Premier Redevelopment Opportunity in Prospect Park at 61 Bedford Street SE Offering Memorandum

PROSPECT PARK

61 Bedford St SE

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Table of Contents

Confidentiality & Disclaimer...... 3 Site Overview...... 4 Area Overview & New Developments ...... 5-10 Demographics...... 11-12 Contact...... 13

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Confidentiality By accepting this Offering Memorandum you, and/or interested buyers you represent, acknowledge that (i) it is a confidential Offering Memorandum solely for your limited use and benefit in determining whether you or those you represent have interest in the acquisition of the Property and you and those you represent will hold it in the strictest confidence, and (ii) you and those you represent will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or KimbleCo, and (iii) you and those you represent will not use any part of this Offering Memorandum in any manner detrimental to the Owner or KimbleCo. Disclaimer All information provided within is deemed reliable but not guaranteed and should be independently verified. No guarantees or warranties are made as to the accuracy or timeliness of the information provided. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Site Overview 61 Bedford Street, SE is in Minneapolis at the border of St. Paul and is located in the booming Prospect Park/Towerside Innovation District/University of Minnesota area and only .2 miles to the Green Line Westgate station.

This site is within the first block abutting University Avenue and in the midst of a thriving area of existing properties and new development projects. Its access to transit is unparalleled with close proximity to light rail, bus and walkways as well as quick access to Highways 280, I94 and I35W.

The property is currently zoned R4 and the Minneapolis 2040 Comp Plan Draft guides this property to Community Mixed Use AT A GLANCE with Transit 10 built form guidelines. We encourage all prospective PID 30-029-23-41-0019 developers to review the specific current and future zoning requirements and have conversations with the City of Minneapolis. PARCEL ACREAGE .46 acres PARCEL SQUARE FEET 20,056 SF Links to the current zoning and the draft Minneapolis 2040 Comp Plan are below: PARCEL ZONING Current: R4 2040 Comp Plan Proposed: Community Mixed-Use ci.minneapolis.mn.us/zoningmaps/zoning_maps_index OVERLAY DISTRICTS U of M and Pedestrian minneapolis2040.com/topics/land-use-built-form/ NEIGHBORHOODS Prospect Park, Towerside Innovation District, U of M

The property is located in the current overlay districts: 2018 PROPOSED RE TAXES $23,179 University of Minnesota and Pedestrian. PRICE Please call broker for pricing information

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Area Overview & New Developments

The Minneapolis enclave known as Prospect Park sits at the The Prospect Park Light Rail Station at SE 29th Ave and Stadium crossroads of the state’s two largest cities, a legendary river and a Village Light Rail Station on the Metro Transit LRT Green world-class university. The area’s Line provide excellent access to both downtowns. Two other light twisting streets and historic rail stations serve Prospect Park: Westgate at the St. Paul border,

Big Lake Elk River landmarks, mix of urban and and StadiumRamsey Village at the U of M TCF Bank Gopher Stadium. natural amenities, and tapestry Several MetroAnoka Transit bus routes (16, 3, 120, 63, 30) complement of residential, commercial and this service. Coon Rapids/Riverdale MISSISSIPPI RIVER industrial development make it distinct in the Twin Cities Metro. Oak Grove Pkwy Existing and Planned 93rd Ave BROOKLYN PARK

85th Ave Transitways Prospect Park lies at the Metro’s exact geographic center: situated Brooklyn Blvd Fridley 63rd Ave TWIN LAKE Brooklyn Center Transit Center

Bass Lake Rd CRYSTAL in Minneapolis between the University of Minnesota to the LAKE Robbinsdale C D Van Golden Valley Rd Penn White Ave Blvd west, St. Paul to the east, University Avenue to the north and the Rosedale Transit Center Plymouth Avenue/Theodore Wirth Park Target Field

Warehouse District/Hennepin Ave Mississippi River to the south. The neighborhood is within the Royalston Ave/Farmers Market Nicollet Mall A 3rd St Bassett Creek Valley 5th St Downtown Government Plaza Towerside Innovation district and categorized as the Southeast Bryn Mawr Minneapolis 7th St U.S. Bank Stadium 11th St West 21st St West BankEast BankStadium Village Prospect Park

