OF - LoopNetimages4.loopnet.com/.../document.pdf · Dakota Floral offers flower arrangement for all occasions at competitive prices. As a full service florist, the store is able to

BURNSVILLE, MN

NORTHSTAR RETAIL GROUP | OFFERING MEM

ORANDUM

Presented By

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NORTHSTARof

BURNSVILLE SHOPS

BURNSVILLE SHOPS | BURNSVILLE, MN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.

INVESTMENT SUMMARY

PRICE$1,485,0007.65% CAP Rate

ADDRESS13700 - 13720 County Road 11Burnsville, MN 55337

NET OPERATING INCOME$113,660 ($13.33/SF)

APN02-38100-01-010

BUILDING/LOT SIZE8,526 SF / 1.39 Acres

TYPE OF OWNERSHIPFee Simple

YEAR BUILT1985

PARKING65 Spaces

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

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.



INVESTMENT SUMMARY

TENANT SUMMARYGLA % of GLA Lease

CommencementLease

ExpirationAnnual Rent Rent/SF Changes

OnChanges 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

10/1/2021 14.00/sf

Easement 200.00

TOTALS 8,526 100.00% $123,811.86 $14.52

ANNUALIZED OPERATING DATACurrent 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

EXPENSESCurrent 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

*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 OVERVIEWTenant 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 SCHEDULELEASE 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 SUMMARYCAM Tenant responsible for pro rata share

Property Insurance Tenant responsible for pro rata share

Real Estate Tax Tenant responsible for pro rata share

Utilities Tenant responsible - pays direct

Management Fee Tenant responsible for pro rata share, not to exceed a reasonable rate

HVAC Tenant responsible for repair and maintenance

Capital Expenditures Landlord Responsible, but may bill back to Tenant on an amortized basis over item's estimated usable life.



TENANT SUMMARY

TENANT OVERVIEWTenant Name Dakota Floral

Lease Commencement May 3, 2010

Lease Expiration May 31, 2021



Term Remaining 3.5 Years

Renewal Options None

Lease Guarantor Personal Guaranty

Headquartered Burnsville, MN

No. Of Locations One ( 1 )

Website www.DakotaFloral.com


Current $17,442 $15.90

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.

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.





Management Fee Tenant responsible for pro rata share, not to exceed a 5% of gross rents





TENANT SUMMARY

TENANT OVERVIEWTenant Name Perrier Wines & Liquors

Lease Commencement October 1, 2017

Lease Expiration September 30, 2022



Term Remaining 5 Years



Headquartered Bloomington, Minnesota

No. Of Locations Four ( 4 )

Website www.PerrierLiquors.com


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

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.

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.





Management Fee Tenant responsible for pro rata share, not to exceed 5% of gross rent





TENANT SUMMARY

TENANT OVERVIEWTenant Name Precision & Flow Pilates

Lease Commencement March 9, 2015

Lease Expiration March 31, 2018



Term Remaining 5 Months



Headquartered Apple Valley, Minnesota

No. Of Locations One ( 1 )

Website www.PrecisionAndFlowPilates.com


Current $21,243 $14.50

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.

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.





Management Fee Tenant responsible for pro rata share, not to exceed a 5% of gross rents





PROPERTY PHOTOS

BURNSVILLE SHOPS | BURNSVILLE, MNAERIAL


BURNSVILLE SHOPS | BURNSVILLE, MNPROPERTY PHOTOS





PROPERTY SUMMARY

LOCAL MAP CITY MAP



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.

MARKET SUMMARY



DEMOGRAPHICS

1 Mile 3 Miles 5 Miles2000 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%

2017 Average Household Income $111,539 $91,479 $96,633

2017 Median Household Income $91,034 $72,653 $79,479

POPULATION GROWTH TRENDS1 Mile Radius from Subject Property

Population Growth 2010 - 20175 Mile Radius

% Households Earning $100,000-$149,9991 Mile Radius from Subject Property

2017

Projected Population Growth 2017 - 20225 Mile Radius


ADAM “AJ” PRINSFirst Vice President | [email protected](952) 852-9743

MATT HAZELTONFirst Vice President | [email protected](952) 852-9729

SEAN DOYLEFirst Vice President | [email protected](952) 852-9719

CORY VILLAUMEVice President | [email protected](952) 852-9728

Presented By

www.MarcusMillichap.comwww.NorthstarRetailGroup.com

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OF - LoopNetimages4.loopnet.com/.../document.pdf · Dakota Floral offers flower arrangement for all occasions at competitive prices. As a full service florist, the store is able to