NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM Presented By NORTHSTAR OF
INVESTMENT SUMMARY PRICE $1,690,000 6.50% CAP Rate ADDRESS 18260 Zane Street NW Elk River, MN 55330 NET OPERATING INCOME $109,830 ($15.69/SF) APN 32-29-22-11-0099 LEASE TERM REMAINING 8+ Years LEASE TYPE NNN BUILDING/LOT SIZE 7,000 SF / 0.92 Acres Marcus & Millichap is pleased to offer this freestanding 7,000 square foot building fully occupied by Advance Auto Parts located in Elk River, Minnesota. The property benefits from its positioning as an out-parcel to both Wal-Mart and Home Depot. Adjacent retailers include PetSmart, Panera Bread, Noodles, and many others. The Property also has excellent visibility on Highway 169 which carries nearly 50,000 vehicles per day. Advance Auto Parts has operated at this location since 2003, and signed a seven-year extension three years before their lease was up for renewal. The lease requires minimal responsibilities from the landlord. Advance Auto Parts is an investment grade tenant, currently rated BBB- by Standard & Poor s. Elk River is a suburb on the northern edge of the Twin Cities metro area. It is home to nearly 25,000 residents and serves as the county seat for Sherburne County. Highlights: Corporate Guaranty from Investment-Grade Tenant Tenant Signed an Early Extension Out-Parcel to Both Walmart & Home Depot Direct Visibility from Highway 169 Twin Cities Metro Area TYPE OF OWNERSHIP Fee Simple YEAR BUILT 2003
AERIAL SOUTH-FACING 47,500 VEHICLES
LEASE ABSTRACT RENT SCHEDULE Date Range Annual Rent Monthly Rent Per SF Current 6/1/2016-12/31/2025 $109,830.00 $9,152.50 15.69 Option 1 1/1/2026-12/31/2030 $123,873.00 $10,322.75 17.70 Option 2 1/1/2031-12/31/2035 $127,377.96 $10,614.83 18.20 Option 3 1/1/2036-12/31/2040 $130,878.00 $10,906.50 18.70 LEASE SUMMARY Tenant Advance Stores Company, Inc. Tenant Trade Name Advance Auto Parts Lease Commencement July 30, 2003 Rent Commencement December 30, 2003 Lease Expiration December 31, 2025 Store Number #6313 Size of Premises 7,000 SF Lease Term Remaining 8 Years Renewal Options Three 5-Year Options Notice For Options 180 Days Early Termination Option None Right of First Refusal None Estoppel Request Time 30 Days OPERATING SUMMARY Real Estate Tax Insurance Utilities Repairs & Maintenance Roof & Structure Landlord pays - Tenant Reimburses Tenant Responsible for Property Insurance. Landlord Responsible for Liability Policy. Tenant Responsible - Pays Direct Tenant Responsible Tenant Responsible for Roof Repair & Replacement. Landlord Responsible for Slab & Foundation.
TENANT SUMMARY The largest retailer of automotive replacement parts and accessories in the nation by store count, Advance Auto Parts was founded in 1932. The company first premiered on the Fortune 500 list in 2003 and has remained there ever since. Advance Auto Parts has expanded in the last ten years largely thanks to an aggressive acquisition strategy which resulted in the purchase of several Carquest franchise chains and General Parts International, Inc. In 2014 the SpeedPerks program, a loyalty program for DIY retail customers was debuted. TENANT SUMMARY Tenant Ownership Stock Symbol Credit Rating Revenue (2016) Headquartered Advance Auto Parts Public AAP Number of Stores 5,100 Website BBB-, S&P $9.57 Billion Roanoke, VA shop.advanceautoparts.com/ IN THE NEWS Advance Auto Parts Names ExxonMobil and Motorcar Parts of America 2017 Vendors of the Year Advance Auto Parts Reports Second Quarter Fiscal 2017 Results Advance Auto Parts Growth Plans Fuel Career Opportunities
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AERIAL NORTH-FACING
AERIAL 23,600 VEHICLES 47,500 VEHICLES
AREA MAPS LOCAL MAP CITY MAP
SURROUNDING RETAILERS
MARKET SUMMARY Located halfway between Minneapolis-St. Paul and St. Cloud, Minnesota, Elk River was incorporated in 1977 and since then, transportation has played a significant role in the growth of this community. In 2010, the city began a cohesive marketing campaign championed by the Economic Development Authority that focused on the Powered by Nature tagline. Today, Elk River advertises fresh air and suburban living that retains close proximity to the amenities of big city life. The population has grown consistently since 2000, aided by the newest addition in transportation, the state-of-the-art NorthStar Commuter Rail, public transportation allowing residents convenient access to the heart of downtown Minneapolis.
DEMOGRAPHICS 1 Mile 3 Miles 5 Miles 2000 Population 3,229 17,197 26,847 2010 Population 4,848 24,182 37,593 2016 Estimated Population 5,118 25,326 39,480 2021 Projected Population 5,805 28,183 43,792 2000 Households 1,278 5,953 8,981 2010 Households 1,912 8,545 13.135 2016 Estimated Households 2,022 8,960 13,824 2021 Projected Households 2,291 10,034 15,489 Daytime Population 7,282 26,419 33,382 Average Household Income $79,444 $92,915 $97,430 Median Household Income $67,148 $79,870 $82,932 Per Capita Income $31,728 $33,168 $34,350
CONTACT Presented By SEAN DOYLE First Vice President Investments Sean.Doyle@MarcusMillichap.com (952) 852-9719 MATT HAZELTON First Vice President Investments Matt.Hazelton@MarcusMillichap.com (952) 852-9729 ADAM AJ PRINS First Vice President Investments Adam.Prins@MarcusMillichap.com (952) 852-9743 CORY VILLAUME Vice President Investments Cory.Villaume@MarcusMillichap.com (952) 852-9728 www.marcusmillichap.com www.northstarretailgroup.com NORTHSTAR