4701 N. 7th Street BOV and Marketing Proposal

Larry J Ortega Executive Vice President 2390 E Camelback Road MAIN +1 602 222 5000
Suite 100 FAX +1 602 222 5080
Phoenix, AZ 85016

Tim Hobin
c/o Bob Birmingham
The William Warren Group
959 South Coast Dr., Suite 325
Costa Mesa, CA 92626

RE: Broker Opinion of Value (BOV) | 26,147 SF lot
4201 N 7th Street
APN 155-17-082
StoreQuest Development
Phoenix, AZ

Dear Tim,

Thank you for allowing us to provide you with our Brokers Price Opinion and the
opportunity to work on the potential sale of the pad on 7th Street. I am proud to have
represented you in the acquisition and rezoning of the property and the completed
project is superb! William Warren should be commended to the attention to detail
dedicated to the project.

We have completed a valuation study for the above referenced property. We have
corrected the size of the parcel based on county assessor records. Our analysis
examined the trade areas for comparable sales and development activity and the type
of buyers for commercial real estate, including end uses activity and other aspects that
have impacted the value of the property. The detail is contained in the Brokers Opinion
of Value accompanying this letter. Our Broker’s Opinion of Value for the property based
on current market values indicates a range of value between $22.00 to $30.00 PSF of
land based on for a sale of the property or $585,000 to $795,000.
The criteria we used to determine current market value is as follows:

• Recent comparable land sales in the 7th street corridor
• Similar vacant land parcels currently on the market
• Location attributes
• Physical characteristics
• Highest and best use
• Current market condition

PROPERTY AMENITIES

 Along a premier commercial corridor connecting downtown Phoenix to N. Phoenix.
 Strong traffic counts
 Frontage on one major arterials (7th) and 1,000 ft north of Indian School
 C-2 Zoning

PROPERTY DETRIMENTS

 Lack of sales comps
 Suicide Lane

CURRENT SALES

There was only one comparable sale. We based our comparable property search on the
following criteria:

• Land: minimum 20,000 sf and maximum was 40,000 square feet
• Commercial zoning
• Sales comparables within the past 48 months

Please review the enclosed package and feel free to call with any questions or
comments.
All the best,
COLLIERS INTERNATIONAL

Larry J. Ortega Executive Vice
President

Enclosures

Broker Opinion of Value

4201 N. 7th Street
Phoenix, AZ

Prepared for:

William Warren Group
Tim Hobin
c/o Bob Birmingham

LARRY ORTEGA
Executive Vice President
Colliers International
[email protected]
602-222-5019 DL
2390 E. Camelback #100
Phoenix, AZ 85016

Valuation / Brokerage Marketing Proposal Page 2 of 10

May 10, 2017

TABLE OF CONTENTS 4
5
EXECUTIVE SUMMARY 6
SALES COMPARABLES
COMPETING PROPERTIES
EXHIBITS

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 3 of 10

Central Phoenix Corridor

EXECUTIVE SUMMARY

Trade Area relating to the Pad

Central Phoenix continues to redevelop land along the 7th Street commercial corridor. Available land to develop
or redevelop in the central core are becoming more difficult to find and increasingly more expensive to develop.
7th Street has emerged as a “foodie” corridor as developers have purchased and repurposed numerous
buildings along the Central Corridor from McDowell road to Glendale Blvd. The Yard-Culinary Dropout kick off
the development trend on 7th street which is 2.5 miles from the subject site. Redevelopment quickly spread and
projects such as the The Colony and the Crown on Central which houses Okra and Phoenix Ale House.

7th Street is the main N/S arterial carrying traffic from downtown Phoenix to N. Phoenix and carries upward of
42,000 VPD on six lanes plus the center lane which allows AM traffic in the morning and PM traffic going north
in the evening this lane is commonly called a “suicide lane”. The subject property is a 1,000 feet north of Indian
School which carries nearly 50,000 VPD making this a high transit area.

