SINGLE TENANT MINNESOTA INVESTMENT OPPORTUNITY LAKEVILLE (S&P: A) (MINNEAPOLIS - ST. PAUL MSA) ACTUAL SITE

Transcription

1 SINGLE TENANT INVESTMENT OPPORTUNITY (S&P: A) LAKEVILLE MINNESOTA (MINNEAPOLIS - ST. PAUL MSA)

2 EXCLUSIVELY MARKETED BY FRANK ROGERS FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 101 W Big Beaver Road, Suite 14 Troy, MI DL: M: Frank.Rogers@srsre.com MI License No MICHAEL CARTER FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 101 W Big Beaver Road, Suite 14 Troy, MI DL: M: Michael.Carter@srsre.com MI License No Broker of Record: Dan Boschwitz, MN License No

3 TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING SUMMARY INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 13 AREA OVERVIEW DEMOGRAPHICS 16 FINANCIALS RENT ROLL BRAND PROFILE

4 INVESTMENT SUMMARY SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building) in a net leased, corporate guaranteed, GCR Tire Services property located in Lakeville, MN (Minneapolis - St. Paul MSA). The tenant, Bridgestone Americas Tire Operations, LLC, has 4 years remaining in their initial term with 4 (5-year) options to extend. The lease features 10% rental increases at the beginning of each option period and is NN with landlord responsibilities limited to roof, structure, and utility lines serving the building. GCR Tire Centers, Inc. operates as a subsidiary of Bridgestone Americas Tire Operations, LLC (S&P: A). GCR service centers target the larger manufactured tire product for Firestone/ Bridgestone, with much of the business focused on retail but also service towards larger truck distributor fleet vehicles. The GCR Tire & Service is strategically positioned just off 215th Street West (11,200 VPD) and only two miles east of Interstate 35 (37,300 VPD). The asset is ideally located within the Airlake Industrial Park, Minnesota s second largest industrial park that spans over 1,500 acres of land. The park is home to over 200 companies, ranging from start-ups to large corporations with an estimated 4,500 employees, providing the asset with direct consumer base to draw from. Additionally, the site is positioned directly across from the new FedEx Freight distribution facility, which sits on 46 acres of land with 12 acres set aside for future expansion. Moreover, the asset is just under 2 miles northwest of Airlake Airport, a public use airport primarily used by recreational pilots. The airports positioning next to Airlake Industrial Park makes it ideally-suited for business aviation needs. Lakeville is a rapidly growing suburb in the Twin Cities MSA with a population of over 65,100 residents with an average household income $126, INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP.

5 OFFERING SUMMARY OFFERING PRICING: $4,610,000 NET OPERATING INCOME: $334,219 CAP RATE: 7.25% GUARANTY: Corporate TENANT: Bridgestone Americas Tire Operations, LLC (S&P: A) LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof, Structure, and Utility Lines serving the Building PROPERTY SPECIFICATIONS RENTABLE AREA: 25,580 SF LAND AREA: 3.37 Acres PROPERTY ADDRESS: Humboldt Court, Lakeville, MN YEAR BUILT/ RENOVATED: 2006/2008 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

6 INVESTMENT HIGHLIGHTS CORPORATE GUARANTEED LEASE OPTIONS TO EXTEND SUBSIDIARY OF BRIDGESTONE TIRES (S&P: A) GCR Tire Centers operates as a subsidiary of Bridgestone Americas Tire Operations, LLC The tenant has 4 years remaining in their initial term with 4 (5-year) options to extend Features 10% rental increases the beginning of each option period GCR service centers target the larger manufactured tire product for Firestone/Bridgestone, with much of the business focused on retail but also service towards larger truck distributor fleet vehicles NN LEASE FEE SIMPLE OWNERSHIP MINIMAL LANDLORD RESPONSIBILITIES Tenant pays for CAM, taxes, and insurance Landlord responsibilities limited to roof, structure, and utility lines serving the building MAJOR THOROUGHFARE NEAR INTERSTATE 35 (37,300 VPD) GCR Tire & Service strategically positioned just off 215th Street West (11,200 VPD), a major thoroughfare for commuters traveling to and from the Airlake Industrial Park Two miles east of Interstate 35 (37,300 VPD), a major north/south route traveling directly into the heart of Minneapolis (38 Min/28 Miles) Convenient location with nearby direct on/off-ramp access LOCATED WITHIN AIRLAKE INDUSTRIAL PARK (1,500 ACRES) ACROSS FROM NEW FEDEX DISTRIBUTION FACILITY NEAR AIRLAKE AIRPORT Located within the Airlake Industrial Park, Minnesota s second largest industrial park that covers over 1,500 acres of land The park is home to over 200 companies, ranging from start-ups to large corporations with an estimated 4,500 employees Ideally positioned directly across from the new FedEx Freight distribution facility, which sits on 46 acres of land with 12 acres set aside for future expansion Just under 2 miles northwest of Airlake Airport The airport s positioning next to Airlake Industrial Park makes it ideally-suited for business aviation needs Provides the asset with a direct consumer base to draw from GROWING SUBURB STRONG DEMOGRAPHICS IN AFFLUENT 5-MILE TRADE AREA Lakeville is a rapidly growing suburb in the Twin Cities MSA More than 65,100 residents and nearly 19,000 employees support the trade area $126,908 affluent average household income 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP.

7 PROPERTY OVERVIEW ACCESS Humboldt Court:... 1 Access Point TRAFFIC COUNTS 215th Street W:...11,200 Cars Per Day Interstate 35:...37,300 Cars Per Day IMPROVEMENTS There is approximately 25,580 SF of existing building area. PARKING There are approximately 35 parking spaces on the owned parcel. The parking ratio is approximately stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2006 Parcel Number: Acres: 3.37 Square Feet: 146,587 SF ZONING Commercial 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP.

8 Airlake Industrial Park (1,500 Acres) Airlake Airport (425 Acres) 11,200 CARS PER DAY 215th St. W Humboldt Ct.

9 11,200 CARS PER DAY FedEx Distribution Plant 215th St. W Humboldt Ct.

10 Lakeview Elementary School Lakeville South High School 11,200 CARS PER DAY McGuire Middle School Airlake Industrial Park (1,500 Acres) 215th St. W Demographics 1 Mile 3 Mile 5 Mile Estimated Population: 4,495 19,129 65,106 Average Household Income: $109,431 $123,518 $126,908 Estimated Employees: 4,299 10,760 18,929 Airlake Airport (425 Acres)

11 HUMBOLDT CT. HYTRAIL CIR.

12 38 Minutes 28 Miles To Minneapolis MINNEAPOLIS ST PAUL 35 Minutes 31 Miles To St Pual 2018 ESTIMATED POPULATION 1 Mile... 4,495 3 Mile... 19,129 5 Mile... 65, AVERAGE HOUSEHOLD INCOME 1 Mile...$109,431 3 Mile...$123,518 5 Mile...$126, ESTIMATED TOTAL EMPLOYEES 1 Mile... 4,299 3 Mile... 10,760 5 Mile... 18,929 LAKEVILLE

13 AREA OVERVIEW Lakeville, Minnesota Lakeville is a city in Dakota County, Minnesota, United States. It is a suburb of Minneapolis-Saint Paul, approximately 20 miles (32 km) south of both downtown Minneapolis and downtown St. Paul. Lakeville is one of the fastest-growing cities in the Twin Cities area. The City of Lakeville had a population of 63,683 as of July 1, Lakeville ranks in the upper quartile for Population Density and Diversity Index when compared to the other cities, towns and Census Designated Places (CDPs) in Minnesota. Airlake Industrial Park, developed by Maynard Johnson with colleagues at Bloomington-based Hitchcock Industries, is home to as many as 200 companies and an estimated 4,500 employees. The 1,500-acre park, one of the state s largest contiguous industrial parks, has attracted companies ranging from start-ups to large corporations.airlake Industrial Park was a contrived name air represented the airport that Hitchcock Industries built on the grounds and lake signified nearby Lake Marion. The city is served by three different school districts, whose boundaries were determined while the community was largely agricultural. Today Independent School District 196 ( Rosemount- Apple Valley-Eagan ) and Farmington School District 192 serve parts of northern and eastern Lakeville. Most Lakeville households are served by Lakeville Area School District 194. In the fall of 2005, the Lakeville School District opened its second high school, Lakeville South. Some students attend public schools in other school districts chosen by their families under Minnesota s open enrollment statute.lakeville North was a Blue Ribbon school of excellence in Each high school has nearly 2,000 students. There are eight public elementary schools and three public middle schools. Century Middle School students go on to Lakeville North, McGuire Middle School students to Lakeville South, and Kenwood Middle School students to either, depending on their neighborhood of residence. Airlake Airport is a public use airport in Dakota County, Minnesota, United States. Owned by the Metropolitan Airports Commission, it is 22 nautical miles (35 km) south of the central business district of Minneapolis.The airport is located near the Twin Cities suburbs of Lakeville and Farmington.This facility is included in the National Plan of Integrated Airport Systems for , which categorized it as a general aviation reliever airport. 13 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.

