INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
EDEN PRAIRIE AT A GLANCE
Eden Prairie is an affluent, southwest metro suburb with direct access to I-494. The city is home to approximately 64,000 residents, the 6th largest population in Hennepin County. The Eden Prairie Center, a widely known shopping mall built in 1976, has approximately 120 shops, an 18-screen AMC Theatre, and will soon have Scheels sporting goods as a new anchor tenant. Scheels, a current tenant in the mall, is redeveloping most of the old Sears department store that closed in Summer 2016. Scheels is expected to spend $70 million on the project. The Flying Cloud Airport, one of the busiest reliever airports in Minnesota, is also in Eden Prairie.
With population growth expected to outpace the entire seven-county region through 2040, development and activity in the city is getting a boost from the future Southwest Light Rail Transit line (SWLRT) project. Eden Prairie will channel and strategically direct the current and future growth through a comprehensive plan dubbed Aspire Eden Prairie 2040. The final City Council-approved plan will be submitted to the Metropolitan Council by the end of 2018.
Development will continue to be concentrated in the northeast quadrant of Eden Prairie near the major highways and the Eden Prairie Center. Approximately 130,000 vehicles per day (VPD) pass by the eastern border of the city on I-494 and Hwy 169. Many of the largest employers in the city are situated along Hwy 5 (105,000 VPD) and near what is known as the Golden Triangle in northeast Eden Prairie. The Golden Triangle is an employment hub bordering Edina and Minnetonka with over 1 million sq. ft. of office and industrial/flex product.
Page 1
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
HEALTHCARE IN EDEN PRAIRIE(MOBs)
Primary care providers, medical development, and medical office buildings (MOBs)
Medical development & MOBS
Number Status Provider Building SF Total Avail SF Large Tenants
1 Existing Eden Prairie Medical Office 43,000 4,137 Fairview, OBGYN West
Park Dental, Associated Skin Care Specialists, 2 Existing Cascade Professional Building 27,000 0 Southdale Pediatric Associates
3 Existing Park Nicollet Clinic 20,803 0 —
4 Existing Fairview Clinics 26,571 0 —
Total 117,374 4,137
Page 2
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
THE SOUTHWEST LIGHT RAIL TRANSIT
The highly anticipated SWLRT will be a 14.5-mile mass deferred due to budget concerns, a stop may be added near transit line from Eden Prairie to downtown Minneapolis. the Eden Prairie Center. The Golden Triangle stop hopes to Three of the 15 stations are currently planned in Eden capitalize on the 20,000+ individuals travelling to the area Prairie with potential of adding a fourth stop in the city. With daily. Lastly, the City West Station passes alongside Hwy service slated to start 2023, over $1 billion worth of projects 62 & Hwy 212. Adjacent to the Optum corporate campus, have already been proposed along the line. The $1.9 billion the Metropolitan Council is hopeful that the city’s largest project has been in the works since 2010 and is being employer will also be one of the largest users of the line. funded through local, state, federal, and private sources. Optum expects to eventually house over 6,500 employees when the campus is finished. Starting at what is now the SouthWest Station bus terminal, the station will feature an expanded park-and- Source: Metropolitan Council ride lot and is surrounded by area amenities. Initially
Eden Praire Top Employers – 2017
Employees At Location Company Name This Location Type Route of the METRO Green Line Extension
Optum 3,715 Headquarters
Starkey Labs 2,117 Headquarters
Eden Prairie School 1,285 Various District
SuperValu 1,200 Headquarters
Eaton Corporation 1,000 Branch
Bluestem 905 Headquarters
Lifetouch 800 Headquarters
MTS Systems Corp 800 Headquarters
C.H. Robinson 741 Headquarters
Abbott Laboratories 617 Branch Source: Metropolitan Council
Page 3
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
FORECASTED DEMOGRAPHICS
Eden Prairie Population Growth 2000 – 2040
Following astounding growth of nearly 40% from 90,000 1990-2000 in Eden Prairie, the city had a population of just under 61,000 in 2010. This number is expected 70,000 to increase by almost 36% through 2040 to 82,400 50,000 people. The chart to the right depicts this growth in the community. 30,000 2000 2010 2020 2030 2040
Source: Metropolitan Council
Eden Prairie and County Population Growth 2000 – 2040
Within Hennepin County, Eden Prairie accounted for 1,500,000 5.1% of the total population in 2016. That number 1,250,000 will increase to 5.8% by 2040. This increase comes 1,000,000 as Eden Prairie expects nearly 4% more growth than Hennepin County as a whole. 750,000
500,000
250,000
0 2000 2010 2020 2030 2040
Eden Prairie Hennepin County Total
Source: Metropolitan Council Page 4
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
FORECASTED DEMOGRAPHICS
Eden Prairie/County/Regional Expected Population Growth by % 2000 – 2040
Eden Prairie’s population growth rate through 15% 2040 is expected to outpace both Hennepin County and the entire Twin Cities Metropolitan Region. 10% Eden Prairie will grow twice as fast on average 5% as Hennepin County during this time. This comes after astonishing growth of nearly 40% in Eden 0% Prairie from 1990-2000. 2010 2020 2030 2040
Eden Prairie Growth Hennepin County Growth Regional Growth
Source: Metropolitan Council
Eden Prairie/County/Regional Expected Employment Growth by % 2010 – 2040
20% In addition, Eden Prairie is expected to gain jobs at a faster pace than both Hennepin County and 15% the region through 2040. All three areas will 10% experience significantly more growth in the near term than looking ahead 10+ years. Job growth 5% throughout the region is expected through 2040, 0% but estimates show a slower pace of growth from 2020 2030 2040 2030 and beyond. Eden Prairie’s employment growth rate will continue to be at least 2% higher Eden Prairie Growth Hennepin County Growth Regional Growth either Hennepin County or the entire metro region through 2040. Source: Metropolitan Council
Page 5
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
The table below provides a summary of the expected change in population and employment for Eden Prairie, Hennepin County and the Twin Cities Metropolitan Region.
Area Population Employment
2000 2010 2020 2030 2040 2010 2020 2030 2040
Eden Prairie 54,901 60,797 67,900 75,200 82,400 48,775 57,700 62,100 66,600
Hennepin County 1,116,206 1,152,425 1,258,520 1,332,880 1,410,140 805,089 924,710 981,800 1,038,140 Total
Twin Cities 2,642,062 2,849,567 3,160,000 3,459,000 3,738,000 1,543,872 1,828,000 1,910,000 2,039,000 Regional Total
Eden Prairie % of 4.9% 5.3% 5.4% 5.6% 5.8% 6.1% 6.2% 6.3% 6.4% Hennepin County
Eden Prairie Growth 39.7% 10.7% 11.7% 10.8% 9.6% -4.4% 18.3% 7.6% 7.2%
Hennepin 8.1% 3.2% 9.2% 5.9% 5.8% -8.3% 14.9% 6.2% 5.7% County growth
Hennepin County % 42.2% 40.4% 39.8% 38.5% 37.7% 52.1% 50.6% 51.4% 50.9% of region
Twin Cities 15.4% 7.9% 10.9% 9.5% 8.1% -4.0% 18.4% 4.5% 6.8% Regional Total
Page 6
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
OTHER SIGNIFICANT DEVELOPMENT(S)
9
Undeveloped Land 12 Retail 1 11 Mixed-Use 10 Residential 3 13 Other 2 4 5
8 6
7
1. Timberland Partners will soon begin construction on a $61 million mixed-use project adjacent to the SouthWest Transit Station. The project is named Elevate and will contain over 220 residential units with first floor space dedicated to retail. 2. Profile by Sanford, part of Sanford Health, opened its first metro-area location in late 2017 at 8345 Crystal View Rd. The location provides consumers with nutrition coaching and related wellness services. 3. Scheduled to open in late 2019, Scheels is redeveloping the former Sears building at the Eden Prairie Center. Scheels will keep about half of the existing square footage with the project to total nearly 250,000 sq. ft. The project is estimated to cost $70 million and will have Ferris wheel and 16,000-gallon aquarium. 4. The Hennepin County Library has nearly $12 million worth of improvements planned. 5. Southview Senior Communities received approval in January 2018 for a five story 116-unit senior living community at the southwest intersection of Prairie Center Dr and Franlo Rd. Page 7
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
