OFFERING MEMORANDUM

OFFERING MEMORANDUM

South of SEC Val Vista Drive & Queen Creek Road | Gilbert, AZ

INVESTMENT PROPERTY OVERVIEW

Investment Highlights

The Property is advantageously positioned 2 Miles south of the Loop 202/Santan Freeway (126,229 VPD). Black Rock Coffee Bar's drive-thru gives commuters a favorable option at a prime intersection (53,786 VPD) that will service the daytime population of 25,150 within 3 miles of the Property.

2020 Construction, Black Rock Coffee Bar's 15-year absolute NNN lease includes 10% increases at 5-year intervals for both the base term and the 4, 5-year option periods.

Close proximity to Mercy Gilbert Medical Center, situated between Chandler Municipal Airport and Phoenix Gateway Airport. The Gateway Airport/Loop 202 Submarket boasts several active and future housing developments. Walking distance to Perry High School, the 3rd best public high schools in Arizona with over 3,500 students.

The dominant demographic within 1 Mile of the Property are "Boomburbs", young professionals with families that have opted to trade up to the newest housing in the suburbs. Residents are well-educated professionals with a running start on prosperity (ESRI).

Demographics 2019

Population Households Average HH Income Median HH Income

1 MI

8,589 2,542 $128,817 $113,593

3 MI

73,118 22,726 $140,478 $115,898

5 MI

228,013 74,923

$126,011 $104,402

Traffic Counts

Val Vista Drive Queen Creek Rd

33,262 vpd 20,524 vpd

Source: SITES USA, Inc.

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BLACK ROCK COFFEE BAR

EXECUTIVE SUMMARY

Diversified Partners, LLC is pleased to offer for sale the fee-simple interest in a 2020 constructed Black Rock Coffee Bar (the Property/Asset) that is a freestanding building as part of The Enclave at Gilbert, including a Spectrum Retirement Communities Senior Living Community in Gilbert, Arizona. The Asset is a 15-year, absolute triple net ("NNN") lease to Black Rock Coffee Bar (the "Tenant") with ten percent (10%) rental increases every 5 years into the 4, 5-year option periods with a Corporate Guarantee. The Enclave at Gilbert is on the Southeast Corner of Val Vista Drive & Queen Creek Rd with Drive-to-Work positioning along Val Vista Drive less than 2 Miles from the Loop 202/Santan Freeway. With stellar demographics in an underserved Gateway Airport/Loop 202 Submarket, this offering brings an outstanding opportunity to procure a brand new Asset with a Tenant that has over 60 locations in 7 States.

Black Rock Coffee Bar

Location: Offering Price:

INVESTMENT DETAILS

Lot 3 of The Enclave at Gilbert SEC of Val Vista & Queen Creek

Gilbert, AZ $2,061,855.67

Cap Rate:

4.85%

Building Size:

1,836 SF

Parcel Size:

TBD

Guaranty:

Corporate

Projected Delivery:

2nd Quarter 2020

Parking:

TBD

Lease Type:

Absolute NNN

Year 1 NOI:

$100,000

Lease Expiration:

2035

Term Remaining:

15 Years

Renewal Option:

4, 5-Year Options

Rent Increases:

10% Every 5 Years including Options

Initial Lease Term

Years 1 - 5 | $100,000 | Annually Years 6 - 10 | $110,000 | Annually Years 11 - 15 | $121,000 | Annually

Option Terms

Years 16 - 20 | $133,000 | Annually Years 21 - 25 | $146,000 | Annually Years 26 - 30 | $161,000 | Annually Years 31 - 35 | $177,000 | Annually

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BLACK ROCK COFFEE BAR

SITE AERIAL

QUEEN CREEK RD

Perry High School

VAL VISTA DR

SITE

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BLACK ROCK COFFEE BAR

BLACK ROCK COFFEE BAR

Black Rock Coffee Bar started in 2008 when three families in the construction and coffee

industries teamed up and opened their first stores in locations throughout Oregon which have increased to 58 locations in 7 states. Black Rock offers respectable hand crafted drinks for their wide customer base, and extends its popular name through merchandise including cups, mugs, ground coffee, as well as apparel. This hip, stylish concept offers a positive experience inside the store and beyond. Costomers of Black Rock Coffee Bar receive top priority service and communities benefit from their "give back" events of charities. With "Fuel Your Story" as their main motto, Black Rock Coffee Bar encourages customers to "allow us to get to know you" and build their fast growing relationships.

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BLACK ROCK COFFEE BAR

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