shadow anchored by trader joe’s -...

INVESTMENT OPPORTUNITY SHOPS AT RANDOLPH HILLSHADOW ANCHORED BY TRADER JOE’S

ST. PAUL, MN

30,000 CPDCombined

V&T NAILS

(Not a Part)

ANCHORED BY

SUBJECT PROPERTY

D O W N T O W N S T PA U L

OFFERED AT: $1,948,000 | 6.75% CAP

EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEWS AREA OVERVIEW

SHOPS AT RANDOLPH HILL | St. Paul, MN | 2

TABLE OF CONTENTS

4 Offering Summary5 Investment Highlights6 Rent Roll & Cash Flow Projection

EXECUTIVE SUMMARY

8 Location Maps9 Site Plan10 Property Photos12 Neighboring Tenants15 Aerials

PROPERTY INFORMATION

22 Rent Overviews & Lease Summaries

TENANT OVERVIEWS

27 St. Paul Overview28 Twin-Cities Overview29 Demographics

Confidentiality Agreement & Disclosures

AREA OVERVIEW

EXCLUSIVELY REPRESENTED BY

RYAN BARRPrincipal

[email protected]

RYAN BENNETTPrincipal

[email protected]

Color Scheme

Fonts

GOTHAM/ BLACKGOTHAM/ MEDIUMGOTHAM/ LIGHT

CMYK C:0 / M:100 / Y:65 / K:47

RGB R:145 / G:0 / B:40

CMYK C:0 / M:0 / Y:0 / K65

RGB R:119 / G:120 / B:123

Lee & Associates of Twin Cities LLC(MN Lic#40474611)

AL APUZZOPrincipal

[email protected]

EXECUTIVE SUMMARYSHOPS AT RANDOLPH HILL | ST. PAUL, MN



PROPERTY OVERVIEW

Address: 500-508 Lexington Pkwy SouthSt. Paul, MN

Property Size: Approx 5,591 sq ft

Land Size: 0.611 Acres

Property Type: Multi-Tenant (4 Tenants)

Rusty TacoPapa John’sShark Tooth TattooV&T Nails

2,015 SF 1,423 SF 1,076 SF 1,077 SF

Ownership: Fee Simple

Year Built: 2008

APN: 2771-02229-0000

INVESTMENT HIGHLIGHTSOffering Price: $1,948,000Net Operating Income: $131,490Cap Rate: 6.75%Price/SF: $348

Lee & Associates is pleased to exclusively offer for sale to qualified investors the opportunity to purchase the Shops at Randolph Hill, a multi-tenant neighborhood retail center located at 500-508 Lexington Pkwy South in St. Paul, Minnesota (the “Property”). The subject property is located approximately 3 miles’ soutwest of downtown St. Paul, and 6 miles southeast of downtown Minneapolis, within close proximity of the Minneapolis-Saint Paul International Airport.

Built in 2008, the Property consists of a 5,590 square foot building that sits on approximately 0.611 acres. The center is strategically located on the hard corner signalized intersection of Lexington Pkwy and Randolph Ave, offering visibility and signage to combined 30,000+ vehicles per day. The Shops at Randolph Hill is anchored by Trader Joe’s, the popular privately-held chain of specialty grocery stores, offering a strong customer draw to the center. The property offers attractive construction, plentiful parking, monument signage, and well maintained common areas.

The Shops at Randolph Hill is 100% leased to R (Rusty) Taco, Papa John’s Pizza, V&T Nails, and Shark Tooth Tattoo. R Taco has 4+ years remaining on its 10-year lease. Papa John’s lease has 2+ years remaining and features (2) 5-year options with 10% rent increases in each option. V&T Nails (formerly LA Nails) just extended their lease for another 10 years, with 3% annual increases in the Primary term and in the (1) 5-year option. Shark Tooth Tattoo Gallery is a new tenant to the center, with an estimated commencement in November 2017 and 3% annual increases beginning in Year 3 of their five year lease.

The center is located in the St Paul neighborhood of Highland Park, which offers a small town feel within a big city. The area offers a family-friendly community with lots of jogging and biking trails, restaurants, an 18-hole golf course, and lots of schools nearby. There are nearly 336,000 people within a 5-mile radius of the subject property with an average household income of over $78,000.

The center is located just minutes from Downtown St. Paul, which is the state capital of Minnesota, and forms the “Twin-Cities” with neighboring Minneapolis. St Paul is the second most populous city in Minnesota, with an estimated population of 300,000 residents. The city is made up of many unique neighborhoods, promoting a sense of community in each that makes living in St. Paul a special experience. Nevertheless, the city is a thriving commercial center, and home to Fortune 500 company headquarters and many commercial, manufacturing, and transportation business. The area offers excellent education opportunities, with notable institutions including the University of Minnesota, one of the most comprehensive universities in the country, ranking among the top 20 in the United States.