The property is within a very high daytime population with over 150,000 people in a 3 mile trade area. Strong
daily uses are the VA Hospital directly across the street and the Mid Town office corridor. This infill site has a
180,000 person trade area that skews a lower demographic in the immediate trade area (1 mile) with average
household incomes in the low $50,000 and higher as you widen the trade area. The trade area to the east is
redeveloping but has some areas of blight. East of the 51 this blight has disappeared as you approach the
Arcadia trade area.

The light rail is one mile to the west and the 75 acre Indian School Steele Park is just west of the site. This park
has expanded its hours and uses. The 15 acres on the NEC of Central and Indian School is in private ownership
but earmarked to go back to the Federal Government through the foreclosure process. Look to see a significant
mixed use development.

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 4 of 10

PROPERTY OVERVIEW The 26,147 square foot pad site is
located along 7th Street and
approximately 1,000 feet north of Indian COLLIERS RATING 2
School. It is across the street from the (Outlook for the sale of the property)
The VA hospital. 7th Street has 7 lanes Positive
along this portion of 7th street. It is
directly across the street from the VA
hospital at the visitor and check in
entrance to the campus. The site is
approximately 1,000 feet north of Indian
School. A Texaco gas station is at the
hard corner of the NEC of 7th Street and
Indian School. Adjacent to Texaco is a
Jack in the Box, followed by Scores
formerly branded as Cheetahs
gentleman club.

1: Strong 2: Positive 3: Static 4: Weak 5: Poor

PROPERTY CHARACTERISTICS

Strengths: Product Type: Commercial land zoned C-2 with
> Good Visability approved drive thru.
PROPERTY HIGHLIGHTS > C-2 zoning
> 36 parking spaces RBA: Approx
> Drive Thru approved 4-5,000
Sf
Challenges:
> Located on the “suicide Land Area: . 61 acres
lane” of 7th Street
> Lower Income Area Zoning Use : Multiple use
> Lack of Comparable sales
Zoning: C-2
APN: 155-17-082
Property Taxes: TBD
Land:
Development ready, subdivided and
utilities to the site.

OPINION OF LIKELY SALE PRICE Conservative Likely Aggressive

OPINION Price Per Square Foot $20.00 $25.00 PSF $30.00 PSF
Projected Sale Price PSF

$585.000 to $795,000

Explanation of Opinion: Comparable sales of this size commercial land.

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 5 of 10

7th Street Corridor

COLLIERS PROPERTY RATING

LOCATION SUMMARY

The property is located in a low-income area. Although new development is occurring, it is not in the path of growth.

2 Livability (quality of life for tenants or users) 2 Transportation (easy access to freeways and public transit)

2 Amenities (dining, entertainment, cultural, sports) 2 Visibility (quality and identity)

2 Labor Pool (education, abundance) 2 Housing (availability for workers and executives)

2.0 Location Rating (average score) Location Analysis Rating: 1 (Strong) 2 (Positive) 3 (Static) 4 (Weak) 5 (Poor)

SUBMARKET SUMMARY

Central Phoenix infill market. New multifamily development adding to population, centrally located neighborhood and significant
neighborhood redevelopment.

1 Size of Submarket (established vs. new or small) 2 Business Environment (supportive, cost effective)

2 Position in Submarket (quality of building vs. competition) 3 Absorption/Vacancy (vacancy rate vs. norm)

2 Barriers to Entry (high BTE’s support value) 2 Demand Drivers (strength and diversity)

2.0 Submarket Rating (average score) Submarket Dynamics Rating: 1 (Strong) 2 (Positive) 3 (Static) 4 (Weak) 5 (Poor)

AERIAL / LOCATION MAP

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Broker Price Opinion Page 6 of 10

Comparable Sales

For our search for comparable sales, we utilized properties of similar size, properties that have sold over the past 48
months and located near the 7th Street Corridor.

