exclusive offering | - exp realty advisors friday's_mn_bloomington... · 2014-09-03 ·...

214.915.8890

BOB MOORHEAD

[email protected]

JOE CAPUTO

[email protected]

SUBJECT PROPERTY

property. 7,924+ SF building on 2.21+ acre site.

tenant. TGI Friday’s: 900+ locations in 59 countries. 2012 revenue: $2.7 billion.

lease structure. Absolute NNN Lease. 20-year initial term with (4), 5-year option periods and 10% rent increases every 5-years during initial term & options.

location. TGI Friday’s is located along Killebrew Dr (20,278 Cars / Day) which receives a majority of its traffic flow from Old Cedar Ave (60,000 Cars / Day), just to

the west of the site. The immediate trade area has continued to show positive growth, the population within a 3-mile radius of the site is projected to grow by 5.97%

over the next 5-year period ending in 2019. The property is also adjacent to The Mall of America, one of the top tourist destinations in the country as well as one of

the most recognizable brands. The mall is anchored by Nordstrom, Macy’s, Sears, Forever 21, and Radisson Blu hotel. The mall features 520+ tenants and brings

more than 40 million visitors annually. By hosting more than 400 events each year, the Mall has become the place where fans can meet and greet their favorite

celebrities or take part in interactive, one-of-a-kind events. The subject property is south of the Minneapolis Saint Paul International Airport, twin cities IKEA, and is

surrounded by a host of national credit tenants in the immediate trade area. Major tenants in the immediate area include Walmart, Walgreens, The Home Depot,

Sam’s Club, REI, Sports Authority, David’s Bridal, Menard’s, Discount Tire, and many others. Bloomington is located 12-miles southeast of Minneapolis, MN.

EXCLUSIVE OFFERING | $6,270,000 – 5.35% CAP

TGI FRIDAY’S

2201 Killebrew Dr, Bloomington, MN

Retail Resource Group, Inc. and EXP Realty Advisors, Inc. (“Agents”) have been engaged

as agents for the sale of the property located at 2201 Killebrew Dr, Bloomington, MN by the

owner of the Property (“Seller”). The Property is being offered for sale in an “as-is, where-

is” condition and Seller and Agents make no representations or warranties as to the

accuracy of the information contained in this Offering Memorandum. The enclosed

materials include highly confidential information and are being furnished solely for the

purpose of review by prospective purchasers of the interest described herein. The enclosed

materials are being provided solely to facilitate the prospective investor’s own due diligence

for which it shall be fully and solely responsible. The material contained herein is based on

information and sources deemed to be reliable, but no representation or warranty, express

or implied, is being made by Agents or Seller or any of their respective representatives,

affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or

completeness of the information contained herein. Summaries contained herein of any

legal or other documents are not intended to be comprehensive statements of the terms of

such documents, but rather only outlines of some of the principal provisions contained

therein. Neither the Agent nor the Seller shall have any liability whatsoever for the accuracy

or completeness of the information contained herein or any other written or oral

communication or information transmitted or made available or any action taken or decision

made by the recipient with respect to the Property. Interested parties are to make their own

investigations, projections and conclusions without reliance upon the material contained

herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the

Property from being marketed for sale at any time and for any reason. Seller and Agents

each expressly reserves the right, at their sole and absolute discretion, to reject any and all

expressions of interest or offers regarding the Property and/or to terminate discussions with

any entity at any time, with or without notice. This offering is made subject to omissions,

correction of errors, change of price or other terms, prior sale or withdrawal from the market

without notice. Agents are not authorized to make any representations or agreements on

behalf of Seller. Seller shall have no legal commitment or obligation to any interested party

reviewing the enclosed materials, performing additional investigation and/or making an offer

to purchase the Property unless and until a binding written agreement for the purchase of

the Property has been fully executed, delivered, and approved by Seller and any conditions

to Seller’s obligations hereunder have been satisfied or waived. By taking possession of

and reviewing the information contained herein, the recipient agrees that (a) the enclosed

materials and their contents are of a highly confidential nature and will be held and treated

in the strictest confidence and shall be returned to Agents or Seller promptly upon request;

and (b) the recipient shall not contact employees or tenants of the Property directly or

indirectly regarding any aspect of the enclosed materials or the Property without the prior

written approval of the Seller or Agents; and (c) no portion of the enclosed materials may be

copied or otherwise reproduced without the prior written authorization of Seller and Agents.

PAGE 3: INVESTMENT | TENANT | LEASE OVERVIEW

PAGE 1: COVER

PAGE 2: TABLE OF CONTENTS | DISCLAIMER

PAGE 10: DEMOGRAPHICS

Table of contents | Disclaimer TGI FRIDAY’S


PAGE 4-5: AERIAL PHOTOS

PAGE 7: LOCATION OVERVIEW

PAGE 8-9: LOCATION MAPS

Disclaimer

2

PAGE 6: SITE PLAN

Listed in association with Minnesota broker of record:

Barry Brottlund– InSite Commercial Real Estate

http://www.bsro.jobs/about_bsro

PRICE: $6,270,000

CAP RATE: 5.35%

NET OPERATING INCOME: $335,422

BUILDING AREA: 7,924+ Square Feet

LAND AREA: 2.21+ Acres

YEAR BUILT | REMODELED: 1994 | 2005

OWNERSHIP: Fee Simple Interest

LANDLORD RESPONSIBILITY: None

OCCUPANCY: 100%

Tenant overview

3

Investment overviewTGI FRIDAY’S


TGI Friday’s

Lease overview

Lease Expiration: XX 2034

Current Rent Commencement: XX 2014

Current Lease Term: 20-Yrs, (4) 5-Year Option to Renew

Rent Increases: 10% Every 5 Years In Primary Term & Options

Lease Type: Absolute NNN

Annual Rent (Current): $335,422

Annual Rent Years 6-10: $368,964



(Option 1 | Years 21-25): $491,091

(Option 2 | Years 26-30): $540,200

(Option 3 | Years 31-35): $594,221

(Option 4 | Years 36-40): $653,643

TGI FRIDAY’S | www.tgifridays.com

TGI Friday’s Inc., aka “Friday’s,” is arguably the most recognized chain in the casual dining sector in North America. Friday’s was founded in 1965 with one

restaurant in New York City. The company has since grown to generate well over $2.7 billion dollars in annual revenues thru 900+ restaurants in 59 countries and

49 states. TGIF is being acquired by Sentinel Capital Partners and Tri-Artisan Capital Partners.

Sentinel Capital Partners was founded in 1995 and is headquartered in New York City. Sentinel has $2.6 billion of equity capital under management and $1.5

billion available for immediate investment. Sentinel is the target niche market leader in eight sectors: Aerospace/Defense, Business Services, Consumer,

Distribution, Food/Restaurants, Franchising, Healthcare, and Industrial/Manufacturing.

TriArtisan Capital Partners, LLC is headquartered in New York City with offices in San Francisco and Stamford, CT and operates as an investment arm of Morgan

Joseph TriArtisan Group Inc. Tri-Artisan Capital Partners, LLC primarily invests in consumer and retail, industrial, healthcare, media and telecommunication,

leisure, real estate, gaming, lodging, hospitality, and diversified service sector companies. Within consumer and retail sector the firm seeks to invest in consumer

products, food, beverage and agribusiness, department stores, mass merchants, luxury goods, apparel, specialty retail, and restaurants. TriArtisan has over

$81billion of completed transactions since June 2001, over 280 completed M&A transactions/restructuring assignment, and over 100 completed financings,

including private equity and debt placements.

4

Aerial photoTGI FRIDAY’S


Killebrew Dr (20,278 Cars / Day)

Richfield High School

Richfield Intermediate

School

Centennial School

Portland School

Interstate 494 (158,006 Cars / Day)

5

Aerial photoTGI FRIDAY’S


Killebrew Dr (20,278 Cars / Day)

Lindau Ln (10,266 Cars / Day)

24th

Ave (8,549 C

ars / Day)

28th

Ave (1,793 C

ars / Day)

E 82nd St (2,201 Cars / Day)

Old

Ced

ar Ave (60,000 C

ars / Day)

6

SITE PLANTGI FRIDAY’S


7

Location overviewTGI FRIDAY’S


IMMEDIATE TRADE AREA

TGI Friday’s is located along Killebrew Dr (20,278 Cars / Day) which receives a

majority of its traffic flow from Old Cedar Ave (60,000 Cars / Day), just to the

west of the site. The immediate trade area has continued to show positive

growth, population within a 3-mile radius of the site is projected to grow by

5.97% over the next 5-year period ending in 2019.

The property is also adjacent to The Mall of America, one of the top tourist

destinations in the country as well as one of the most recognizable brands. The

mall is anchored by Nordstrom, Macy’s, Sears, Forever 21, and Radisson Blu

hotel. The mall is scheduled for a $50 million makeover, as well as a $325

million expansion that includes at JW Marriot hotel, an office tower, and more

than 50 shops and restaurants set to debut in August 2015. By hosting more

than 400 events each year, the Mall has become the place where fans can

meet and greet their favorite celebrities or take part in interactive, one-of-a-kind

events. The subject property is south of the Minneapolis Saint Paul

International Airport, twin cities IKEA, and is surrounded by a host of national

credit tenants in the immediate trade area. Major tenants in the immediate area

include Walmart, Walgreens, The Home Depot, Sam’s Club, REI, Sports

Authority, David’s Bridal, Menard’s, Discount Tire, Napa Auto Parts, Outback

Steakhouse, Denny’s, IHOP, and many others.

