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F O R S A L E
NAPA AUTO PARTS6 5 0 H I G H W A Y 5 5 E • B U F F A L O , M N 5 5 3 1 3( M I N N E A P O L I S M S A )
Affiliated Business Disclosure
CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
Confidentiality Agreement
Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
Disclaimer
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the
Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
Copyright Notice
© 2020 CBRE, Inc. All Rights Reserved.
I N V E S T M E N T S U M M A R YNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
PRICE
$1,775,0007.00% CAP Rate
ADDRESS650 Highway 55 EBuffalo, MN 55313(Minneapolis MSA)
APN103-202-02019
NET OPERATING INCOME$124,265
BUILDING/LOT SIZE7,532 SF / 1.04 Acres
YEAR BUILT2016
LEASE TYPEAbsolute NNN
LEASE EXPIRATIONDecember 31, 2026
TYPE OF OWNERSHIPFee Simple
SUMMARY
Absolute NNN Lease The lease is absolute NNN, with no landlord responsibilities for repairs or replacements at the building, giving the investor a hands-off ownership experience with no day-to-day management responsibilities.
Upside Potential Enhanced with Excess Land The parcel includes excess land, giving an investor the ability to develop up the 3,200 square feet of additional space. This is an opportunity rarely available on net-leased investments.
Situated on a Signalized Intersection The Property sits on the corner of Highway 55 and Willems Way, providing the building with full visibility and easy access. The intersection is one of the busiest in the city of Buffalo, collectively carrying over 26,000 vehicles per day.
Leading Auto Parts Brand NAPA Auto Parts is a leading auto parts retailer with over 6,000 retail locations and over 16,000 AutoCare & Collision Centers throughout the United States, operated by a mix of franchisees and parent company, Genuine Parts Company.
Twin Cities MSA Buffalo belongs to the Twin Cities MSA, the largest metropolitan statistical area in the state of Minnesota. This northwestern suburb is linked to the heart of Minneapolis and St. Paul via Highway 55. Highway 55 runs directly in front of the Property, a direct traffic artery into and out of the metro.
Located in County Seat Buffalo is the county seat for Wright County and is home to the Wright County courthouse and administrative offices. Wright County is one of the fastest growing counties in the state of Minnesota, posting an increase in population of fifty percent over the past twenty years.
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T E N A N T S U M M A R YNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
TENANT SUMMARY
Ownership Private
Tenant Trade Name NAPA Auto Parts
Tenant Franchisee
Corporate Sales Volume 18.74 Billion (2018-Genuine Parts Company)
Lease Guarantor Michael Cotton
No. of NAPA Locations 6,100+
Headquartered Atlanta, GA
Year Founded 1928
Website Corporate www.genpt.comWebsite Franchisee www.cottensnapa.com
CORPORATE PROFILENAPA Auto Parts is a wholly owned subsidiary of Genuine Parts Company (Ticker GPC) which is a specialty retailer operating in the distribution of automotive replacement parts, industrial replacement parts and materials, and business products. Founded in 1928 with only 6 employees GPC has grown into the largest automotive part distributor in the world valued at a market cap of over $13.875 billion with approximately 50,000 employees worldwide.
FRANCHISEE PROFILEMichael Cotton is a successful NAPA Auto Parts Franchisee with 8 current locations (Anoka, Osseo,Spring Lake Park, Prior Lake, Buffalo, Rogers, St. Michael, Burnsville).
