Ground Lease Bank for Sale

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www.bouldergroup.com NET LEASED INVESTMENT OFFERING NET LEASED INVESTMENT OFFERING NET LEASED INVESTMENT OFFERING NET LEASED INVESTMENT OFFERING TCF Bank Ground Lease (Investment Grade) TCF Bank Ground Lease (Investment Grade) TCF Bank Ground Lease (Investment Grade) TCF Bank Ground Lease (Investment Grade) 6501 Richfield Parkway 6501 Richfield Parkway 6501 Richfield Parkway 6501 Richfield Parkway Richfield, MN 55423 (Minneapolis Richfield, MN 55423 (Minneapolis Richfield, MN 55423 (Minneapolis Richfield, MN 55423 (Minneapolis MSA) MSA) MSA) MSA)

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Ground Lease TCF Bank for sale in Minneapolis MSA

Transcript of Ground Lease Bank for Sale

Page 1: Ground Lease Bank for Sale

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NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

TCF Bank Ground Lease (Investment Grade)TCF Bank Ground Lease (Investment Grade)TCF Bank Ground Lease (Investment Grade)TCF Bank Ground Lease (Investment Grade) 6501 Richfield Parkway6501 Richfield Parkway6501 Richfield Parkway6501 Richfield Parkway

Richfield, MN 55423 (MinneapolisRichfield, MN 55423 (MinneapolisRichfield, MN 55423 (MinneapolisRichfield, MN 55423 (Minneapolis MSA)MSA)MSA)MSA)

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Confidentiality & Disclaimer

Executive Summary

Property Overview

Site Plan

Aerial

Map

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS

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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER

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The Boulder Group is pleased to exclusively market for sale a single tenant TCF Bank ground lease located within the Minneapolis MSA. TCF Bank is an investment grade company with a Standard & Poor’s Rating of BBB-. The TCF Bank is located on a 1.01 acre parcel as an outlot to a Super Target and Home Depot anchored shopping center. The lease features 10% rental escalations every five years with the next escalation in 2017. This is a proven location for TCF bank as evidenced by its well above average deposits for a bank branch.

The property is located in Cedar Point Commons Shopping Center, a 350,000 square foot retail center anchored by Super Target and Home Depot. Cedar Point Commons is located off Highway 77 (66,000 VPD) at the intersection of 66th Street and Richfield Parkway. 66th Street has a full access interchange with Highway 77 less than ¼ mile from the property. Constant traffic is abundant along Highway 77 as the Mall of America is located approximately two miles south of Cedar Point Commons along Highway 77. Additionally, there is a IKEA adjacent to the Mall of America. The property is located in a dense area with over 300,000 people living within five miles of the property. There are high barriers to entry in the area as the land directly across Highway 77 is used for the Minneapolis/St. Paul International Airport.

TCF Bank’s original ground lease term was for 20 years with four 5-year renewal options and the lease expires in October 2027. The net operating income increases by 10% every five years during the primary term as well as the option periods. TCF Bank is a publicly traded company on the New York Stock Exchange (TCB), with a market capitalization of $2 billion. TCF Bank is an investment grade rated company with a Standard & Poor’s rating of BBB-.

• Investment grade rated company (S&P: BBB-)

• Located within the Minneapolis MSA

• Long term ground lease

• Superior bank branch deposits

• No landlord responsibilities

• 10% rental escalations every five years (Next escalation in 2017)

• Located as an outparcel to a Super Target and Home Depot

• Located off Highway 77 Interchange (66,000 VPD)

• Two miles from the Mall of America and an IKEA

• Over 300,000 people living within five miles of the property

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY

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Price: $2,946,428

Cap Rate: 5.60%

Rent Schedule: NOI Escalation Date

$ 165,000

$ 181,500 11/1/2017

$ 199,650 11/1/2022

$ 219,615 11/1/2027 (Option 1)

$ 241,577 11/1/2032 (Option 2)

$ 265,734 11/1/2037 (Option 3)

$ 292,308 11/1/2042 (Option 4)

Renewal Options: Four 5-Year

Renewal Rate: 10% each option period

Lease Commencement Date: October 16, 2007

Lease Expiration Date: October 31, 2027

Tenant: TCF Bank

Credit Rating: BBB- (Standard and Poor’s)

Year Built 2007

Lease Type: Ground Lease – NNN*

Rentable Square Feet: 4,500 SF

Land Size: 1.01 Acres

* Should structural repairs be required during the last three years of the Tenant's primary term or any renewal term, Tenant shall not be required to make such structural repairs should Tenant deliver to Landlord a written waiver of all rights to renew the Lease beyond the term in effect.

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW

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SITE PLASITE PLASITE PLASITE PLANNNN

SITE PLAN

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AERIALAERIALAERIALAERIAL

AERIAL

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MAP

MAPMAPMAPMAP

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Website: www.tcfbank.com

Number of Locations: 430+

Stock Symbol: TCB : NYSE

Standard & Poor’s Rating: BBB-

Market Capitalization: $2 billion

TCF is a Wayzata, Minnesota‐based national bank holding company with $17.8 billion in total assets as of March 31,

2012. TCF has over 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona, and South

Dakota, providing retail and commercial banking services. TCF also has business lines in commercial leasing and

equipment finance, including leverage lending in all 50 states, commercial inventory finance business in the U.S. and

Canada, and indirect auto finance business in over 30 states. They are the 11th largest VISA Classic debit card

issuer in the U.S. by sales volume.

TENANT PROFILE

TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE

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PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mimimimi 7777----mimimimi

Total Population 98,609 303,180 586,475 Total Households 41,304 129,123 254,769

IncomeIncomeIncomeIncome

Median Household Income $53,756 $51,126 $50,403 Average Household Income $69,602 $70,132 $72,149

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT

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RichfieldRichfieldRichfieldRichfield is located in Hennepin County, Minnesota, approximately 8 miles south of Downtown Minneapolis. Richfield has a population of over 35,000. Best Buy is the city’s largest employer and its corporate headquarters is located in Richfield. largest employers in Richfield include US Bank, Richfield Public Schools and Target.

Hennepin County is the most populous county in the state of Minnesota. One in every five Minnesotans lives in Hennepin County. At the time of the 2010 U.S. Census, Hennepin County had a population of 1,152,425.

www.ci.richfield.mn.us

MinneapolisMinneapolisMinneapolisMinneapolis

“Twin Cities”. Minneapolis is the most populous

as the state’s capital. The Minneapolis

States with a total population of 3,317,308. The Minneapolis

19 of the 20 Fortune 500 headquarters (Target

Minnesota and has the second largest economy in the Midwest only behind Chicago.

The largest companies in Minneapolis include Target, US Bank, Xcel Energy,

Ameriprise Financial and Thrivent Financial.

www.ci.minneapolis.mn.us

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LOCATION

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

is located in Hennepin County, Minnesota, approximately 8 miles south of Downtown Minneapolis. Richfield has a population of over 35,000. Best Buy is the city’s largest employer and its corporate headquarters is located in Richfield. largest employers in Richfield include US Bank, Richfield Public Schools and Target.

Hennepin County is the most populous county in the state of Minnesota. One in every five Minnesotans lives in Hennepin County. At the time of the 2010 U.S. Census, Hennepin County had a population of 1,152,425.

www.ci.richfield.mn.us

MinneapolisMinneapolisMinneapolisMinneapolis----St. Paul St. Paul St. Paul St. Paul is the most populous urban area in Minnesota is nicknamed the

“Twin Cities”. Minneapolis is the most populous city in Minnesota and St. Paul serves

as the state’s capital. The Minneapolis-St. Paul MSA is the 16

States with a total population of 3,317,308. The Minneapolis

19 of the 20 Fortune 500 headquarters (Target, 3M and General Mills) located within

Minnesota and has the second largest economy in the Midwest only behind Chicago.

The largest companies in Minneapolis include Target, US Bank, Xcel Energy,

Ameriprise Financial and Thrivent Financial.

www.ci.minneapolis.mn.us

LOCATION OVERVIEW

is located in Hennepin County, Minnesota, approximately 8 miles south of Downtown Minneapolis. Richfield has a population of over 35,000. Best Buy is the city’s largest employer and its corporate headquarters is located in Richfield. Other largest employers in Richfield include US Bank, Richfield Public Schools and Target.

Hennepin County is the most populous county in the state of Minnesota. One in every five Minnesotans lives in Hennepin County. At the time of the 2010 U.S. Census,

is the most populous urban area in Minnesota is nicknamed the

city in Minnesota and St. Paul serves

St. Paul MSA is the 16th largest in the United

States with a total population of 3,317,308. The Minneapolis-St. Paul area is home to

, 3M and General Mills) located within

Minnesota and has the second largest economy in the Midwest only behind Chicago.

The largest companies in Minneapolis include Target, US Bank, Xcel Energy,

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666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION