Pep oys Auto - LoopNet · performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes,

Deborah K. Vannelli, CCIM | 612.376.4475 | [email protected]

Keith A. Sturm, CCIM | 612.376.4488 | [email protected]

Amanda C. Leathers | 612.436.0045 | [email protected]

Look Upland. Where Properties & People Unite!

50 South 6th Street | Suite 1418

Minneapolis, MN | 55402

www.nnnsales.com

Pep Boys Auto 17567 Cedar Avenue | Lakeville, MN | 55044

PAGE 2 DEBORAH K. VANNELLI, CCIM | KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600

CONFIDENTIALITY AND DISCLAIMER: The information contained in the following Marketing Package is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Upland Real Estate Group, Inc. and should not be made available to any other person or entity without the written consent of Upland Real Estate Group, Inc. This Marketing Package 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. Upland Real Estate Group, Inc. has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property or any other matter related to the subject property. The information contained in this Marketing Package has been obtained from sources we believe to be reliable; however, Upland Real Estate Group, Inc. has not verified, and will not verify, any of the information contained herein, nor has Upland Real Estate Group, Inc. 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.

NET LEASED DISCLAIMER

Upland Real Estate Group, Inc. hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Package has been obtained from sources we believe to be reliable. However, Upland Real Estate Group, Inc. has not and will not verify any of this information, nor has Upland Real Estate Group, Inc. conducted any investigation regarding these matters. Upland Real Estate Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Package is not a substitute for your thorough due diligence investigation of this investment opportunity. Upland Real Estate Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Package are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial, legal and other advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal, financial and other advisors must request and carefully review all legal, financial and other documents related to the property and tenant. While past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property. All information, including price change and withdrawal from the market, is subject to change without notice. By accepting this Marketing Package you agree to release to Upland Real Estate Group, Inc. and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Pep Boys Auto

Lakeville, MN CONFIDENTIALITY & DISCLAIMER

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. Upland has not reviewed or verified this information. Buyer must verify the information and bears all risk for any inaccuracies.


HIGHLIGHTS Pep Boys Auto

Lakeville, MN

PRICE: $1,866,240

CAP: 6.25%

NOI: $116,640

Pep Boys Auto sells brand name and private label auto parts, and

provides select services through approximately 1,000 locations in 35

states and Puerto Rico. The tenant on the lease, The Pep Boys -

Manny Moe & Jack of California, operate 236 stores.

10 year NN lease, with increases in year 6, and each renewal option.

Excellent demographics with 1-mile average household income over

$119,000 and 5-mile population of 154,832. Traffic counts average

20,300 vehicles daily on Cedar Avenue and 13,700 on Dodd

Boulevard.

Located at the Crossroads of Lakeville, a 127,070 square foot upscale

shopping development anchored by Cub Foods, with retailers Chuck

& Don’s Pet Food Supplies, Caribou Coffee, CherryBerry, Metro

Dentalcare, Little Caesars Pizza, Snap Fitness, McDonald’s, and more.

Other nearby properties include CVS Pharmacy, Fresenius, Kwik Trip,

and New Horizon Academy. North of Dodd Blvd is a new

development with plans for a HyVee Mini Store and retail center.

Pep Boys is one half mile north from a new master planned housing

community on 472 Acres.

Lakeville is one of the fastest growing suburbs in the metropolitan

area. Pending new home starts for 2018-2019 is 483 lots, with 1,311

new homes developed since 2011. Pep Boys is a half mile north of

The Grove at Avonlea, a master planned housing community.

Lakeville is a vibrant city that boasts excellent schools, proximity

to regional attractions and amenities, and a range of housing

options. Lakeville is located 20 miles south of Minneapolis-St. Paul,

and 20 minutes from the MSP airport.



