WOODBURY STRIP CENTER A NNN LEASED STRIP CENTER

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1 REPRESENTATIVE PHOTO WOODBURY STRIP CENTER A NNN LEASED STRIP CENTER WOODBURY, MN

2 Overview SURROUNDING RETAIL WOODBURY STRIP CENTER 700 COMMONS DRIVE, WOODBURY, MN $11,985,465 PRICE 6.35% CAP LEASABLE SF 13,676 SF LAND AREA 2.49 Acres LEASE TYPE NNN AVG LEASE TERM 11.3 Years YEAR BUILT 2018 *Under Construction PARKING 99 Spaces New Construction strip center anchored by Raising Cane s on a 15-year corporate NNN lease and Sleep Number on a 10-year NNN lease Attractive 3 building configuration with drive thru, free standing building, and strip center with 2 end caps Excellent location at the entrance of Woodbury s dominant retail corridor Stellar average household income of $124,000 within a 1-mile radius 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. Buyer must verify the information and bears all risk for any inaccuracies. 2

3 Investment Highlights THE OFFERING provides an opportunity to acquire Woodbury Center, a five tenant strip center located in the affluent Minneapolis suburb of Woodbury, MN. The subject property is currently under construction with a target delivery of November The property is anchored by Raising Cane s on a new 15-year lease and Sleep Number on a new 10-year lease, and features internetresistant retailers including doggy day care & veterinarian and wellness. All leases include rent escalations every five years and multiple 5-year options to extend the leases. THE LOCATION is on a hard corner at the entrance to Woodbury s main retail hub and benefits from over 24,000 vehicles per day. Directly across the street is the city s largest shopping center, Tamarack Village, anchored by Aldi, CVS, Home Depot, and Cabela s. Additionally, just behind the subject property is CityPlace, a newly constructed, 100-acre retail/mixed-use neighborhood dubbed the mall of the future. CityPlace features a lively tenant mix including Whole Foods and Nordstrom Rack. Directly south of the property is the vast majority of residential housing in Woodbury, making its location ideal. Contact the team JOHN ANDREINI jandreini@capitalpacific.com PH: CA BRE# JUSTIN SHARP jsharp@capitalpacific.com PH: CA BRE# WOODBURY is a wealthy suburb within the greater Minneapolis MSA. The city has an estimated population of 66,700 residents and features astounding average household incomes of $124,000 within a 1-mile radius. The strong income levels correspond to the fact that Minnesota is home to 19 Fortune 500 companies, including Target, General Mills, United Health, and 3M. SURROUNDING RETAIL IN CONJUNCTION WITH MN LICENSED BROKER: Moshe Bukrinsky MGS Realty Co. Mgsr1@comcast.net AVERAGE HOUSEHOLD INCOMES EXCEED $120,000 WITHIN A 3-MILE RADIUS OF THE PROPERTY 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. Buyer must verify the information and bears all risk for any inaccuracies. 3

4 INWOOD AVENUE N Aerial 494 ELEMENTARY H&R BLOCK ACADEMY GOLF COURSE HIGH HIGH , ELEMENTARY 10 RAMSEY COUNTY LOWER AFTON ROAD MIDDLE 494 CK ARA TAM D A O R 17,700 GOLF COURSE VA L LE WOODWINDS HEALTH CAMPUS 10 Y VALLEY CREEK ROAD CREEK ROAD CITY OF WOODBURY CITY OF WOODBURY 54,000 ELEMENTARY 128,000 MIDDLE ELEMENTARY 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. Buyer must verify the information and bears all risk for any inaccuracies. RADIO DRIVE 494 GOLF COURSE ELEMENTARY MIDDLE ELEMENTARY 24,600 ELEMENTARY 24,300 HIGH GOLF COURSE WOODBURY DRIVE MINNEAPOLIS CITY CENTER COMMONS DRIVE ST. PAUL DOWNTOWN AIRPORT 4

