4690 N. Oracle Road Tucson, Arizona 85705

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1 OFFERING MEMORANDUM 4690 N. Oracle Road Tucson, Arizona Price $34,339, ,152 Sq. Ft. $ / Sq. Ft. INITIAL CAP Rate 5.25% 30% Rent Increase year 6 Greg Furrier, Principal Retail Properties gfurrier@picor.com Contact By Preferred PICOR Commercial Real Estate Services 1100 N. Wilmot Road, Suite 200 Tucson, Arizona phone: Cushman & Wakefield Copyright No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). As applicable, we make no representation as to the condition of the property (or properties) in question. picor.com

2 DESCRIPTION The Tucson Galleria, at 4690 N. Oracle Road, was constructed in the mid-1980 s and operated as a multitenant retail mall initially. From 1992 until 2008, The Galleria was occupied by American Home Furnishings, a New Mexico based furniture company. The building is 3 floors, totaling 211,152 sq. ft. and includes a parking garage with approximately 1,050 covered parking spaces on four levels. Comcast will be the sole occupant of the building for its new IT, call center and social media operations. In the Arizona Daily Star, August 6, 2015, Ray Child, a spokesman from Comcast stated "With an annual payroll of $35 million, the center will be staffed by informationtechnology and customer-support workers. It will house Spanish-speaking employees specializing in social media so customers can connect with Comcast via Twitter, Facebook or other outlets. Fifteen percent of those positions will be filled by military reservists, veterans and their spouses or domestic partners. The company will conduct employee training in the existing movie theatre, and offer employees use of a fitness facility on site, along with other employee amenities. 2

3 PROPERTY INFORMATION Location Tucson Galleria is located at 4690 N. Oracle Road in Tucson, Arizona Parcel 4690 N. Oracle Road consists of five (5) parcels containing a total of approximately 5.15 acres (224,361 sq. ft.). Parcels Size ,560 sf ,560 sf ,249 sf ,224 sf C C 10,400 sf 5,227 sf HVAC Combination of Package and Split systems, both gas, electric and heat pump units. Approximately 700 tons of cooling on the building. Power 4000 Amp, Volt, 3-Phase, 4 wire. Back up power supply by Kohler generator. Zoning The property is zoned C-3 (City of Tucson) which allows 75 feet max height. Parking The multi level parking garage consists of approximately 1,050 covered spaces. Street Frontage The site benefits from Oracle Road frontage and is adjacent to the Tucson Mall. Age The building was built in mid s as a multi-tenant retail mall property. Construction Reinforced tilt-up concrete panels. Pre-cast concrete floors/ garage. Roof Built up roof system. New GAF, I-B-4-M/ P6 BUR roof system installed with 3.1" polyiso insulation over a concrete deck, completed May 2015 over the main section of the building (+/- 63,000 sq. ft.) with a 20 year NDL warranty. 3

4 SITE PLAN Oracle At the River N. Oracle Rd 4

5 TENANT Tenant Information BUSINESS SUMMARY Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. The Cable Communications segment offers video, highspeed internet, and voice services to residential and business customers under the XFINITY brand name. This segment also provides business services, such as cellular backhaul services to mobile network operators; Ethernet network services; and online advertising services. The Cable Networks segment operates national cable networks, which provide entertainment, news and information, and sports content; regional sports and news networks; international channels; and cable television production operations, as well as owns digital media properties. The Broadcast Television segment operates NBC and Telemundo broadcast networks, NBC and Telemundo owned local broadcast television stations, and broadcast television production operations, as well as owns digital media properties. The Filmed Entertainment segment produces, acquires, markets, and distributes live-action and animated filmed entertainment under the Universal Pictures, Focus Features, and Illumination names. This segment also develops, produces, and licenses stage plays, as well as owns digital media properties. The Theme Parks segment operates theme parks; studios; Island of adventures; and a dining, retail, and entertainment complex. Comcast Corporation was founded in 1963 and is headquartered in Philadelphia, Pennsylvania. Sourced: Yahoo Finance 5

6 INTERIOR PICTURES 6

7 INVESTMENT STRATEGY Strength Of Tenant The investment offers extremely secure cash flow with one of the country s most respected tenants The Lease is Guaranteed by Comcast Corporation (a Fortune 40 company, S&P rating A Moody s A3) the Parent Company (NASDAQ: CMCSK) and is NNN. Comcast is the nation s largest cable company with a $ billion market capitalization. Rare Opportunity to acquire a Landmark Regional Single Tenant Building Strong Sales with an Extremely Low Rent: Comcast is paying $11.22 per sq. ft. which represents a below market lease rate in the area. Comcast pays 100% of building operating expenses beginning Lease Commencement date. Comcast will expand by ±50,000 sq. ft. by month 61 at approximately 50% of face rate, no Landlord contribution. Rental income increases by 30% year 6 as a result. Extremely Secure Cash Flow 100% of the annual rent is derived from Comcast, the highest creditrated, most desirable and secure tenant within its sector. Replacement Cost The estimated replacement cost far exceeds the price per sq. ft. The parking structure alone is estimated to be $20 million to replace. Ease of Management 100% leased to only one tenant. Provides ease of management to potential investors. Regional Location The Tucson Mall provides a regional draw to the trade area. Transportation Amenities The transportation amenities are unparalleled in this area. Located a short walk across the Tucson Mall parking lot is a major city bus hub, the Tohono O Odham Sun Tran Transit hub one of three hubs in the Tucson Metropolitan Area, serving more than 3,000 riders on weekdays. In addition, adjacent to the property is a bike and pedestrian pathway system connecting over 100 miles of paved path throughout the greater Tucson area, The Loop. 7