SALE COMPARABLES ANALYSIS

Comparable 1 23 4 5
Property name
Property Address Land Land Land Land
5833 N. 7th 801 E.Pasadena
6240 N. 7th St 4812 N. 12th St
Street

Land Commercial Commercial Commercial Commercial
Size .47 acres .53 Acres
Use Owner user .6 Acres .56 Acres Parking lot
Zoning Investment C-2
C-2 Part of an C-2
Land Area SF assemblage 23,039
C-2

20,473 SF 25,962 SF 24,394

Sale Date Dec 21, 2016 Jan 17, 2013 August 10 2016 March 5, 2014
Sale Price
Sale Price PSF $490,000 $225,000 $285,000 $356,413
$23.86 PSF $8.67 PSF $11.68 $15.47

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 7 of 10

Competing Properties 34
.
Competing Properties
-
Comparable Subject 1 2
Property name NONE
Property Address

Land
Zoning Condition
Utilities

Land Area SF
Acres
Price

ADJUSTMENTS TO VALUE

Lack of comparable sales in the area. No competing properties in the immediate trade area.

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 8 of 10
Subject Property

THIS IS NOT AN APPRAISAL: This Real Estate Broker’s Opinion of Value is intended for the sole and exclusive use of Seller, LLC (“the Client”) and may not be relied upon any
person or entity other than the Client for any purpose whatsoever. This Real Estate Broker’s Opinion of Value represents only the opinion of Colliers International as to the value
of the Subject Property, subject to the assumptions and qualifications set forth herein. Colliers International is not licensed to perform real property appraisals. Accordingly, this Real
Estate Broker’s Opinion of Value does not constitute an appraisal of the Subject Property and has not been prepared in accordance with the Uniform Standards of Professional Appraisal
Practice. The Real Estate Broker’s Opinion of Value set forth herein is specifically qualified by, and based solely upon, the relevant facts, circumstances, and market conditions that
exist as of the date of this Real Estate Broker’s Opinion of Value, and we undertake no obligation to update, modify, or supplement this Real Estate Broker’s Opinion of Value to the
extent that such facts, circumstances or market conditions subsequently change.

Valuation / Brokerage Marketing Proposal Page 9 of 10

Property Photos

Site Plan

Sales Comparables

5833 N 7th St

Phoenix, AZ 85014
Commercial Land of 0.47 AC Sold on 12/21/2016 for $490,000

buyer

Bethany Salad LLC
10229 N Scottsdale Rd
Scottsdale, AZ 85253

seller

Howard Eigsti & Jayme Eighsti
6718 E Turquoise Ave
Paradise Valley, AZ 85253

vital data

Sale Date: 12/21/2016 Sale Price: $490,000

Escrow/Contract: - Status: -

Days on Market: 236 days Down Pmnt: -
Exchange: No Pct Down: -
Conditions: - Doc No: 0941298
Density: - Trans Tax: -
- Corner: No
Max No of Units: - Level
Price/Unit: - Topography: Commercial Bldg.
75 feet on N. 7th St. (with 1 ... Improvements: Cable, Curb/Gutter/Sidewalk, Electricity,
Lot Dimensions: 3786709 Off-Site Improv: C..-.2
Frontage
Comp ID: Zoning: Piestewa Peak Corridor

Submarket: -

Map Page: 162-06-157

Parcel No: Land

Property Type: Commercial

Proposed Use:

income expense data Net Listing Broker
0.47 AC
Gross $1,038,135.59 Cashen Realty Advisors
Acres: 0.47 AC 20,540 SF 2920 E Camelback Rd
Price/Acre: $1,039,236.48 $23.86 Phoenix, AZ 85016
(602) 393-4447
SF: 20,540 SF Raymond Cashen
Price/SF: $23.86
Buyer Broker

financing

1st Bank 34
Bal/Pmt: $933,000

All rates quoted from CoStar. Phillips Koss Properties for Sale 5/10/2017
Copyrighted report licensed to Colliers International - 485682. Page 2