5 Surrounding Retail 5

6 Income & Expense CURRENT PROPOSED Price: $11,985,465 Proposed Loan Amount $8,389,826 Capitalization Rate: 6.35% Loan To Value 70% Price Per Square Foot: $ Interest Rate 5.00% Down Payment 30% $3,595,640 Amortization 30 Year Loan Amount 70% $8,389,826 Term 10 Year Total Leased (SF): % 13,676 Net Operating Income $761,077 Total Vacant (SF): 0.00% 0 Debt Service ($540,461) Total Rentable Area (SF): % 13,676 Pre-Tax Cash Flow $220,616 INCOME P/SF Debt Coverage Ratio 1.41 Scheduled Rent $55.65 $761,077 Cash-on-cash Return 6.14% EFFECTIVE GROSS INCOME $761,077 Principal Pay down (Year 1) $123,781 PROPOSED FINANCING/CASH FLOW Total Return $344,397 EXPENSE P/SF Yield 9.58% Property Taxes $0.00 NNN Insurance $0.00 NNN CAM $0.00 NNN TOTAL OPERATING EXPENSES $0.00 $0 NET OPERATING INCOME $761,077 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. Buyer must verify the information and bears all risk for any inaccuracies. 6

7 Rent Roll LEASE TERMS RENT SUMMARY TENANT SQ. FT. % OF GLA TERM MONTHLY RENT ANNUAL RENT RENT/FT Raising Cane s 2, % 1 5 $26, $313, Corporate Lease 6 10 $27, $329, $28, $346, Option $30, $365, Option $32, $387, Option $34, $410, Option $36, $435, Option $38, $463, WellHaven DayCare for Dogs 2, % 1 5 $5, $70, $35.00 Corporate Guaranty 6 10 $6, $77, $38.50 Option $7, $84, $42.00 Option $7, $91, $45.50 WellHaven PetHealth 3, % 1 5 $8, $105, $35.00 Corporate Guaranty 6 10 $9, $115, $38.50 Option $10, $126, $42.00 Option $11, $136, $45.50 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. Buyer must verify the information and bears all risk for any inaccuracies. 7

8 Rent Roll Contd. LEASE TERMS RENT SUMMARY TENANT SQ. FT. % OF GLA TERM MONTHLY RENT ANNUAL RENT RENT/FT Sleep Number 3, % 1 5 $15, $184, $52.00 Corporate Lease 6 10 $16, $203, $57.20 Option $18, $223, $62.92 Option $20, $245, $69.12 Restore Cryotherapy 2, % 1 5 $7, $87, $40.00 Personal Guaranty 6 10 $8, $96, $44.00 Option $8, $106, $48.40 Option $9, $116, $53.24 OCCUPIED 13, % TOTAL CURRENT $63, $761, $55.65 VACANT % CURRENT TOTALS 13, % Rent and store opening are projected bo be December 1, 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. Buyer must verify the information and bears all risk for any inaccuracies. 8

9 Lease Abstract EXPENSES LANDLORD S OBLIGATIONS Zero maintenance or expense obligations. PREMISE & TERM TAXES proportionate share of taxes. TENANT BUILDING SF LEASE TYPE TERM OPTIONS RENT Raising Cane s 2,926 SF NNN 15 Years Five 5-year options INSURANCE Tenant shall maintain insurance directly at its sole cost and expense. COMMON AREA MAINTENANCE Tenant shall maintain roof, structure, and all improvements and common areas directly, and at its sole expense. BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $26, $313, $27, $329, $28, $346, UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $30, $365, # $32, $387, # $34, $410, # $36, $435, # $38, $463, 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. Buyer must verify the information and bears all risk for any inaccuracies. 9

10 Lease Abstract PREMISE & TERM TENANT BUILDING SF LEASE TYPE TERM OPTIONS Wellhaven Daycare for Dogs 2,003 SF NNN 10 Years Two 5-year options EXPENSES LANDLORD S OBLIGATIONS Roof and structure, however tenant is responsible for reimbursement of repairs and maintenance of roof. TAXES proportionate share of taxes. INSURANCE proportionate share of insurance. RENT COMMON AREA MAINTENANCE proportionate share of CAMs. BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $5, $70, $6, $77, UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $7, $84, # $7, $91, 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. Buyer must verify the information and bears all risk for any inaccuracies. 10