-- OFFERING SUMMARY --

Offering Summary Rent Roll & Cash Flow ProjectionInvestment Highlights

Lexington Pkwy (12,000 cpd)

Randolph Ave (18,000 cpd)

30,000 cpdCombined

(Not a Part)

ANCHORED BY

D O W N TO W N M I N N E A P O L I S

SUBJECT PROPERTY



-- INVESTMENT HIGHLIGHTS --

100% LEASED NEIGHBORHOOD CENTER • DESIRABLE TENANT MIX • STAGGERED LEASE EXPIRATIONSThe subject property is a 100% leased neighborhood center located in St. Paul’s Highland Park neighborhood. The center offers a desirable tenant roster of national and regional tenants including Papa John’s Pizza, Rusty Taco, V&T Nails, and Shark Tooth Tattoo.

SHADOW ANCHORED BY HIGH PERFORMING TRADER JOE’S • STRONG CUSTOMER DRAW TO CENTER • RETAIL SYNERGYThe center is shadow anchored by Trader Joe’s, a privately held chain of specialty grocery stores with 467 locations in 41 states and Washington D.C. (as of Aug 2017). In addition, the subject property benefits from a strong retail synergy with neighboring retailers including BP, Associated Bank, PJ Murphy’s Bakery, Maverick’s Pizza, US Post Office, Burger King, Starbucks, US Bank, Kowalski’s Markets, and more.

TRIPLE-NET (NNN) LEASES • RENT GROWTH • MINIMAL LANDLORD RESPONSIBILITIES The Shops at Randolph Hill is 100% leased to R (Rusty) Taco, Papa John’s Pizza, V&T Nails, and Shark Tooth Tattoo. The rent roll feature staggered lease expirations over the next five years with rent growth ranging from 3%-10%. In addition, the Triple-Net (NNN) nature of the lease structures offer an owner minimal landlord responsibilities.

LOCATED ON HARD CORNER SIGNALIZED INTERSECTION • EXCELLENT VISIBILITY & HIGH TRAFFIC COUNTS (30,000 CPD)The subject property is located on the hard corner signalized intersection of Randolph Ave & Lexington Pkwy, which see combined traffic counts of 30,000+ cars per day. Lexington Pkwy is a main commuter corridor for travelers to/from Interstate 35E, providing excellent visibility and signage to the center.

LOCATED ADJACENT TO I-35E ON-RAMP (82,000 CPD) • MINUTES TO DOWNTOWN ST. PAUL, MINNEAPOLIS & MINNEAPOLIS-ST PAUL INTERNATIONAL AIRPORTThe center is located one block from the on/off ramp to Interstate 35E (82,000 cars per day), providing quick access to downtown St. Paul (5 miles away), downtown Minneapolis (9 miles away), and the Minneapolis-St Paul International Airport (4.6 miles away).

DESIRABLE TWIN CITIES MARKET • AFFLUENT DEMOGRAPHICS & HIGH QUALITY OF LIFE The center is located in the St Paul neighborhood of Highland Park, just minutes from Downtown St. Paul. The area is densely populated, with nearly 336,000 people within a 5-mile radius of the subject property with an average household income of over $78,000.

St Paul is the capital city of Minnesota and the state’s second most populous city, and along with Minneapolis, forms the “Twin-Cities”. The Twin Cities’s economy is the 13th largest in the U.S. and ranks second in the Midwest. The Minneapolis-St. Paul area also ranks as the second largest medical device manufacture center in North America and the fourth-biggest U.S. banking center, based on total assets of banks headquartered in the metro area, ranking behind the New York, San Francisco, and Charlotte, N.C. metropolitan areas.


LEXING

TON

PKWY

(Not a Part)

ANCHORED BY

SUBJECT PROPERTY



-- RENT ROLL --


Tenant NameLease Dates

Lease Term(Months)

Size (Sq. Ft.)Bldg Share

Rent/SF/YearAnnual Rent

Rent/SF/MoMonthly Rent

Increase Date New Rent/Yr Lease Type Renewal Options

Rusty TacoMar-2011 to Mar-2022

133 2,01536.04%

$22.44 $45,217

$1.87$3,768

Apr-2018Apr-2019Apr-2020Apr-2021

$22.89 $23.85$23.81$24.29

NNN No Options

Papa John’s PizzaJun-2010 to Jun-2020

121 1,42325.49%

$24.20 $34,437

$2.02$2,870

- - NNN (2) 5-Year Options

V&T NailsApr-2011 to Oct-2027

199 1,07719.26%

$26.17$28,181

$2.18$2,348

Nov-2018Nov-2019Nov-2020Nov-2021Nov-2022Nov-2023Nov-2024Nov-2025Nov-2026

$26.95 $27.76$28.59$29.45$30.33$31.24$32.18$33.15$34.14

NNN (1) 5-Year Option

Shark Tooth TattooNov-2017 to Oct-2022

60 1,07619.25%

$22.00$23,672

$1.83$1,973

Nov-2019Nov-2020Nov-2021

$22.66$23.34$24.04

NNN No Options

Total Occupied SqFt 5,591 Total Available SqFt 0

Year 1 Year 2 Year 3 Year 4For the Years Ending Dec-2018 Dec-2019 Dec-2020 Dec-2021Potential Gross Revenue

Base Rental Revenue $132,326 $134,212 $138,458 $142,771

Absorption & Turnover Vacancy

Scheduled Base Rental Revenue 132,326 134,212 138,458 142,771

Expense Reimbursement Revenue 102,611 105,690 108,860 112,127

Total Potential Gross Revenue 234,937 239,902 247,318 254,898

Effective Gross Revenue 234,937 239,902 247,318 254,898

Operating Expenses

Common Center Expenses 18,228 18,775 19,338 19,918

Shop Space Expenses 31,161 32,096 33,059 34,050

Real Estate Taxes 54,000 55,620 57,289 59,007

Total Operating Expenses 103,389 106,491 109,686 112,975

Net Operating Income 131,548 133,411 137,632 141,923

-- CASH FLOW PROJECTION --

PROPERTY INFORMATIONSHOPS AT RANDOLPH HILL | ST. PAUL, MN



-- LOCATION MAPS --

Location Maps Property Photos AerialsSite Plan Neighboring Tenants

ST PAUL

MINNEAPOLIS



-- SITE PLAN --


Randolph Ave

Lexington Pkwy

On-Ramp to

V&T

NA

ILS

Juno Ave

Not a partTo

UndergroundParking

Cove

red

Entr

ance




-- PROPERTY PHOTOS -- BUILDING FROM LEXINGTON PKWY

SUBJECT PROPERTY




PROPERTY FROM PARKING LOT-- PROPERTY PHOTOS --

SUBJECT PROPERTY




-- PROPERTY PHOTOS -- SHADOW ANCHORED BY TRADER JOE’S

30,000 Cars Per DayCombined

SUBJECT PROPERTY




-- PROPERTY PHOTOS -- TRADER JOE’S ADJACENT TO PROPERTY



-- NEIGHBORING TENANTS --


MONTCALM LUXURY APARTMENTS

SUBJECT PROPERTY



-- OVERHEAD VIEW --

RA

ND

OLP

H ST (18,000 C

PD

)

ACCESS


LEXINGTON PKWY (12,000 CPD)

ACCESS30,000 CPDCombined

(Not a Part)

V&T

NA

ILS



-- LOOKING NORTH --


Lexington ParkApartments

RANDOLPH ST (18,000 CPD)

LEXI

NG

TON

PKW

Y (1

2,00

0 CP

D)

30,000 CPDCombined

Lexington HillsApartments

82,000 CPD

William Mitchell College of Law

Skyline TowerApartments Central Medical

ClinicConcordia University St Paul

MacalesterCollege

Central High School

Wilder ParkCondominiums

AYD MILL RD

Grand Ave Business & Shopping DistrictRandolph HeightsElementary School

St Paul Academy & Summit School

St Paul College

On Ramp to

Off Ramp from

V&T NAILS

(Not a Part)



-- LOOKING NORTHEAST --


DOWNTOWN ST PAUL



30,000 CPDCombined

82,000 CPD

LEXINGTON PKWY

Linwood MonroeArts - Upper Campus

United FamilyMedicine

State Capitol Building

Cathedral of St. Paul

Saint PaulCollege

Children’sMinnesotaSaint PaulHospital Xcel

EnergyCenter

EcolabCorp Ctr

City Hall


AYD MILL RD

Off Ramp from

Mississippi River

V&T NAILS

(Not a Part)



-- LOOKING SOUTH --


LEXING

TON

PKWY (12,000 CPD

)

