NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM CONTEMPORARY MIXED-USE OFFICE CONCEPT MINNEAPOLIS, MINNESOTA. Presented By NORTHSTAR

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1 NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM CONTEMPORARY MIXED-USE OFFICE CONCEPT MINNEAPOLIS, MINNESOTA Presented By NORTHSTAR of

INVESTMENT SUMMARY PRICE $3,800,000 7.00% CAP Rate ADDRESS 3509 West 44th Street Minneapolis, MN 55410 NET OPERATING INCOME $265,936 ($32.

2 INVESTMENT SUMMARY PRICE $3,800, % CAP Rate ADDRESS 3509 West 44th Street Minneapolis, MN NET OPERATING INCOME $265,936 ($32.04/SF) APN LEASE TERM REMAINING 5 Years LEASE TYPE NNN BUILDING/LOT SIZE 8,300 SF / 0.14 Acres TYPE OF OWNERSHIP Fee Simple YEAR BUILT/RENOVATED 1914/2016 Marcus and Millichap is pleased to exclusively present the opportunity to acquire a net leased investment in Linden Hills, one of the most sought after neighborhoods in South Minneapolis. The property is the former SW Auto Building and recently underwent a complete renovation. The property is leased on a long term basis to Penny s Coffee, with this location serving as a Penny s retail location as well as their corporate headquarters. The property contains roughly 5,600 square feet of main floor retail/office space and 2,600 square feet of lower level office space. The property is well positioned in the Linden Hills neighborhood of Minneapolis. Linden Hills is bounded by Lake Harriet on the East, Edina on the West, Lake Calhoun to the North and 50th Street on the South. The property s creative office portion benefits from its central location within some of the most desirable residential neighborhoods in all of the Twin Cities. The success of the retail component at the Property is driven by its location on a commercial corridor, abundance of city parking available, and heavy foot traffic due to the high density of homes in the immediate area. Penny s signed a lease for six years at the Property with options to renew. The lease has scheduled rental increases of 3% annually. Penny s is a new and growing concept. This will serve as their second location. They already have a third location under construction, and have plans for more. Highlights: Linden Hills Location Average Household Income Nearly $200k Abundant Foot & Bike Traffic - Close to Lake Harriet Contemporary Office-Retail Hybrid Format Artisanal Coffee Concept 2016 Complete Building Renovation 3% Annual Rental Increases This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

3 INVESTMENT SUMMARY LEASE SUMMARY Lease Type Roof & Structure Lease Term Remaining Size of Premises [SF] NNN Tenant 5 Years Retail/Office 5,653 Basement [Estimated] 2,647 Total 8,300 Renewal Options 2 ( 5 ) with 180 Days Notice and 3% annual increases Early Termination Option None Right of First Refusal None Estoppel Request Time 20 Days TENANT SUMMARY CAM Property Insurance Real Estate Tax Utilities Management Fee HVAC Capital Expenses Tenant responsible for all repair & maintenance Tenant Responsible Tenant Responsible Tenant Responsible - Pays Direct Tenant Responsible - Not to exceed 4% of gross rents Tenant Responsible for repair & replacement Cost to be amortized over useful life and reimbursed by Tenant annually. RENT SCHEDULE Date Annual Rent Monthly Rent Per SF 5/1/2017 [Current] $258, $21, /1/2018 $265, $22, /1/2019 $273, $22, /1/2020 $281, $23, /1/2021 $289, $24, /1/2022 $297, $24, This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

Locations also offer limited beer & wine options.

4 TENANT SUMMARY With one original location in the heart of downtown Minneapolis, Penny s Coffee is an urban, upscale, full-service cafe. The menu reflects carefully cultivated food and beverage options, including a full coffee and espresso selection, crepes, hot teas, and local, artisanal baked goods. Locations also offer limited beer & wine options. TENANT OVERVIEW Tenant Penny's Coffee, LLC Tenant Trade Name Penny's Coffee Lease Commencement April 2, 2017 Rent Commencement May 1, 2017 Lease Expiration April 30, 2023 Address of Premises 3509 West 44th Street, Minneapolis, MN IN THE NEWS New downtown Minneapolis coffee shop, Penny s, already brewing up more locations This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

5 INTERIOR PHOTOS

6 PROPERTY PHOTO

7 PROPERTY PHOTO

8 PROPERTY PHOTOS

9 AERIAL

DEMOGRAPHICS [CENSUS BLOCK BG1098004] 1 Mile 3 Miles 5 Miles 2011 Population 16,149 83,094 229,420 2013 Population 16,497 85,306 235,610 2016 Population 17,070 87,126 243,720 2021 Projected

$112,612 2021 Projected Average Household Income $190,027 $158,253 $126,655 2016 % Attained High School Degree 6.01% 8.19% 12.11% 2016 % Attained Some College 13.68% 13.39% 16.