BLOOMINGTON, MN

Located on the banks of the Minnesota River, the city of Bloomington has much

to offer travelers. Not only is it home to the world-famous Mall of America, but

this city of 85,000 also houses the stunning Minnesota Valley National Wildlife

Refuge, Water Park of America, an extensive system of hiking and biking trails

and much more. Twin Cities visitors also enjoy Bloomington’s many travel

conveniences, including its central location, proximity to the airport, and easy

freeway access to Interstates 35W and 494. In addition, Bloomington offers

free parking, free hotel shuttles to the airport and Mall of America, and the

Hiawatha light rail line, which runs from the Mall of America, to Minneapolis-St.

Paul International Airport and downtown Minneapolis.

The city of Bloomington’s #1 attraction by far, is Mall of America, the largest

shopping center in the United States, welcoming over 40 million visitors

annually. This shopping Mecca boasts 2.5 million square feet of retail space,

over 520 stores and countless entertainment options that range from nightclubs

to the Nickelodeon Universe amusement park to a 14-screen cinema.

Another popular Bloomington destination is the Minnesota Valley National

Wildlife Refuge, spanning 14,000 acres, with miles of hiking and biking trails,

prime bird-watching opportunities, and an extensive visitors center.

MINNEAPOLIS–ST. PAUL–BLOOMINGTON MSA

The Minneapolis–St. Paul–Bloomington Metropolitan Statistical Area (MSA) or

the Twin Cities is the most populous urban area in the state of Minnesota. The

MSA is anchored by Minneapolis (Population: 392,880), the largest city in the

state and St. Paul (Population: 290,770), the state capital. The MSA has a

population of 3,422,264 making it the 16th largest in the country.

The Minneapolis–St. Paul area is the second largest economic center in the

Midwest, behind Chicago. The economy of Minneapolis today is based in

commerce, finance, rail and trucking services, health care, and industry.

Smaller components are in publishing, milling, food processing, graphic arts,

insurance, education, and high technology. Industry produces metal and

automotive products, chemical and agricultural products, electronics,

computers, precision medical instruments and devices, plastics, and

machinery. Five Fortune 500 corporations make their headquarters within the

city limits of Minneapolis: Target, U.S. Bancorp, Xcel Energy, Ameriprise

Financial and Thrivent Financial for Lutherans. The largest employers in

Minneapolis are Target, University of Minnesota, Allina Health, Fairview Health

Services, Wells Fargo, Hennepin County, Ameriprise, Hennepin County

Medical Center, U.S. Bancorp, City of Minneapolis, Xcel Energy, Capella

Education Company, RBC Wealth Management, Macy's, TCF Financial,

Federal Reserve Bank of Minneapolis, Thrivent, and the Star Tribune. Foreign

companies with U.S. offices in Minneapolis include Accenture, Canadian

Pacific, Coloplast, RBC and ING Group.

The Twin Cities contribute 63.8% of the gross state product of Minnesota. The

area's $199.6 billion gross metropolitan product and its per capita personal

income ranked 13th in the U.S. The Federal Reserve Bank of Minneapolis,

serves Minnesota, Montana, North and South Dakota, and parts of Wisconsin

and Michigan. The smallest of the 12 regional banks in the Federal Reserve

System, it operates a nationwide payments system, oversees member banks

and bank holding companies, and serves as a banker for the U.S. Treasury.

8

Location mapTGI FRIDAY’S


9

Location mapTGI FRIDAY’S


DOWNTOWN MINNEAPOLIS, MN

10

DemographicsTGI FRIDAY’S


Demographic snapshot

Radius 1 Mile 3 Mile 5 Mile

Population:

2019 Projection 7,143 60,629 222,774

2014 Estimate 6,640 57,212 211,256

2010 Census 6,061 54,598 203,013

Growth 2014-2019 7.58% 5.97% 5.45%

Growth 2010-2014 9.55% 4.79% 4.06%

Households:

2019 Projection 2,938 25,074 96,766

2014 Estimate 2,731 23,669 91,702

2010 Census 2,497 22,642 88,150

Growth 2014 - 2019 7.58% 5.94% 5.52%

Growth 2010 - 2014 5.33% 2.21% 1.41%

Owner Occupied 1,181 14,626 60,350

Renter Occupied 1,550 9,043 31,352

2014 Avg Household Income $63,642 $64,407 $77,271

2014 Med Household Income $41,783 $49,842 $59,506

2014 Households by Household Inc:

<$25,000 755 4,730 16,468

$25,000 - $50,000 849 7,142 22,371

$50,000 - $75,000 459 4,562 16,849

$75,000 - $100,000 182 3,232 13,192

$100,000 - $125,000 219 2,048 9,076

$125,000 - $150,000 81 765 4,659

$150,000 - $200,000 65 603 4,951

$200,000+ 121 587 4,136 MALL OF AMERICA, BLOOMINGTON, MN

exclusive offering | - exp realty advisors friday's_mn_bloomington... · 2014-09-03 ·...

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