82,000 CPD

Montrose Luxury Apartments


Adams Spanish Immersion Elementary School

Victoria ParkApartments

Nova ClassicalAcademy

Johnson Center &Hospice Care Agency

SholomCare

WeinbergApartments

Montreal Hi-RiseOffice Building

Chateau MontrealApartments

On Ramp to

Minneapolis-Saint Paul International Airport

Mississippi River

Mississippi River

V&T NAILS

(Not a Part)



-- LOOKING SOUTHWEST --


Minneapolis-Saint Paul International Airport

RAN

DO

LPH

ST

(18,

000

CPD

)


30,000 CPDCombined



On Ramp to

Cretin-DerhamHall High School Holy Spirit School

Highland NationalGolf Course

St. CatherineUniversity

St. Paul Academy and Summit SchoolHighland Park

High School

Highland ParkMiddle School

Urban AcademyCharter School

Minneapolis VA Health Care System

V&T NAILS

(Not a Part)



-- LOOKING NORTHWEST --


DOWNTOWNMINNEAPOLIS



30,000 CPDCombined



Cretin-DerhamHall High School

Holy Spirit School

University of MinnesotaHoly Spirit

Catholic ChurchMinnesotaState Fair

TCF BankStadium

U.S. BankStadium

MinneapolisConvention Ctr

MinneapolisInstitute of Art

Children’s Minnesota Mnneapols Hospital

V&T NAILS

(Not a Part)

TENANT OVERVIEWSSHOPS AT RANDOLPH HILL | ST. PAUL, MN



-- LEASE SUMMARY ---- LEASE ABSTRACT --

LEASE INFORMATION

Tenant: Rusty Taco

Lease Guarantor: Personal

Size: 2,015 Sq. Ft.

% of Total Leaseable SF: 36.04%

Rent Commencement: March 22, 2011

Lease Expiration: March 31, 2022

Base Lease Term: 11 Years (Extended 1 Year: 1st Amendment)

Base Term Remaining: 4+ Years

Renewal Options: None

Annual Rent: $45,216.60

Rental Increases: 2% Annual Increases

PRIMARY TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR INCREASE

Year 7 4/1/2017 3/31/2018 $45,216.60 $3,768.05 $22.44 2%

Year 8 4/1/2018 3/31/2019 $46,123.35 $3,843.61 $22.89 2%

Year 9 4/1/2019 3/31/2020 $47,050.25 $3,920.85 $23.35 2%

Year 10 4/1/2020 3/31/2021 $47,997.30 $3,999.78 $23.82 2%

Year 11 4/1/2021 3/31/2022 $48,964.50 $4,080.38 $24.30 2%

R Taco (Rusty Taco) is a distinctive fast-casual taco concept, inspired by fun and adventure. Our menu features a variety of tasty tacos at an affordable price, in a lively and welcoming environment. Each taco is hand-made fresh and fast in our open kitchen, using ingredients made from scratch. The result is authentic Mexican street-style tacos that are both traditional and inventive, each with a unique flavor and personality. Warm chips, house-made salsas, craft beers and no-frills margaritas round out the experience.

The original name comes from the founder, Rusty Fenton, who along with his partner Steve Dunn, opened the first Rusty Taco in Dallas, TX in April of 2010. Rusty and Steve’s partnership encompassed the same shared values: treating Team Members and Guests like family, creating a unique and fun dining experience, becoming a part of, and giving back to, the local communities.

In August 2014, Buffalo Wild Wings announced it had purchased a majority stake in Rusty Taco, putting it in direct competition with Chipotle’s fast-casual Mexican approach. A little over a year later, Rusty Taco announced that it was changing its name to R Taco, maintaining a link with co-founder Rusty Fenton’s legacy while updating the brand to its new base.

Today, R Taco has expanded to 22 locations in 5 states.

LEASE RESPONSIBILITIES

Property Taxes: Tenant pays prorata share

Insurance: Tenant

Utilities: Tenant

Common Area Expenses: Tenant pays prorata share

Roof & Structure: Landlord

HVAC: Tenant

Parking Lot: Tenant (included in CAMs)

-- TENANT INFORMATION --

Papa John’s V&T NailsRusty Taco Shark Tooth Tattoo




LEASE INFORMATION

Tenant: Papa John’s

Lease Guarantor: Corporate

Size: 1,423 Sq. Ft.