8 LOCATION SUMMARY Tucson Mall Area Profile The Tucson Galleria was conceived to take advantage of the 1.4 million sq. ft. Tucson Mall. The mall is the largest shopping center in Southern Arizona, with a strong anchor line-up including Dillard s, Macy s, H&M, JC Penney, Sears, Container Store and REI. In addition, the mall features 200 retail stores and restaurants including Ann Taylor, Banana Republic, Guess and Coach. Tucson Mall recently completed a redevelopment project that created 120,000 sq. ft. of new GLA. The Tucson Auto Mall hosts 18 dealerships in one location, including all major car companies with over 5000 automobiles on site. Trade Area 18 million shopper visits per year Trade area residential has grown more than 340% over the past 10 years 150,000 people work within five miles of Tucson Mall Dillard s Tucson Mall is one of the top performing Dillard s in the country. Major retailers perform well above their national averages at Tucson Mall and in the trade area. Tucson Mall trade area is focused at the corner of Oracle and Wetmore Roads, just 3 miles east of I-10. This location is easily accessible for the fast-growing and affluent new communities of Marana and Oro Valley as well as the established Foothills and university neighborhoods. Tucson Mall produces more than $350 million in total retail sales annually, and the trade area boasts the largest retail sales volume in Southern Arizona. TRADE AREA PROFILE 2014 Population: 839, Projected Population: 860, Households: 330, Projected Households: 338, Median Age: Avg. Household Income: $60, Projected Avg. Household Income: $68,473 DAYTIME EMPLOYMENT 3 - Mile Radius: 57, Mile Radius: 155, MILE RADIUS 2014 Population: 228, Projected Population: 231, Households: 100, Projected Households: 101, Median Age: Avg. Household Income: $52, Projected Avg Household Income: $60,936 TRAFFIC COUNTS PER DAY Oracle Rd- 43,000 Wetmore Rd- 23,000 Total 63,000 10

9 CITY OF TUCSON The second-largest city in Arizona and the county seat of Pima County, Tucson neighbors the towns of Marana, Oro Valley, Catalina, South Tucson, Sahuarita, Vail, and Green Valley. Tucson is home to the University of Arizona established as Arizona's first university in 1885 and now a campus of 50,000 students and staff from around the world A number of annual events drawing participants and spectators from around the world, including the Tucson Gem, Mineral & Fossil Showcase, La Fiesta de los Vaqueros (Tucson Rodeo), Tucson Festival of Books, Tucson International Mariachi Conference, the El Tour bike race, and the Tucson Classic. Tucson, Arizona, grew out of the dangers, opportunities and cultural crossings of the Old West. Today, that heritage shapes us without limiting who we are: a destination for nearly 7 million visitors a year; a place known for outstanding hiking and outdoor adventures, rich cultural traditions, a vibrant arts scene, world-class golf, great dining; and a thriving desert home to more than 1 million residents. TOP EMPLOYERS (2014 DATA) The University of Arizona 12,053 employees Raytheon Missile Systems 11,370 employees Davis-Monthan Air Force Base 10,869 employees Pima County 7,100 employees U.S. Border Patrol 6,800 employees Tucson Unified School District 6,467 employees University of Arizona Health Network 6,462 employees Freeport-McMoRan Copper & Gold Inc. 5,819 employees U.S. Army Intelligence Center of Excellence & Ft Huachuca 5,096 employees State of Arizona 4,986 employees Wal-Mart 4,360 employees City of Tucson 4,348 employees Carondelet Health Network 3,594 employees Fry s Food Stores 3,109 employees Tucson Medical Center (TMC Healthcare) 2,977 (Source SECOND LARGEST CITY IN ARIZONA 1 M RESIDENTS IN METRO AREA 50,000 STUDENTS & STAFF AT THE U OF A 7 M VISITORS A YEAR 11

10 RESUME GREG FURRIER PRINCIPAL RETAIL PROPERTIES PROFILE Greg Furrier, a lifelong Tucsonan, has been active in commercial real estate since He joined CB Commercial in 1986 as a retail sales and leasing specialist. Greg earned CB s Rookie of the Year award in 1987, and distinguished himself as one of the top five producers within the Tucson office, as well as the top producing retail broker every year while at CB Commercial. He joined Cushman & Wakefield PICOR in 1996 and focuses on landlord and tenant representation. Greg has been the top producing retail broker most every year since joining PICOR and has received many company awards, including top overall producer and Presidents Award for Excellence. Greg has been involved with the local family-owned Western Tire Centers, Inc. His experience in virtually every position -- from warehouse employee to store manager -- served as the foundation for Greg s highly successful sales career. AFFILIATIONS AND ACHIEVEMENTS Goodwill Industries of Southern Arizona Past Board President Western Tire Centers, Inc. Board of Directors COPE Behavioral Health Organization Past Board President Development Designs Group Non-Profit Housing Board Member International Council of Shopping Centers (ICSC) Organization EDUCATION University of Arizona Tucson, AZ Bachelor of Science Finance and Real Estate PARTIAL CLIENTS LIST Selected Sales Institutional Sellers Bank of America Bank of Orient Chase Bank Humana Wells Fargo Bank New West Federal Corporate Life Company Metropolitan Life Firestone Sun Life of Canada Selected Tenant / Buyer Representations Starbucks Boston Market Einstein Bagels Computer City Goodwill Industries Family Dollar Stores Just for Feet Beauty Brands Skechers Burger King Golden Corral Wendy s Old Chicago Restaurants Tony Roma s Restaurants Subway Public Storage Walgreens Smashburger 12