Sales Comparables

6240 N 7th St

Phoenix, AZ 85014
Commercial Land of 0.60 AC Sold on 1/17/2013 for $225,000 -
Research Complete

buyer
Upward Of Children & Familes
6306 N 7th St
Phoenix, AZ 85014
(602) 279-5801

seller
Christophel Family Trust

vital data

Sale Date: 1/17/2013 Sale Price: $225,000

Escrow/Contract: - Status: Confirmed

Days on Market: 619 days Down Pmnt: $250,000
Exchange: No Pct Down: 111.1%
Conditions: - Doc No: 0054325
Density: - Trans Tax: -
- Corner: No
Max No of Units: - Level
Price/Unit: - Topography: -
- Improvements: Cable, Curb/Gutter/Sidewalk, Electricity,
Lot Dimensions: 2654744 Off-Site Improv: C..-.2
Frontage
Comp ID: Zoning: Piestewa Peak Corridor

Submarket: -

Map Page: 161-18-034D

Parcel No: Land

Property Type: Commercial

Proposed Use:

income expense data Net Listing Broker
0.60 AC
Gross $377,516.78 Desert Classic Realty Llc
Acres: 0.60 AC 25,962 SF 4643 E Thomas Rd
Price/Acre: $376,947.56 $8.67 Phoenix, AZ 85018
(602) 840-4656
SF: 26,000 SF Bob Holmes
Price/SF: $8.65
Buyer Broker

Wolf Realty, Inc.
14021 N 51st Ave
Glendale, AZ 85306
(602) 843-5200
Scot Hall

financing

All rates quoted from CoStar. Phillips Koss Properties for Sale 5/10/2017
Copyrighted report licensed to Colliers International - 485682. Page 3

Sales Comparables

4818 N 12th St

Phoenix, AZ 85014
Commercial Land of 0.56 AC Sold on 8/10/2016 for $285,000 -
Research Complete

buyer

David Haaslo
PO Box 80220
Phoenix, AZ 85060
(602) 626-5437

seller

David D & Mark K Robinson Family Trust
102 N Kalorama St
Ventura, CA 93001
(760) 840-9557

vital data

Sale Date: 8/10/2016 Sale Price: $285,000

Escrow/Contract: - Status: Confirmed

Days on Market: 896 days Down Pmnt: $285,000
Exchange: No Pct Down: 100.0%
Conditions: - Doc No: 0570156
Density: - Trans Tax: -
- Corner: No
Max No of Units: - Level
Price/Unit: - Topography: -
81 feet on N 12th St Improvements: Cable, Curb/Gutter/Sidewalk, Electricity,
Lot Dimensions: 3674816 Off-Site Improv: C..-.2
Frontage
Comp ID: Zoning: Camelback Corridor

Submarket: -

Map Page: 155-11-028

Parcel No: Land

Property Type: Commercial

Proposed Use:

income expense data Listing Broker

Expenses - Taxes $5,546 NAI Horizon
Gross - Operating Expenses $5,546 2944 N 44th St
Phoenix, AZ 85018
Total Expenses (602) 955-4000
Drew Stone, Mark Wilcke, Barbara Lloyd
Net
Buyer Broker
Acres: 0.56 AC 0.56 AC
SVN | Desert Commercial Advisors
Price/Acre: $508,928.57 $508,928.57 5343 N 16th St
Phoenix, AZ 85016
SF: 24,394 SF 24,394 SF (480) 425-5500
Justin Horwitz, Paul Borgesen
Price/SF: $11.68 $11.68

financing

All rates quoted from CoStar. Phillips Koss Properties for Sale 5/10/2017
Copyrighted report licensed to Colliers International - 485682. Page 4