Minneapolis district. West Lake St Westgate Cedar-Riverside Raymond Ave Beltline Blvd LAKE CALHOUN Franklin Ave Fairview Ave Snelling AveHamline AveLexingtonVictoria Pkwy StDale St Western Capitol/RiceAve St Wooddale Ave Lake St Lake St/Midtown Downtown Robert St St. Paul Louisiana Ave LAKE HARRIET 38th St Mounds BlvdEarl St Etna St White BearSun Ave Ray MaplewoodGreenwayHelmo Ave Ave The neighborhood is bordered by: Como Neighborhood, Marcy- 10th St Blake Rd 61 Bedford St SE ST. PAUL 46th St MISSISSIPPI RIVER Tamarack 46th St Central Downtown Hopkins MINNEAPOLIS Union 50th St/Minnehaha Park Depot Woodbury Holmes Neighborhood, Seward Neighborhood, Union Park Theatre Shady Oak D VA Medical Center Neighborhood (District 13) in St. Paul, and South St. Anthony WOODBURY Opus Fort Snelling 66th St

City West Terminal 1–Lindbergh Minneapolis-St. Paul Neighborhood (District 12) in St. Paul. International Airport SouthWest Golden Triangle 76th St Terminal 2–Humphrey Station Mall of American Blvd American Blvd America Eden Prairie Town Center Existing Transitways and Stations 28th Bloomington Ave Central METRO Blue Line (LRT) EDEN PRARIE 98th St METRO Green Line (LRT) METRO Red Line (BRT) Prospect Park’s central location in the Twin Cities metro gives it MINNESOTA RIVER Shared Station Cedar Grove Rapid Bus Line convenient access to main automobile traffic arteries through or Northstar Line Burnsville Heart of the City BURNSVILLE Burnsville Pkwy Planned Transitways and Stations near the neighborhood (Interstate 94, SH 280, University Avenue, 140th St METRO Orange Line (BRT): 2020 147th St METRO Green Line extension (LRT): 2023 APPLE VALLEY METRO Blue Line extension (LRT): 2024 and Franklin Avenue). Apple Valley Transit Station METRO Gold Line (BRT): 2024 Rapid Bus Lines

updated 9/11/18

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Excellent transit options along with bicycle lanes created and Neighbors working together over the years have envisioned maintained since 2009 on West River Parkway, SE 27th Ave, increased Prospect Park’s livability making it an appealing and along the U of M Transitway north of 4th Street reduce the neighborhood with easy access to services and cultural resources. dependence on automobiles within the neighborhood. The Minneapolis Park Board adopted a plan to complete the Grand Since 1995 this community has addressed neighborhood Rounds National Scenic Parkway from Northeast Minneapolis aesthetics, sense of community, neighborhood identity, awareness through Prospect Park all along SE 27th Ave, connecting to both of neighborhood services, welcoming newcomers, and organizing East and West River Parkways and across the Franklin Avenue multicultural events through the lens of the Urban Village bridge. Paradigm. Prospect Park has focused on the following attributes as a means to create a vibrant community:

o Arts & Culture o Environmental Stewardship o Historical Preservation o Housing o Luxton Community Center o Parks & Recreation o Pratt Community Center o Safety & Security o Transit: Multi-modal Transportation

* The information above are excerpts from the Prospect Park Association public website, edited. To see complete website, visit prospectparkmpls.org Witch’s Hat Water Tower, Prospect Park

