FOR SALE HOTEL DEVELOPMENT FARIBAULT ENTITLED HOTEL DEVELOPMENT I35 & MN21 Faribault, MN 55021 PRESENTED BY: FRANK JERMUSEK, JD President / Managing Director 952.820.1615 frank.jermusek@svn.com CAMERON PETERSON Senior Advisor 952.820.1688 cameron.peterson@svn.com JASON LAMONTAGNE, MBA Advisor 952.820.1614 jason.lamontagne@svn.com
DISCLAIMER The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of these materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.
EXECUTIVE SUMMARY Executive Summary SALE OVERVIEW SALE PRICE: Subject To Offer MODELED UNLEVERAGED IRR: 12.3% MODELED LEVERAGED IRR: 26.4% ROOMS: 70 LOT SIZE: 4.07 Acres PROPERTY DESCRIPTION Proposed / Approved Limited Service Hotel Development at the junction of Interstate 35 and State Highway 21 in Faribault, MN. Only 45 minutes from Minneapolis St. Paul International Airport and visible from Interstate 35 with 30,000 plus vehicles per day (MnDot), this is a coveted site in the growing community of Faribault. Market analysis indicates that there is demand for higher quality rooms than currently exists in the market today. A 70 room Comfort Inn & Suites has been proposed as a suitable option to meet this demand. Quality of rooms offered will command prices above what is currently available in the market. Project also includes a pad site ideally suited for a restaurant. Growth in the lodging tax year after year reflects the increasing demand. With no new hotels built in the area there is a significant need for this development given the industrial growth in the area including the soon to be completed 589,000 square foot plant for Faribault Foods, Inc. and with the growth of other businesses like Shattuck-St Mary's School, which beleives they drive about 7,000 room nights per year. In addition, Faribault has seen positive results from its recent marketing efforts to position itself as a choice tourist destination. FRANCHISE: Comfort Inn & Suites This premium development site and concept for Faribault's gateway is ready to go now. Engineering plans have been submitted - city reviewed and approved, all land issues resolved. The franchisee rights have been obtained for the national flag of Comfort Inn & Suites. 3
PROPERTYHIGHLIGHTS PropertyHighlights Entitlements & market study completed Visible to Interstate-35 on northern entrance to the city Easy access to MN-21 (main artery for city of Faribault) Completed a wetlands exchange, qualifying entire property for development Construction plans and preliminary work completed by Consolidated Construction Co. Inc., a Choice Hotels International Preferred vendor (Inclusion negotiable) Next to Harley Davidson Dealer with 90% Twin Cities customer base Local airport 1 minute away Growing city near the Twin Cities MSA Pad site ideally suited for a restaurant and there are currently no chain restaurants in town to compete Acreage would also allow for an event center Harley Davidson Dealer willing to allow overflow parking for an event center, if added Airtech Park (industrial park) across MN-21 Seller willing to contribute into the deal for an ownership stake 4
COMMUNITY HIGHLIGHTS Community Highlights COMMUNITY HIGHLIGHTS 2nd largest "Authentic Downtown" in state behind St. Paul Bike trails through the city that connect to other cities in region, with more being added Faribault Foods undertaking $100 million plus expansion Jennie-O Foods completed $35 million expansion in 2016 Aldi adding 60,000 SF to its distribution center Shattuck-St. Mary's with students from 38 states, the District of Columbia, and 23 countries is building new dorms as enrollment increases 10 area lakes and 2 rivers are perfect for fishing, boating, canoeing and peaceful walks by the water Home to the Minnesota State Academy for the Blind and the State Academy for the Deaf, which is also building a new student residence District One Hospital recently opened a 20,000 SF, new Emergency Department Mayo Clinic Faribault expanded in 2016 ECONOMIC HIGHLIGHTS Geographic location is an advantage Stable and growing workforce Strong Economic Base Strong education and training system Strong network of support for businesses Committed to actively addressing changes 5
LOCAL BUSINESS HIGHLIGHTS MAP Local Business Highlights Map 6
REGIONAL MAP Regional Map Faribault, MN 55021 7
LOCATION MAPS Location Maps 8
SATELLITE MAP Satellite Map 9
DEMOGRAPHICS MAP Demographics Map POPULATION 1 MILE 5 MILES 10 MILES TOTAL POPULATION 2,183 32,482 43,491 MEDIAN AGE 38.3 35.7 36.6 MEDIAN AGE (MALE) 36.1 34.3 35.4 MEDIAN AGE (FEMALE) 41.0 37.5 38.0 HOUSEHOLDS & INCOME 1 MILE 5 MILES 10 MILES TOTAL HOUSEHOLDS 849 11,905 15,640 # OF PERSONS PER HH 2.6 2.7 2.8 AVERAGE HH INCOME $49,448 $55,865 $60,673 AVERAGE HOUSE VALUE $252,336 $184,664 $203,780 * Demographic data derived from 2010 US Census 10
PRESENTED BY: FRANK JERMUSEK, JD President / Managing Director 952.820.1615 frank.jermusek@svn.com CAMERON PETERSON Senior Advisor 952.820.1688 cameron.peterson@svn.com JASON LAMONTAGNE, MBA Advisor 952.820.1614 jason.lamontagne@svn.com All SVN Offices Independently Owned & Operated 2014 All Right Reserved www.svn.com