIVER & LA CAÑADA5075 - 5095 LA CAÑADA DRIVE | TUCSON, AZ
AFFILIATED BUSINESS DISCLOSURE
Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of Albertsons Shops at River and La Cañada, 5075 - 5095 La Cañada Drive, Tucson, AZ 85704– (the ”Property”) by ‘Ownership’ (the “Seller”).
This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (3/27/2020) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.
This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.
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CONTENTS
EXECUTIVESUMMARY
01PROPERTY
DESCRIPTION
02FINANCIALANALYSIS
03AREA
OVERVIEW
04
01 EXECUTIVE SUMMARY
Smoke MAunni's Healthcare Services
Mei Spa
Albertsons Shops at River & La Cañada is ±16,650 sq ft of national and local credit retail shops attached to a high performing Albertsons grocery store in the northwestern part of Tucson. Currently 100% leased, this offering gives an investor stable, passive income at a favorable cap rate of 7.25%. Four of the ten tenants have been at the property since it was built in 1998, and two since 2011, pointing to the stability of the property and submarket. In addition, all of the tenants have annual increases, allowing for increased cash flow over time.
THE OFFERING
5 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
OFFERING PRICE $4,630,000
PRICE PER SF $278.08
IN-PLACE CAP RATE 7.25%
OCCUPANCY 100%
OFFERING SUMMARY
ALBERTSONS SHOPS AT RIVER & LA CAÑADA 5075 - 5095 North La Cañada DriveTucson, AZ 85704
16,650 SF Total Building Area
1998Year Built
0.81 ACRESLot Size
104-01-077B104-01-077C Parcel Number
$335,668In-Place NOI
THE OFFERING
6 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
LA C
AN
AD
A D
R. | 19,865 VPD
LA C
AN
AD
A D
R. | 19,865 VPD
RIVER RD. | 32,822 VPD
RIVER RD. | 32,822 VPD
02 PROPERTY DESCRIPTION
NN
Smoke MAunni's Healthcare Services
Mei Spa
Built in 1998, Albertsons Shops at River and La Cañada benefits from being shadow-anchored by a high performing grocer, being located on a hard corner, and having great visibility from La Cañada Dr. The close proximity to the I-10 freeway is important to note. Tucson lacks a major East/West thoroughfare from the interstate, making retail properties close to the interstate more desirable. Furthermore, the property is the only shopping center at the intersection, making it the primary shopping center for the immediate neighborhoods. Albertsons Shops at River and La Cañada offers great stable, passive income to an investor looking for a property with strong historical occupancy.
PROPERTY OVERVIEW
LA CANADA DR. | 19,865 VPD
LA CANADA DR. | 19,865 VPD
8 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
SHADOW-ANCHORED 2ND MOST VISITED ALBERTSONS IN TUCSON*
STRONG TENANT HISTORYFOUR SINCE 1998, TWO SINCE 2011
CLOSE PROXIMITY TO I-10 FREEWAY
BUSY HARD CORNER LOCATION
CLOSE PROXIMITY TO TUCSON SHOPPING MALL AND AUTO MALL
FAVORABLE RATE OF RETURN WITH STABLE RENT ROLL
SEVERAL NATIONAL CREDIT TENANTS
INVESTMENT HIGHLIGHTS
NEW SIGNAGE RECENTLY INSTALLED
*According to Placer.ai data
9 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
±
W River Road
.d
vlB
ad
an
aC
aL
.N
NAP
NAPNAP
1 01A
701A
102B302B
B205
B207B206
B209
B211
Monument Sign
Monument Sign
Monument Sign
A103
/A10
5
Mei SpaSmoke-M
901A
SITE PLAN
SUITE TENANT SF
A101 Smoke'M 1,080
A103/A105/A109
Aunni's Health Care Services 3,000
A107 Mei Spa 1,200
B201 Nails Rap III 890
B203 Great Clips 900
B205 Frontline 24/7 Fitness
4,500
B206 Jackson Hewitt 1,480
B207 Subway 1,200
B209 Titlemax 1,200
B211 Papa John's 1,200
10 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
SUN RIVER APARTMENTS
294 UNITS
LA CANADA DR. | 19,865 VPD
LA CANADA DR. | 19,865 VPD
RIVER RD. | 32,822 VPD
RIVER RD. | 32,822 VPD
DOWNTOWN TUCSON
Smoke MAunni's Healthcare Services
Mei Spa
NN
03 FINANCIAL ANALYSIS
ANNUALIZED OPERATING DATA ACTUAL PSF
GROSS REVENUE
Base Rental Revenue (Sep '21 - Aug '22) $351,194 $21.09
Reimbursement Revenue $143,857 $8.64
Total Gross Revenue $495,050 $29.73
Credit Loss/Vacancy Reserve 3% $(14,852)
Effective Gross Revenue $480,199 $28.84
EXPENSES (2021 BUDGET.)