Sales Comparables

801-811 E Pasadena Ave Sale Price: $356,413

Vacant Land Status: Allocated
Phoenix, AZ 85014
Down Pmnt: -
Commercial Land of 0.53 AC Sold on 3/5/2014 for $356,413 - Pct Down: -
Research Complete (Part of Multi-Property) Doc No: 0142014

buyer Trans Tax: -
Corner: No
Earnhardt Auto Centers
7300 W Orchard Ln Topography: Level
Chandler, AZ 85226 Improvements: -
(888) 820-3377 Off-Site Improv: Cable, Curb/Gutter/Sidewalk, Electricity,

seller Zoning: M..-.H

Sonata Property Group Submarket: Camelback Corridor
2645 N 7th Ave
Phoenix, AZ 85007 Map Page: -
(480) 344-7020
Parcel No: -
vital data
Property Type: Land
Sale Date: 3/5/2014
Escrow/Contract: - Proposed Use: Commercial
Days on Market: -

Exchange: No
Conditions: Assemblage, Redevelopment ...

Density: -
Max No of Units: -

Price/Unit: -
Lot Dimensions: -

Frontage 179 feet on E Pasadena Ave 128 ...
Comp ID: 2974180

income expense data Listing Broker
No Listing Broker on Deal
Expenses - Taxes $3,445
Gross - Operating Expenses $3,445 Buyer Broker
360 Real Estate Consulting,
Total Expenses LLC 11811 N Tatum Blvd
Phoenix, AZ 85028
Net (602) 870-9741
Michael Lieb
Acres: 0.53 AC 0.53 AC

Price/Acre: $673,875.97 $673,748.58

SF: 23,039 SF 23,039 SF

Price/SF: $15.47 $15.47

financing

All rates quoted from CoStar. Phillips Koss Properties for Sale 5/10/2017
Copyrighted report licensed to Colliers International - 485682. Page 5

All rates quoted from CoStar. Phillips Koss Properties for Sale 5/10/2017
Copyrighted report licensed to Colliers International - 485682. Page 1

 
 

Marketing Proposal 

4201 N. 7th Street
Phoenix, AZ

Prepared for:

William Warren Group
Tim Hobin
c/o Bob Birmingham

LARRY ORTEGA
Executive Vice President
Colliers International
[email protected]
602-222-5019 DL
2390 E. Camelback #100
Phoenix, AZ 85016

WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Property Synopsis

Description

The subject property is a 26,147square foot parcel fronting on N. 7th Street. The property is a
separate parcel from the StorQuest development with its own APN number and is zoned C-2
and with an approval for a drive thru use.

Central Phoenix continues to redevelop land along the 7th Street commercial corridor.
Available land to develop or redevelop in the central core is becoming difficult to find and
increasingly more expensive to purchase and develop.

7th Street is the main N/S arterial carrying traffic from downtown Phoenix to N. Phoenix and
carries upward of 42,000 VPD on six lanes. Additionally, a center lane allows AM traffic in the
middle lane in the morning and PM traffic going north in the evening. This lane is commonly
called a “suicide lane”. The subject property is a 1,000 feet north of Indian School which
carries nearly 50,000 VPD making this a high transit area.

The property is within a very high daytime population trade area with over 150,000 people in a
3 mile trade area. Strong daily traffic generators is the VA Hospital directly across the street
from the subject property and in close proximity to the Mid-Town office corridor. This infill site
has an 180,000 person residential trade area that skews a lower demographic in the
immediate trade area (1 mile) with average household incomes in the low $50,000. The area
skews higher income as you widen the trade area.

Strengths and Weakness

The strengths and weaknesses discussed here are both property specific and relate to the
attraction of the property to the target buyer.

Strengths

 The property has strong visibility and good access from 7th Street.
 There are not many properties of this size on the market.
 The parking for the property is ample and very convenient.
 The property has good ingress and egress.

Weaknesses

 Location: The property is located on a street with a “Suicide Lane” which impedes traffic
 Visibility: Blocked by the self-storage building to northbound traffic until you are on the

site
 Neighbors: Strip Club adjacent to the property
 Property must be marketed effectively.

1

WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Pricing and Fee Proposal

The following is an outline of the terms which Colliers International proposes for the marketing
of the property at 4201 N. 7th Street, Phoenix.

