NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM BURNSVILLE SHOPS Presented By NORTHSTAR OF BURNSVILLE, MN
INVESTMENT SUMMARY PRICE $1,485,000 7.65% CAP Rate ADDRESS 13700-13720 County Road 11 Burnsville, MN 55337 NET OPERATING INCOME $113,660 ($13.33/SF) APN 02-38100-01-010 BUILDING/LOT SIZE 8,526 SF / 1.39 Acres TYPE OF OWNERSHIP Fee Simple YEAR BUILT 1985 PARKING 65 Spaces Marcus and Millichap is pleased to present for sale, Burnsville Shops, an 8,526 square foot neighborhood center, nestled amongst many single family home developments on the border of Burnsville and Apple Valley. Burnsville Shops benefits from its easy access to both Interstate 35E and McAndrews Road, collectively carrying nearly 80,000 cars per day. Additionally the Property sits adjacent to Valley Natural Foods, a local grocery co-op with over 11,000 members. Burnsville Shops is 100% leased to a mix of local tenants. It has a solid operating history. Subway has been a tenant at the center since 2002. The remaining space in the center has experienced some turnover, however, with minimal vacancy. Burnsville and Apple Valley are two of the largest suburbs in the Twin Cities metro area, carrying a combined population of 110,000 residents, and average annual household income above $100,000. Highlights: 100% Occupied Neighborhood Center Low Average Rental Rates - $14.50/SF Easy Access & Great Visibility Adjacent to Local Grocery Co-op With Over 11,000 Members Area Average Household Income Over $100K
INVESTMENT SUMMARY ANNUALIZED OPERATING DATA Current Per SF Base Rent $123,812 14.52 Expense Reimbursements Real Estate Taxes 33,288 3.90 Insurance 1,176 0.14 CAM 36,617 4.29 Management Fee 8,108 0.95 Total Expense Reimbursements 79,189 9.29 EFFECTIVE GROSS INCOME 203,001 23.81 Total Expenses 79,189 9.29 Vacancy Factor (5%) 10,150 1.18 NET OPERATING INCOME $113,662 $13.33 EXPENSES Current Per SF Real Estate Taxes $33,288 $3.90 Insurance 1,176 0.14 CAM Utilities 8,636 1.01 Repairs & Maintenance 6,920 0.81 Snow Removal 13,980 1.64 Landscaping 4,625 0.54 Janitorial 2,456 0.29 Management Fee (4%) 8,108 0.95 TOTAL EXPENSES $79,189 $9.29 TENANT SUMMARY GLA % of GLA Lease Commencement Lease Expiration Annual Rent Rent/SF Changes On Changes To Options Lease Type Subway 2,604 30.54% 10/10/2002 12/31/2022 41,247.36 15.84 2 ( 5 ) Net Dakota Floral 1,097 12.87% 5/3/2010 5/31/2021 17,442.00 15.90 Net Precision Flow Pilates 1,465 17.18% 3/9/2015 3/31/2018* 21,242.50 14.50 4/1/2018 Fair Market 1 ( 3 ) Net Perrier Liquor 3,360 39.41% 10/1/2017 9/30/2022 43,680.00 13.00 10/1/2019 13.50/sf 1 ( 5 ) Net Easement 200.00 10/1/2021 14.00/sf TOTALS 8,526 100.00% $123,811.86 $14.52 *Seller will guaranty the rent/cam on this space until the earlier of a) tenant s renewal, b) the space is re-leased, or c) December 31, 2018
TENANT SUMMARY TENANT OVERVIEW Tenant Name Subway Lease Commencement October 10, 2002 Lease Expiration December 31, 2022 Gross Leasable Area (SF) 2,604 Share of Center 30.54% Term Remaining 5 Years Renewal Options 2 ( 5 ) Lease Guarantor Corporate & Personal Guaranty Headquartered Milford, Connecticut No. Of Locations 44,411 Website www.subway.com RENT SCHEDULE LEASE YEAR ANNUAL RENT ($/SF) Current $41,247 $15.84 1/1/2023 TBD - Based on CPI 1/1/2028 TBD - Based on CPI The most ubiquitous chain restaurant in the United States (followed by McDonald s), Subway Restaurants specialize in sub sandwiches and salads. There are over 26,000 locations in the United States alone. It is the largest single-brand restaurant chain and the largest restaurant operator in the world. Subway sandwiches and salads are made-to-order; some locations offer other items, including cookies, flatbreads, and breakfast sandwiches. In 2017, Subway added panini sandwiches to its menu. TENANT SUMMARY CAM Property Insurance Real Estate Tax Utilities Management Fee HVAC Capital Expenditures Tenant responsible - pays direct, not to exceed a reasonable rate Tenant responsible for repair and maintenance Landlord Responsible, but may bill back to Tenant on an amortized basis over item's estimated usable life.
