DAIRY QUEEN GRILL & CHILL (Sale Leaseback) 7720 149th Street W · In fall 2007, Independent School District 196 opened three elementary-level magnet schools: Cedar Park Elementary,

DAIRY QUEEN GRILL & CHILL (Sale Leaseback)7720 149th Street WApple Valley, Minnesota 55124 (Minneapolis–Saint Paul MSA)

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plan Map

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

I. Executive Profile Executive Summary Investment Highlights Property Overview


DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.


EXECUTIVESUMMARY:

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Dairy Queen Grill & Chill property located within the Minneapolis-Saint Paul MSA in Apple Valley, Minnesota. The property is strategically located along 150th Street W in a dominant retail corridor. The absolute triple net lease features annual 1.5% rental escalations in the primary term and renewal option. The lease is guaranteed by Anderson Franchise Investments, a 6-unit operator.

The 5,348 square foot Dairy Queen Grill & Chill Restaurant building, which was recently renovated in 2015. The property is well located in a dominant retail corridor just off of 150th St W, which experiences 36,000 VPD, and Cedar Ave, which experiences 34,500 VPD. Retailers located in the immediate area include Walmart Supercenter, Target, Home Depot, Sam’s Club, Menards and numerous banks and restaurants. The Dairy Queen Grill & Chill is also located near Apple Valley High School, a top high school in Minnesota with 1,900 students. There are over 86,000 people living within a three-mile radius of the property and have an average annual household income in excess of $106,000 per year. In the past years, Money Magazine named Apple Valley the 17th best place to live in the United States.

The Dairy Queen Grill & Chill will be a new 20-year sale-leaseback and feature 1.5% annual rental escalations. The lease is absolute triple net and features zero landlord responsibilities. Dairy Queen Grill & Chill locations differ from standard Dairy Queen concepts in that they feature hot food, treats, table delivery, and self-serve soft drinks. It is the new concept for new and renovated full-service restaurants. Stores are larger than older-style locations and feature a completely new store design. In most cases, they offer an expanded menu including breakfast, Grill Burgers, and grilled sandwiches, as well as limited table service. They also contain self-serve soft drink fountains allowing free refills.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Brand new 20 year sale leaseback

• Absolute triple net with zero landlord responsibilities

• 1.5% annual rental escalations

• Well located in a dominant retail corridor just off of 150th St W (36,000 VPD) and Cedar Ave (34,500 VPD)

• Retailers in the immediate area include Walmart Supercenter, Target, Home Depot, Sam’s Club, Menards and numerous banks and restaurants

• Located near Apple Valley High School, a top high school in Minnesota with 1,900 students

• Over 86,000 people living within a three mile radius of the property and have an average annual household income in excess of $106,000 per year


PROPERTY OVERVIEW:

PROPERTY OVERVIEW

Price: $3,071,000

Cap Rate: 7.00%

Net Operating Income: $215,000

Renewal Options: Four 5-Year

Rental Escalations: 1.5% Annually

Lease Commencement: Close of Escrow

Lease Term: 20 Years

Tenant: Anderson Franchise Investments d/b/a Dairy Queen Grill & Chill

Lease Type: Absolute NNN

Year Built/Renovation: 1995/2015

Building Size: 5,348 SF

Land Size: 0.79 acres



PHOTOGRAPHS


AERIAL


SITE PLAN


MAP


MAP

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 10,253 86,385 193,877

Total Households 4,235 31,932 72,308

Income 1-Mile 3-Mile 5-Mile

Average Household Income $79,478 $106,484 $104,978


MARKETOVERVIEW:

MARKET OVERVIEW

Apple Valley, MinnesotaApple Valley is a city in northwestern Dakota County in the State of Minnesota, and a suburb of the Twin Cities. As of the 2010 census, the city’s population was 49,084, making it the 18th most populous city in Minnesota. In 2013, Money Magazine named Apple Valley the 17th best place to live in the United States, up from 20th in 2010, 24th in 2008 and 28th in 2007.

There are six elementary, three middle and three high schools in the city, all operated by Independent School District 196. In addition to the two comprehensive high schools, Apple Valley is home to a magnet school open to 11th and 12th graders, the School of Environmental Studies. In fall 2007, Independent School District 196 opened three elementary-level magnet schools: Cedar Park Elementary, which will become a Science, Technology, Engineering and Math (STEM) magnet; Diamond Path Elementary, which will have an International Studies theme, and Glacier Hills Elementary, with an Arts and Science theme.

Interstate Highway 35E, Cedar Avenue, and County Road 42 are three of the main routes in Apple Valley. Highway 77 briefly enters the northern part of Apple Valley and becomes County Road 23 / Cedar Avenue. Minnesota Valley Transit operates many weekday commuter busses to and from Downtown Minneapolis and Saint Paul. The recently built Red Line operates as a dedicated bus line with service to and from the Mall of America. Apple Valley is also home to the Minnesota Zoo, a nationally recognized zoological garden that houses hundreds of animals from several distinct climatological zones.


MARKETOVERVIEW:

MARKET OVERVIEW

Minneapolis-Saint Paul MSAMinneapolis–Saint Paul is a major metropolitan area built around the Mississippi, Minnesota and St. Croix rivers in east central Minnesota. The area is commonly known as the Twin Cities after its two largest cities, Minneapolis, the most populous city in the state, and Saint Paul, the state capital. It is an example of twin cities in the sense of geographical proximity. Minnesotans living outside of Minneapolis and Saint Paul often refer to the two together as The Cities. The Twin Cities is one of thirteen American metropolitan areas to have teams in all four major sports — MLB, NFL, NBA and NHL. Including Major League Soccer (MLS), it is one of ten metro areas to have five major sports.

There are several different definitions of the region. Many refer to the Twin Cities as the seven-county region which is governed under the Metropolitan Council regional governmental agency and planning organization. The Office of Management and Budget officially designates 16 counties as the Minneapolis–St. Paul–Bloomington MN-WI Metropolitan Statistical Area, the 16th largest in the United States. The entire region known as the Minneapolis–St. Paul MN-WI Combined Statistical Area, has a population of 3,946,533, the 14th largest, according to 2017 Census estimates.


Dairy QueenDairy Queen, often abbreviated DQ, is a chain of soft serve ice cream and fast-food restaurants owned by International Dairy Queen, Inc., a subsidiary of Berkshire Hathaway Inc. International Dairy Queen, Inc., also owns Orange Julius and Karmelkorn. The first DQ restaurant was located in Joliet, Illinois. For more than 70 years, the DQ system’s recipe for success has been simple. It’s been a combination of hardworking people who own and operate restaurants, and great-tasting food and tempting treats served in our establishments.

DQ Grill & Chill locations feature hot food, treats, table delivery, and self-serve soft drinks. It is the new concept for new and renovated full-service restaurants. Stores are larger than older-style locations and feature a completely new store design. In most cases, they offer an expanded menu including breakfast, Grill Burgers, and grilled sandwiches, as well as limited table service. They also contain self-serve soft drink fountains allowing free refills.

Website: www.dairyqueen.comType: SubsidiaryFounded: 1940Number of Locations: 6,400Headquarters: Edina, Minnesota

TENANT OVERVIEW

TENANT OVERVIEW:


3520 Lake Avenue, Suite 203Wilmette, IL 60091

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

Documents

DAIRY QUEEN GRILL & CHILL (Sale Leaseback) 7720 149th Street W · In fall 2007, Independent School District 196 opened three elementary-level magnet schools: Cedar Park Elementary,