7201 West 78th Street Bloomington, Minnesota INTRODUCTION

INVESTMENT ADVISORS CONFIDENTIALITY + CONDITIONS

This presentation is the property of Suntide Commercial Realty/KW Commercial (“Suntide-KW”) and is strictly confidential. It contains information intended only for the person to whom it is transmitted. With receipt of this information, recipient acknowledges and agrees that: (i) this document which is not intended to be distributed,and if distributed inadvertently, will be returned to Suntide-KW upon request as soon as possible; (ii) the recipient will not copy, fax, reproduce, divulge, or distribute this confidential information, in whole or in part, without the express written consent of Suntide-KW; (iii) all of the information herein will be treated as confidential material with no less care than that afforded to its own confidential material.

This presentation is for informational purposes only and is not intended for any other use. The information in this document is speculative and may or may not be accurate. Actual information and results may differ materially from those stated in this document. Suntide-KW makes no representations or warranties which respect to the accuracy of the whole or any part of this presentation and disclaims all such representations and warranties. Neither Suntide-KW nor its principals, employees, or agents shall be liable to any user of this document or to any other person or entity for the truthfulness or Jeff Hart, CCIM accuracy of information contained in this presentation or for any errors or omissions in its content, regardless of the cause of such inaccuracy, error, Suntide Commercial Realty or omission. Furthermore, Suntide-KW, its principals, employees, or agents accept no liability and disclaim all responsibility for the consequences of any user of this document or anyone else acting, or refraining to act, in reliance on the information contained in this document or for any decision 2550 University Ave. W., Suite 416-S based on it, or for any actual, consequential, special, incidental, or punitive damages to any person or entity for any matter relating to this document St. Paul, MN 55114 even if advised of the possibility of such damages. Any and all projections that may be contained in this document have been estimated based on 612-747-7794 unknown variables which may or may not occur in the future. [email protected] This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements express Suntide- KW’s expectations or predictions of future events or results. They are not guarantees and are subject to many risks and uncertainties. There are a number of factors beyond Suntide-KW’s control that could cause actual events or results to be significantly different from those described in the forward-looking statements. Any or all of the forward-looking statements in this document or in any other statements Suntide-KW makes may turn out to be wrong. Except as required by applicable law, Suntide-KW does not intend to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. In light of the significant uncertainties inherent in the forward-looking statements made in this document, the inclusion of this information should not be regarded as a representation by Suntide-KW or any other person that its objectives, future results, levels of activity, performance or plans will be achieved.

Andy Manthei AMK Properties | KW Commercial 14665 Galaxie Ave. Suite 350 Apple Valley, MN 55124 651-262-1006 [email protected]

2 | 7201 West 78th Offering Memorandum This property offers great potential for an owner/ user to have an income producing property while they occupy the strong tenant in place and property. EXECUTIVE SUMMARY

THE OFFERING Suntide Commercial Realty and KW Commercial are pleased to present the opportunity to acquire 7201 West 78th Street (“7201 West”or “Property”) a nicely appointed owner-user office building with prime signage along a heavily traveled portion of I-494 in Bloomington, Minnesota. The property is approximately 37,854 SF (26,351 SF rentable area + 11,503 lower level), is 65.2% occupied, and features 98 (73 outdoor + 25 indoor) parking stalls.

OWNER/USER WITH INCOME This property offers great potential for an owner/user to have an income producing property while they occupy the strong tenant in place and property. Excellent potential for a growing business.

PRIDE OF OWNERSHIP 7201 West has been meticulously managed by the current ownership group for 13 years. Many upgrades and improvements have been made within the past 10 years including » New Roof » New HVAC » New Bathrooms » New Lighting

HIGH VISIBILITY + ACCESSIBILITY Located on 78th Street, the Property offers convenient and quick access to major freeways including I-494, Hwys 100 and 169.