RENT SCHEDULE
Date Start Date End Annual Rent Per SFCurrent 12/1/2016 11/30/2021 $124,264.50 $16.50
12/1/2021 11/30/2026 $130,893.49 $17.38
Option 1 12/1/2026 11/30/2031 $137,389.07 $18.24
Option 2 12/1/2031 11/30/2036 $144,262.30 $19.15
LEASE SUMMARY
Tenant Cottens' Inc
Tenant Trade Name NAPA Auto Parts
Lease Commencement 5/5/2016Rent Commencement (Third amendment to lease) 12/1/2016
Lease Expiration 12/31/2026
Lease Term Remaining 6.4 Years as of July 2020
Renewal Options 2- 5 Year
Notice for Options 12 Months
Real Estate Tax Tenant is responsible
Property Insurance Tenant is responsible
Utilities Tenant is responsible
Roof & Structure Tenant is responsible
Parking Lot Tenant is responsible
HVAC Tenant is responsible
Repairs & Maintenance (CAM) Tenant is responsible
OVERSIZED PARCELSite layout al lows for a 3,200
square foot bui lding
S I T E L AYO U TNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
WILLEMS WAY 7,500 VEHICLES
19,900 VEHICLES
PARKSIDEELEMENTARY
BUFFALOCITY CENTERFIRE STATION
BUFFALOPOLICE STATION
BUFFALOCOMMUNITY
CENTER
BUFFALOCOMMUNITYEDUCATION
WRIGHT COUNTYGOVERNMENT CENTER
T R A D E A R E ANAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
P R O P E R T Y P H O T O SNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
M A R K E T S U M M A R YNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
SUBURBAN OASIS 30 MINUTES FROM MINNEAPOLIS
Forty-two miles to the northwest of Minneapolis, the City of Buffalo, Minnesota enjoys the atmosphere of a small town with the amenities of a larger metropolitan area. For the town’s size, the city offers a vibrant arts scene for residents, funded by businesses and residents of the city. Buffalo is located on the shores of Buffalo Lake, providing residents additional recreational opportunities.
The city was recently awarded the “America in Bloom” national contest award for its focus on a number of criteria, including community involvement, tidiness, and environmental awareness. It is also a designated “Star City” for its exceptional level of city services, high quality of life, and programs designed to encourage commercial and industrial growth.
INCOME
$69,838 2019 Estimated Buffalo Median Household Income ($61,372 2018 National Average, CNBC.com)
$32,868 2019 Estimated Buffalo Per Capita Income ($31,177 2018 National Average, www.census.gov)
T W I N C I T I E S M A R K E T S N A P S H O TNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
TOP FORBES PRIVATE MINNESOTA COMPANIES
#1
#4
#3
#6
#2
#5
TOP TEN MAJOR EMPLOYERSMinneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area
#1Allina Health System27,635 Employees
#2Target Corporation26,694 Employees
#3University of Minnesota
26,436 Employees
#4HealthPartners
22,500 Employees
#5Fairview Health System
22,000 Employees
#6Wells Fargo & Co. 20,000
Employees
#7UnitedHealth Group15,750 Employees
#8CHS Inc.
12,157 Employees
#9U.S. Bancorp
12,010 Employees
#10Land O’Lakes Inc.10,000 Employees
MINNESOTA FORTUNE 500
MAJOR RETAIL BRAND HEADQUARTERS
Sources: Minneapolis Saint Paul Economic Development Partnership, 2017. Minneapolis/St. Paul Business Journal, 2017.
T W I N C I T I E S M A R K E T S N A P S H O TNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
15CommercialPassenger
Airlines
163NonstopMarketsServed
38MTravelers
Delta Airlines Hub
Sun Country Airlines Headquarters
MSP AIRPORT TRAFFIC HEALTHCARE & RESEARCHMinnesota Has the
2nd Highest Total Number of Medical Device
PatentsIn the Nation - “Compare Minnesota: Invention
Patents”, MN.gov
Minneapolis - St. Paul MSA is a
Top Ten U.S. Cityfor Corporate Innovation
MSP DEMOGRAPHICS
3,628,856Minneapolis-St. Paul, Bloomington Population
- U.S. Census Bureau, 2018
3% Unemployment3.8% National Average, January 2019 - U.S. Census Bureau, 2018
93.6%of Persons Age 25+Hold High School Diploma or Higher | 88% National Average - U.S. Census Bureau, 2018
#2 in the Nation#2 State in Percentage of the Population with Associate Degree or Higher
- MN Office of Higher Education, http://www.ohe.state.mn.us/sPages/educ_attain.cfm
LIFE & RETAIL IN MSP
$2 Billionin Economic Activity
Generated for Minnesota by Mall of America
“Mall of America: By the Numbers.” Mall of America, 2016,
www.mallofamerica.com/upload/ FactSheets_2016.pdf
- “About MSP - MSP by the Numbers”, MSPairport.com/about-msp
- “Top 10 Cities for Corporate Innovation”, Innovation Leader Magazine, May 2017
#3 Best StateOverall in the United States Based on 70 Metrics, 2019
“Best States Rankings.” U.S. News, 2019,
https://www.usnews.com/news/best-states/rankings
$59,736Average Per Capita Personal
Income (2017), $53,658 National Average (2018)
“Per Capita Personal Income in Minneap-olis-St. Paul Bloomington MSA”, Federal
Reserve Bank of St. Louis, Economic Research
Best ParksSystem in the Nation
According to The Trust for Public Land’s ParkScore®
Index
“Minneapolis Repeats as Nation’s Best Park System.”