80% 2016 % Employed - Blue Collar Jobs 6.23% 5.69% 9.58% 2015 % I Like to Try New Drinks - Agree A Lot 8.73% 12.16% 14.81% 2015 % I Shop for Organic/Natural Foods - 10.79% 12.56% 10.

10 DEMOGRAPHICS [CENSUS BLOCK BG ] 1 Mile 3 Miles 5 Miles 2011 Population 16,149 83, , Population 16,497 85, , Population 17,070 87, , Projected Population 17,833 90, , Average Household Income $139,254 $114,000 $91, Average Household Income $150,712 $122,280 $98, Average Household Income $175,496 $140,064 $112, Projected Average Household Income $190,027 $158,253 $126, % Attained High School Degree 6.01% 8.19% 12.11% 2016 % Attained Some College 13.68% 13.39% 16.28% 2016 % Attained Bachelor s Degree 41.12% 41.22% 36.05% 2016 % Attained Master s Degree 20.51% 19.06% 14.88% 2016 % Employed - White Collar Jobs 86.08% 84.87% 74.80% 2016 % Employed - Blue Collar Jobs 6.23% 5.69% 9.58% 2015 % I Like to Try New Drinks - Agree A Lot 8.73% 12.16% 14.81% 2015 % I Shop for Organic/Natural Foods % 12.56% 10.54% Agree A Lot 2015 % I Try to Eat Gourmet Food When I Can 4.16% 4.78% 4.75% - Agree A Lot 2015 % Drinking 2 Cups of Coffee Per Day 8.47% 9.83% 10.76% 2015 % Drinking 3 Cups of Coffee Per Day 7.64% 8.51% 8.63% 2015 % Drinking 4 Cups of Coffee Per Day 23.63% 16.62% 12.64% 2015 % Drinking 5 Cups of Coffee Per Day 10.59% 10.46% 9.63% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

11 AERIAL DOWNTOWN MINNEAPOLIS

12 AERIAL LOOKING TO THE EAST OF SUBJECT PROPERTY

13 AERIAL LOOKING TO THE WEST OF SUBJECT PROPERTY

References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

14 PROPERTY SUMMARY LOCAL MAP CITY MAP This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

MARKET SUMMARY The largest city in the state of

Minneapolis encompasses thirteen lakes, parkways,

Together, the Twin Cities are the second-largest

The city s economy is rooted in the nation s

companies who make Minneapolis their headquarters.

has been secured from sources we believe to be

warranties, expressed or implied, as to the

Buyer must verify the information and bears all

15 MARKET SUMMARY The largest city in the state of Minnesota, Minneapolis is the larger of the two Twin Cities, with its sibling, St. Paul, just across the Mississippi River. Minneapolis encompasses thirteen lakes, parkways, and the Grand Rounds National Scenic Byway. Together, the Twin Cities are the second-largest economic center in the Midwest, after Chicago. The city s economy is rooted in the nation s fifth-highest concentration of Fortune 500 companies who make Minneapolis their headquarters. HOME TO 27 FORTUNE 1000 COMPANIES This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

CONTACT Presented By SEAN DOYLE First Vice President Investments MATT HAZELTON First Vice President Investments AJ PRINS First Vice President Investments CORY VILLAUME First Vice President

16 CONTACT Presented By SEAN DOYLE First Vice President Investments MATT HAZELTON First Vice President Investments AJ PRINS First Vice President Investments CORY VILLAUME First Vice President Investments (952) (952) (952) (952) NORTHSTAR of 1350 Lagoon Avenue Suite 840 Minneapolis, MN This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc Marcus & Millichap. All rights reserved. ACTIVITY ID Y

NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM. Presented By NORTHSTAR REPRESENTATIVE PHOTO

NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM REPRESENTATIVE PHOTO Presented By NORTHSTAR OF INVESTMENT SUMMARY PRICE $1,800,000 5.68% CAP Rate ADDRESS 1811 Paul Bunyan Drive Bemidji, MN 56601 APN 80.03011.00