BR - Pier 1 - Tucson, AZ

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PIER1IMPORTS BROADWAYPARC

TUCSON,ARIZONA

EXCLUSIVEINVESTMENTOFFERING

FEATURES:

IrreplaceableLocationintheHeartofBroadwayRetailCorridor(AcrossfromParkPlace:Macys,Sears,Dillards,CenturyTheaters,Borders,OldNavy)

FrontingMajorRetailThoroughfare/BookendedbyTucsonsBusiestIntersections(Broadway&Wilmot:93,500CarsPerDay;Broadway&Craycroft:92,000CarsPerDay)

AttractiveBelowMarketAssumableFinancing(5.51%FixedInterest,30YearAmortization,62%LTV)

Dense,InFillDemographics(572,930PeopleinImmediateTradeArea)

2004PrideofOwnershipConstruction

ChrisRodriguez|AdamIndihar

PacificCommercialInvestments,Inc.3700CampusDrive,Suite201A

NewportBeach,California92660

Phone(949)7235800|Fax(949)7235801

[email protected]|[email protected]

Theaboveinformationisforreferencepurposesonly,isapproximate,andissubjecttochange. Itisnotguaranteedastoits

accuracyorcompleteness. Buyershouldconductitsownindependentinvestigationandconsultanattorney.AsofSeptember2008.
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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TUCSON,ARIZONA

CONFIDENTIALITY

Thisisaconfidentialmarketingprofile(the"Profile")intendedsolelyforyourlimiteduseandbenefitin

determining whether you desire to express further interest in purchasing the "Property", located in

Tucson,Arizona.

ThisProfilehasbeenpreparedbyPacificCommercialInvestments,Inc.("PCI")onbehalfoftheownerof

theProperty(the"Owner")andhasbeenreviewedbyrepresentativesoftheOwner.Itcontainsselect

informationpertainingtothePropertyanddoesnotpurporttobeanallinclusiverepresentationofthe

state of affairs of the Property, or to contain all the information, which prospective investors may

require.Allfinancialprojectionsand informationareprovidedforgeneralreferencepurposesonlyand

arebasedonassumptionsrelatingtothegeneraleconomy,marketconditions,competitionandother

factorsbeyondthecontroloftheOwnerandPCI. Theinformationcontainedhereinwasobtainedfrom

thirdparties,and ithasnotbeen independentlyverifiedbyPCI. Prospective investorsshouldhavethe

expertsoftheirchoice inspectthePropertyandverifyall information. PCI isnotqualifiedtoactasor

selectexperts

with

respect

to

legal,

tax,

environmental,

building

construction,

soils

drainage

or

other

suchmatters.Therefore,allprojections,assumptionsandother informationprovidedandmadeherein

are subject tomaterial variation. Neither the Owner nor PCI, nor any of their respective directors,

officers,affiliatesorrepresentativesmakeanyrepresentationorwarranty,expressedor implied,asto

the accuracy of completeness of this Profile or any of its contents, and no legal commitment or

obligationshallarisebyreasonofyourreceiptofthisProfileoruseofitscontents.

TheOwnerexpresslyreservestheright,atitssolediscretion,torejectanyorallexpressionsofinterest

orofferson thesubjectProperty,and/ortoterminatediscussionswithanyentityatanytimewithor

withoutnoticewhichmay arise as a resultof reviewof this Profile. TheOwner shallhaveno legal

commitmentorobligationtoanyentityreviewingthisProfileormakinganofferonthePropertyunless

and

until

written

agreement(s)

for

the

Property

have

been

fully

executed,

delivered

and

approved

by

the

OwnerandanyconditionstotheOwner'sobligationsthereinhavebeensatisfiedorwaived.

ByreceiptofthisProfile,youagreethatthisProfileanditscontentsareofaconfidentialnature,thatyou

willholdandtreat it in thestrictestconfidenceandthatyouwillnotdisclosethisProfileoranyof its

contents toanyotherentitywithoutpriorwrittenauthorizationof theOwnerorPCI. Youalsoagree

thatyouwillnotusethisProfileoranyofitscontentsinanymannerdetrimentaltotheinterestofthe

OwnerorPCI.

PCI reserves the right to submit theProperty toadditional clientson terms thatmayormaynotbe

identical to the terms containedherein. By receiptof this Profile, you acknowledge that competing

interestsmaydevelopinconnectionwithoffersontheProperty,andwaiveanyconflictofinterestthat

mightarise

as

aresult

thereof.

In

such

case,

PCI

expressly

disclaims

any

obligation

to

advance

the

interestofanyclientattheexpenseofanyotherclientwhomayreceivethisProfile. Dealingswitheach

client shall remain strictly confidential and in no case will PCI disclose the terms of any actual or

potentialoffertoanycompetingclient.




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TUCSON,ARIZONA

LOCATIONBROADWAYBOULEVARDRETAILTRADEAREA

Thesubjectproperty isstrategicallypositionedontheheavilytraveledarterialofBroadwayBoulevard,

bookendedby twoofTucsonsbusiest intersections. Onehalfmileeastof the subjectproperty, the

intersectionofBroadwayBoulevard&WilmotRoadboastsastunningtrafficcountof93,500carsperday. Onehalfmilewestof thesubjectproperty, the intersectionofBroadwayBoulevard&Craycroft

Roadboastsanequally impressivetrafficcountof92,000carsperday. BroadwayBoulevard isoneof

thebusiestthoroughfaresinTucsonwithatwowaydailytrafficcountof53,000carspassingdirectlyin

front of the subject property. The subject property is easily accessible from multiple points of

ingress/egressonBroadwayBoulevardwithasignalizedleftturnforcustomerstravelingeastboundon

Broadway Boulevard. This centralized location in the heart of Tucsons best commercial corridor

providesthesubjectpropertywithunmatchedexposuretoretailconsumers,helpingtoensurethelong

termstabilityandsuccessofPier1Imports.

Directly across Broadway Boulevard from the subject property is Park Place Mall, which has been

completelyredeveloped

and

boasts

1.1

million

square

feet

with

120

stores,

22

restaurants,

and

a20

screenmovie theater. Major tenantswithinParkPlaceMall include Macys, Sears,Dillards, Century

Theaters,Borders,OldNavy,Gap,GapKids,BananaRepublic,ZGallerie,PacSun,TheChildrensPlace,

KB Toys, Applebees, McDonalds, Red Lobster, Starbucks, Sears Auto Center and Jiffy Lube, all of

whichprovideanunrivaledretailconsumerdrawtothe immediatearea. Nearbytherearenumerous

national tenants such as Best Buy, Cost Plus, BevMo, OfficeMax, Circuit City, TJ Maxx, Famous

Footwear,Linens&Things,LAFitness,Target,Petco,ToysRUs,Barnes&NobleandMervyns.This

denseretailtradeareaprovidesahighlysynergisticshoppingenvironmentforretailersasevidencedby

theAListretailerswhichhavechosentooperateonBroadwayBoulevard.

With its exceptional location on one of Tucsons busiest thoroughfares, a strong retail trade area,

affluent

East

Tucson

consumer

base

and

high

daytime

population,

Pier

1

Imports

at

Broadway

Parc

offers even the most demanding and locationsensitive investors an opportunity to own a prideof

ownershippropertyinoneofthemostcovetedlocationsinTucson.

LONGTERMOPERATINGHISTORY

Furtheradding to theappealof this investmentopportunity is the fact that Pier 1 Imports has been

successfullyoperatingatthesubjectlocationforover20years. Pier1Importswaspreviouslylocated

in thebuilding immediatelyadjacent to the subjectproperty (oneparcel to thewest). In2004, they

jumpedattheopportunitytoopenaprototypestorewithouthavingtorelocatetoaninferiorlocation.

Thiscommitmenttothesubjectlocationunderscoresthedesirabilityandtenantdemandforretailspace

throughouttheBroadwayBoulevardretailcorridor.

* Trafficcountinformationobtainedfromreportof2007TrafficVolumesinMetropolitanTucsonandEasternPimaCounty,preparedbyPimaAssociationofGovernments,November2007.




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TUCSON,ARIZONA

TRADEAREADEMOGRAPHICS

TheCityofTucson is locatedjusteastofthe10,19and210FreewayswithinPimaCounty,oneofthe

top twentyfive fastest growing counties in the Nation. The metropolitan Tucson population is

expectedtogrowfromapproximately1,000,000peoplein2005toover1,592,533peoplein2030,anincrease of 59% compared to 23% nationally during that same period. Retail sales in Tucson were

$10.982 billion in 2005 with $2.657 billion of that generated within a 5 mile radius of the subject

property. Retailsalesareexpected to grow to over$13.7 billion by2010. Thereareapproximately

127,289residentswithina3mileradiusofthesubjectpropertywithanaveragehousehold incomeof

$45,790. Thecombinationofadense residentialpopulationbaseanda largedaytime populationof

over 160,867 people within a 5 mile radius (91,000 of whom are employed in executive and

professional positions or support) further solidify the infill nature of the subject property location.