Rent Commencement: June 30, 2010

Lease Expiration: June 30, 2020

Base Lease Term: 10 Years

Base Term Remaining: 2+

Renewal Options: (2) 5-Year Options


Rental Increases: 10% Increases in Each Option


Years 8- 10 7/1/2017 6/30/2020 $34,436.64 $2,869.72 $24.20 --

Headquartered in Louisville, Kentucky, Papa John’s International, Inc. (NASDAQ: PZZA) is the world’s third-largest pizza delivery company. For 16 of the past 18 years, consumers have rated Papa John’s No. 1 in customer satisfaction among all national pizza chains in the American Customer Satisfaction Index (ACSI). Papa John’s is the Official Pizza Sponsor of the National Football League, the Official Pizza of Major League Baseball and the

Official Pizza Partner of the National Hot Rod Association (NHRA).

The Papa John’s restaurant franchise was founded in 1983 when “Papa” John Schnatter knocked out a broom closet in the back of his father’s tavern, Mick’s Lounge, in Jeffersonville, Indiana. He then sold his 1971 Z28 Camaro to purchase $1,600 worth of used pizza equipment and began selling pizzas to the tavern’s customers out of the converted closet. His pizzas proved so popular that one year later he was able to move into an adjoining space. In 2009, Schnatter got the Camaro back by contacting the family that he sold the car to in 1983.

Today, there are over 5,000 Papa John’s establishments in 45 countries. Papa John’s primarily takes carryout and delivery orders, although some stores have tables and chairs for dining in.



Insurance: Tenant pays

Utilities: Tenant



HVAC: Tenant




OPTIONS (2) 5-Year Option Periods

Option 1 7/1/2020 6/30/2025 $37,880.28 $3,156.69 $26.62 10%

Option 2 7/1/2025 6/30/2030 $41,665.44 $3,472.12 $29.28 10%




LEASE INFORMATION

Tenant: V&T Nails


Size: 1,077 Sq. Ft.


Rent Commencement: April 1, 2011

Lease Expiration: October 31, 2027 (Tenant recently signed 10-yr extension)


Base Term Remaining: 10 Years

Renewal Options: (1) 5-Year Option


Rental Increases: 3% Annual Increases in Primary Term & Option

V&T Nails is an upscale salon offering a variety of services including acrylics, silk or fiberglass wraps, French manicures, polish, and pedicures. Their skilled technicians strive to provide professional, comprehensive service in a comfortable environment.




Utilities: Tenant



HVAC: Tenant



OPTIONS (1) 5-Year Option Period

Option 1 11/1/2027 10/31/2028 $37,873.02 $3,156.08 $35.16 3%

11/1/2028 10/31/2029 $39,009.21 $3,250.77 $36.22 3%

11/1/2029 10/31/2030 $40,179.48 $3,348.29 $37.30 3%

11/1/2030 10/31/2031 $41,384.86 $3,448.74 $38.42 3%

11/1/2031 10/31/2032 $42,626.40 $3,552.20 $39.58 3%



Year 1 11/1/2017 10/31/2018 $28,181.04 $2,348.42 $26.16 --

Year 2 11/1/2018 10/31/2019 $29,026.44 $2,418.87 $26.95 3%

Year 3 11/1/2019 10/31/2020 $29,897.28 $2,491.44 $27.76 3%

Year 4 11/1/2020 10/31/2021 $30,794.16 $2,566.18 $28.59 3%

Year 5 11/1/2021 10/31/2022 $31,718.04 $2,643.17 $29.45 3%

Year 6 11/1/2022 10/31/2023 $32,669.64 $2,722.47 $30.33 3%

Year 7 11/1/2023 10/31/2024 $33,649.68 $2,804.14 $3.24 3%

Year 8 11/1/2024 10/31/2025 $34,659.12 $2,888.26 $32.18 3%

Year 9 11/1/2025 10/31/2026 $35,698.92 $2,974.91 $33.14 3%

Year 10 11/1/2026 10/31/2027 $36,769.92 $3,064.16 $34.14 3%

V&T NAILS




LEASE INFORMATION

Tenant: Shark Tooth Tattoo


Size: 1,076 Sq. Ft.


Rent Commencement: November 1, 2017

Lease Expiration: October 31, 2022


Base Term Remaining: 5 Years

Renewal Options: None


Rental Increases: 3% Annual Increases (starting Year 3)

Shark Tooth Tatoo is a fully custom tattoo studio in Saint Paul, MN. Their Artists offer both a high level of experience and expertise in a wide variety of tattoo styles, while delivering an exciting overall experience and new tattoo in a more modern shop environment.




