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SEC DIVISION & 29TH AVENUE SOUTH ST. CLOUD, INVESTMENT HIGHLIGHTS SUBJECT OFFERING

id-America Real Estate Corporation has been retained by the owner to Msell the 100% fee simple interest in Division Place Outlot, a three-tenant building featuring Starbucks, Aspen Dental, and Great Clips located in St. Cloud, Minnesota.

Address: 2860 West Division Street St. Cloud, Minnesota 56301

GLA: 6,958

Tenants: Starbucks (Corporate, Drive-Thru), Aspen Dental (Corporate), Great Clips

Shadow Anchors: TJ Maxx, Dollar Tree, Tuesday Morning

Occupancy: 100%

Year Built: 2014

Traffic Counts: Division Street – 32,000 VPD

In-Place Net Operating Income: $245,254

Cap Rate: 6.50%

Asking Price: $3,770,000 KEY FEATURES INTERNET RESILIENT TENANT MIX – The subject offering is 100% leased to a complementary tenant line-up providing service, food & beverage, and medical uses including Starbucks (NASDAQ: SBUX), Aspen Dental, and Great Clips. The outlot provides a stable income for a buyer with a weighted average lease term remaining of more than six years among three tenants with a proven track record.

UNPARALLELED DEMOGRAPHICS – Located at the southeast corner of Division Street (32,000 VPD) and 29th Avenue South (3,500 VPD), Division Place Outlot benefits from a high-density growth demographic profile. There are nearly 104,000 residents enjoying an average household income of $68,000 within a five-mile radius. Population is expected to grow 5.1% from 2018 to 2023 within the same radius.

SHADOW ANCHOR DRAWING POWER – The recently constructed outlot enjoys unprecedented cross traffic from Division Place , which is anchored by TJ Maxx, Dollar Tree, Tuesday Morning, and features a strong line-up of tenants including Famous Footwear, Home Choice, Subway, H&R Block, and more. Shared access with these dominant tenants provides considerable drawing power.

DAYTIME POPULATION – Given its proximity to downtown St. Cloud, Division Place Outlot enjoys a solid daytime population in excess of 95,100 people within a three-mile radius (44% higher than the residential population within the same area). Major drivers of daytime activity are employers such as CentroCare Health System (St. Cloud Hospital) and Electrolux Home Products, as well as St. Cloud University, the third-largest public university in Minnesota with total enrollment of over 19,600 students, located two miles east of the subject offering.

PROMINENT MARKET – Ideally positioned along Division Street, St. Cloud’s busiest arterial road, the subject offering benefits from high consumer traffic. The retail trade area is anchored by Brookfield’s Crossroads Center, a 900,000-square-foot regional mall anchored by Macy’s, JCPenney, Target, and Scheels, and a dynamic mix of specialty retailers including American Eagle, PINK, Forever 21, Francesca’s, H&M, Kay Jewelers, and Victoria’s Secret. Other prominent retailers in the trade area include (opening June 2019), Bed Bath & Beyond, Best Buy, Ulta, Barnes & Noble, Dick’s, Kohl’s, Old Navy, Home Depot, Walmart, and Menards.

$ POTENTIAL YIELDS – Offered “free and clear” of any existing debt, providing the opportunity for a buyer to take advantage of the debt markets.

DEMOGRAPHIC PROFILE WITHIN 5-MILE RADIUS:

POPULATION AVERAGE HH INCOME HOUSING UNITS MEDIAN HOME VALUE DAYTIME POPULATION 5 YEAR POPULATION GROWTH 103,771 $68,086 40,853 $173,787 129,234 5.1% LEASING PLAN

iision treet 32,000 P pylon pylon pylon drive-thru 27t Aene 100 101 102 30t Aene 2t Aene 3,500 P