LOCATION AMENITIES The Property is situated on the northern edge of Bloomington, Minnesota, giving it premier access to the rich commecial corridor of 494, as well as numerous parks and green spaces in the south and west. Other location amenities include » Over 10+ golf courses within a 5 blocks radius » Located near premier dining options such as Wooden Hill Brewing, Ciao Bella and Kincaid’s Fish & Chop House » Multiple upscale shopping centers are nearby including Eden Prairie Center, Galleria, Shops at Lyndale, and Southdale Shopping Center » Under 20 minutes to CBD » Under 25 minutes to St. Paul CBD » Less than 10 minutes from MSP Airport and the Mall of America

4 | 7201 West 78th Offering Memorandum The property offers high visibility building signage which is visible from Interstate 494. An owner-user can occupy 10,113 SF of space and have an income-generating property. PROPERTY OVERVIEW

PROPERTY STATS PARCEL MAP

Address 7201 W. 78th Street, Bloomington, MN 55439

Building Size 37, 8 5 4 S F

Rentable Area 26,351 SF

Occupancy 65.2%

1st Floor - 13,755 SF 2nd Floor - 12,596 SF Floors Garage - 10,430 SF Storage - 1,073 SF

Lot Size 1.56 Acres

Year Built 1983

Year Renovated 2009/2016

Sale Price $4,990,000

Available Space 10,113 SF

Lease Rate $10-$12.00/SF

CAM $6.50/SF/Yr

RE Tax $3.03/SF/Yr

Cross Streets West 78th and West Bush Lake Road

Nearby Freeways I-494, Hwy 169, Hwy 100, Hwy 212

25 Underground Heated Parking 73 Surface Lot 3.75:1000

Signage Lobby, Suite, Building, Monument

7201 West 78th Offering Memorandum | 7 PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

Unique owner/user opportunity 24-hour keycard access

10+ golf courses Large, functional floor plates within a 5-mile radius with a continuous band of glass

Near high-growth professional 24-hour camera security inside and technical labor force and outside the premises

Great visibility on 494 Monument and building signage

CenturyLink has fiber to the building Underground heated parking

Close proximity to restaurants, Less than 10 minutes from hotels and shopping centers MSP International Airport Newly renovated common areas, bathrooms and landscaping

8 | 7201 West 78th Offering Memorandum Lease options within the property offer configurations ranging from 942–10,113 SF of second floor space. FLOOR PLANS

GARAGE LEVEL FIRST FLOOR

GARAGE Size 10,430 SF Parking

In addition to 73 outdoor spaces, the property features 25 underground, heated spaces.

OCCUPIED Suite 100 Size 13,755 SF Tenant The Araz Group Inc.

The Araz Group Inc. is a privately held company founded in 1982 and consists of three subsidiary companies: America’s PPO, America’s IME and HealthEZ. They STORAGE B STORAGE A have 11-50 employees and they 283 usable sq ft 790 usable sq ft manage health care plans, health benefits, provider networks, and healthcare transactions.

10 | 7201 West 78th Offering Memorandum OCCUPIED SECOND FLOOR Suite 215 Size 942 SF Tenant Anicca Esthetics

Anicca Esthetics is a day spa and design service. They offer a variety of services including facials, lashes, costume design, hair and makeup.

VACANT Suite 225 Size 1,986 SF

VACANT Suite 207 Size 2,723 SF

OCCUPIED Suite 220 Size 2,483 SF Tenant The Araz Group Inc.

VACANT VACANT Suite 200 Suite 210 Size 1,455 SF Size 3,007 SF

7201 West 78th Offering Memorandum | 11 AREA MAP

Subject Property Restaurants Parks

7201 West 78th Street 16 Wooden Hill Brewing 37 Normandale Lake Park

17 TGI Fridays 38 Nord Myr Park

Retail: 18 Domino’s Pizza 39 Hyland Lake Park Reserve

1 Mall of America 19 Starbucks 40 Anderson Lakes Park Reserve

2 Southdale Center 20 Kincaid’s 41 West Bush Lake Park

3 Galleria 21 Perkins 42 Marsh Lake Park

4 Target 22 Ciao Bella 43 Wood Lake Nature Preserve 13 5 Trader Joe’s 23 Olive Garden 44 Lake Girard Park

24 Denny’s 45 Corridor Park 6 Whole Foods 7201 W 78th St. 7 Cub Foods 25 Burger King

8 26 Taco Libre Hotels 45 9 Menards 27 46 Double Tree

10 Sam’s Club 28 Red Savoy’s Pizza 47 Sheraton

11 REI 29 Panchero’s 48 Hilton Garden Inn

12 Walmart 30 CWS Bar and Grill 49 La Quinta Inn & Suites

31 Cowboy Jack’s 50 Embassy Suites by Hilton

Golf Courses 32 Caribou Coffee 51 Courtyard by Marriott

13 Braemer Golf Course 33 Chick-Fil-A 52 AmercInn

14 Olympic Hills Golf Club 34 McDonalds 53 Holiday Inn

54 Renaissance Bloomington

Travel: Colleges 55 Hampton Inn 40 15 MSP Airport 35 Normandale 56 Hilton Bloomington Community College

