Brochure

SUBJECT PROPERTY
EXCLUSIVE OFFERING | $6,270,000 – 5.35% CAP
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
214.915.8890
BOB MOORHEAD
bob@exp1031.com
JOE CAPUTO
joe@exp1031.com
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.
Table of contents | Disclaimer
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
PAGE 1:
COVER
PAGE 2:
TABLE OF CONTENTS | DISCLAIMER
PAGE 3:
INVESTMENT | TENANT | LEASE OVERVIEW
PAGE 4-5:
AERIAL PHOTOS
PAGE 6:
SITE PLAN
PAGE 7:
LOCATION OVERVIEW
PAGE 8-9:
LOCATION MAPS
PAGE 10:
DEMOGRAPHICS
Disclaimer
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, whereis” 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.
Listed in association with Minnesota broker of record:
Barry Brottlund– InSite Commercial Real Estate
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Investment overview
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
PRICE:
$6,270,000
CAP RATE:
5.35%
NET OPERATING INCOME:
Lease overview
Current Lease Term:
20-Yrs, (4) 5-Year Option to Renew
Current Rent Commencement:
XX 2014
$335,422
Lease Expiration:
XX 2034
BUILDING AREA:
7,924+ Square Feet
Lease Type:
Absolute NNN
LAND AREA:
2.21+ Acres
Rent Increases:
10% Every 5 Years In Primary Term & Options
YEAR BUILT | REMODELED:
1994 | 2005
Annual Rent (Current):
$335,422
(Option 1 | Years 21-25):
$491,091
OWNERSHIP:
Fee Simple Interest
Annual Rent Years 6-10:
$368,964
(Option 2 | Years 26-30):
$540,200
Annual Rent Years 11-15:
$405,860
(Option 3 | Years 31-35):
$594,221
LANDLORD RESPONSIBILITY:
None
Annual Rent Years 16-20:
$446,447
(Option 4 | Years 36-40):
$653,643
OCCUPANCY:
100%
Tenant overview
TGI Friday’s
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.
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Aerial photo
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
Richfield Intermediate
School
Richfield High School
Portland School
Centennial School
Interstate 494 (158,006 Cars / Day)
Killebrew Dr (20,278 Cars / Day)
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Aerial photo
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
E 82nd St (2,201 Cars / Day)
24th Ave (8,549 Cars / Day)
Old Cedar Ave (60,000 Cars / Day)
28th Ave (1,793 Cars / Day)
Lindau Ln (10,266 Cars / Day)
Killebrew Dr (20,278 Cars / Day)
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SITE PLAN
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
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Location overview
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
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.
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Location map
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
8
Location map
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
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Demographics
TGI FRIDAY’S
2201 Killebrew Dr, Bloomington, MN
Demographic snapshot
Radius
1 Mile
3 Mile
5 Mile
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%
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
Population:
Households:
1,550
9,043
31,352
2014 Avg Household Income
Renter Occupied
$63,642
$64,407
$77,271
2014 Med Household Income
$41,783
$49,842
$59,506
<$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
65
603
4,951
121
587
4,136
DOWNTOWN MINNEAPOLIS, MN
2014 Households by Household Inc:
$150,000 - $200,000
$200,000+
MALL OF AMERICA, BLOOMINGTON, MN
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