Janitorial Services $16,608 $1.00
Repairs & Maintenance $5,830 $0.35
Utilities $37,475 $2.25
Roads/Grounds/Security $16,050 $0.96
General & Administrative $870 $0.05
Parking Lot Operations $8,850 $0.53
Real Estate Taxes $32,561 $1.96
Real Estate Tax Appeal $2,500 $0.15
Insurance $5,760 $0.35
Accounting Fees $700 $0.04
Property Management 3.50% $17,327 $1.04
Total Operating Expenses $(144,531) $8.68
Net Operating Income $335,668 $20.16
Debt Service (example): $(190,623)
Pre Tax Cash Flow 8.95% $145,045
Plus Principal Reduction: $32,171
Total Return: 10.94% $177,216
PRICING INCOME & ANALYSISSUMMARY ACTUAL
List Price: $4,630,000
Down Payment (example): 35% $1,620,500
Current CAP: 7.25%
Rentable Square Feet: 16,650
Price per Square Foot: $278.08
Occupancy: 100%
FINANCING - EXAMPLE NEW LOAN ACTUAL
Loan Amount $3,009,500
Loan to Value 65%
Interest Rate 3.75%
Amortization 25
Term 10 Years
Monthly P & I Payments $15,473
Loan Constant 6.17%
Debt Yield 11.15%
DCR 1.81
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RENT ROLL - ACTUAL
SUITE TENANT NAMESQUARE
FEET% OF
SPACEMONTHLY
RENTANNUAL
RENT
RENT PER SQ.
FT.
TYPE OF
LEASE
EST. MONTHLY
NNN
EST. ANNUAL
NNNANNUAL NNN PSF
LEASE BEGIN
LEASE END
INCREASE DATES
INCREASE AMOUNTS COMMENTS
B201 Nails Rap 3 890 5.3% $2,373 $28,476 $32.00 NNN $363.10 $4,357 $4.90 10/1/98 9/30/24 10/1/21 $2,444(3%) No options
B203 Great Clips 900 5.4% $1,591 $19,092 $21.21 NNN $367.18 $4,406 $4.90 9/19/98 9/30/23 10/1/21 $1,639(3%) One, five year option
B205 Frontline 24/7 Fitness 4,500 27.0% $6,000 $72,000 $16.00 NNN $1,835.90 $22,031 $4.90 3/1/21 2/28/27 3/1/23 $6,120(2%)
Free rent until 3/1/22 (Buyer credit at COE)
Two, five year options
B206 Jackson Hewitt 1,480 8.9% $2,287 $27,444 $18.54 NNN $603.81 $7,246 $4.90 8/15/19 6/30/24 11/1/21 $2,355(3%) Two, three year options
B207 Subway 1,200 7.2% $2,312 $27,744 $23.12 NNN $489.57 $5,875 $4.90 9/9/98 9/30/24 10/1/21 $2,370(2.5%) One, five year option
B209 Titlemax 1,200 7.2% $2,998 $35,976 $29.98 NNN $489.57 $5,875 $4.90 12/15/11 12/31/26 2/1/22$3,088
(3% starting 1/1/23)
One, five year option remaining
Rent abated 1/1/22- 1/31/22
B211 Papa John's 1,200 7.2% $2,886 $34,632 $28.86 NNN $489.57 $5,875 $4.90 8/8/98 8/31/23 9/1/21 $2,973(3%) No options
A101 Smoke 'M Tucson 1,080 6.5% $1,721 $20,654 $19.12 NNN $440.62 $5,287 $4.90 1/1/11 6/30/25 6/30/22 $1,773(3%) No options
A103/A105/A109
Aunni's Health Care Services 3,000 18.0% $3,875 $46,500 $15.50 NNN $1,223.93 $14,687 $4.90 5/1/20 10/31/25 11/1/21 $3,990
(3%)
Tenant occupies two suites. #A103/A105 is 1,800 SF. and
#A109 is 1,200 SF.No options
A107 Mei Spa 1,200 7.2% $1,970 $23,640 $19.70 NNN $489.57 $5,875 $4.90 5/30/14 11/30/24 12/1/21 $2,029(3%) No options
Parking Lot Phanton Fireworks $5,000 GROSS 12/20/19 7/10/24
Firework stand operates 12/20-1/10, and 6/20-7/10.
Tenant pays rent in two install-ments per year.
Parking Lot Just Churros $325 $3,900 GROSS 4/1/2020 MTM Food truck tenant on a MTM
lease
ANCHOR Albertsons (CAMs Only) $3,938.65 $47,264
PAD Whataburger (CAMs Only) $476.96 $5,724
PAD Diamond Shamrock (CAMs Only) $779.62 $9,355
TOTAL 16,650 100% $28,338 $345,058 $22.40 $11,988 $143,857 $4.90
OCCUPIED 16,650 100%
AVAILABLE 0 0%
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to 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.14 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
12 MONTH RENT PROJECTION SUITE TENANT SEP-21 OCT-21 NOV-21 DEC-21 JAN-22 FEB-22 MAR-22 APR-22 MAY-22 JUN-22 JUL-22 AUG-22 TOTAL
B201 Nails Rap 3 $2,373.00 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $2,443.68 $29,253
B203 Great Clips $1,591.00 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $1,639.09 $19,621
B205 24/7 Fitness $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $72,000
B206 Jackson Hewitt $2,287.00 $2,287.00 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $2,355.19 $28,126
B207 Subway $2,312.00 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $2,370.21 $28,384
B209 Titlemax $2,998.00 $2,998.00 $2,998.00 $2,998.00 $2,998.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $3,088.00 $36,606
B211 Papa John's $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $2,972.58 $35,671
A101 Smoke 'M Tucson $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,721.13 $1,773.00 $1,773.00 $1,773.00 $20,808
A103/A105/A109
Aunni's Health Care Services $3,875.00 $3,875.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $3,990.00 $47,650
A107 Mei Spa $1,970.00 $1,970.00 $1,970.00 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $2,029.29 $24,174
Parking Lot Phanton Fireworks $2,500.00 $2,500.00 $5,000
Parking Lot Just Churros $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $325.00 $3,900
TOTAL $351,194
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to 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.
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ALBERTSONS BIOGRAPHY
Albertsons was founded in 1939 and is still headquartered in Boise, Idaho where the first location opened. Within two years, two other stores opened their doors. Over 80 years later, the company is the second largest food and drug retailer in North America (after Kroger) with over 2,200 stores across 35 states. The Albertsons Companies brand has 21 subsidiaries including Albertsons, Safeway, Vons, and Jewel Osco.
This Albertsons location on La Cañada Drive, is ranked number two in Tucson for number of store visits and number three for number of customers, according to Placer.ai data.
0
50
100
150
200
250
300
350
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N La CanadaDr
N SilberbellRd
E Grand Rd N La ChollaBlvd
E BroadwayBlvd
N CampbellAve
Albertsons Customers in Tucson
Est # Customers (in thousands) Est # of Visits (in thousands)
C L I C K H E R E TO R E A D T H E A R T I C L E
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TENANT BIOS
Great Clips is the world's largest hair salon brand. It is 100% franchised with 4,400 salons throughout the United States and Canada. Great Clips was established in 1982 in Minneapolis, and this location in Tucson opened in 1998.
Subway was started in the 1970's as a small sandwich shop in Connecticut. Today, Subway is the world's largest submarine sandwich chain. They have over 40,000 franchised locations around the world. The Subway location in this center opened in 1998.
TitleMax was founded in 1998 and opened this Tucson location in 2011. They are privately owned and one of the nation's largest title lending companies. TitleMax has more than 1,100 stores across 16 states.
Papa Johns opened it's first location over 30 years ago in Indiana as a small business. Now there are over 5,000 locations worldwide. This location at River Village was opened in 1997.
Aunni's Healthcare Services is a company specializing in home care services for the developmentally disabled population including illness or injury. Aunni's provides habilitation assistance, attendant care, and respite care. This location opened in May 2020.
Based in New Jersey and founded in 1982, they are the second-largest tax preparations service in the United States. With over 6,000 franchised and company-owned locations and nearly half located in Walmart stores, this location has been open since 2019.
New in 2021 to River Village, Frontline 24/7 Fitness is open 24 hours a day 7 days a week. With nearly 100 pieces of equipment and four trainers on site, this gym is both accessible and busy.
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04 AREA OVERVIEW
Originally founded as a Spanish military fort, Tucson is the second largest city in Arizona with a population of over 993,000. Despite its smaller population, the metro boasts a world-class employer base with a disproportionate concentration in high paying industries including aerospace & defense, high tech manufacturing, education and healthcare. Drawn by the unique combination of the University of Arizona and two major military-bases, Tucson is a hub of academic, military and defense contractor research and application in aerospace and optics technologies used in satellites, missiles, military aircraft and space exploration.
Honoring its martial history, the largest employers are the United States Air Force housing nearly 12,000 airmen and civilian employees at Davis-Monthan Air Force Base, the United States Army with 11,500 personnel at Fort Huachuca and Raytheon Technologies employing 9,700 residents in the metro. Other top employers include Fortune 500 companies such as Texas Instruments, Freeport-McMoRan, IBM, Honeywell, Intuit, GEICO and Caterpillar, which recently completed a regional corporate headquarters. This economic base is compliment by several major healthcare networks including Banner and Carondelet Healthcare, as well as the approximately 46,000 students and 3,500 staff members that comprise the University of Arizona.
