DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate...

26
CONFIDENTIAL OFFERING MEMORANDUM DISCOUNT TIRE GROUND LEASE 1655 ANNAPOLIS LANE NORTH PLYMOUTH, MN 55441 CAPITAL MARKETS | INVESTMENT PROPERTIES

Transcript of DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate...

Page 1: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

CONFIDENTIAL OFFERING MEMORANDUM

DISCOUNT TIRE GROUND LEASE

1655 ANNAPOLIS LANE NORTHPLYMOUTH, MN 55441

CAPITAL MARKETS | INVESTMENT PROPERTIES

Page 2: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not

limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests

in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the

property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree

that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in

the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment

of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this

Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-

inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference

purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections,

assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information

and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described

in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and

other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or

representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise

by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or

without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase

the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have

been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this

Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any

manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

Page 3: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

01 | EXECUTIVE SUMMARY

02 | PROPERTY DESCRIPTION

03 | SALE COMPARABLES

04 | FINANCIAL ANALYSIS 05 | MARKET OVERVIEW

Page 4: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

01EXECUTIVE SUMMARY

Page 5: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

5 | DISCOUNT TIRE | PLYMOUTH, MN

01 | EXECUTIVE SUMMARY

INVESTMENTHIGHLIGHTS

Triple Net Lease, Minimal Landlord Responsibilities

10 Year Lease Extension Signed in June 2014 with 6 Years and 5 Months Remaining

Great Location, Highly Visible Home Depot Outparcel

Strong Demographics, Median Household Income of $86,000+ and Population of 60,790+ Within a Three-Mile Radius

Asking Price: Cap Rate: Price PSF:

$2,000,000 5.50% $265

Page 6: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

6 | DISCOUNT TIRE | PLYMOUTH, MN

THE OFFERING

HD Plymouth MN Outlots, LLC, signed a 10-year Corporate Ground Lease extension commencing on June 1, 2014 and expiring on May 31, 2024. As the lease is absolute net in nature, the tenant is responsible for procuring and paying for all operating expenses including real estate taxes, insurance, utilities, and repairs and maintenance of all structural and non-structural items. Therefore, the landlord will have no responsibilities whatsoever. The lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over the 10-year extension period with 1-10 year option to renew remaining.

The 7,563-square foot building was constructed in 1999 on a 1.24-acre outparcel to the Plymouth Home Depot Center. The site is on the north side of County Road 6, just east of the I-496 Freeway interchange located in the Plymouth Submarket approximately 15 miles northwest of Minneapolis. The Property has high visibility along County Road 6 and Annapolis Lane North, as well as the I-496 Freeway. The building has access via curb cuts along Annapolis Lane North through the Home Depot parking lot. The traffic counts along County Road 6 are roughly 13,000 VPD. The area can be characterized as primarily oriented to commercial and industrial uses including the adjacent Home Depot, a furniture store, Tile By Design, some light industrial uses and multi-tenant flex type industrial/office uses. Other nearby national retailers include Walgreens, Michael’s, Starbucks, McDonalds, Burger King, Cub Foods, Best Buy and Target. The Property benefits from a population of 60,000+ within a three-mile radius with a high median household income of $86,000+. Plymouth is Minnesota’s 7th largest city with a stable affluent population. The median home value exceeds $293,000 within a 3 mile radius.

CBRE, Inc. has been retained by the property owner as the exclusive marketing advisorfor the disposition of the single tenant, triple net leased Discount Tire (the “Property”) at 1655 Annapolis Lane North, Plymouth, MN 55441.

01 | EXECUTIVE SUMMARY

Page 7: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

INVESTMENT CONTACTRepresentatives will be available for tours only on a pre-scheduled

basis, please do not contact the tenant directly. Inspection inquiries should be directed to:

BILL O’CONNORSenior Vice President

CBRE, Inc. 2000 Town Center, Suite 500

Southfield, MI 48075 P: +1 248 351 2045

E: [email protected]

DAVID HESANO First Vice President

CBRE, Inc. 2000 Town Center, Suite 500

Southfield, MI 48075 P: +1 248 351 2014

E: [email protected]

Page 8: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

02PROPERTY DESCRIPTION

Page 9: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

9 | DISCOUNT TIRE | PLYMOUTH, MN

02 | PROPERTY DESCRIPTION

Property Discount Tire Co, Inc. Ground Lease

Address 1655 Annapolis Lane North Plymouth, MN 55441

County Hennepin

Parcel Number 27-118-22-31-0020

Building Size 7,563 SF

Year Built 1999

Parcel Size 1.24 Acres

Zoning Commercial

Number of Floors One

Parking Adequate Surface Parking Spaces

Ingress / Egress Frontage and Curb Cuts Along Annapolis Lane North, shared via an easement through Home Depot.

Traffic Counts Approximately 13,000 VPD Along County Road 6 and Annapolis Lane North

Exterior Walls Concrete Block/Brick

Structure Structural Steel

Roof Rubber Membrane

HVAC Roof Mounted Unit

Fire Protection Assumed To Code

Page 10: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

10 | DISCOUNT TIRE | PLYMOUTH, MN

PROPERTY AERIAL

COUNTY ROAD 6

02 | PROPERTY DESCRIPTION

AN

NA

PO

LIS LAN

E NO

RTH

WATER TOWER CIRCLE

SUBJECT PROPERTY

Page 11: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

11 | DISCOUNT TIRE | PLYMOUTH, MN

SITE PLAN02 | PROPERTY DESCRIPTION

Page 12: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

03SALE COMPARABLES

Page 13: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

13 | DISCOUNT TIRE | PLYMOUTH, MN

03 | SALE COMPARABLES

Building Name Address

Year Built

Building Size (SF)

Sale Date Sales Price Price/SFCap Rate

Term Remaining

(Years)Comments

Discount Tire Co, Inc. Ground Lease 1655 Annapolis Lane North Plymouth, MN

1999 7,563 $2,000,000 $264 5.50% 6.50

10 Year NNN Lease Extension Signed in June 2014 with 6 Years and 5 Months Remaining. Rental rate is fixed for the remaining term of 6.5 years at $14.54/SF.

1Discount Tire Co. 350 North Boulder HighwayHenderson , NV

1980 11,457 1/12/2016 $1,950,000 $170 6.80% N/ASale included a 11,457 SF single tenant building leased to Discount Tires on an absolute NNN Lease.

2Discount Tire Co. 19815 South Prairie Road EBonney Lake, WA

2010 6,976 12/4/2015 $1,900,000 $272 5.00% 14.0

The offering consists of a 7,000-square foot Discount Tire store on a ground lease located in Bonney Lake, Washington. Discount Tire signed a 20-year NNN ground lease which commenced in 2009. The lease calls for seven and a half percent rent increases every five years throughout the initial term and option periods. Discount Tire is the world' s largest tire and wheel retailer today with over 900 locations and roughly $3.9 Billion in annual revenue.

3Discount Tire Co. Ground Lease 6959 East Broad StreetColumbus, OH

2015 7,000 1/15/2016 $1,847,825 $264 4.60% 20.0 This is a brand new 10 year lease with Discount Tire which carries a corporate guarantee with Discount Tire. The tenant is responsible for all operating expenses including roof and structure.

4Auto Zone Ground Lease2706 South Crismon RoadMesa , AZ

2007 7,400 1/13/2015 $1,432,200 $194 5.00% 8.5

The ground lease to Auto Zone commenced in February 2008 and is set for expiration January 2023, leaving 8.5 years remaining on the original lease term. The tenant also has 3, 5-year renewal options. Current base rent is $71,610 annually on an absolute net basis with 10% escalations every 5 years, including through the options. The property was on the market for one month. The current rent, with no deductions, and the current asking price result in an overall capitalization rate of 5.0%. Auto Zone is rated BBB by S&P.

5Advance Auto Parts Ground Lease2224 Prairie AvenueBeloit, WI

1988 8,500 8/14/2014 $818,000 $96 5.50% N/A

This sale represents the acquisition of a 1.6-acre site located at 2224 Prairie Avenue in Beloit, Wisconsin, that is ground leased to Advance Auto Parts who occupies an 8,500-square foot auto parts store built in 1998. In August 2014 the property was purchased for $818,000 or $96.24 per square foot of building area. At the time of sale the property was ground leased on a triple net basis to Advance Auto over a long-term lease. The implied cap rate is 5.5%.

6Firestone Auto Care (Ground Lease)1313 Harrisburg PikeColumbus, OH

1989 6,707 2/21/2014 $605,900 $90 6.49% N/A

In February 2014, the comparable was purchased for the total consideration of $605,900, or $17.94 per land square foot. The comparable has been ground leased since 1989. The first of four, five-year renewals was executed in 2009 with a commencement in 2014 at an annual rental rate of $39,338. The ground lease includes three remaining five-year renewal options at $44,059, $49,346, and $55,267, respectively. Based upon the forward looking existing income, the sale equates to a 6.49% overall capitalization rate. Marketing time for the sale totaled approximately 12 months.

$181 5.57% 14.2 Average Term RemainingComparable Average

BUILDING NAME/ADDRESS

YEAR BUILT

BUILD-ING

SIZE (SF)SALE DATE SALES PRICE PRICE/SF

CAP RATE

TERM REMAINING

(YEARS)COMMENTS

COMPARABLE AVERAGES $181 5.57% 14.2 Average Term Remaining

Page 14: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

14 | DISCOUNT TIRE | PLYMOUTH, MN

03 | SALE COMPARABLES

$170

$272$264

$194

$96$90

$0

$50

$100

$150

$200

$250

$300

1 2 3 4 5 6

Average Price per Square Foot

Comp Average $181

Subject Asking $265

6.80%

5.00%

4.60%

5.00%

5.50%

6.49%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1 2 3 4 5 6

Average Cap Rate

Comp Average 5.57%

Subject Asking 5.50%

AVERAGE CAP RATE AVERAGE PRICE PSF

Page 15: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

04FINANCIAL ANALYSIS

Page 16: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

16 | DISCOUNT TIRE | PLYMOUTH, MN

04 | FINANCIAL ANALYSIS

FINANCING TERMS: The building is being offered on an all cash basis and is offered free and clear of existing financing.

Asking Price: Cap Rate: Price PSF:

$2,000,000 5.50% $265

Page 17: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

17 | DISCOUNT TIRE | PLYMOUTH, MN

YEAR ONE CASH FLOW ESTIMATES

Asking Price $2,000,000Down Payment All Cash Rentable Square Feet 7,563Price per Square Foot $264CAP Rate 5.50%

Income 1/2018 - 12/2018 Per Month Per SFBase Rent

7,563 SF $110,000 $9,167 $14.54Total Base Rent $110,000 $9,167 $14.54

Scheduled Base Rental Revenue $110,000 $9,167 $14.54

Expense Reimbursement RevenueInsurance - Property Insurance $1,576 $131 $0.21Common Area Maintenance $0 $0 $0.00Real Estate Taxes $0 $0 $0.00

Total Expense Reimbursement Revenue $1,576 $131 $0.21

Gross Potential Income $111,576 $9,298 $14.75

Vacancy/Collection Allowance 0.00% $0 $0 $0.00

Effective Gross Income $111,576 $9,298 $14.75

Operating Expense Estimates Insurance -Property Insurance + General Liability $1,576 $131 $0.21Common Area Maintenance $0 $0 $0.00Real Estate Taxes $0 $0 $0.00Total Common Area Expenses $1,576 $131 $0.21

Management Fee 0.0% $0 $0 $0.00

Replacement Reserve $0.00 $0 $0 $0.00Total Expenses $1,576 $131 $0.21

Net Operating Income $110,000 $9,167 $14.54

Discount Tire Co, Inc. Ground Lease Year One Cash Flow Estimates

Discount Tire Co. 6/2014 - 5/20246.5 Years Remain

All Cash Transaction

EXPENSE REIMBURSEMENT REVENUE

INCOME PER MONTH PSFYEAR ONE

1/2018 - 12/2018

NET OPERATING INCOME $110,000 $9,167 $14.54

PRICE:$2,000,000

DOWN PAYMENTS:All Cash Transaction

RENTABLE SQUARE FOOTAGE:7,563

PRICE PER SQUARE FOOT:$265

CAP RATE:5.50%

OPERATING EXPENSE ESTIMATES

04 | FINANCIAL ANALYSIS

7,563 SF 14.54

Page 18: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

18 | DISCOUNT TIRE | PLYMOUTH, MN

PROPERTY NAME Discount Tire, Inc.

TENANT/GUARANTOR Discount Tire, Inc.

LEASE TYPE Absolute Triple Net

LEASE COMMENCEMENT

June 1, 2014

EXPIRATION DATE May 31, 2024

LEASE TERM 10 Years (6.5 Years Remaining)

YEAR ONE RENT $110,000/ $14.54 per SF

RENT ESCALATIONS None, rent is fixed over the 10-year term

RENTAL OPTIONS 1-10 year remaining

OPTION TO PURCHASE None

RIGHT OF FIRST REFUSAL

None

TERMINATION OPTION None

ASSIGNMENT RIGHTS

Tenant shall have the right without Landlord’s prior approval to assign lease or sublet all or any portion of the premises. The tenant assumes direct contractual responsibility for the lease and the obligations and rights as such. See Section 13 of the lease for details.

ACCESSEASEMENT

The property is encumbered by an access easement with Home Depot.

OPERATINGCOSTS

Real Estate Taxes: Tenant pays the real estate tax expense directly to the taxing authority.

Insurance: Tenant reimburses landlord 100% of the insurance expense.

Utilities: Tenant pays for all utilities directly.

Common Area Maintenance: Tenant shall at tenant’s sole cost and expense, maintain the Tenant Common Areas including repairs, alterations, replacements or maintenance of the Leased Premises including heating and air conditioning equipment as well as snow removal, lawn maintenance landscaping, maintenance of the parking lot and other similar items.

LEASE ABSTRACT04 | FINANCIAL ANALYSIS

Page 19: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

19 | DISCOUNT TIRE | PLYMOUTH, MN

FRANCHISOR INFORMATION

Tenant Trade Name Discount Tire

Headquarters Scottsdale, AZ

Founded 1960, Ann Arbor, MI

Locations 950 Stores in 33 States

Number of Employees 18,635

Revenue Year End 2016 Sales of $4.3 Billion

Tenant Ownership Private

TENANT OVERVIEWDiscount Tire/America’s Tire is based in Scottsdale, Arizona and is America’s largest independent tire and wheel retailer with approximately 18,635 employees in 950 locations across 33 states. The company was founded in 1960 by Bruce T. Halle in Ann Arbor, Michigan. Discount Tire sells a wide selection of leading tire brands including Michellin, Goodyear, Bridgestone, BF Goodrich, Pirelli, Falken, Continental and Cooper, as well as exclusive tire brand available at company retail stores, online or from Discount Tire Direct. The company also sponsors the NASCAR XFINITY Series and Monster Energy AMA Supercross.

Discount Tire has been ranked as the largest private company in Arizona by revenue and “most Admired Company” in the state. The company is currently ranked 92nd on Forbe’s 500 list of largest private companies in America, and rated #1 independent tire retailer based on number of retail outlets and annual revenues. Discount Tire reported a revenue of $4.3 billion in 2016, which was a 3.5% increase from 2015.

TENANT OVERVIEW04 | FINANCIAL ANALYSIS

Page 20: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

05MARKET OVERVIEW

Page 21: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

21 | DISCOUNT TIRE | PLYMOUTH, MN

Discount Tire is located on a 1.24 acre site on the north side of County Road 6, just east of the I-496 Freeway interchange located in the Plymouth Submarket approximately 12 miles northwest of Minneapolis. The building is located as an outparcel in the Home Depot Center which includes Home Depot, Discount Tire and a Kwik Trip Gas Station Convenience Center.

PLYMOUTHThe city of Plymouth is the seventh largest city in Minnesota and the third largest suburb in Metro Minneapolis, covering 35 square miles in southeast Hennepin County. The city is located approximately 12 miles northwest of downtown Minneapolis and has a 2017 population of 70,576+ and an above average median household income of $80,000+.

Plymouth is an affluent suburb of Minneapolis, with single-family residential neighborhoods, commercial developments, and access to area freeways. Plymouth enjoys a strategic location in the region and is readily accessible via local freeways to all of the metropolitan area. Interstate 494 runs through Plymouth as does Hwy. 55. Hwy. 169 is on the city’s eastern border and I-394 is within four miles from the center of Plymouth.

Plymouth was named by Money Magazine the number one city in which to live in the United States with populations of 50,000 to 300,000 in 2008. The magazine gave top honors to Plymouth because of its inclusion of residential areas, industry, parks, schools, and other aspects which make Plymouth a self-contained and essentially autonomous city.

05 | MARKET OVERVIEW

EDUCATION

Plymouth is served by five public school systems as well as two institutes of higher education, including Association Free Lutheran Bible School and Seminary and Central Baptist Theological Seminary. Its quality education system produces a skilled workforce.

JOBSPlymouth is home to a thriving commercial-industrial base, consisting of more than 53,000 jobs. The Unemployment Rate in Plymouth is well below the national average at 3.3%. Major local employers in Plymouth include Wayzata Public Schools, Aimia, Select Comfort, Medtronic, St. Jude Medical, Prudential, City of Plymouth, Honeywell, Nilfisk-Advance, and US Foods. Future job growth over the next ten years is predicted to be 39.18%.

Page 22: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

22 | DISCOUNT TIRE | PLYMOUTH, MN

MINNEAPOLIS

The “twin cities” serve as a regional center for the upper Midwest and northern Great Plains. The fully cosmopolitan area is a balanced industrial, commercial, educational, and cultural center, and functions much as one city. The area is one of the most economically diverse in the country, serving as headquarters to large firms in agriculture, food, banking, technology, retailing, healthcare, and transportation. A few of the well-known companies include General Mills, 3M, US Bancorp, United Healthcare, and retailers Target and Best Buy. Job growth is still fairly modest, but overall, the Twin Cities have a strong and prosperous feel.

The twin downtown areas sit on either side of the Mississippi River. Both are modern with attractive buildings, clean streets, entertainment, nightlife, parks, museums, and other first-class cultural amenities. Minneapolis is more progressive, energetic and cosmopolitan while St. Paul is the smaller, quieter and more traditional of the two. Both downtowns are well used and aided by a network of elevated interior walkways called “skyways” connect buildings and attractions—a feature necessitated by the harsh, winter climate. According to one source, the area has more theatres, dance companies, and classical concerts per capita than any city outside of New York. Because Minneapolis-St. Paul is not a tourist destination, the local population enjoys these amenities almost exclusively. The population is highly educated, schools have an excellent reputation, and there is an abundant intellectual energy among the area’s citizens.

05 | MARKET OVERVIEW

QUICK FACTS ABOUT MINNEAPOLIS-ST. PAUL-BLOOMINGTON METRO AREA

ECONOMY:

The unemployment rate in Minneapolis-St. Paul-Bloomington Metro Area is 3.70 percent (U.S. avg. is 5.20%). Recent job growth is Positive. Minneapolis-St. Paul-Bloomington Metro Area jobs have Increased by 1.35 percent.

COST OF LIVING:

Compared to the rest of the country, Minneapolis-St. Paul-Bloomington Metro Area’s cost of living is 11.40% higher than the U.S. average.

POPULATION:

As of 2014, Minneapolis-St. Paul-Bloomington Metro Area’s population is 3,524,580 people. Since 2000, it has had a population growth of 36.04 percent.

TRANSPORTATION:

Average Commute time is 25 minutes. The National Average is 26 minutes.

REAL ESTATE:

The median home cost in Minneapolis-St. Paul-Bloomington Metro Area is $228,900. Home appreciation the last 10 years has been -9.62%.

SCHOOLS:

Minneapolis-St. Paul-Bloomington Metro Area public schools spend$13,296 per student. The average school expenditure in the U.S. is $12,383. There are about 16.4 students per teacher in Minneapolis-St.

Page 23: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

23 | DISCOUNT TIRE | PLYMOUTH, MN

SUBJECT PROPERTY

STARBUCKS

COUNTY ROAD 6

HWY 55

HW

Y 55

LOCATION AERIAL05 | MARKET OVERVIEW

Page 24: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

24 | DISCOUNT TIRE | PLYMOUTH, MN

ST. PAUL

MINNEAPOLIS

BLOOMINGTON

SUBJECT PROPERTY

PLYMOUTH

REGIONAL MAP05 | MARKET OVERVIEW

Page 25: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

25 | DISCOUNT TIRE | PLYMOUTH, MN

DEMOGRAPHIC BRIEF

1655 ANNAPOLIS LN N

NAME LATITUDE LONGITUDE

1655 ANNAPOLIS LN N 44.9979628949189 -93.4539310406718

©2017 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri ProjectID:258303

DEMOGRAPHIC BRIEF

1655 ANNAPOLIS LN N 1 MILE 3 MILES 5 MILES

2017 Population - Current Year Estimate 2,630 60,794 166,791

2022 Population - Five Year Projection 2,774 63,361 175,293

2010 Population - Census 2,432 57,536 154,200

2000 Population - Census 2,445 58,257 151,275

2010-2017 Annual Population Growth Rate 1.09% 0.76% 1.09%

2017-2022 Annual Population Growth Rate 1.07% 0.83% 1.00%

2017 Households - Current Year Estimate 1,067 25,833 70,238

2022 Households - Five Year Projection 1,120 26,842 73,512

2010 Households - Census 995 24,618 65,539

2000 Households - Census 960 23,392 61,203

2010-2017 Annual Household Growth Rate 0.97% 0.67% 0.96%

2017-2022 Annual Household Growth Rate 0.97% 0.77% 0.92%

2017 Average Household Size 2.46 2.31 2.34

2017 Average Household Income $113,662 $122,563 $115,779

2022 Average Household Income $127,574 $136,042 $128,853

2017 Median Household Income $79,678 $86,190 $82,482

2022 Median Household Income $86,563 $95,581 $91,139

2017 Per Capita Income $47,029 $52,475 $49,012

2022 Per Capita Income $52,503 $58,010 $54,266

2017 Housing Units 1 ,103 27 ,366 74 ,317

2017 Vacant Housing Units 36 3.3% 1,533 5.6% 4,079 5.5%

2017 Occupied Housing Units 1,066 96.6% 25,832 94.4% 70,238 94.5%

2017 Owner Occupied Housing Units 839 76.1% 17,093 62.5% 47,679 64.2%

2017 Renter Occupied Housing Units 227 20.6% 8,739 31.9% 22,559 30.4%

2017 Population 25 and Over 1 ,908 44 ,091 120 ,162

HS and Associates Degrees 989 51.8% 17,652 40.0% 50,049 41.7%

Bachelor's Degree or Higher 867 45.4% 25,373 57.5% 66,311 55.2%

2017 Businesses 609 4,198 7,972

2017 Employees 15,936 89,899 163,646

©2017 CBRE. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the propertyfor your needs. Source: Esri Page 1 ProjectID:258303

POPULAT ION

HOUSEHOLDS

HOUSEHOLD INCOME

HOUS ING UN ITS

EDUCAT ION

PLACE OF WORK

1 MILE

5 MILE

3 MILE

DEMOGRAPHICS05 | MARKET OVERVIEW

Page 26: DISCOUNT TIRE - LoopNetimages1.loopnet.com/d2/TQ68qYA6ZSgLzSuF-xh3BCeT7... · lease is corporate guaranteed by Discount Tire Inc. and the rent is fixed over ... largest city with

OFFERED EXCLUSIVELY BY

BILL O’CONNORSENIOR VICE PRESIDENTCBRE, Inc. +1 248 351 2045 [email protected]

2000 TOWN CENTER SUITE 500Southfield, MI 48075

DAVID HESANO FIRST VICE PRESIDENTCBRE, Inc. +1 248 351 2014 [email protected]

CAPITAL MARKETS | INVESTMENT PROPERTIES

BROKER OF RECORDMr. Blake R. HastingsCBRE Minneapolis | St. Paul+1 952 924 [email protected]