PROPERTY OVERVIEW

LEASE INFORMATION

LEASE TYPE NN

LEASE TERM RMNG 10 years

RENEWAL OPTIONS Two 5-year

RENT COMMENCEMENT 9/24/2018

LEASE EXPIRATION 9/30/2028

PROPERTY INFORMATION

ADDRESS 17567 Cedar Ave

Lakeville, MN 55044

BUILDING SIZE 6,480 SQ FT

LOT SIZE 0.86 Acres

COUNTY Dakota

YEAR BUILT 2003/2018

DEMOGRAPHIC INFORMATION

1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS

2019 POPULATION 8,126 71,830 157,960

2024 POPULATION 9,415 78,567 169,814

2019 MEDIAN HOUSEHOLD INCOME $97,539 $98,396 $94,956

2019 AVERAGE HOUSEHOLD INCOME $135,570 $116,351 $116,115

All demographic information is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projections for 2018 and 2023.

LEASE NOTES:

Landlord responsible for the repair and replacement of roof structure and parking lot. Landlord responsible for maintenance of roof.

See Lease.

Pep Boys Auto

Lakeville, MN

INVESTMENT SUMMARY

PRICE $1,866,240

CAP 6.25%

NOI $116,640

RENT/SF $18.00

PRICE/SF $288.00

RENT ADJUSTMENTS

YEARS 1-5: $116,640.00

YEARS 6-10: $123,638.40

OPTION 1: $131,090.40

OPTION 2: $138,996.00



PROPERTY PHOTOS Pep Boys Auto

Lakeville, MN



SURROUNDING PROPERTIES Pep Boys Auto

Lakeville, MN



SURROUNDING PROPERTIES Pep Boys Auto

Lakeville, MN



AERIAL Pep Boys Auto

Lakeville, MN

The Grove at Avonlea

(Lennar Homes)

MASTER-PLANNED COMMUNITY ON 472 ACRES

AVONLEA FEATURES A CLUBHOUSE WITH FITNESS

ROOM, OUTDOOR FIRE PIT, COVERED PATIO WITH

OUTDOOR GRILL, COMMUNITY PARKS AND

PLAYGROUNDS . 5th addition– 101 homes.

Crossroads of Lakeville

Summer’s creek

Proposed 84 homes and

127 townhomes

Pinnacle reserve

At avonlea

268 homes on

139 acres



Pep Boys Auto

Lakeville, MN CROSSROADS OF LAKEVILLE PLAN



TENANT INFORMATION Pep Boys Auto

Lakeville, MN

Then tenant on the lease, The Pep Boys - Manny Moe & Jack of California, Inc., operate 236 stores.

Company

The Pep Boys Auto sells brand name and private label auto parts, and provides select services through approximately 1,000 locations in 35 states and Puerto Rico. In January 2017, Pep Boys

acquired the 37-year-old Just Brakes store chain, and its 134 stores in Dallas, Atlanta, and 12 other metro markets. Just Brakes stores will be converted into Pep Boys Service & Tire Centers, Pep

Boys chief executive Brent Windom said in a statement. The addition will boost Pep Boys' store count above 900. The companies have few overlapping markets. In addition to the Just Brakes deal, "in

the coming year, we look forward to continuing to increase our network of stores and service bays across the country," Windom said.

Pep Boys stock about 25,000 car parts and accessories, including tires, and combined, operate more than 9,000 service bays for vehicle repairs, inspections, and parts installations. It also offers

credit and parts delivery to commercial customers, such as repair shops, fleet operators, schools, and municipalities. Founded in 1921 by Philadelphians Manny, Moe, and Jack, Pep Boys was

acquired by billionaire investor Carl Icahn's Icahn Enterprises in February 2016. Pep Boys is listed in the New York Stock Exchange under the ticker symbol PBY.

Operations

Pep Boys operates more than 560 Supercenters, over 235 Service & Tire Centers, and six Pep Boys Express stores. The Supercenters combine do-it-for-me (DIFM) service labor, installed

merchandise and tire offerings with DIY parts and accessories. Its Service & Tire Centers average 6,000 square feet and provide DIFM services in neighborhood locations.

Pep Boys' parts and accessories sales made up 58% of its total revenue in fiscal 2015 (ended January 2015), while tire sales made up another 18%. Its service labor revenue represented 24% of its

total revenue (up from less than 20% four years prior).

Pep Boys Just Brakes Total Car Care Acquisition

Pep Boys has acquired the 27-year-old Just Brakes Total Car Care store chain, and its 134 stores in Dallas, Atlanta, and 12 other metro markets, for an undisclosed price. The Just Brakes stores will

be converted into Pep Boys Service & Tire Centers giving Pep Boys more than 900 locations in 43 states across the U.S.

Acquiring privately held Just Brakes will allow Pep Boys to strengthen its presence in target markets, including Dallas and Atlanta, and "demonstrates our steadfast commitment to growing our service

business," said Pep Boys President and CEO Brent Windom. Pep Boys intends to convert Just Brakes' locations to its Pep Boys Service & Tire Center format and has retained the services of Bill

Ihnken, former CEO of Just Brakes, to become Pep Boys' president of service, Mr. Windom said.

Established in 1980, Just Brakes has grown from a single location in Bryan, Texas to over 134 locations in eight states and 14 major markets. Services

have expanded from a focus on braking systems to a total car care solution, including oil changes, maintenance services and now tires.

ENTITY Icahn Enterprises L.P.

REVENUES $21.30 Billion (2017)

TOTAL ASSETS $31.8 Billion (2017)

S&P RATING BB+

PROPERTY Pep Boys Auto

TENANT The Pep Boys - Manny Moe &

Jack of California

SUBSIDIARY OF The Pep Boys - Manny Moe &

Jack

REVENUES Private

NET WORTH Private

ENTITY The Pep Boys - Manny

Moe & Jack

SUBSIDIARY OF Icahn Enterprises L.P.



AREA INFORMATION Pep Boys Auto

Lakeville, MN

Reliant Stadium Ritter Farmer Park

Legends Golf Club

Downtown Minneapolis & US Bank Stadium

This Pep Boys Auto is located at the southeast corner of Cedar Avenue and Dodd Boulevard, in Lakeville,

Minnesota. Traffic counts average 20,300 vehicles daily on Cedar Avenue and 13,700 on Dodd Boulevard. Pep

Boys is adjacent to Firefly Credit Union, and Barley and Vine Kitchen and Bar. It is in the Crossroads of Lakeville

which include other retailers Cub Foods, Chuck & Don’s Pet Food Supplies, Caribou Coffee, CherryBerry, Metro

Dentalcare, Little Caesars Pizza, Snap Fitness, McDonald’s, and more. Other area properties include CVS

Pharmacy, Fresenius, Kwik Trip, and New Horizon Academy. Pep Boys is a half mile from a new master

planned housing community on 472 Acres.

Lakeville, Minnesota, is a southern suburb of the Twin Cities metropolitan area. As its name implies, Lakeville

contains several lakes, ponds, and wetlands, creating a beautiful landscape with many recreational

opportunities. Lakeville is one of the fastest growing suburbs in the metropolitan area with a population of

60,000. Many area residents commute to work in downtown Minneapolis or St. Paul, which are 25 miles and

30 miles north, respectively. Lakeville is known as a suburb where nature meets the city, and it has dozens of parks and beaches, as well as many miles of trails for

biking and walking. There are four champion golf courses and six more within a 20 minute drive.

The Minneapolis-St. Paul MSA is the 16th-largest metropolitan area in the US, with approximately 3.4 million residents. The metro area is home to 19 Fortune 500

companies, including United Health Group, Target, 3M, General Mills, Best Buy, Supervalu, Land O’ Lakes, U.S. Bancorp, Xcel Energy, Ameriprise Financial, Thrivent

Financial for Lutherans, and many more. There are also many large private companies, including Cargill and Schwan Foods. Minneapolis and St. Paul are home to many

professional sports teams, which draw fans from across the region, including the NFL’s Minnesota Vikings who play at the newly-built US Bank Stadium. Other major

draws to the area include the Science Museum of Minnesota, the Mall of America, Minneapolis-St. Paul International Airport, and Valley Fair, all of which are within a

half hour of Lakeville. The metro area is also home to many institutions of higher education, most notably the University of Minnesota, which has a current enrollment

over 51,000 students, making it the 6th largest university in the nation.

Lake Marion



MAPS Pep Boys Auto

Lakeville, MN

Pep Boys Auto

17567 Cedar Ave

Lakeville, MN 55044

Pep Boys Auto

17567 Cedar Ave

Lakeville, MN 55044



MAJOR MINNESOTA RETAIL MARKETS Pep Boys Auto

Lakeville, MN



TOP MINNESOTA COMPANIES Pep Boys Auto

Lakeville, MN

2018 Fortune 500 Rankings

State Rank Company Fortune 500 Rank City Revenues ($ Billions) Net Worth ($ Billions) 2017 Rank

1 UnitedHealth Group 5 Minnetonka $201.15 $47.76 6

2 Target Corporation 39 Minneapolis $71.87 $11.70 38

3 Best Buy Co., Inc. 72 Richfield $42.15 $3.61 72

4 CHS, Inc. 96 Inver Grove Heights $31.93 $7.89 93

5 3M Company 97 St. Paul $30.65 $11.56 94

6 U.S. Bancorp 122 Minneapolis $23.99 $49.04 125

7 Supervalu, Inc. 180 Eden Prairie $16.00 $376M 158

8 General Mills, Inc. 182 Minneapolis $15.61 $4.32 165

9 C.H. Robinson Worldwide 193 Eden Prairie $14.86 $1.42 212

10 Ecolab 215 St. Paul $13.83 $7.61 211

11 Land O’Lakes 216 Arden Hills $13.74 $2.69 209

12 Ameriprise Financial, Inc. 252 Minneapolis $12.07 $5.99 239

13 Xcel Energy, Inc. 266 Minneapolis $11.40 $11.45 256

14 Hormel Foods Corporation 323 Austin $9.16 $4.93 295

15 Thrivent Financial for Lutherans 343 Minneapolis $8.52 $8.26 316

16 Mosaic 382 Plymouth $7.40 $9.61 377

17 Securian Financial Group 462 St. Paul $6.06 $5.07 532

18 Patterson 490 St. Paul $5.59 $1.39 466

19 Polaris Industries 496 Medina $5.50 $931M 537

Source: Fortune 500 2018 from FORTUNE Magazine. Retrieved from: http://fortune.com/fortune500/list/filtered?statename=Minnesota [June 2018].

PAGE 15

Nationally recognized CCIM accredited sales team

Comprehensive and searchable online database

Excellent reputations and credibility

Online Letter of Intent forms

Access to confidential off-market properties

Extensive referral network

Prompt follow-up and attention to detail

Completed in excess of 800 net leased sales transactions totaling over $2.1 billion

Combined sales experience of over 60 years Specialized in NNN investment market for more than 20 years Upland’s 1031 investment specialists have successfully completed net lease sales transactions with tenants including, but not limited to:

THE UPLAND ADVANTAGE PROVEN SUCCESS RECORD

BENEFITS OF WORKING WITH UPLAND

Upland Real Estate Group, Inc., which was founded in 1995, is a

Minneapolis based commercial real estate, brokerage, and investment

company, which focuses on passive real investments, 1031 solutions,

real estate portfolio diversification, and wealth preservation. Upland

offers "big business service" with the attentiveness you expect from a

boutique shop.

Our ability to swiftly match buyers with sellers is one of the many

reasons Upland Real Estate Group, Inc. is the nation's primary

resource for the purchase or sale of net leased, credit investment

properties. Many investors and 1031 tax deferred exchange buyers

have benefited from the experience and expertise of our team of net

leased investment sales specialists.

www.nnnsales.com

7-Eleven Advance Auto Applebee’s Arby’s BJ’s Wholesale Bridgestone/Firestone Buffalo Wild Wings Burger King Camping World CVS Pharmacy

Dollar General Family Dollar Gander Mountain Goodwill Jack in the Box Jiffy Lube KinderCare Learning Center Kohl’s McDonald’s National Tire & Battery

O’Reilly Auto Parts Petco Sherwin Williams Starbucks Taco Bell Tires Plus Tractor Supply Trader Joe’s Valvoline Walgreens

ABOUT UPLAND


Front L to R: Amanda Leathers, Keith Sturm, Deborah Vannelli, Back L to R: Emily Marsh & Larissa Jackson

Pep Boys Auto

Lakeville, MN

Documents

Pep oys Auto - LoopNet · performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes,