NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM LAKEVILLE, MINNESOTA. Presented By NORTHSTAR

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1 NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM LAKEVILLE, MINNESOTA Presented By NORTHSTAR of

2 INVESTMENT SUMMARY PRICE $4,831, % CAP Rate ADDRESS Dodd Boulevard Lakeville, MN APN NET OPERATING INCOME $301,933 ($31.21/SF) LEASE TERM REMAINING 10.9 Years LEASE TYPE NN BUILDING/LOT SIZE 9,675 SF / 1.24 Acres YEAR BUILT 2008 Marcus and Millichap exclusively presents the opportunity to acquire the single tenant KinderCare property located in Lakeville, Minnesota. The subject property, built for the tenant in 2008, is a corporately guaranteed lease. It is a 9,675 square foot daycare facility situated on a large 1.24 acre parcel. It was an initial 20-year lease which now has over 10 years remaining with rental increases. The property is ideally situated in a submarket that is experiencing significant growth primarily through young families which caters perfectly to the tenant. Lakeville has seen consistent population growth over the past decade and has extremely high average household incomes in the trade area. The subject property is adjacent to a Cub Foods (Supervalu) anchored retail center, which is the dominant grocer in the Twin Cities. Other major retailers in the corridor include McDonald s, CVS, Subway and Caribou Coffee. This retail corridor sits at the intersection of Cedar and Dodd avenue, two major thoroughfares exposing the property to more than 30,000 vehicles per day. KinderCare Learning Centers has been in business almost 50 years and now has over 1,700 locations across the country. They are currently the largest for-profit child care organization in the United States. In 2012 they had reported revenues of roughly $1.45 Billion. This is an excellent opportunity for an investor to acquire a well-located single tenant asset with a strong corporate guarantee. Highlights: Build-to-Suit Single Tenant Retail Property Corporately Guaranteed Lease 10% Rental Increases Every 5 Years Including the Options Shadow Anchored by Cub Foods Development Situated in a Developing Submarket Populated by Tenant s Target Market High Traffic Intersection Well-Above Average Household Income and Discretionary Income in the Target Market

3 LEASE SUMMARY LEASE SUMMARY Tenant Knowledge Learning Corporation Tenant Trade Name KinderCare Lease Commencement (Estimated) June 12, 2008 Rent Commencement (Estimated) April 13, 2009 Lease Expiration April 30, 2029 Lease Term Remaining 10 Years 11 Months Renewal Options Three Five-Year Options Notice For Options 180 Days Early Termination Option None Right of First Refusal None PROPERTY EXPENSES Real Estate Tax Repairs and Maintenance Property/Liability/Rent Loss Insurance Utilities OEA Expenses Roof & Structure Tenant Responsible - Pays Direct Tenant Responsible Tenant Responsible (Landlord Pays - Tenant Reimburses In Full) Tenant Responsible - Pays Direct Tenant Pays Its Proportionate Share Landlord Responsible for Repair & Replacement RENT SCHEDULE DATE RANGE ANNUAL RENT MONTHLY RENT PER SF Years 1-5 $253,521 $21, $26.20 Years 6-10 (Current) $278,517 $23, $28.79 Years (Underwritten) $301,933 $25, $31.21 Years $332,166 $27, $34.33 Option 1 (5 Years) $365,362 $30, $37.76 Option 2 (5 Years) $401,918 $33, $41.54 Option 3 (5 years) $442,130 $36, $45.70

4 TENANT SUMMARY Founded in 1969 by a real estate developer named Perry Mendel when he realized that increasing numbers of women entering the work force would increase demand for childcare. Today, KinderCare is the third-largest private held company headquartered in Oregon. The parent company of KinderCare, KinderCare Education, also operates a number of other childcare and early childhood education concepts, including Knowledge Beginnings, Children s Creative Learning Center, and Champions. TENANT SUMMARY Ownership Private Tenant KinderCareLearning Centers Parent KinderCare Education, LLC No. of Locations 1,700 (2014) Headquartered Portland, Oregan Years in the Business 48 Years Website In the News KinderCare Invites Families to Take Summer Back KinderCare Education Celebrates All Teachers KinderCare Kids are 4 Months Better Prepared for Elementary School

5 PROPERTY PHOTOS

6 PROPERTY PHOTO

7 PROPERTY PHOTO

8 AERIAL 19,200 VEHICLES 11,900 VEHICLES SUBJECT PROPERTY LAKEVILLE CENTRAL MAINTENANCE FACILITY MCDONALD S CROSSROADS COMMONS

9 AERIAL CROSSROADS COMMONS MCDONALD S LAKEVILLE CENTRAL MAINTENANCE FACILITY SUBJECT PROPERTY 11,900 VEHICLES

10 MARKET SUMMARY Located 20 miles to the south of downtown Minneapolis- St. Paul, Lakeville is one of the fastest growing cities in the metropolitan area. Boasting an ideal location just off Interstate 35W, the main southern artery in the Minneapolis- St. Paul downtown area, Lakeville offers its inhabitants a variety of shopping and housing along with award-winning schools. Airlake Industrial Park, located in Lakeville, is home to 200 companies and 4,500 employees. The complex is one of the state s largest industrial parks. Lakeville has experienced consistent population growth year-over-year, averaging an additional 1,000 citizens per year.

11 DEMOGRAPHICS KINDERCARE LAKEVILLE 1 Mile 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Population 8,590 66, ,245 3 Miles 2022 Population 9,801 73, ,850 5 Miles 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Total Households 2,875 22,795 55, Total Households 3,325 25,562 60,808 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Average HH Income $105,018 $108,470 $109, Average HH Income $119,157 $122,154 $125,520

12 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