Minneapolis Park & Rereation Board, May 23, 2018, www.MinneapolisParks.org
#3 Fittest City
Ranked by the American Fitness Index Summary
2019
“ACSM American Fitness Index”, American Fitness Index, May 2019,
www.americanfitnessindex.org
#2 Ticket Sales
In the Nation, Theater Tickets Sold Per Capita (NYC #1)
Meet Minneapolis - Things To Do, https://www.minneapolis.org/things-to-do/arts-cul-
ture/theaters/
D E M O G R A P H I C SNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
D E M O G R A P H I C SNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
1 Mile 3 Miles 5 Miles
POPULATION
2019 Population - Current Year Estimate 6,822 18,398 21,441
2024 Population - Five Year Projection 7,126 19,219 22,415
2019 - 2024 Projected Annual Population Growth Rate 0.88% 0.88% 0.89%
GENERATIONS
Generation Z (Born 1999-2016) 24.4% 25.9% 25.4%
Millennials (Born 1981-1998) 25.0% 22.7% 22.3%
Generation X (Born 1965-1980) 19.0% 21.3% 21.4%
Baby Boomers (Born 1946-1964) 18.2% 19.1% 20.2%
HOUSEHOLD INCOME
2019 Average Household Income $70,757 $90,337 $93,729
2024 Average Household Income $80,263 $100,776 $104,346
EDUCATION
High School Diploma 24.0% 24.8% 25.6%
Some College - No Degree 29.0% 26.1% 25.6%
Associate`s Degree 9.0% 12.2% 12.5%
Bachelor`s Degree 21.1% 22.3% 21.8%
Graduate or Professional Degree 6.6% 7.1% 7.0%
EMPLOYMENT
2019 Employed Civilian Population (16+) 97.3% 97.3% 97.4%
2019 Unemployed Population (16+) 2.7% 2.7% 2.6%
C O N S U M E R B A S E - 5 M I L E R A D I U SNAPA AUTO PARTS | BUFFALO, MN (MINNEAPOLIS MSA)
DOMINANT LIFEMODE GROUP
DOMINANT URBANIZATION GROUP
OTHER TOP SEGMENTS
24.7% 49.1%
24.3% 18.0%
35.0%
• Neighborhoods transformed from easy pace of country living to semirural subdivisions in the last decade during the housing boom
• Conservative, family-oriented consumers• Prefer to buy American and travel in the U.S.• Comfortable with the latest in technology, for
convenience and entertainment• Spending priorities focus on family (like children’s
toys and apparel) or home DIY projects• Media preferences include country and Christian
channels
• Successful young families in their first homes• Do-it-yourselfers, who work on home improvement projects as well as
their lawns and gardens• Eat out frequently at fast food or family restaurants to accommodate
their busy lifestyle
• Affluent, family-oriented market with a country flabor• Residents are partial to new housing away from the bustle of the city
but close enough to commute to professional job centers• Favor time-saving devices like banking online or housekeeping
services• Well insured• Well connected with a host of wireless devices
• Young, educated, working professionals• Labor force participation is high, generally white-collar work• Up on the latest technology• Median household income, median home value, and average rent
are close to the US values• Own newer computers• Eat out often at fast food and family restaurants
• Well-educated two-income households, accept long commute times to raise their children in family-friendly neighborhoods
• Older householders have either retired in place, downsized, or purchased a seasonal home
• Residents invest for their future, insure themselves against unforeseen circumstances but also enjoy the fruits of their labor
MIDDLEBURG FAMILY LANDSCAPES
SUBURBAN
SOCCER MOMS BRIGHT YOUNG PROFESSIONALS
DOMINANT LIFE SEGMENT
C O N TA C T U S
SEAN DOYLEFirst Vice President
+1 612 720 [email protected]
Lic. 20588764
MATT HAZELTONFirst Vice President
+1 612 396 [email protected]
Lic. 40449423
AJ PRINSFirst Vice President
+1 952 210 [email protected]
Lic. 20395954
CORY VILLAUMEFirst Vice President
+1 651 226 [email protected]
Lic. 20591922
© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
S E E A L L L I S T I N G S A N D L E A R N M O R E A B O U T U S AT
W W W. C B R E . U S / I N V M I N N E A P O L I S R E TA I L