Listing Price: Colliers recommends that the property be offered with a
Agency: listing price of $815,000.
Term:
Commission: Colliers will be the owner’s exclusive agent to sell the
property.

Six (6) months.

Six percent (6%) of the gross sales price to be split:
Three (3%) to Colliers.
Three (3%) to cooperating brokers.

Discussion of Pricing Rationale

For pricing a property, we generally rely on the sales comparison approach. In general, the
price a buyer is willing to pay for a property is based on what similar properties have sold for in
terms of capitalization rate or price per square foot, adjusted to account for various differences
in the properties. In the case of the 4201 N. 7th Street, it was difficult to get comparable sales
in the area of land parcels that were sold to owner/users within a year and consequently had to
use comparable sales going back to 2013. The majority of interest in the 4201 N. 7th St will
most likely come from end users utilizing the property as a single tenant retail or restaurant
operation. The zoning that allows a drive thru on the property is a positive and should be
promoted specifically with this in mind.

Discussion of Sales Comparables
A review of the comparable sales indicates the following:

Sale comparable that are not useful:
Sales comparable #2: This is an outdated comparable sale going back 4 years.
Sales comparable #3: Very narrow lot on 12th Street. Sold at a reduced rate.

2

WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Sales comparable that are useful:

Sales comparable #1: Restaurant end user. Sold to Salad and Go and is the most recent.

Sales comparable #4: Part of an assemblage and an “allocated” price.

Evaluation of Sales Comparable Data

There were few sales in this land size within the past year. The lack of comparable sales is a
challenge to obtaining a value that we are recommending, however, I believe a strong
marketing campaign exposing it to the entire market in a new way will greatly enhance the
ability of Colliers International to obtain the highest price.

Recommendation and Conclusion

The selling price for 4201 N. 7th Street will most likely be in the range of $600,000 ($23.00
PSF) to $815,000 ($30.00/SF). A sale price using $26 PSF would yield a sale price of
approximately $680,000 or approximately 17% from the highest value. I can see the property
potentially selling at the $700,000 mark.

Marketing Strategy: Produce a Memorable Package

Signs: Utilize double sided street signs facing traffic on 7th Street, located on the northern
boundary of the property and away from your current promotional signage for StorQuest.
Proper sign rider would be “Pad for Sale.

Brochure: Develop a clear and concise electronic marketing brochure viewable on desktop,
tablet and mobile phone platforms.

Obtain the most current demographic traffic counts. Show traffic counts on 7th street aerial as
well as Indian School. Show daytime population in an oblique photograph of the site.

Utilize the new photos of the property we recently photographed showing the new StorQuest
building and the relationship of the property to the street, the VA Hospital, and the subject site.

Eblasts: We have several distinct databases that we utilize for strategic email marketing. This
includes a retail database for the restaurant industry, retailers, automotive etc. Another
database hosts the various developers who specialize in the development of single tenant and
multi-tenant properties. Our current commercial broker list is updated weekly and contains over
500 local brokers.

3

WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Social Media: Colliers International participates with numerous social media outlets such as
Facebook, Instagram, Twitter, LinkedIn.

Costar: We list the property on CoStar the premier real estate platform as well Loopnet.

The Story: We are selling a story and it is different than selling a property and our marketing
material is geared to sell the story from the ground, the air and on the road. The sales
presentation for this size property should be designed to interest prospective purchasers
sufficiently to take an active interest in the property. We strongly believe in a succinct, well
thought out presentation that provides all the relevant facts that a purchaser would like to know
in a format that is readable, accurate, reliable, and attractive.

Summary of Marketing Stragegy

The target market for 4201 N. 7th St may be a transit oriented business that can benefit from
the exposure that the property can produce along a well-traveled arterial. An example is a
QSR not operating in the trade area, or a business needing to provide convenience being
across the street from the VA hospital, this could be a car rental location or an emergency
medical or service use. A coffee use such as Dutch Bros, Urban Bean or Salad and Go are
prime examples of what a typical QSR restaurant would want in a site.

