A 276-unit luxury apartment complex on the Westin Kierland Golf

Paragon
at K i e r l a n d
1 5 6 0 8 N O RT H 7 1 S T S TREET, S C O TT S DALE , A Z
A 276-unit luxury apartment complex
on the Westin Kierland Golf Course
The Paragon at Kierland
Prospective purchasers will have the opportunity to visit the property via pre-scheduled property tours. These tours will include
access to a sampling of units, maintenance, club house, workout facilities and management offices. In order to facilitate the
property’s ongoing operations, property visitation will require advance notice and scheduling.
OFFER SUBMISSION
Offers should be presented in the form of a non-binding “Letter
of Intent” that includes price, earnest money deposits, due
diligence, closing time frame, buyer qualifications and
capabilities to close.
PARAGON WEBSITE AND VIDEO LOCATIONS
www.colliersswmultifamily.com
www.paragonatkierlandapts.com
Click here to view The Paragon at Kierland video
CONTACT – TEAM LEADER
Jerry J. Tenge
Senior Vice President - Investments
602-222-5094
jerry.tenge@colliers.com
www.colliersswmultifamily.com
PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
EXECUTIVE SUMMARY
Introduction
Colliers International is pleased to announce the
availability of The Paragon at Kierland (“Property”) in
Scottsdale, Arizona. This investment opportunity
consists of a 276-unit property totaling approximately
289,233 square feet.
The community is immaculately maintained in a
resort-like setting located on the Westin Kierland
Golf Club. The property offers luxury one-, two- and
three-bedroom floor plans with spacious layouts and
modern day features, including ceramic countertops
and full-size washer/dryer in every unit.
The Paragon at Kierland is an excellent opportunity
for an investor to acquire a luxurious, unique
community in Scottsdale, Arizona.
INVESTMENT HIGHLIGHTS
•
Located on the Westin Kierland Golf Club at the
Westin Kierland Resort & Spa
•
Spacious floor plans that average 1,048 square
feet
•
Condo quality trophy asset
•
Extensive resort-style amenity package
•
Built 2000, renovated 2008
•
•
Density 26.6 units per acre
Valued-add opportunity or condo sales
opportunity or both
Even though the property was partially upgraded in 2008, there is opportunity for the new owner to finish interior upgrades
and continue to increase rents or to upgrade and sell as condominiums. The Paragon at Kierland is located in the elegant
Scottsdale neighborhood of Kierland. This 640-acre master-planned community is anchored by the 736-room Westin
Kierland Resort & Spa and the Westin Kierland Golf Club. The championship golf course has 27 holes and offers airconditioned golf carts, Segways or walking its manicured perfection.
Afterward, the Agave Spa rejuvenates the mind, body and spirit, showcasing treatment s and healing from the Far East.
More information is found at www.kierlandresort.com .
Adjacent to the Paragon is Kierland Commons, which reveals Valley shopping at its finest with over 70 retailers including
Banana Republic, Coach, Barnes & Noble and Crate & Barrel to name a few. There are a variety of cuisines and
restaurants available. Please visit www.kierlandcommons.com for more information.
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
P. 2
EXECUTIVE SUMMARY
AREA ATTRACTIONS
You can walk to more than 30 fabulous restaurants and
100 specialty shops from the Paragon at Kierland. In
addition, Scottsdale Airport is two minutes away for local
or private flights to the Grand Canyon, Sedona, local ski
resorts and is only 15 miles from Phoenix Sky Harbor
Airport for international flights.

Business friendly

Premier community to live, learn, work and play

High tourism economic impact supports low
property tax structure

World class research and development
opportunities
Nearby is WestWorld of Scottsdale, home to The
Scottsdale Arabian Horse Show, which has been raising
funds for worthy charities since 1955. The annual event is
sponsored by the Arabian Horse Association of Arizona
and attracts thousands of visitors who watch over 2,000
Arabian vie for prize money in various classes of
competition. Please visit www.scottsdaleaz.gov/westworld
for additional information.