36 Northwestern Health 41 Sciences University 14 39

12 | 7201 West 78th Offering Memorandum 2

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19 8 9 19 25 46 22 12 26 27 47 28 51 11 10 5 21 31 4 18 23 54 53 56 49 52 1 20 55 48 17 36 7

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42 35 MARKET OVERVIEW

7201 W 78th St, Bloomington, MN 55439 BLOOMINGTON, MINNESOTA Bloomington is the first largest city in Minnesota. It is located in Hennepin County 10 miles south of downtown Minneapolis, on the north bank of the Minnesota River above its confluence with the Mississippi. Its projected population in the 2020 census is 84,943. 95

C h i s a g o

Bloomington’s residential areas include upper-tier households in the western Bush 35

Lake area and traditional single-family homes in the central to eastern portions. 8 47 65

Retail & Commerce A n o k a 169 Large-scale commercial development is concentrated along the Interstate 494 10 ! 61 corridor. Many upscale shopping centers are located within the city including 94 35W W a s h i n g t o n Southdale Shopping Center and Mall of America. 10 35E

H e n n e p i n R a m s e y 55 94 ! Business & Economy 494 100 12 Minneapolis 694 ! Bloomington has more jobs per capita than either Minneapolis or St. Paul, 394 St. Paul 94 ! 94 due in part to the United States’ largest shopping center, Mall of America. The 62 62 494 headquarters of , Donaldson Company, HealthPartners and , and 212 52 10 major operations of Pearson, General Dynamics, Seagate Technologies, Express C a r v e r 35E ! ! 61 Scripts and Wels Fargo Bank are also based in the city. 212 10 62 ! 169

Arts & Recreation S c o t t D a k o t a 35 61

The City of Bloomington has 97 parks and over 40 miles of pedestrian and biking 62

trails. The park system contains two golf courses, an art center, indoor ice arena, 52 outdoor aquatic center, community/senior center, a swimming and recreational beach and a variety of athletic fields.

MSP International Airport served Bloomington offers over 9,000 acres of The Bloomington Ice Garden has three rinks, Bloomington is home to two public golf more than 38 million travelers in 2018 parkland and over 40 miles of pedestrian one of them Olympic-sized, and boasts a courses, 18-hole and 9-hole. making it the 17th busiest in North America. and biking trails. seating capacity of 2,500.

14 | 7201 West 78th Offering Memorandum Mall of America in Bloomington is one of the most visited tourist destinations in the world, attracting more than 40 million visitors annually. DEMOGRAPHICS

POPULATION MARKET COMPARISON

1 Mile 3 Miles 5 Miles United States Twin Cities Total Population 8,554 76,869 229,394 Current Per $34,136 $55,970 Median Age 42.2 44.5 41.2 Capita Income

Median Age 41.9 43.1 39.9 (Male) Projected 5-Year $ 37,691 $61,428 Median Age Per Capita Income 42.6 45.8 42.4 (Female) Current Median HOUSEHOLDS Household $62,203 $89,154 Income 1 Mile 3 Miles 5 Miles Income Total 3,700 34,141 102,557 Projected 5-Year Households $ 67, 32 5 $98,144 Houshold Income # of Persons 2.3 2.3 2.2 Per Household Current Average $90,054 $127,412 Average HHI $127,412 $107,6 6 0 $99.231 Household Income

Average House $ 4 57,2 5 5 $426,002 $381,506 Value Projected 5-Year $99,510 $140,321 Household Income HOUSEHOLD COUNTS 120,000 Owner Occupied 56.4% 61.7% 100,000 93,777 96,704 2.26 88,183 Average 80,000 Household Renter Occupied 32.3% 32.5% Size 60,000 Housing

40,000 Vacant 11. 3% 5.8% 54,456 20,000 Current Number of Median Home Value $235,127 $329,635 0 Families 2010 2020 2025 Demographic data derived from 2010 US Census

16 | 7201 West 78th Offering Memorandum Minneapolis and St. Paul areas continue to offer a unique combination of highly educated workers with the high concentration of nationally accredited universities within the Twin Cities.

7201 West 78th Offering Memorandum | 17