Utilities: Tenant



HVAC: Tenant





Years 1 - 2 11/1/2017 10/31/2019 $23,672.04 $1,972.67 $22.00 --

Year 3 11/1/2019 10/31/2020 $24,382.20 $2,031.85 $22.66 3%

Year 4 11/1/2020 10/31/2021 $25,113.84 $2,092.82 $23.34 3%

Year 5 11/1/2021 10/31/2022 $25,867.08 $2,155.59 $24.04 3%

AREA OVERVIEWSHOPS AT RANDOLPH HILL | ST. PAUL, MN



-- ST. PAUL OVERVIEW --

St. Paul Overview Demographics

Saint Paul is the capital and second-most populous city in Minnesota, with an estimated population over 304,000. The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins Minneapolis, the state’s largest city. Known as the “Twin Cities”, the two form the core of Minneapolis–Saint Paul, the 16th largest metropolitan area in the United States, with about 3.52 million residents.

Saint Paul has been called the last city of the East primarily because early developers built it to fit Eastern standards: city squares or parks, towers and turrets, lofty arches, Baroque domes and elaborate adornments abound. Ideal for families and those who like to explore on foot, the capital of Minnesota offers big city attractions with small town manageability.

Major Industry & Commercial Center - Home to Fortune 500 CompaniesThe principal economic sectors in Saint Paul are services, wholesale and retail trade, manufacturing, and government. Along with Minneapolis, Saint Paul is the site of one of the largest concentrations of high-technology firms in the United States and ranks among the major commercial centers between Chicago and the West Coast. The city is home to Fortune 500 company headquarters, such as Ecolab, a chemical and cleaning product company, Securian Financial Group Inc., and Gander Mountain, a retailer of sporting goods which operates 115 stores in 23 states.

Situated on the Mighty MississippiSaint Paul boasts 26 miles of Mississippi Riverfront, more than any other city from the headwaters to the Gulf of Mexico. The Mississippi River cuts right through Saint Paul with the downtown on one side above the limestone bluffs and the West Side flats area on the other side.

The ports of Saint Paul and Minneapolis are served by nine barge lines operating on the Mississippi, Minnesota, and St. Croix rivers; together the ports handle more than 11 million tons of cargo annually. Considered one of the largest trucking centers in the United States, the Twin Cities are a hub for over 150 motor freight companies that provide overnight and four- to five-day delivery throughout the country.

The Mississippi River has defined Saint Paul over time, giving the city its unique sense of place. Once valued only as an industrial and transportation corridor, the Mississippi has revealed a remarkable capacity to inspire, engage, and unite communities along its banks. Today in Saint Paul, the Mississippi River is recognized as a regional asset of national significance – one of America’s great rivers. The Mississippi is Saint Paul’s chief environmental and economic resource.

VIEW OF DOWNTOWN ST. PAUL

XCEL ENERGY CENTER IN ST. PAUL

Significant Development Projects UnderwayDowntown Saint Paul has undergone extensive revitalization, with investment in development projects exceeding $1 billion. Saint Paul continues to profit from the Neighborhood Development Program, a unique redevelopment initiative that has gained the city national recognition. Since 1997, the Saint Paul Port Authority has partnered with neighborhood organizations to select brownfield sites for redevelopment. Through creative use of public and private funding, it has completed several projects, replacing brownfields with light industrial manufacturing facilities and donating land for designated open spaces.

The Saint Paul Port Authority has several projects underway.

• The Great Northern project will clean up and develop 13 acres of brownfield formerly owned by the Great Northern Railroad Shops and the Saint Paul Foundry. Twenty-two acres are already completed; the resulting business center is expected to create more than 500 new jobs.

• The River Bend project involved the revitalization of twenty-two acres along the Mississippi River, cleaning up 10 acres and prepariing the site for build-to-suit office/flex/showroom/warehouse development.

• The $120 million Westminster Junction project focused on health care and included a facility to be used as a new home for Regions Hospital outpatient clinic.

• The Phalen Corridor Initiative will bring jobs, housing, transit, workforce, and prosperity to Saint Paul’s east side; investors have already invested $570 million in the green-space multi-use creation.

Twin-Cities Overview



-- OVERVIEW: THE TWIN CITIES REGION --

Greater Minneapolis - St. Paul AreaMinneapolis–Saint Paul is a major metropolitan area built around the Mississippi, Minnesota and St. Croix rivers in east central Minnesota. The area is commonly known as the “Twin Cities” after its two largest cities, Minneapolis, the city with the largest population in the state, and Saint Paul, the state capital. It is an example of twin cities in the sense of geographical proximity. Despite the Twin moniker, both cities are independent municipalities with defined borders. Minneapolis is somewhat younger with modern skyscrapers, while Saint Paul has been likened to an East Coast city, with quaint neighborhoods and a vast collection of well-preserved late-Victorian architecture.

The Minneapolis-St. Paul area is incredibly diverse. Visitors will find upscale lodging, dining and award-winning theater, all in an area with dozens of parks, trails and green space including the Mississippi National River and Recreation Area, a national park site that boasts 72 miles of public riverfront.

Greater MSP’s labor force has grown by nearly 2.0% over the last five years (almost twice the national average) and is expected to grow an additional 5.6% through 2030. The MSP metro area ranks 3rd in the US for quality of life, according to Nerdwallet.com, based on a healthy work-life balance, relatively low cost of living and high rates of health coverage.

The Greater MSP region is a hub of thriving companies who take advantage of locational assets the region has to offer. Sixteen of the Fortune 500 largest U.S. corporations are headquartered in the Twin Cities. The area is also home to 30 Fortune 1000 companies and several of the world’s largest private companies. These companies include: UnitedHealth Group, Target, Best Buy, Supervalu, 3M, CHS, U.S. Bancorp, Medtronic and General Mills. They attract international recognition every year for their innovation, sustainability, ethical leadership, brand value, corporate citizenship and leadership.

The Twin Cities’s economy is the 13th largest in the U.S. and ranks second in the Midwest. The Minneapolis-St. Paul area also ranks as the second largest medical device manufacture center in North America and the fourth-biggest U.S. banking center, based on total assets of banks headquartered in the metro area, ranking behind the New York, San Francisco, and Charlotte, N.C. metropolitan areas.

A total of seven Twin Cities companies made Forbes’ annual list of the largest private companies. Cargill, the largest private company in the nation, has flourished in Greater MSP for more than 100 years.

MINNESOTA CAPITOL BUILDING IN ST. PAUL

Twin-Cities Ranked #5 America’s Best

Food Cities~ TIME, 2015 ~

Twin-Cities Ranked #17 Best Places to Live

~ U.S. News, 2017 ~

One of America’s Top 10 Places to Live

The Greater MSP region consistently reports lower cost of living measures than other U.S. cities - that includes the average price people pay for food, clothing, shelter, fuel, transportation, medical care and day-to-day living.

Graduates Gain Here

In 2016, Forbes ranked Greater MSP among the top 10 best cities for new college graduates, reflecting the area’s attractive employment opportunities, average income, education, rent and age. Those same factors propelled two Greater MSP suburbs onto Money Magazine’s 2016 short list of “Best Places to Live.”

St. Paul Overview DemographicsTwin-Cities Overview

Minnesota Named #3 Top State for Business

~ CNBC, 2017 ~

MINNEAPOLIS SKYLINE AT TWILIGHT



Demographic Source: Applied Geographic Solutions 04/2017, TIGER Geography page 1 of 1©2017, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 44.9261/-93.1463RS1

508 Lexington Pkwy S1 mi radius 3 mi radius 5 mi radius

St Paul, MN 55105

PO

PU

LATI

ON

2017 Estimated Population 19,381 152,447 335,598

2022 Projected Population 20,122 159,276 351,896

2010 Census Population 18,134 143,321 316,520


Projected Annual Growth 2017 to 2022 0.8% 0.9% 1.0%

Historical Annual Growth 2000 to 2017 0.4% 0.2% 0.3%

2017 Median Age 36.8 35 34.5

HO

US

EH

OLD

S

2017 Estimated Households 8,543 62,245 137,117

2022 Projected Households 8,770 64,546 143,360

2010 Census Households 8,237 59,761 130,540




RA

CE

AN

DE

THN

ICIT

Y

2017 Estimated White 82.9% 69.2% 65.4%

2017 Estimated Black or African American 6.2% 14.7% 14.1%

2017 Estimated Asian or Pacific Islander 5.2% 9.2% 11.5%

2017 Estimated American Indian or Native Alaskan 0.6% 0.7% 1.0%

2017 Estimated Other Races 5.2% 6.1% 8.0%

2017 Estimated Hispanic 5.5% 7.0% 9.3%

INC

OM

E 2017 Estimated Average Household Income $99,619 $86,692 $78,123

2017 Estimated Median Household Income $77,599 $67,578 $63,661

2017 Estimated Per Capita Income $43,988 $35,786 $32,235

ED

UC

ATI

ON

(AG

E 2

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2017 Estimated Elementary (Grade Level 0 to 8) 1.1% 4.1% 5.4%