14 AREA OVERVIEW Airlake Industrial Park Airlake Industrial Park is located in Lakeville, Minnesota. Lakeville has had major industry since the 1960s including the Airlake Industrial Park, which is served by Airlake Airport, a regional reliever airport. Airlake Industrial Park, developed by Maynard Johnson with colleagues at Bloomington-based Hitchcock Industries, is home to as many as 200 companies and an estimated 4,500 employees. The 1,500-acre park, one of the state s largest contiguous industrial parks, has attracted companies ranging from start-ups to large corporations. Having Airlake Industrial Park has been an asset to the city. The availability of land for companies looking to locate in Lakeville, having that industrial park has been a benefit to the city of Lakeville for decades. Airlake Industrial Park was a contrived name air represented the airport that Hitchcock Industries built on the grounds and lake signified nearby Lake Marion. Lakeville is served by the Airlake Airport, which has a single runway with an ILS approach. The airport is managed by the Metropolitan Airports Commission as a reliever facility to draw general aviation traffic.this center provides traffic control services for Minnesota and surrounding states.airlake Industrial Park have 1,500-acre park alongwith Airlake Airport which was created in 1966 bymaynard Johnson, of the Bloomington based manufacturing company Hitchcock Industries. And in 1997 Airlake Industrial Park was home to 77 businesses. 14 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.

15 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2018 Estimated Population 4,495 19,129 65, Projected Population 4,842 20,673 69, Census Population 3,873 15,978 58,686 Projected Annual Growth 2018 to % 1.56% 1.25% Historical Annual Growth 2010 to % 2.21% 1.27% 2018 Estimated Households 1,581 6,595 21, Projected Households 1,712 7,157 23, Census Households 1,373 5,442 19,470 Projected Annual Growth 2018 to % 1.65% 1.27% Historical Annual Growth 2010 to % 2.36% 1.31% 2018 Estimated White 87.42% 88.68% 89.38% 2018 Estimated Black or African American 4.38% 3.55% 3.14% 2018 Estimated Asian or Pacific Islander 3.72% 3.86% 4.11% 2018 Estimated American Indian or Native Alaskan 0.29% 0.35% 0.41% 2018 Estimated Other Races 1.94% 1.68% 1.33% 2018 Estimated Hispanic 5.03% 4.39% 3.98% 2018 Estimated Average Household Income $109,431 $123,518 $126, Estimated Median Household Income $88,873 $102,249 $105, Estimated Per Capita Income $38,469 $42,801 $42, Estimated Total Businesses , Estimated Total Employees 4,299 10,760 18, AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.

16 RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Bridgestone Americas 25,580 8/1/2013 7/31/2023 Current - $27,852 $1.09 $334,219 $13.07 NN 4 (5-Year) Tire Operations, LLC 10% Incr. at beg. (Corporate Guaranty) of each option FINANCIAL INFORMATION PROPERTY SPECIFICATIONS Price:...$4,610,000 Net Operating Income:...$334,219 Cap Rate: % Lease Type:... NN For financing options and loan quotes, please contact our SRS Debt & Equity team at debtequity-npb@srsre.com. Year Built: Rentable Area:... 25,580 SF Land Area: Acres Address: Humboldt Court, Lakeville, MN RENT ROLL SRS NATIONAL NET LEASE GROUP.

17 BRAND PROFILE BRIDGESTONE Bridgestone Corporation manufactures and sells tires and rubber products worldwide. The company was founded in 1931 and is headquartered in Tokyo, Japan.The company provides tires and tire tubes for passenger cars, trucks, buses, construction/mining vehicles, industrial machines, agricultural machines, aircraft, and motorcycles and scooters; and tire related products, retread materials and services, tire raw materials, and automotive maintenance and repair services. It also offers vehicle parts, polyurethane foam and related products, electronic precision parts, industrial materials related products, civil engineering and construction materials and equipment, and other products; commercial roofing and other materials; golf balls, golf clubs, other sports products; and bicycles, bicycle related and other products, as well as finance and other services. Company Type:...Public (K.K) 2017 Employees: , Revenue:... $3.64 Trillion 2017 Net income:... $ Billion 2017 Assets:... $3.96 Trillion 2017 Equity:... $2.35 Trillion Credit Rating:...S&P:A GCR TIRE SERVICES GCR Tire Inc. operates tire products stores in North America. The company offers tires products and retreading services. It also operates retail stores, tire recapping facilities, and a wheel manufacturing plant. The company was formerly known as GCR Truck Tire Centers, Inc. and changed its name to GCR Tire Centers, Inc. in GCR Tire Centers, Inc. was founded in 1945 and is based in Austin, Texas. It has various commercial locations in the United States and Canada. Company Type:... Private Locations: Website: BRAND PROFILE SRS NATIONAL NET LEASE GROUP.

18 SRS GLOBAL STATS PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.