TENANT SUMMARY Open six days a week, Dakota Floral offers professional service and artistic floral presentations; ordering from the store s online catalog is available 24 hours a day. TENANT OVERVIEW Tenant Name Dakota Floral Lease Commencement May 3, 2010 Lease Expiration May 31, 2021 Gross Leasable Area (SF) 1,097 Share of Center 12.87% Term Remaining 3.5 Years Renewal Options None Lease Guarantor Personal Guaranty Headquartered Burnsville, MN No. Of Locations One ( 1 ) Website www.dakotafloral.com RENT SCHEDULE LEASE YEAR ANNUAL RENT ($/SF) Current $17,442 $15.90 Dakota Floral offers flower arrangement for all occasions at competitive prices. As a full service florist, the store is able to offer arrangements for everything from anniversaries to sympathy and wedding arrangements. The store has serviced the city of Burnsville for 30 years and offers delivery to the entire Twin Cities metro area. TENANT SUMMARY CAM Property Insurance Real Estate Tax Utilities Management Fee HVAC Capital Expenditures Tenant responsible - pays direct, not to exceed a 5% of gross rents Tenant responsible for repair and maintenance Landlord Responsible, but may bill back to Tenant on an amortized basis over item's estimated usable life.
TENANT SUMMARY Family owned and operated since 1985, founder Dave Perrier opened the first location in Eagan. Perrier locations offer a continuously evolving beer selection along with tastings, home-brewing demonstrations, and cheese pairing events. TENANT OVERVIEW Tenant Name Perrier Wines & Liquors Lease Commencement October 1, 2017 Lease Expiration September 30, 2022 Gross Leasable Area (SF) 3,360 Share of Center 39.41% Term Remaining 5 Years Renewal Options 1 ( 5 ) Lease Guarantor Personal Guaranty Headquartered Bloomington, Minnesota No. Of Locations Four ( 4 ) Website www.perrierliquors.com RENT SCHEDULE LEASE YEAR ANNUAL RENT ($/SF) Current $43,680 $13.00 10/1/2019 $45,360 $13.50 10/1/2021 $47,040 $14.00 10/1/2022 (Option) $48,720 $14.50 10/1/2024 $50,400 $15.00 10/1/2026 $52,080 $15.50 Perrier locations pride themselves on a streamlined selection of brands and lines, tailoring their inventory rather than a large and sprawling store experience like those at big box stores. Today there are three locations: Eagan, St. Paul, and Bloomington. Their Burnsville presence will be their fourth. TENANT SUMMARY CAM Property Insurance Real Estate Tax Utilities Management Fee HVAC Capital Expenditures Tenant responsible - pays direct, not to exceed 5% of gross rent Tenant responsible for repair and maintenance Landlord Responsible, but may bill back to Tenant on an amortized basis over item's estimated usable life.
TENANT SUMMARY Rooted in intelligently designed workouts that are intended to strengthen and tone the entire body, Precision and Flow Pilates Studio offers a range of classes that are led by highly trained and professional instructors. TENANT OVERVIEW Tenant Name Precision & Flow Pilates Lease Commencement March 9, 2015 Lease Expiration March 31, 2018 Gross Leasable Area (SF) 1,465 Share of Center 17.18% Term Remaining 5 Months Renewal Options 1 ( 3 ) Lease Guarantor Personal Guaranty Headquartered Apple Valley, Minnesota No. Of Locations One ( 1 ) Website www.precisionandflowpilates.com RENT SCHEDULE LEASE YEAR ANNUAL RENT ($/SF) Current $21,243 $14.50 The studio is not limited to Pilates-specific classes; yoga classes are offered as well. Getting Started classes are offered for new clients on both an individual and group basis to familiarize patrons with the basics of pilates workouts and to establish individual goals for health and wellness. TENANT SUMMARY CAM Property Insurance Real Estate Tax Utilities Management Fee HVAC Capital Expenditures Tenant responsible - pays direct, not to exceed a 5% of gross rents Tenant responsible for repair and maintenance Landlord Responsible, but may bill back to Tenant on an amortized basis over item's estimated usable life.
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MARKET SUMMARY BURNSVILLE, MN The tenth largest city in the state of Minnesota, Burnsville is located just south of downtown Minneapolis in Dakota County. Burnsville, together with the other suburbs on the south side of Minneapolis - St. Paul, form the fifteenth largest metropolitan area in the United States. Burnsville is home to many local and regional attractions, including Burnsville Center, Buck Hill Ski Park, and a portion of the Minnesota Valley National Wildlife Refuge. Today, Burnsville is the ninth largest suburb of Minneapolis - St. Paul and a bedroom community to both Minneapolis and St. Paul.
DEMOGRAPHICS 1 Mile 3 Miles 5 Miles 2000 Population 8,715 82,406 180,183 2010 Population 8,818 83,257 190,559 2017 Estimated Population 9,026 86,470 200,340 2022 Projected Population 9,306 89,397 207,961 2000 Households 3,350 31,446 66,072 2010 Households 3,366 32,982 72,719 2017 Estimated Households 3,443 34,236 76,397 2022 Projected Households 3,550 35,398 79,300 Highest Degree Education Attained Some College, No Degree 28.63% 32.29% 31.31% Associate s Degree 7.82% 7.04% 6.86% Bachelor s Degree 28.66% 25.05% 27.16% Advanced Degree 16.19% 11.43% 11.26% 2017 Owner Occupied Housing Units 78.04% 69.75% 76.36% 2017 Renter Occupied Housing Units 21.96% 30.25% 23.64% POPULATION GROWTH TRENDS 1 Mile Radius from Subject Property 2017 Average Household Income $111,539 $91,479 $96,633 2017 Median Household Income $91,034 $72,653 $79,479 Population Growth 2010-2017 5 Mile Radius % Households Earning $100,000-$149,999 1 Mile Radius from Subject Property 2017 Projected Population Growth 2017-2022 5 Mile Radius
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 OF