2017 Estimated Some High School (Grade Level 9 to 11) 2.5% 3.4% 4.4%

2017 Estimated High School Graduate 14.5% 16.8% 19.1%

2017 Estimated Some College 17.9% 17.4% 17.6%

2017 Estimated Associates Degree Only 7.1% 7.0% 7.4%

2017 Estimated Bachelors Degree Only 30.9% 28.4% 26.1%

2017 Estimated Graduate Degree 26.1% 22.9% 20.0%

BU

SIN

ES

S 2017 Estimated Total Businesses 551 7,105 16,260

2017 Estimated Total Employees 6,562 108,822 260,454

2017 Estimated Employee Population per Business 11.9 15.3 16.0

2017 Estimated Residential Population per Business 35.2 21.5 20.6BU

SIN

ES

S

Demographic Source: Applied Geographic Solutions 04/2017, TIGER Geography page 1 of 1©2017, Sites USA, Chandler, Arizona, 480-491-1112

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SUMMARY PROFILE2000-2010 Census, 2017 Estimates with 2022 ProjectionsCalculated using Weighted Block Centroid from Block Groups

Lat/Lon: 44.9261/-93.1463RS1

508 Lexington Pkwy S1 mi radius 3 mi radius 5 mi radius

St Paul, MN 55105

PO

PU

LATI

ON

2017 Estimated Population 19,381 152,447 335,598

2022 Projected Population 20,122 159,276 351,896





2017 Median Age 36.8 35 34.5

HO

US

EH

OLD

S

2017 Estimated Households 8,543 62,245 137,117

2022 Projected Households 8,770 64,546 143,360





RA

CE

AN

DE

THN

ICIT

Y

2017 Estimated White 82.9% 69.2% 65.4%

2017 Estimated Black or African American 6.2% 14.7% 14.1%

2017 Estimated Asian or Pacific Islander 5.2% 9.2% 11.5%

2017 Estimated American Indian or Native Alaskan 0.6% 0.7% 1.0%

2017 Estimated Other Races 5.2% 6.1% 8.0%

2017 Estimated Hispanic 5.5% 7.0% 9.3%

INC

OM

E 2017 Estimated Average Household Income $99,619 $86,692 $78,123

2017 Estimated Median Household Income $77,599 $67,578 $63,661

2017 Estimated Per Capita Income $43,988 $35,786 $32,235

ED

UC

ATI

ON

(AG

E 2

5+)

2017 Estimated Elementary (Grade Level 0 to 8) 1.1% 4.1% 5.4%

2017 Estimated Some High School (Grade Level 9 to 11) 2.5% 3.4% 4.4%

2017 Estimated High School Graduate 14.5% 16.8% 19.1%

2017 Estimated Some College 17.9% 17.4% 17.6%

2017 Estimated Associates Degree Only 7.1% 7.0% 7.4%

2017 Estimated Bachelors Degree Only 30.9% 28.4% 26.1%

2017 Estimated Graduate Degree 26.1% 22.9% 20.0%

BU

SIN

ES

S 2017 Estimated Total Businesses 551 7,105 16,260

2017 Estimated Total Employees 6,562 108,822 260,454

2017 Estimated Employee Population per Business 11.9 15.3 16.0

2017 Estimated Residential Population per Business 35.2 21.5 20.6

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1 Mile 3 Miles 5 Miles

-- DEMOGRAPHICS --

The Minneapoolis-St. Paul area’s population has increased 10% since 2010..

The median home value in Minneapolis-St. Paul Metro is $247,400.

Median age is 36.4 compared to the U.S. median of 37.5 years.

The Minneapolis-St. Paul Metro Area has a population of 3,524,580.

The Greater Minneapolis-St Paul region offers 68% lower housing costs than San Francisco;

32% less than Seattle

There are 17 Fortune 500 Headquarters in the Minneapolis-St. Paul area.

Home values have gone up 7.4% over the past year.

The unemployment rate in the Minneapolis-St. Paul Metro Area is 3.70% with job growth

of 1.35%. Future job growth over the next ten years is predicted to be 39.01%.

The median household income in the Minneapolis-St. Paul Metro Area is $68,019.

The Minneapolis-St. Paul Metro area has a sales tax rate of 7.13%.

Income tax is 7.05%.

St. Paul Overview DemographicsTwin-Cities Overview

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates 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 Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment 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 and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s 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.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

Exclusively Listed By:

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.

Ryan Barr760.448.2446

[email protected]

Ryan Bennett760.448.2449

[email protected]

Al Apuzzo760.448.2442

[email protected]&BENNETTNETLEASEDINVESTMENTS

A Lee & Associates Team

Lee & Associates of Twin Cities LLC(MN Lic#40474611)

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