Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044David B Zacharia, MN RE Lic. 40459837

Kenrick CommonsLakeville, MN

Listed in Conjunction with MN Real Estate Broker

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044The Offering

$4,324,000

6.52%

$282,061

$229.44

$14.92

Mike James

(424) 325-2606

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Price / SF

Rent / SF / Avg

Listing Agent

Phone Number

Email

PROPERTY INFOTenant

Street Address

City

State

Zip

APN

GLA

Lot Size

Year Built

Kenrick Commons

16227 Kenrick Ave

Lakeville

MN

55044

22-41615-01-010

18,846 SF

3.23 AC

2006

Occupied SpaceAvailable Space - Leased at Market*Gross Potential Rent (GPR)Total Expense ReimbursementsEffective Gross Income (EGI) Real Estate Taxes CAM Utilities Repair & Maintenance Management FeeTotal Operating ExpensesNet Operating Income

* Seller to sign a 3-Year lease at closing

INCOME & EXPENSE $274,964

$16,896$292,760$179,525$472,285$105,838$36,699

$12,196$18,356

$17,135$190,224$282,061

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Retail Aerial

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Lease Summary

REAL ESTATE HIGHLIGHTSHigh Traffic Counts & Excellent Site-Level VisibilityIdeally located off of 162nd Street W and Interstate 35, this property has visibility from over 131,000 vehicles passing per day.

Affluent Demographics - 6 Figure Household IncomeThe City of Lakeville has an average household income of $102,943, with unemployment rates as low as 2.2% in 2018.

Starbucks End Cap with Busy Drive-ThruThis center features a Starbucks Drive-Thru located on the main thoroughfare driving traffic to the site, and creating synergies among the other tenants.

Significant Investment in Immediate AreaThe City of Lakeville issued multiple building permits through July 2018, including residential as well as commercial and industrial properties. The total estimated value is more than $154M.

Infill Retail CorridorThere are a multitude of national retailers in the immediate area, including KFC, O’Reilly Auto Parts, McDonald’s and Sherman Williams Paint Store.

Thriving Town with Nearby University The University of Minnesota, Twin Cities, located just 20 miles from the subject property, has over 47,500 students enrolled and nearly 18,000 faculty and staff members.

80% of the GLA has a rent increase in 2019A substantial portion of the GLA has a rent increase before the end of 2019, bringing the pro-forma cap rate over 6.78% by September 2019, and offering significant immediate upside.

70% Occupied by National TenantsThe center is more than 70% occupied by national tenants, including Starbucks, Fantastic Sams and the YMCA. A small portion of available space allows additional upside in a lower vacancy market.

56% of the GLA was renovated in 2018The property has been well kept since its construction, with active, regular maintenance and more than half of the building was recently renovated to fit the YMCA.

Triple-Net (NNN) Center with Minimal MaintenanceThe lease structure calls for minimal landlord maintenance and expenses, as all existing tenants operate on Triple-Net (NNN) leases, with tenants reimbursing for CAM, insurance and taxes.

Long Term Leases Offer Additional SecurityAt least 69% of the GLA is leased through December 2023, with more than 56% of the GLA leased through October 2028, providing the owner with the security of a high average lease term.

Recession Resistant TenancyThis location offers a strong mix of service based, recession and online resistant tenants. The tenancies are synergistic, and many customers enter more than one suite in a single visit.

INVESTMENT HIGHLIGHTS

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Property Image

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Rent Roll

3/1/2020

3/1/2019

1/1/2020

9/1/2019

8/1/2019

9/1/2019

-

10% Every 5-Years

3% Annually

4-5% Annually

2.13-2.17% Annually

3.2-3.75% Annually

2.5% Annually

-

$45,792 ($28.80/SF)

$22,292 ($18.58/SF)

$21,600 ($18.00/SF)

$13,800 ($17.25/SF)

$29,280 ($12.20/SF)

$143,100 ($13.50/SF)

$16,896 ($16.00/SF)

$292,760

Four, Five-Year Options

-

-

-

One, Three-Year Option

Two, Five-Year Options

-

01/21/2005 - 02/28/2025

12/01/2004 - 02/29/2020

09/01/2008 - 12/31/2021

09/01/2010 - 08/31/2021

07/01/2017 - 12/31/2023

06/01/2018 - 11/30/2028

C.O.E. - C.O.E. + 3 Years

1,590 SF

1,200 SF

1,200 SF

800 SF

2,400 SF

10,600 SF

1,056 SF

18,846 SF

Starbucks (NNN)

Fantastic Sam’s (NNN)

MimiSpa Nails Inc. (NNN)

John’s Tailor (NNN)

Align Chiropractic, PA (NNN)

YMCA (NNN)

Seller Leaseback (Vacant)

TOTAL

NEXT INCREASERENTAL INCREASESCURRENT RENTOPTIONSCURRENT LEASE TERMGLARent Roll

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Tenant Overview

StarbucksThis globally recognized tenant has more than 27,000 locations and is the most popular coffeehouse in the world.

Fantastic SamsFantastic Sams is one the world’s largest full-service hair care salons and has over 1,000 locations throughout North America.

YMCA Early Childhood Learning CenterThe construction was recently completed on the brand new YMCA Daycare and Preschool in September 2018.

Number of Locations

28,218

Headquarters

Seattle, WA

Number of Locations

1,250

Headquarters

Beverly, MA

Number of Beneficiaries

64 Million

Headquarters

Geneva, Switzerland Mimi Spa NailsMimi Spa Nails offers a wide range of nail and spa services to its diverse clientele of men, women and even children.

John’s TailorsSpecializing in custom and quality formal garments, John’s Tailors offers the finest fashion accouterments and the most experience in the Twin Cities.

Align ChiropracticAlign Chiropractic provides a world-class chiropractic experience by delivering exceptional Structural Corrective Chiropractic care.

Number of Locations

1

Headquarters

Lakeville, MN

Number of Locations

1

Headquarters

Lakeville, MN

Number of Locations

1

Headquarters

Lakeville,MN

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Location Overview

LAKEVILLE, MNLakeville, MNLocated in a Minneapolis-Saint Paul suburb, Lakeville is one of the fastest-growing cities in the Twin-Cities area with a population of nearly 64,000.

Planned Development and GrowthIn 2017, Lakeville had a record breaking year of development and issued the highest building permit valuation in the city’s history, with a total over $270 million.

Active and Growing Business CommunityLakeville has over 1,000 businesses with ample opportunities for commercial development and hundreds of new jobs have been created from the recent industrial developments.

Numerous Industrial DevelopmentsA 286,000 square-foot, multi-tenant building, a warehouse facility and a truck maintenance facility are among the several new industrial developments that took place in 2017.

LOCATION OVERVIEWMinneapolis MSAMinnesota’s largest city, Minneapolis, is located just 20 miles from the subject property and has a rising population of more than 422,000 people.

Ranked in the Top 20 Best U.S. CitiesMinneapolis earned a spot in the top 20 U.S. cities due to its strengths in the business, sports, education, manufacturing and medical industries.

Proximity to the Largest Mall in the United StatesMinnesota’s most recognized landmark, Mall of America, attracts 40 million annual visitors and has 11,000 year-round employees. The Mall generates nearly $2 billion of economic activity annually.

Minneapolis-Saint Paul International (MSP) AirportMSP creates momentum for economic growth by providing 87,000 jobs and contributing $16 billion to the Twin Cities’ economy. MSP airport served a record high of over 38 million passengers in 2017.

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Retail Aerial

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Site Plan

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Demographics

10 MILE

169,234

162,777

152,385

3.97%

6.82%

$105,696

$85,833

5 MILE

62,570

60,168

55,633

3.99%

8.15%

$103,733

$84,795

3 MILE

22,800

22,042

20,731

3.44%

6.32%

$108,998

$87,524

1 MILE

2,579

2,489

2,314

3.62%

7.56%

$109,041

$97,584

HOUSEHOLDS

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

Growth 2010 - 2018

HOUSEHOLDS

Avg. HH Income

Med. HH Income

10 MILE

448,308

431,033

402,741

4.01%

7.02%

5 MILE

169,871

163,377

151,361

3.97%

7.94%

3 MILE

62,330

60,301

56,897

3.36%

5.98%

1 MILE

7,110

6,880

6,491

3.34%

5.99%

DEMOGRAPHICSPOPULATION

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

Growth 2010 - 2018

Affluent DemographicsLakeville has an average household income over $100,000 and the annual consumer spending within a five mile radius of the subject property totals more than $1.8 million.

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044

DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & David B Zacharia (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer

Kenrick Commons

16227 Kenrick Ave, Lakeville, MN 55044Contact Information

Contact Information

SUBMIT OFFER

David B ZachariaMN Real Estate Broker

MN RE Lic. 40459837

Reed MelilloSenior Director, Net-Lease

(424) 325-2606Reed@JamesCapitalAdvisors.comCA RE Lic. 01984199

Mike JamesExecutive Chairman

(424) 325-2601Mike@JamesCapitalAdvisors.comCA RE Lic. 01869890