6. A 5,350 sq. ft. retail building to be anchored by Starbucks is being proposed at 9625 Anderson Lakes Pkwy. 7. In mid-2017, CH Robinson submitted plans for a two-phase expansion at their campus in Eden Prairie. The project would include a 3 story 120,000-sq. ft. office building with over 250 parking stalls. 8. Prestige Preschool Academy recently developed an 11,000 sq. ft. daycare on a 3-acre parcel at the southeast quadrant of Pioneer Trl and Mitchell Rd. 9. Faced with space constraints, the Eden Prairie Assembly of God is planning a $4.4 million addition and renovation to the existing structure at the southern corner of Duck Lake Trl and Eden Prairie Rd. 10. FedEx has received city approval to build a 6,336 sq. ft. retail location attached to the Windsor Plaza building. 11. The owners of the Minnesota Vikings have yet to determine plans for redeveloping the former headquarters of the NFL football team. The 14-acre site is on the east side of Eden Prairie along I-494. The site has visibility to approximately 130,000 VPD on I-494. 12. The former 63,000-sq. ft. Gander Mountain at 12160 Technology Dr re-opened as Gander Outdoors in H1 2018. 13. Presbyterian Homes has plans to redevelop their existing Broadmoor senior campus at the southwest quadrant of Prairie Center Dr and Flying Cloud Dr. The project, which will include the existing CVS Pharmacy at 8251 Columbine Rd, will be completed in phases with the skilled nursing facility being redeveloped last. Presbyterian Homes is expected to market the remaining 6+ acres for retail use. Additional… • In February of 2018, the 375-unit Parkway apartment complex sold for $61 million to California-based FBA Multifamily. The firm has now purchased over 1,000 units in Eden Prairie in the past year. • The Flying Cloud Dr reconstruction project is a series of roadway improvements led by Hennepin County in southwest Eden Prairie. From Flying Cloud Dr near the airport to Highway 101 in Chanhassen, the new roadway will improve the driving surface and safety along the corridor. • The Preserve Blvd Improvement Project is focused on adding and improving existing roadways and infrastructure to accommodate expected growth and development in the area. Just south of the Eden Prairie Center, the project will also expedite future concerns of storm water flooding Eden Lake. A new pump will transfer water to Neil Lake just south. Construction is scheduled to begin in the fall of 2018. • In 2015, the first stage of the W 70th St extension connecting Flying Cloud Dr and Shady Oak Rd was completed. The first stage extended the existing street east by 1,200 feet to Flying Cloud Dr. The second phase will be coordinated with SouthWest LRT construction to extend the multi-modal improvements for better access to the line. With a $470,000 grant from Hennepin County Housing and the Redevelopment Authority, the improvements are expected to occur in 2018.
Page 8
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com INSIGHTS Eden Prairie, Minnesota Written by: Michael Stein and Pat Saari
Mark A. Davis Focused solely on healthcare Principal real estate (HRE), Davis provides 612.341.3242 experience and principal involvement [email protected] unmatched by any other firm in the market. While preserving sensitive and confidential client information, Davis stands alone in its ability to leverage presence in the market to not only identify, but create opportunities for users and investors of HRE.
Jill Rasmussen, SIOR, CCIM Services include: Principal 612.341.3247 Development & Project Management [email protected]
Brokerage
Consulting
Research & Data Analytics
Property Management
Lease Administration
For further reports, analysis, and other information reach out to one of our three, Michael S. Sharpe, J.D. highly talented and trusted principals Principal with over 90 years of combined industry 612.341.3246 experience. [email protected]
Page 9
222 South 9th Street, Suite 3255, Minneapolis, MN 55402 | Phone: 612.338.4000 | davisrealestatemn.com Headquarters 222 South 9th Street, Suite 3255 Minneapolis, MN 55402 612.338.4000
U.S. Offices 2375 East Camelback Road, Suite 700 Phoenix, Arizona 85016 602.566.7701
16929 Frances Street, Suite 104 Omaha, Nebraska 402.991.6676
619 Riverwood Drive, Suite 104 Bismarck, North Dakota 58504 701.255.3432
1708 South Yakima Avenue, Suite 40 Contact Tacoma, Washington 98405 Michael D. Stein 253.572.0515 Associate/Sr. Research Coordinator 612.454.4174 davisrealestatemn.com [email protected]