Superamerica
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SuperAmerica 20920 Keokuk Avenue | Lakeville, MN | 55044 Keith A. Sturm, CCIM | 612.376.4488 | [email protected] 50 South 6th Street | Suite 1418 Amanda C. Leathers | 612.436.0045 | [email protected] Minneapolis, MN | 55402 www.nnnsales.com Look Upland. Where ProperƟes & People Unite! SuperAmerica CONFIDENTIALITY & DISCLAIMER Lakeville, MN NET LEASED DISCLAIMER Upland Real Estate Group, Inc. hereby advises all prospecve purchasers of Net Leased property as follows: The informaon contained in this Investment Offering has been obtained from sources we believe to be reliable. However, Upland Real Estate Group, Inc. has not and will not verify any of this informaon, nor has Upland Real Estate Group, Inc. conducted any invesgaon regarding these maers. Upland Real Estate Group, Inc. makes no guarantee, warranty or representaon whatsoever about the accuracy or completeness of any informaon provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material informaon before compleng any purchase. This Investment Offering is not a substute for your thorough due diligence invesgaon of this investment opportunity. Upland Real Estate Group, Inc. expressly denies any obligaon to conduct a due diligence examinaon of this Property for Buyer. Any projecons, opinions, assumpons or esmates used in this Investment Offering are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial, legal and other advisors. Buyer and Buyer’s tax, financial, legal, and construcon advisors should conduct a careful, independent invesgaon of any net leased property to determine to your sasfacon with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal, financial and other advisors must request and carefully review all legal, financial and other documents related to the property and tenant. While past performance at this or other locaons is an important consideraon, it is not a guarantee of future success. Similarly, the lease rate for some properes, including newly‐constructed facilies or newly‐acquired locaons, may be set based on a tenant’s projected sales with lile or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other condions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducng his/her own invesgaon of all maers affecng the intrinsic value of the property and the value of any long‐term lease, including the likelihood of locang a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negoate with a potenal replacement tenant considering the locaon of the property, and Buyer’s legal ability to make alternate use of the property. All informaon, including price change and withdrawal from the market, is subject to change without noce. By accepng this Investment Offering you agree to release to Upland Real Estate Group, Inc. and hold it harmless from any kind of claim, cost, expense, or liability arising out of your invesgaon and/or purchase of this net leased property. CONFIDENTIALITY AND DISCLAIMER: The informaon contained in the following Investment Offering is proprietary and strictly confidenal. It is intended to be reviewed only by the party receiving it from Upland Real Estate Group, Inc. and should not be made available to any other person or enty without the wrien consent of Upland Real Estate Group, Inc. This Investment Offering has been prepared to provide summary, unverified informaon to prospecve purchasers, and to establish only a preliminary level of interest in the subject property. The informaon contained herein is not a substute for a thorough due diligence invesgaon. Upland Real Estate Group, Inc. has not made any invesgaon, and makes no warranty or representaon, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the pres‐ ence or absence of contaminang substances, PCB’s or asbestos, the compliance with State and Federal regulaons, the physical condion of the improvements thereon, the financial condion or business prospects of any tenant, or any tenant’s plans or intenons to connue its occupancy of the subject property or any other maer related to the subject property. The informaon contained in this Investment Offering has been obtained from sources we believe to be reliable; however, Upland Real Estate Group, Inc. has not verified, and will not verify, any of the infor‐ maon contained herein, nor has Upland Real Estate Group, Inc. conducted any invesgaon regarding these maers and makes no warranty or representaon whatsoever regarding the accura‐ cy or completeness of the informaon provided. All potenal buyers must take appropriate measures to verify all of the informaon set forth herein. KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 2 SuperAmerica HIGHLIGHTS Lakeville, MN PRICE: $4,761,100 CAP: 5.50% NOI: $261,860 Newly constructed SuperAmerica with 15% Increases every 5 years. Conveniently located on the frontage road with Walmart and across the street from a brand new Allina Health System. Located directly off of I 35, a major thoroughfare with 64,000 vehicles per day. Across the street from a brand new Allina Health System. Situated in a highly affluent southern suburb of the Twin Cies. Strong Demographics: 5—mile Populaon of 42,553 and 1—mile Average Household income exceeding $133,000. T , , , . R . U . B . KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 3 SuperAmerica PROPERTY OVERVIEW Lakeville, MN INVESTMENT SUMMARY LEASE INFORMATION PRICE $4,761,100 LEASE TYPE NNN CAP 5.50% NOI $261,860.00 LEASE TERM 20 YEARS RENT/SF $60.90 RENEWAL PRICE/SF $1,107.23 TWO 5‐YEAR OPTIONS RENT ADJUSTMENTS LEASE October 2014 YEAR 1‐5: $261,860.00 COMMENCEMENT YEARS 6‐10: $301,139.00 LEASE EXPIRATION September 2034 YEARS 11‐15: $346,309.85 YEARS 16‐20: $398,256.33 LEASE NOTES: OPTION 1: $457,994.78 Net. Net. Net. No landlord responsibilies. OPTION 2: $526,694.00 PROPERTY INFORMATION DEMOGRAPHIC INFORMATION 20920 Keokuk Avenue, 1‐MILE RADIUS 3‐MILE RADIUS 5‐MILE RADIUS ADDRESS Lakeville, MN 55044 2015 POPULATION 1,407 18,879 42,553 BUILDING SIZE 4,300 SQ FT 2020 POPULATION 1,486 19,835 44,860 LOT SIZE 2.38 ACRES 2015 MEDIAN HOUSEHOLD INCOME $114,933 $100,261 $101,933 COUNTY Dakota 2015 AVERAGE HOUSEHOLD INCOME $133,606 $120,881 $128,658 YEAR BUILT 2015 All demographic informaon is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projecons for 2015 and 2020. T , , , . R . U . B . KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 4 SuperAmerica TENANT INFORMATION Lakeville, MN Our Retail Business Northern Tier Retail, LLC is the tenant on the Lease Agreement. As of December 31, 2014, Northern Tier has a retail-marketing network of 260 convenience stores located throughout Minnesota, Wisconsin and South Dakota, of which they operate 165 stores and support 95 franchised stores. The undervalued energy company has one of the most advantaged crude slates in the US and has an Outperform rating and price of $30. This is among the highest margin refineries in the US mainly on account of its pipeline access to local Bakken and Canadian crudes. All of the company-operated and franchised convenience stores are operated under the SuperAmerica brand. We also own and operate Supermom’s Bakery, which prepares and distributes baked goods and other prepared items for sale in our retail outlets and for other third parties. Overview Northern Tier Energy is an independent downstream energy limited partnership with refining, retail, and pipeline operations that serves the PADD II region of the United States. They operate their assets in two business segments: the refining business and the retail business. For the year ended December 31, 2014, we had total revenues of $5.56 billion, operating income of $273.1 million, net income of $239.4 million. Northern Tier Energy, LP conducts substantially all of the operations of it’s retail business through Northern Tier Retail Holdings LLC, which is its subsidiary and is organized as a corporation for federal income tax purposes. Northern Tier Retail Holdings LLC currently holds all of the ownership interests in Northern Tier Retail LLC, Northern Tier Bakery LLC and SuperAmerica Franchising LLC. Northern Tier Energy makes gasoline and sells it, too. The company owns one of only two oil refineries in Minnesota and 260 SuperAmerica gas stations across Minnesota and Wisconsin. Its oil refinery produces 96,500 barrels per day of gasoline, diesel, jet fuel, and asphalt. The company also owns storage and transportation assets, including terminals, storage tanks, rail loading and unloading facilities, and a dock on the Mississippi River. In addition, Northern Tier Energy owns a 17% stake in the 300-mile Minnesota Pipeline (Koch Industries owns the rest) that transports crude oil to its refinery. T , , , . R . U . B . KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 5 SuperAmerica SURROUNDING PROPERTIES Lakeville, MN Cit T , , , . R . U . B . KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 6 SuperAmerica PROPERTY PHOTOS Lakeville, MN T , , , .