Highly educated, sophisticated workforce that is
well-trained

Large concentration of Class A office space and
wide variety of housing

Sophisticated and established infrastructure

Right-to-work state

Natural beauty sustained for future generations
through Scottsdale’s McDowell Sonoran Preserve

Fourth largest employment center at airpark
The “Greatest Show on Grass”,
also known as the WM Phoenix
th
Open, had its 78 playing of this
event in early February 2013 at
the TPC Scottsdale. Please visit
www.wmphoenixopen.com for
additional information.
The annual Barrett Jackson
Auction was held in January 2013 at WestWorld of
Scottsdale. Please visit www.barrett-jackson.com for
more information.
SCOTTSDALE, ARIZONA
Scottsdale is one of the most livable cities in the country –
a place to live, learn, work, play and raise a family.
Translation: Scottsdale is prime for business. With its
relatively affluent population and large employment base,
Scottsdale maintains a competitive edge in attracting new
retailers, company headquarters, technology and
biomedical industry leaders.
A destination famous for casual Southwestern style,
Scottsdale boasts of first-rate resorts, world-class events,
sophisticated arts, lively night life, diverse shopping and
epicurean feasts, while the city’s surrounding natural
beauty is sustained for future generations through
Scottsdale’s McDowell Sonoran Preserve. Scottsdale is
truly a community where economic prosperity,
entrepreneurial spirit and lifestyle converge.
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
SCOTTSDALE AIRPARK
Strategically located along the Loop 101 corridor, and
home to hundreds of companies of all shapes and
occupations, the Scottsdale Airpark is one of the largest
employment centers in the Phoenix metro area. It is
served by two express commuter bus routes; increasing
access to employees from both the far west and the south
eastern sectors of the
metro area. The
Scottsdale Airpark is
located approximately
25 minutes from Sky
Harbor International
Airport. Within a 20minute commute,
employers in the Scottsdale Airpark have access to nearly
200,000 workers, and within a 30-minute commute the
number of workers doubles to more than 400,000.
Scottsdale Airpark consists of 1,000 acres but has 3,300
acres of ancillary businesses doing $30 million annually.
It employs 52,000 people working at 2,800 companies in a
marketplace occupying 33 million square feet. Scottsdale
and Paradise Valley are the only Grade “A” markets in the
Metropolitan Phoenix MSA. For more information, please
visit www.scottsdaleairpark.com.
COLLIERS INTERNATIONAL
P. 3
EXECUTIVE SUMMARY
Terms of the Offering
PARAGON AT KIERLAND
Total Units
276
Year Built
2000
Price
Unpriced
Price per Unit
Unpriced
Price per SF
Unpriced
Average SF per Unit
1,048
Average Market Rent per Unit
$1,284
Average Market Rent per SF
$1.23
Occupancy
98%
Terms
All cash
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
P. 4
PROPERTY INFORMATION
Property Overview
15608 NORTH 71ST STREET
SCOTTSDALE, AZ 85254
The property is located off Scottsdale Road just west of the Loop 101.
PROPERTY SUMMARY
County
Maricopa
Year of Construction
2000
Number of Units
276
Average Unit Size
1,048
Number of Buildings
23
Number of Stories
3
Rentable Area (SF)
289,233
Land Area
10.4 acres
Density
26.6 units per acre
UNIT MIX
Unit Type
No. of Units
Square Feet
Current Market Rent/Mo
Current Market Rent/SF
1 Bedroom/1 Bath
93
924
$1,200
$1.30
2 Bedroom/2 Bath
147
1,059
$1,275
$1.20
3 Bedroom/2 Bath
36
1,323
$1,540
$1.16
Totals/Averages
276
1,048
$1,284
$1.23
*Owner and Broker make no representation as to the actual square footage on any units. Prospective purchasers are encouraged to independently confirm the measurement
of all units.
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
P. 6
PROPERTY INFORMATION
CONSTRUCTION DETAIL
Style
Floors
Framing
Exterior finish
Roof
Garden style
Ceramic tile and carpeting
Wood frame
Stucco
Pitched slate tile
PARKING SPACES
Open
171
Covered Parking
276
Parking per Unit
1.62
Parking per
Bedrooms
0.90
UTILITIES/METERING
Electrical
Individually metered; resident pays
Water/Sewer
Individually metered; resident pays
HVAC
Individually metered; resident pays
Gas
Individually metered; resident pays
Trash
Resident pays
PERSONNEL OVERVIEW
Property manager, two assistant property managers and one
Office Staff
part-time leasing agent
Maintenance/Grounds
Total
Four full-time maintenance/grounds keepers
Eight
FEES AND DEPOSITS
Application Fee
Security Deposit
Non-Refundable
Pet Fee
Other NonRefundable Fees
$41.00 per person
$200 1-bedroom, $300 2-bedroom, $400 3-bedroom
$153 per pet (two pet maximum), $150 refundable pet deposit, $26 monthly pet rent per pet
$204 administrative fee, $11 utility fee
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