11 Lease Abstract PREMISE & TERM TENANT BUILDING SF LEASE TYPE TERM OPTIONS Wellhaven Pet Health 3,004 SF NNN 10 Years Two 5-year options EXPENSES LANDLORD S OBLIGATIONS Roof and structure, however tenant is responsible for reimbursement of repairs and maintenance of roof. TAXES proportionate share of taxes. INSURANCE proportionate share of insurance. RENT COMMON AREA MAINTENANCE proportionate share of CAMs. BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $8, $105, $9, $115, UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $10, $126, # $11, $136, 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. Buyer must verify the information and bears all risk for any inaccuracies. 11

12 Lease Abstract EXPENSES LANDLORD S OBLIGATIONS Roof and structure. PREMISE & TERM TAXES proportionate share of taxes. TENANT BUILDING SF LEASE TYPE TERM OPTIONS Sleep Number 3,551 SF NNN 10 Years Two 5-year options INSURANCE proportionate share of insurance. COMMON AREA MAINTENANCE proportionate share of CAMs. RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $15, $184, $16, $203, UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $18, $223, # $20, $245, 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. Buyer must verify the information and bears all risk for any inaccuracies. 12

13 Lease Abstract PREMISE & TERM TENANT BUILDING SF LEASE TYPE TERM OPTIONS Restore Cryotherapy 2,192 SF NNN 10 Years Two 5-year options EXPENSES LANDLORD S OBLIGATIONS Landlord to maintain foundation, structure, exterior walls. TAXES proportionate share of taxes. INSURANCE proportionate share of insurance. RENT COMMON AREA MAINTENANCE proportionate share of CAMs, with a CAM cap of 3% per year (Snow removal cost is uncapped). BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 1-5 $7, $87, $8, $96, UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority. OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT # $8, $106, # $9, $116, 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. Buyer must verify the information and bears all risk for any inaccuracies. 13

14 Tenant Overview RAISING CANE S $1.44B NET NET SALES Raising Cane s Chicken Fingers is an award winning fast-food restaurant chain founded in 1996 in Baton Rouge, Louisiana, by Todd Graves. The company, privately held by its founders, has nearly 400 locations in 24 states with multiple new restaurants under construction. The company has one love quality chicken finger meals and is continually recognized for its unique business model and customer satisfaction. The casual-dining restaurants offer a menu of chicken fingers, Cane s sauce, Texas Toast, rolls, crinklecut fries and coleslaw. Raising Cane s vision is to open restaurants all over the world and be the brand for quality chicken finger meals, a great crew, cool culture, and active community involvement. $1B 2017 SALES WELLHAVEN PETHEALTH AND DAYCARE FOR DOGS REPRESENTATIVE PHOTO 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. Buyer must verify the information and bears all risk for any inaccuracies. WellHaven is pioneering a model that empowers pet parents to seek a wider range of resources to care for their animals and veterinary professionals to adopt better business practices. The company s mission is to build a culture that keeps good veterinarians in practices that are better enabled to succeed with infrastructure and administrative support provided by WellHaven. The company s leadership team, which has over 220 years of experience operating successful veterinary clinics, helps veterinarians offload administrative burdens like human resources, taxes, payroll and recruiting so they can focus on pet care. The company is backed by the private equity firm Capricorn Healthcare out of Palo Alto. They have 22 open locations and 10 more under construction or in planning. 14

15 Tenant Overview SLEEP NUMBER Founded 30 years ago and based in Minneapolis, Sleep Number Corporation, together with its subsidiaries, provides sleep solutions and services in the United States. It designs, manufactures, markets, retails, and services beds, bases, and bedding accessories under the Sleep Number name. The company is known for its revolutionary Sleep Number 360 smart bed which has been designed to automatically adjust the bed s firmness, comfort, and support, and biometric sleep tracking to ensure their customers best night sleep. Sleep Number products are sold throughout the approximately 560 company-owned stores located across all 50 states; select bedding retailers and direct marketing operations. The company has had continued growth. In 2017, Sleep Number saw net sales increased by 10% to $1.44 billion, operating income increased by 20% to $92 million, and earnings per diluted share increased 41% to $1.55. $1.44B 2017 NET SALES RESTORE CRYOTHERAPY REPRESENTATIVE PHOTO 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. Buyer must verify the information and bears all risk for any inaccuracies. Founded in Austin, TX in 2015, Restore Cryotherapy is the leading retail provider of spa-based cryotherapy and cutting-edge treatments for hyper-wellness, chronic pain and injury recovery, anti-aging and optimal health. The process Restore Cryotherapy uses to create Hyper Wellness is Cryotherapy, IV Drip Therapy, Hyperbaric Oxygen Therapy, Infrared Saunas, and Compression Therapy. Restore Cryotherapy has 13 locations across 7 states, with plans to open 3 more. 15