Tucson’s pleasant climate, beautiful landscape and wealth of cultural and entertainment offerings draw over 3.5 million visitors every year, representing $2.5 billion in tourism spending annually. In addition to a rich nightlife, the city hosts numerous annual events like the Festival of Books, Tucson Folk Festival, The Tucson Rodeo, and the Gem & Mineral Show, one of the largest in the world.
AREA OVERVIEW
LA CANADA DR. | 19,865 VPDLA CANADA DR. | 19,865 VPD
RIVE
R RD
. | 32
,822
VPD
RIVE
R RD
. | 32
,822
VPD
Demographic Profile5075 La Canada Dr Prepared by Esri5075 N La Canada Dr, Tucson, Arizona, 85704 Latitude: 32.29874Rings: 1, 3, 5 mile radii Longitude: -110.99707
1 mile 3 miles 5 milesPopulation Summary
2021 Total Population 11,341 85,955 204,4242026 Total Population 11,770 88,729 210,6622010-2020 Annual Growth Rate 1.05% 0.67% 0.55%2021-2026 Annual Growth Rate 0.75% 0.64% 0.60%2021 Median Age 44.1 38.7 37.9
2021 Male Population (Esri) (%) 47.61% 48.72% 49.15%2021 Female Population (Esri) (%) 52.39% 51.28% 50.85%
Daytime Population2021 Total Daytime Population 11,258 91,565 214,341
Workers 5,006 44,376 106,194Residents 6,252 47,189 108,147
2021 Total Businesses 317 3,466 8,1852021 Total Employees 5,081 44,079 95,482
Household Summary2021 Households 4,784 37,131 89,0442026 Total Households 4,962 38,322 91,9272010-2020 Annual Growth Rate 1.13 0.67 0.582021-2026 Annual Growth Rate 0.73 0.63 0.642021 Average Household Size 2.32 2.29 2.26
Income Summary2021 Average Household Income $62,387 $62,701 $70,7122026 Average Household Income $71,309 $72,359 $80,5682021 Median Household Income $46,446 $41,724 $48,3682026 Median Household Income $52,238 $49,161 $54,8022021 Per Capita Income $27,470 $27,064 $30,7412026 Per Capita Income $31,389 $31,220 $35,075
Educational AttainmentTotal 2021 Population 25+ 8,428 60,427 142,688Less than 9th Grade 4.4% 5.5% 4.3%9th - 12th Grade, No Diploma 5.0% 8.1% 6.6%High School Graduate 26.1% 20.1% 16.6%GED/Alternative Credential 4.7% 4.3% 3.9%Some College, No Degree 26.5% 25.1% 24.6%Associate Degree 8.1% 8.8% 8.4%Bachelor's Degree 14.5% 16.2% 20.1%Graduate/Professional Degree 10.7% 11.8% 15.5%
EmploymentTotal 2021 Population 16+ 5,135 39,039 96,872
White Collar 61.1% 59.8% 65.4%Services 16.3% 18.9% 18.0%Blue Collar 22.6% 21.3% 16.6%
Race/EthnicityTotal 2021 Population 11,342 85,955 204,423
White Alone 75.5% 71.6% 71.7%Black Alone 2.2% 3.3% 3.7%American Indian Alone 2.0% 2.2% 2.6%Asian Alone 4.4% 4.2% 4.4%Pacific Islander Alone 0.1% 0.2% 0.2%Some Other Race Alone 11.9% 14.1% 13.0%Two or More Races 4.0% 4.4% 4.4%
Hispanic Origin 34.9% 39.1% 36.9%Diversity Index 68.8 73.0 72.3
Source: Esri, Esri and Infogroup
DEMOGRAPHICS
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Tucson International Airport
Davis-MonthanAir Force Base
T U C S O N
ORO VALLEY
CATALINA FOOTHILLS
MARANATWIN PEAKS RD
INA RD
CORTERO FARMS RD
TANGERINE RD
SWAN
RD
CAM
PBEL
L AVE
SPEEDWAY BLVD
BROADWAY BLVD
BENSON HWY
SILVERBELL RD
6TH
AVE
AJO WAY
Universityof Arizona
Dow ntown
GOLF LINKS RD
VALENCIA RDVALENCIA RD
TUCSON-AJO HWY
ALBERTSONS SHOPSAT RIVER & LA CAÑADA
5075 - 5095 LA CAÑADA DRIVE | TUCSON, AZ
21 ALBERTSON'S SHOPS AT RIVER & LA CAÑADA
CHASE DORSETT Associate Director
602.952.3844 [email protected]
JESSE GOLDSMITH Senior Managing Director
602.952.3846 [email protected]
STEVE JULIUS Senior Managing Director
602.952.3845 [email protected]
EXCLUSIVELY LISTED BY