P. 7
PROPERTY INFORMATION
Community Amenities
•
Resort style heated swimming pool
•
Westin Resort & Spa, 736-room resort
•
Relaxing spa/hot tub
•
Lush, mature landscaping in a resort-like setting
•
Elegant club house
•
Kierland Commons retail shopping
•
24 hour state-of-the-art fitness center
•
Approximately one mile from the Loop 101
•
Steam rooms
•
Spectacular views available
•
Pool cabanas
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL
P. 8
PROPERTY INFORMATION
Unit Features
•
Gourmet chef’s kitchen with beautiful ceramic
countertops, custom cabinetry and nickel
hardware
•
Sleek black kitchen appliances
•
Built-in microwave oven
•
Kitchen island and breakfast bar
•
Full size washer and dryer
•
Soaring ceilings in spacious, airy rooms
•
Oversized walk-in closets with mirrored doors
•
Ceramic tile and plush carpeting throughout
•
Large private patio or balcony in select units
*
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THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
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COLLIERS INTERNATIONAL
P. 9
PROPERTY INFORMATION
Property Operating Statement
(trailing 12 months March 2012 - Feb 2013)
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
COLLIERS INTERNATIONAL P. 32
PROPERTY INFORMATION
Property Operating Statement 2013
(estimated)
# of
Units
93
147
36
Unit
Description
1 Bed/1 Bath
2 Bed/2 Bath
3 Bed/2 Bath
Square
Feet
924
1,059
1,323
Total
Sq. Ft.
85,932
155,673
47,628
276
Current
Rent/Mo.
$1,250
$1,350
$1,590
Rent
Per Sq. Ft.
$1.35
$1.27
$1.20
$1,348
$1.29
289,233
1,048
Monthly
Rents
$116,250
$198,450
$57,240
Annual
Rents
$1,395,000
$2,381,400
$686,880
$371,940
$4,463,280
2013 Estimated Property Operations
Gross Scheduled Income
Less: Vacancy
Less: Concessions
Less: Models/Employee
Less: Loss to Lease
2.5%
1.0%
1.0%
1.0%
5.5%
Adjusted Gross Income
Plus: Other Income
Plus: RUBS Income
Effective Income
Expenses
Leasing/Advertising
Administration
Utilities
Repairs & Maintenance
Payroll
Management Fee
Property Taxes
Insurance
Reserve for Replacement
Total Expenses
Net Operating Income
Cap Rate
4.25%
4.50%
4.75%
5.00%
THE PARAGON AT KIERLAND | OFFERING MEMORANDUM
Annual
$4,463,280
($111,582)
($44,633)
($44,633)
($44,633)
Per Unit
$16,171
($404)
($162)
($162)
($162)
Per Sq.Ft.
$15.43
($0.39)
($0.15)
($0.15)
($0.15)
$48
$9
$351,483
$13,248
$2,484
$367,215
$4,217,800
$158,976
$29,808
$4,406,584
$15,282
$576
$108
$15,966
$14.58
$0.55
$0.10
$15.24
3.0%
$2,000
$9,667
$16,417
$5,333
$39,167
$11,016
$23,167
$3,690
$5,833
$116,290
$250,926
$24,000
$116,000
$197,000
$64,000
$470,000
$132,198
$278,000
$44,280
$70,000
$1,395,478
$3,011,106
$87
$420
$714
$232
$1,703
$479
$1,007
$160
$254
$5,056
$10,910
$0.08
$0.40
$0.68
$0.22
$1.62
$0.46
$0.96
$0.15
$0.24
$4.82
$10.41
Value Matrix
Price
$70,849,555
$66,913,469
$63,391,707
$60,222,122
New Debt:
Monthly
$371,940
($9,299)
($3,719)
($3,719)
($3,719)
$/Unit
$256,701
$242,440
$229,680
$218,196
$/SF
$244.96
$231.35
$219.17
$208.21
Mo Pmt
$255,784
$241,574
$228,860
$217,417
Return Analysis
Cash Flow Cash on Cash
-$58,304
-0.4%
$112,219
0.8%
$264,792
2.1%
$402,107
3.3%
3.54% Interest
30 Year Amortization
80% LTV
COLLIERS INTERNATIONAL P. 33
CONFIDENTIALITY AND DISCLAIMER STATEMENT
This Offering Memorandum contains select information pertaining to the business and affairs of the Property at The Paragon at Kierland. It has been prepared by Colliers
International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this
Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or
made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in
part upon financial information obtained by Paragon at Kierland from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or
warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with
respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct
their own due diligence.
By acknowledging your receipt of this Offering Memorandum from The Paragon at Kierland, you agree:
1)
The Offering Memorandum and its contents are confidential;
2)
You will hold it and treat it in the strictest of confidence; and
3)
You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or
manner detrimental to the interest of the Seller.
Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to
terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the
purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of The Paragon at Kierland or in the future you discontinue such negotiations, then you agree to purge all
materials relating to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of
the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective
purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees,
or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs
of the Property since the date this Offering Memorandum.