Tucsonsmultipleconsumergroupssupportingthesubjectpropertyincludeover1,000,000yearround

residents, 300,000 affluent seasonal residents, 2.5 million tourists annually, including a growing

number of affluent Mexican visitors, 38,000 students at the University of Arizona, 8,200 military

personneland

an

affluent

retired

population.

Ten miles south of the subject property is the Tucson International Airport where passenger traffic

exceeded 4.2 million in 2006. The Airports estimated economic impact on local payrolls and

expenditureswasnearly$1billiondollars in2007. Tourism isakeygrowingcomponenttotheTucson

economywith visitors spending $2.3 billion dollars in 2006, a 20% increase since 2000. Retail sales

accountedfor23%ofthatamount,totalingover$450milliondollars. Withtherelativeclosenessofthe

Mexicanborder,Mexicanvisitorsareavaluedmarketsegmentforthetourismindustry. Itisestimated

thatover22millionvisitorscrossthebordereachyeartoshopandplayinTucson. TheMetropolitan

TucsonConvention&VisitorsBureauestimatesthatMexicanvisitorscreate$360millionineconomic

impact in Tucson annually. According to The Economic Impacts of Mexican Visitors to Arizona

conducted

by

the

Economic

and

Business

Research

Program

at

the

University

of

Arizona,

72%

of

MexicanvisitorsciteshoppingastheirreasonforvisitingTucson.

TRADEAREAPROFILE 5MILERADIUSPROFILE

2007Population: 572,930 2007Population: 267,158

2012ProjectedPopulation: 620,443 2012ProjectedPopulation: 282,605

2007Households: 222,957 2007Households: 118,229

2012ProjectedHouseholds: 242,741 2012ProjectedHouseholds: 126,782

2007MedianAge: 34.0 2007MedianAge: 36.7

2007AvgHHIncome: $54,202 2007AvgHHIncome: $51,717

2012Projected

Avg

HH

Income:

$60,117

2012

Projected

Avg

HH

Income:

$56,985

DAYTIMEEMPLOYMENT3MileRadius 86,7585MileRadius 160,867

*Demographicinformationobtainedfrommultiplesources. PleasecontactPCItoobtaindetailedinformation.




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TUCSON,ARIZONA

TENANTSUMMARY

Headquartered in Fort Worth, Texas, Pier 1 Imports, Inc. (NYSE: PIR) is a publicly traded retailer

specializing in importedhome furnishingsanddcor. Founded in1962 in SanMateo,California, the

Companycurrentlyoperates1,034stores intheUnitedStatesand83stores inCanada. Duringfiscal

2008,theCompanysuppliedmerchandiseandlicensedthePier1ImportsnametoGrupoSanbornsand

SearsPuertoRico,whichsoldPier1Importsmerchandiseprimarilyinastorewithinastoreformatin

31 SearsMexico stores and in7 Sears PuertoRico stores. Pier1 Importsoperates inallmajorU.S.

metropolitanareasandmanyoftheprimarysmallermarkets. Companywidesalestotaledover$1.5

billioninfiscal2008.

Pier1Imports

offers

aunique

selection

of

merchandise

consisting

of

more

than

4,000

items

imported

from over 50 countries around the world. Merchandise largely consists of items that feature a

significantdegreeofhandcraftsmanshipandaremostlyimporteddirectlyfromforeignsuppliers. While

thebroadcategoriesofPier1Importsmerchandiseremainfairlyconstant,individualitemswithinthese

product categories change frequently in order to meet the changing demands and preferences of

customers. Theprincipalcategoriesofmerchandiseincludethefollowing:

DECORATIVE ACCESSORIES: Thisproductgroup constitutes thebroadest categoryofmerchandise in

Pier1ImportssalesmixandareimportedprimarilyfromAsianandEuropeancountries,aswellassome

domesticsources. Thiscategoryincludesdecorativewoodaccessories,lamps,vases,driedandartificial

flowers,baskets,walldecorations,ceramics,dinnerware,bathandfragranceproducts,candles,bedding,

epicurean

products

and

seasonal

and

gift

items.