Tenant Name Unit Square Feet Starbucks 100 1,918 Great Clips 101 1,440 Aspen Dental 102 3,600 Total 6,958 Hinckley Hillman LOCATION & MARKET Little Falls • St. Cloud is the largest population center in Minnesota’s central region and the Page Mora ¦¨§35 state’s fourth largest region with a population of over 195,900 residents Royalton Little Rock Ogilvie Pine within the MSA. Situated along the 60 miles northwest of , St. Cloud is one of Minnesota’s fastest growing metro areas. Rice Foreston The city’s population grew 6.1% from 2005 to 2015. Braham Pease Foley Dalbo • St. Cloud’s economy is driven by high technology, industrial, education, Sartell Grandy medical, and retail industries. Major employers in the region include Princeton CentraCare Health Systems, Coborn’s, Electrolux Home Products, and St. Cloud Capital One. The city is also home to St. Cloud State University, the third- North Branch largest public university in Minnesota with over 19,600 students. ¨§35 • The Division Street trade area is defined by the large collection of category- ¦ Becker Zimmerman killer retailers that serve a large population of the central region of Minnesota. East Bethel The closest competing retail hubs are 60 miles southwest in Minneapolis and Kimball ¦¨§94 55 miles north in Brainerd. As a result, retailers in St. Cloud generally perform Otsego Forest Lake at high-levels above national chain average. Maple Lake Andover St Michael DEMOGRAPHIC PROFILE Buffalo Coon Rapids Blaine Hugo Maple Grove Dassel Distance from Subject: 1 miles 3 miles 5 miles Montrose Brooklyn Park 2018 Population 10,167 66,269 103,771 Plymouth Forecasted 2023 Population 10,384 69,136 109,074 % Change 2018 to 2023 2.1% 4.3% 5.1% St Paul 2018 Households 4,179 26,503 40,853 Minnetonka Edina Woodbury Forecasted 2023 Households 4,255 27,617 42,947 Waconia Eden % Change 2018 to 2023 1.8% 4.2% 5.1% Eagan Shakopee 2018 Median Home Value $135,781 $163,450 $173,787 Glencoe Burnsville 2018 Daytime Demographics 19,983 95,102 129,234 Brownton Apple Valley 2018 Average Household Income $63,352 $64,278 $68,086 New Auburn Jordan 2018 Median Household Income $45,140 $44,373 $49,691 Lakeville Belle Plaine 2018 Per Capita Income $26,359 $26,261 $27,416 Arlington 35 2018 Median Age 34.6 31.1 32.1 ¦¨§ PROPERTY DESCRIPTION • Constructed in 2014, Division Place Outlot features 6,958 square feet of retail space situated on 0.69 acres of land. The site features 32 spaces, a ratio of 4.6 spaces per 1,000 SF, and also enjoys cross-parking with Division Place shopping center with an additional 460 spaces.

• The subject benefits from traffic-driving shadow anchors TJ Maxx, Dollar Tree, and Tuesday Morning within Division Place shopping center, which sits directly behind the outlot building.

• Direct access to the outlot is provided by a fully signalized interchange at Division Street and 29th Avenue South. There are three additional points of cross- access to the outlot through Division Place shopping center via Division Street, 1st Street, and 29th Avenue South. TENANCY • Division Place Outlot is a three-tenant outlot 100% leases to Starbucks (Corporate, Drive-Thru), Aspen Dental (Corporate), and Great Clips.

Starbucks is the largest American coffee company and coffeehouse chain based on revenue. Starbucks was founded in , Washington in 1971 and currently operates over 30,000 locations worldwide. Its stores offer coffee and tea beverages, roasted whole bean and ground coffees, single-serve and ready-to-drink beverages, iced tea, and various food products, such as pastries, breakfast sandwiches, and lunch items. The subject offering Starbucks has a drive-thru and is a very high performing unit.

Aspen Dental is one of the largest and fastest-growing providers of denture and dental care services in the . Originally founded as Upstate Dental in Syracuse, in 1964, Aspen Dental has grown to more than 750 locations in 39 states serving more than one million patients annually. Each office has certified oral hygienists, dentists, and oral surgeons for general dental care who provide patients with a full range of denture and dental services, including hygiene, oral surgery, fillings, whitening, and crown and work.

Great Clips is a 100% franchised hair salon company with more than 4,200 salons across North America. Founded in 1982 in Minneapolis, Minnesota, the company employs in excess of 40,000 people. Entrepreneur Management recently ranked Great Clips #8 in their 2019 Franchise 500 list. The subject offering Great Clips recently relocated to its current outlot position from inline within Division Place shopping center and signed a new 10-year lease. This location is among the top 10% of the highest performing Great Clips within the chain. FINANCIAL The property is being offered “free and clear” of any existing debt.

In-Place Net Operating Income: $245,254 Cap Rate: 6.50% Asking Price: $3,770,000 The Wrigley Building Joe Girardi Emily Dutson 5353 Wayzata , Suite 650 Mark Robinson, CCIM 410 North Avenue, Suite 1100 Principal Investment Associate Minneapolis, MN 55416 (a licensed MN Real Estate Broker) , 60611 Direct: 630.954.7392 Direct: 630.261.6962 Direct: 952.563.6600 Direct: 952.563.6664 Direct: 630.954.7300 [email protected] [email protected] [email protected]

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.