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Effective Marketing-Outside Brokers

The top 20 commercial brokerage houses cover most of the market. We insure that the
property is exposed to the commercial brokerage companies. 95% of commercial sales are
represented by a broker.

While widespread marketing has the benefit of potentially producing a better offer, it will also
produce a lot of “noise” and unqualified purchasers. A strong benefit we offer is “curating”
potential purchasers and offers that are filled with excessive contingencies. This will save all of
us a considerable amount of time and effort.

It is absolutely of no benefit to you, Colliers International or Larry Ortega to bring in unqualified
purchasers who waste time.

Produce a Superb and Succinct Sales Presentation

The sales presentation for this size property should be designed to interest prospective
purchasers sufficiently to drive past the property. We strongly believe in a succinct, well
thought out presentation that provides all the relevant facts that a purchaser would like to know
in a format that is readable, accurate, reliable, and attractive.

Price the Property Correctly

The old game show “THE PRICE IS RIGHT” applies. The price must be realistic and allow an
investor the ability to earn a return on capital commensurate with risk. It must be solidly based
on comparable sales of similar buildings.

Marketing Plan Basics

Colliers International's approach to marketing properties is unique. There is a strong emphasis
on team effort and close client coordination on every project undertaken by our firm.

Organization/Central Coordination

Each sales assignment undertaken by Colliers has a designated core team of investment
professionals who has a day-to-day responsibility for the execution of the assignment. This
dedicated team has conducted numerous transactions over the past several years and is
familiar with the active investors in the market.

Property Analysis

Colliers believes a successful marketing program requires a thorough property analysis by the
sales agents prior to approaching potential purchasers. Colliers will perform a review of all
relevant building information for inclusion in the sales package or due diligence package

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

where appropriate. This effort includes analysis of operating expenses and real estate taxes, a
detailed understanding of building design and operating systems, a complete market analysis
and review and the study of any other data potentially affecting the property’s market value.
This review is intended to alert the owner of any significant issues that a purchaser might seek
to address and turn to its advantage during its due diligence period. This comprehensive
approach also allows Colliers to focus market attention on a property’s strength, which gives
us the knowledge to address its weaknesses.

Sales Package

Colliers is a market leader in the quality of sales packages it prepares. Given the amount of
product currently available on the market, a premium package allows Colliers offerings to be
differentiated from packages of lesser quality. When reviewing Colliers’ marketing materials,
potential owners know they are analyzing data that has been assembled with an emphasis on
accuracy and detail. This results in more timely market feedback and offers. The sales
package will contain the following items:

 Executive summary
 Property description
 Location description
 Market analysis
 Photographs and aerial photographs
 Detailed financial information
 Site plans

Due Diligence Package

In addition to the sales package, a separate due diligence package will be prepared for
potential purchasers. The following is a list of due diligence materials that we typically include
in a due diligence package for a property like this:

 Detailed operating statements
 Marketing, operating and capital improvement plans
 Detailed property description and legal description
 Photographs
 Floor plans, site plans, & survey
 Real estate taxes
 Phase I environmental report and engineering reports
 Management agreement
 Preliminary title report
 Schedule of capital expenditures

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

The purpose of the due diligence package is to provide the prospective purchaser with the
information necessary to submit a firm offer. Colliers will be responsible for all physical
property tours and coordination with the local property manager. We will also provide
additional information on the general Phoenix marketplace.

Brokerage Networking

Colliers has well-established relationships with the Phoenix brokerage community, the Colliers
Macaulay Nicolls offices located in the western United States (San Francisco, San Diego, Los
Angeles, Portland, Sacramento, Seattle, Bellevue, and Carlsbad), the 85 Colliers USA offices
located in the United States, and the 180 Colliers offices located throughout the world.
Colliers will work closely with any and all brokerage houses locally and nationally

Review of Offers

An important aspect of the marketing program is the qualification of bidders. We have
experienced the situation on several occasions where the highest bidder is not necessarily
able to close the transactions or is likely to re-negotiate the terms of the sale once in escrow.
We will assist you in taking into consideration the highest and best offer as well as the most
qualified purchaser who is likely to close the transaction. We have a track record with many of
the purchasers in the Phoenix market and we understand their buying philosophies and
negotiating strategies.