FURNITURE: Thisproductgroupconsistsoffurnitureandfurniturecushionstobeusedinliving,dining,

kitchen and bedroom areas, sunrooms and on patios. These goods are imported from a variety of

countriessuchas Italy,Malaysia,Brazil,Mexico,China,thePhilippinesand Indonesia,aswellassome

domestic sources. The furniture ismadeofmetalorhandcraftednaturalmaterials, including rattan,

pine,beech,rubberwoodandselectedhardwoodswitheithernatural,stained,paintedorupholstered

finishes.

PIER1IMPORTSHIGHLIGHTS 1,117Locationsin49StatesandCanada Total2008Revenue:$1.511Billion Assets:$821.9Million ShareholdersEquity(NetWorth):$267.1Million

* FinancialinformationobtainedfromPier1Imports,Inc.AnnualReportFYEMarch1,2008Theaboveinformationisforreferencepurposesonly,isapproximate,andissubjecttochange. Itisnotguaranteedastoits



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TUCSON,ARIZONA

Theaboveinformationisforreferencepurposesonly,isapproximate,andissubjecttochange. Itisnotguaranteedastoitsaccuracyorcompleteness. Buyershouldconductitsownindependentinvestigationandconsultanattorney.AsofSeptember2008.

INVESTMENTINFORMATION

Address: 5919EastBroadway,Tucson,Arizona85711(BroadwayBoulevardbetweenWilmotRoad&CraycroftRoad)ViewMap

Tenant: Pier1Imports(U.S.),Inc.

Occupancy: 100%

YearBuilt: 2004

Land: (Approx.) 65,890SquareFeet

Improvements: (Approx.) 11,287SquareFeet

Construction: ConcreteBlock

APN: 12713051C

Price: $4,250,000

CapitalizationRate: 7.01%

Terms: CashtoExistingAssumableFinancing

OriginalAmount: $2,800,000

CurrentBalance: (Approx.) $2,655,000(62%)InterestRate: 5.51%(FixedforTerm)Amortization: 30Years

Term: 10Years(DueFebruary2015)EquityRequired: (Approx.) $1,595,000(38%)

RefinanceScenario1 RefinanceScenario2

Current @1stOption @1

stOption

ScheduledGrossIncome: $297,977 $327,775 $327,775

PlusExpenseRecapture: NNN NNN NNN

GrossOperatingIncome: $297,977 $327,775 $327,775

LessOperatingExpenses: (NNN) (NNN) (NNN)

NetOperatingIncome: $297,977 (7.01%) $327,775 (7.71%) $327,775 (7.71%)LessDebtService: ($190,988) ($220,786) ($175,346)

NetCashFlow: $106,989 (6.71%) $106,989 (10.74%) $152,429 (9.56%)PlusPrincipalReduction: $45,844 $32,536 $25,840

PreTax

Income:

$152,833 (9.58%) $139,525 (14.01%) $178,268 (11.18%)

LessMortgageInterest: ($145,144) ($188,250) ($149,506)

LessDepreciation: ($75,316) ($75,316) ($75,316)(70%[email protected])

AfterTaxIncome: ($67,628) ($124,042) ($46,555)

*See10YearProjectionpagesforfinancialassumptionsforrefinancingscenarios.

NOREPRESENTATION ISMADEBYPCIASTOTHELEGALORTAXEFFECTORVALIDITYOFANYPROJECTIONS,FINANCIAL

OROTHERWISE,CONTAINEDHEREIN. AREALESTATEBROKERISQUALIFIEDTOGIVEADVICEONREALESTATEMATTERS.

IFYOUDESIRELEGALORTAXADVICE,CONSULTYOURATTORNEYORTAXADVISOR.

AnnualOperatingInformation:

FinancialInformation:

PropertyInformation:


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TUCSON,ARIZONA

RENTROLL

Tenant

Suite

Sq.Ft.

Lease

Start

Lease

End

Monthly

Rent

Annual

Rent

RentalIncrease

Pier1Imports

(U.S.),Inc.11,287 11/1/2004 2/28/2015 $24,831.41 $297,977 10%Every5Yea

Totals 11,287 $24,831.41 $297,977


Buyershouldconductitsownindependentinvestigationandconsultanattorney.AsofSeptember20


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AERIALPHOTOBROADWAYRETAILCORRIDOR




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AERIALPHOTOBROADWAYRETAILCORRIDOR




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SITEPLAN




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PARCELMAP




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accuracy or completeness. Buyer should conduct its own independent investigation and consult an attorney. As of September 2008.

LOCATIONMAPS

BR - Pier 1 - Tucson, AZ

Documents

Transcript of BR - Pier 1 - Tucson, AZ