16 RADIO DRIVE HUDSON ROAD COMMONS DRIVE 24,600 TAMARACK ROAD TAMARACK ROAD TAMARACK VILLAGE 24,300 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. Buyer must verify the information and bears all risk for any inaccuracies. RADIO DRIVE Surrounding Retail Site Plan 16

17 Site Plan 13,676 RENTABLE SF 2.49 ACRES 99 SPACES NOT A PART ,000 RADIO DRIVE 24, RADIO ROAD PROPOSED RETAIL 2,192 SF VETERINARY CLINIC 3,004 SF VETERINARY DAYCARE 2,003 SF COMMONS DRIVE MONUMENT SIGN MONUMENT SIGN WOODBURY STRIP CENTER COMMONS DRIVE TAMARACK ROAD TAMARACK ROAD TAMARACK ROAD 17,700 This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. NOT A PART 17

18 Demographics POPULATION 1-MILE 3-MILES 5-MILES ,593 57, , ,967 61, ,210 MINNEAPOLIS (22 MIN, 19 MILES) ,297 65, , HH INCOME WOODBURY 1-MILE 3-MILES 5-MILES Average $124,066 $122,288 $112,089 TOP EMPLOYERS OF MINNEAPOLIS-SAINT PAUL MSA EMPLOYER # OF EMPLOYEES University of MN-TWIN Cities 18,000 Target Stores Inc 10,000 Pharmacy At Park Nicollet 9,000 Park Nicollet Methodist Hospital 8,200 Park Nicollet Clinic 8,000 THE AVERAGE HOUSEHOLD INCOME WITHIN A 1-MILE RADIUS IS OVER $124K 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. Buyer must verify the information and bears all risk for any inaccuracies. 18

19 Location Overview WOODBURY, MINNESOTA MINNEAPOLIS WOODBURY is an affluent suburb of the Twin Cities - Minneapolis and Saint Paul, MN. At only 19 miles east of Minneapolis, Woodbury residents enjoy the benefits of living near an urban center while also having greater property size, property value, schools, and space comparatively. Economically, Woodbury is a popular hub for distribution companies due to its strategic location along Interstate 94. ECONOMIC GROWTH MINNEAPOLIS-SAINT PAUL serves as a hub for headquarters with thriving companies who take advantage of the area s locational assets includes UnitedHealth Group, Target, Best Buy, US Bank, 3M, CHS, U.S. Bancorp, General Mills and more. The area has a thriving economy, with value exports of $19.6B and gross regional products of $248.8B a year. Woodbury draws visitors with its annual Woodbury Days Festival each summer. The city is also home to the 51 parks, 2 higher education schools, and over 100 miles of trails. In 2018, Money Magazine named Woodbury the 10th best place to live in the United States. 3.5 MILLION TWIN CITIES MSA POPULATION (ESTIMATED) 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. Buyer must verify the information and bears all risk for any inaccuracies. 19

20 We d love to hear from you. JOHN ANDREINI jandreini@capitalpacific.com PH: CA BRE# JUSTIN SHARP jsharp@capitalpacific.com PH: CA BRE# IN CONJUNCTION WITH MN LICENSED BROKER: Moshe Bukrinsky MGS Realty Co. Mgsr1@comcast.net CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: Copyright 2018 Capital Pacific Partners ZEB RIPPLE JOHN ANDREINI ZANDY SMITH JUSTIN SHARP CHRIS KOSTANECKI JOE CACCAMO RICK SANNER CHRIS PETERS DAVE LUCAS JACK NAVARRA 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. Buyer must verify the information and bears all risk for any inaccuracies. CAPITALPACIFIC.COM