Marketing Timetable

Due Diligence And Sales Package Preparation 30 days
Marketing Period 30-60 days
Purchase And Sale Contract Executed
Due Diligence Period Of Purchaser 30 days
Closing 60-90days

30 days

TOTAL 210- 360 days

Due diligence time can shortened but building permits and zoning (if needed) extend the time
frame. Having an approved drive thru is of great benefit. Having a separate tax parcel number
as is the case with this property is extremely beneficial and reduces time to where a deal can
be shortened to 180 days.

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

Communicating Results To You

Consistent and thorough communication is an integral part of any successful marketing
program. The marketing team will report to the seller using an agreed upon standard format.
Typically, these reports are provided on a bi-monthly basis. We maintain very strict controls as
to the turnaround time for the delivery of the sales package and subsequent follow up. You will
see in the monthly report, a section that shows the actual number of days between the first
contact, sales package delivery, and prospective purchaser follow up. Below is a draft copy of
our typical reporting format. In addition, Larry Ortega and team makes a point of
communicating witj clients at a minimum of a two-week interval. You will know what
progress is being made every step of the way.

CLIENT REPORTING FORM
SAMPLE BI-MONTHLY REPORT

Sales Activity Report

PROSPECT COMPANY DATE SOURCE STATUS/
PACKAGE SENT Broker (B) or COMMENTS
Principal (P)

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

PROJECT TEAM

The project team for 4201 N. 7th Street would include:

Team Leader: Larry Ortega

Designated Broker: Bob Mulhern

Financial Analyst: Peter O’Neil

Project Coordinator: Morgan Carden
Desiree Williams

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

WHY COLLIERS INTERNATIONAL?

We will provide you with the highest price possible in today’s market. We do not expect you to
take our word on this, but rather invite you to contact the individuals and institutions whom we
have previously represented and encourage you to ask them who is the best marketing team
to represent you.

Local Knowledge and Proven Track Record

Colliers is one of the leading brokerage companies in the Phoenix market. Large is great and
local is best, combining the talents of large and local is a compelling reason to hire a team of
professionals who represent the needs of expanding commercial clients.

Professional Approach to Marketing

Colliers has an excellent reputation in the market place. Our published materials are always
well researched and complete. All financial analysis is comprehensive and recognized as
accurate among our clients. This attention to detail has encouraged investors to spend more
time and resources on our offerings. Local individuals, out-of-state investors, REIT advisors
and acquisition directors of institutions rely heavily upon the amount and quality of information
provided in the sales package. They are active in acquiring property all over the country, and
will choose to pass on a property that has incomplete information.

We will always present you and your property in its best interest. We are enthused to work for
you and we will personally commit that we will do our best to create a working relationship that
will last for years to come.

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WILLIAM WARREN/STORQUEST 4201 N. 7TH ST. PHOENIX, ARIZONA

References

Mr. Sebastian Drapac Adam McKee

The Drapac Group LAKELAND PROPERTIES
(254) 296-8014
(917) 868-4486
[email protected] [email protected]

Mr. Jim Runner Tim Mosenbacher

PRIVATE INVESTOR/DEVELOPER NOODLES & COMPANY

NWC Arizona Ave & Queen Creek (303) 704-0901
Chandler, Arizona [email protected]

480-518-7439 Scott Holmes
[email protected]
LITTLE MISS BBQ
Brad Jannenga
4301 E. University Dr
WEB PT FOUNDER Phoenix, Arizona 85034
602/339-0821
602- 703-5070 [email protected]
[email protected]

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