NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM STILLWATER, MINNESOTA Presented By NORTHSTAR OF
INVESTMENT SUMMARY PRICE $1,250,000 6.00% CAP Rate ADDRESS 1674 Market Drive Stillwater, MN 55082 NET OPERATING INCOME $75,000 ($12.76/SF) APN 32.030.20.32.0031 LEASE TERM REMAINING 5 Years LEASE TYPE NN BUILDING/LOT SIZE 5,880 SF / 0.75 Acres TYPE OF OWNERSHIP Fee Simple YEAR BUILT 1997 Marcus & Millichap is pleased to present this single-tenant freestanding building leased to Pep Boys located in the Twin Cities suburb of Stillwater, Minnesota. This is an excellent net leased investment opportunity with a well known name brand that has been in operations for nearly 100 years. The Property benefits from its close proximity to Stillwater Marketplace, a Target and Cub Foods anchored shopping center totaling over 300,000 square feet. Additional retailers in the immediate area are McDonald s, Culver s, Petco and Dollar Tree. Other area traffic drivers nearby include Menard s, Wal-Mart, and Lowes. Stillwater/Oak Park Heights is a desirable community 20 minutes northeast of the Minneapolis/St. Paul metro, and carries a population of roughly 24,000 residents. The average Household Income exceeds $100k in the 1-3-5 mile radius. The Subject Property sits in the primary retail corridor for the Stillwater market, and sits less than one mile from Stillwater High School, which has an enrollment of 2,400 students, and was ranked in 2015 as a Top High School in America. While the Stillwater/Oak Park Heights market is already a popular day trip for tourists, the market will continue to improve with the added accessibility brought by the opening of the St Croix Bridge, a multi-year bridge project connecting Minnesota and Wisconsin across the St Croix River. Highlights: Fixed Rent Increases of 10% Every 5 Years Corporate Guaranty Significant Tenant Investment Symbolizing Commitment to This Location Adjacent to Mature Retail Development Ideal 1031 Exchange Property Recession-Proof and Amazon- Proof Investment
AERIAL 11,500 VEHICLES 19,600 VEHICLES 29,500 VEHICLES
AERIAL MCDONALD S
LEASE ABSTRACT LEASE SUMMARY Tenant Pep Boys Guarantor Corporate Guaranty Lease Commencement Date 9/11/2017 Lease Expiration 9/10/2022 Renewal Options Two 5-Year Options Lease Type NN RENT SCHEDULE Date Range Annual Rent Monthly Rent Per SF Year 1-5 $75,000 $6,250.00 $12.76 Option Term 6-10 $82,500 $6,875.00 $14.03 Option Term 11-15 $90,750 $7,565.50 $15.43
TENANT SUMMARY Founded in 1921 by four entrepreneurial Navy service members, Pep TENANT SUMMARY Tenant Pep Boys Ownership Public Stock Symbol PBY Credit Rating BB+ Revenue $2.08 Billion Headquartered Philadelphia, PA Number of Employees 16,394 Website www.pepboys.com Boys has successfully thrived for nearly 100 years. In the 1980 s and 90 s the organization pursued an aggressive expansion strategy that laid the foundation for continued profits into the 2000 s. Since 2009, Pep Boys has focused on the development of service and tire centers. Today, the company operates over 7,400 service bays in nearly 800 locations. New Pep Boys feature customer lounges with expanded amenities. The organization employs almost 20,000 associates nationwide and continues to pursue a strategic expansion plan, most recently IN THE NEWS Pep Boys Continues Expansion of National Automotive Service Network Pep Boys Acquires Mathis Tire & Auto Service Pep Boys Acquires Just Brakes - Grows National Store Footprint by 134 Locations acquiring Just Brakes, a 134-store automotive repair and maintenance chain.
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MARKET SUMMARY Stillwater, Minnesota, is also known as the birthplace of Minnesota, due to the territorial convention that took place in Stillwater, which began the process of establishing Minnesota as a state. The lumber industry was the predominant industry in the area during the 19th century, and for decades, logs sent from upstream were processed in Stillwater s numerous sawmills. Today, Stillwater is a popular day trip destination for tourists from the surrounding areas, including the Twin Cities. Visitors are drawn by the historic downtown area which includes bookstores, antique shops, restaurants, and historical sites. The city sits in the picturesque St. Croix River Valley. Stillwater was recently ranked in the top five safest mid-sized cities in Minnesota. MAJOR EMPLOYERS Anderson Corporation Stwillwater Medical Group County of Washington Andersen Windows Minnesota Correctional FA Boston Scientific Corporation Hospitals Homecare and Hospice Cub Foods Washington County Sheriffs Office Washington County Community Services Minnesota Correctional Facilities Wal-Mart Long-awaited St. Croix bridge is feat of engineering - Minneapolis Star Tribune, July 16, 2017
DEMOGRAPHICS INCOME TRENDS POPULATION TRENDS ZIP CODE 55082 ZIP CODE 55082 PROJECTED POPULATION BY 2021 ZIP CODE 55082 AVERAGE HOUSEHOLD INCOME GROWTH SINCE 2009 TOTAL POPULATION GROWTH SINCE 2009 DROP IN UNEMPLOYMENT SINCE 2010
DEMOGRAPHICS 1 Mile 3 Mile 5 Miles 2000 Population 4,554 24,539 35,821 2010 Population 5,937 28,579 41,029 2014 Population 6,079 29,719 42,663 2019 Population 6,632 31,346 44,919 2000 Households 1,752 8,817 12,653 2010 Households 2,417 10,522 15,075 2014 Households 2,483 10,997 15,756 2019 Households 2,752 11,768 16,797 2014 Daytime Population 3,549 14,449 19,707 2014 Owner Occupied Housing Units 68.44% 73.26% 77.83% 2014 Renter Occupied Housing Units 31.56% 26.74% 22.17% 2014 Vacant 2.87% 5.32% 4.60% 2019 Owner Occupied Housing Units 68.31% 72.77% 77.36% 2019 Renter Occupied Housing Units 31.69% 27.23% 22.64% 2019 Vacant 3.04% 5.86% 5.04% $0-$14,999 7.5% 8.8% 7.6% $15,000-$24,999 8.9% 7.0% 6.3% $25,000-$34,999 7.9% 7.7% 6.7% $35,000-$49,999 9.0% 10.0% 9.5% $50,000-$74,999 17.8% 18.0% 16.9% $75,000-$99,999 14.1% 14.3% 14.7% $100,000-$124,999 13.6% 12.8% 13.6% $125,000-$149,999 6.4% 6.7% 8.0% $150,000-$199,999 6.3% 6.5% 7.5% $200,000-$249,999 3.3% 3.4% 3.9% $250,000+ 5.2% 4.9% 5.6% 2014 Median Household Income $73,370 $72,921 $79,992 2014 Per Capita Income $41,883 $38,375 $40,984 2014 Average Household Income $102,330 $100,319 $108,557
CONTACT Presented By CHRIS WILLIAMS Associate Chris.Williams@MarcusMillichap.com (952) 852-9723 SEAN DOYLE First Vice President Investments Sean.Doyle@MarcusMillichap.com (952) 852-9719 MATT HAZELTON First Vice President Investments Matt.Hazelton@MarcusMillichap.com (952) 852-9729 ADAM AJ PRINS First Vice President Investments Adam.Prins@MarcusMillichap.com (952) 852-9743 CORY VILLAUME Vice President Investments Cory.Villaume@MarcusMillichap.com (952) 852-9728 www.marcusmillichap.com www.northstarretailgroup.com NORTHSTAR