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN THE SITE OF THE FUTURE Towerside Towerside Innovation District is located along the Green Line LRT corridor Towerside is a 370-acre district at the which links the State Capitol, hundreds of thousands of workers and heart of the Twin Cities’ 3.5-million- residents between the two downtown areas, twelve university campuses, person metro area. The Innovation thousands of acres of green space, and a rich mix of cultures, housing, District extends from the University of making spaces, entertainment, art and architecture across twelve Minnesota on the west to the Creative neighborhoods; accessible from a major international airport, highway Enterprise Zone on the east spanning network and rail system; within one of the nation’s most significant arts two cities and two counties. economies; and home to one of the best ranked communities in the country for entrepreneurs and start-ups. The community-born vision for this district called for capitalizing on its incredibly rich concentration of assets – the University of Minnesota, its PARTNERS + STAKEHOLDERS medical and research complex, three Green Line LRT stations, two thriving Towerside is a 501(c)(3) nonprofit organization formed as an intentional neighborhoods – by creating a high-intensity, high density mix of places partnership of non-profit and government agencies, higher education, and spaces where working, living and innovation come together in an community residents, businesses, and developers. Its stakeholders number equitable, diverse and sustainable community. over 30 organizations and is represented by a dynamic board of directors. See the Towerside website for a list of supporters. Seeking to become a new replicable model of urban redevelopment rooted in district-wide systems for energy, stormwater management, A PLACE LIKE NO OTHER parking, and connected public realm, the Towerside Innovation District was Towerside is a city-within-the-Twin Cities. Its chief assets—as the old real formed to enable community stakeholders and facilitate the vision. As a estate joke goes—are location, location, location. The Innovation District, community and economic development framework Towerside includes a situated at the hub of all Twin Cities transportation networks, is also a wide array of partners such as higher education institutions, landowners, stone’s throw from both a renowned research university—home to 19 businesses, government, nonprofit organizations, and neighborhood Nobel Prize winners in science and economics through the years—and groups. Towerside creates framework guidelines, finds early capital to a major medical school. It’s located at the heart of an economically and support the district-wide infrastructure systems and advances this vision culturally dynamic metropolitan area that punches above its weight in the with potential investors, developers and the neighborhoods. global arena. No other place enjoys similar advantages.

*The information above are excerpts from the Towerside Innovation District public website, edited. To see complete website, visit towersidemsp.org

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Towerside Map

61 Bedford St SE

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Current Area Developments PARTIAL LIST

THE LINK GREEN ON FOURTH THE LOUIS UNION FLATS 2929 University Avenue SE, 2901 Fourth St SE, Minneapolis Fourth St SE, Minneapolis Former Weyerhauser Site, Minneapolis Website Website St. Paul Website Website TYPE TYPE TYPE Residential Residential TYPE Mixed-use 177 market-rate and 66 affordable 70 affordable housing apartments Residential 258 market-rate and luxury housing apartments 217 affordable housing apartments apartments, 120 room hotel, OTHER 30,000 Fresh Thyme Grocery OTHER Near Prospect Park light rail OTHER Store, 10,100 restaurant and retail, Adjacent to Prospect Park light rail station, on Green Fourth Street, Proposed future phases of market- underground and surface parking station and Green Fourth Street, participant in Towerside District rate apartments, significant green participant in Towerside District Stormwater System areas and green linkages planned, OTHER Stormwater System near Westgate light rail station Adjacent to Prospect Park light rail DEVELOPER station and Green Fourth Street, DEVELOPER Aeon DEVELOPER participant in Towerside District Timberland Partners and Prospect Dominium Stormwater System Park Properties STATUS Under construction STATUS DEVELOPER STATUS Under construction Harlem Irving Companies Under construction

STATUS Complete in 2018

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Future and Planned Developments PARTIAL LIST

VERMILLION DEVELOPMENT MOTLEY University Avenue including Approximately 30 acres at the easterly gateway Art and Architecture building to the University of Minnesota near University Avenue and 23rd Avenue TYPE Residential (condominium) and commercial TYPE A vibrant, planned community that connects OTHER the University of Minnesota to its surrounding Near Westgate Station, in Prospect Park and community, envisioned by the University of Towerside Innovation District Minnesota Foundation Real Estate Advisors (UMFREA). Visus, a partnership between DEVELOPER UMFREA and the Pohlad Companies, will MOTLEY PRINCIPLES Vermillion Development carry forward the master planning and vision People First – Connected – 24/7/365 – Gateway – anticipating the participation of many Activated & Vibrant – Design – Demonstration STATUS developers. Safe – Sustainable Under construction MOTLEY’S VISION DEVELOPER An exciting, eclectic, “must-be” place for Visus (Master Developer) people. An equitable and inclusive community alive with activities and attractions during STATUS all seasons, day and night. The place where Proposed students, researchers, travelers, healers, neighbors, spectators, academics, workers and innovators choose to gather. A point of pride and a competitive advantage for the University of Minnesota and region.

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Market Profile

61 Bedford St SE, Minneapolis, Minnesota, 55414 Prepared by Esri Traffic and Demographics Ring Bands: 0-1, 1-3, 3-5 mile radii Latitude: 44.96767 Longitude: -93.20896 0 - 1 mile 1 - 3 mile 3 - 5 mile Population Summary 2000 Total Population 10,119 156,229 304,529 Traffic Count Map 2010 Total Population 12,986 160,180 298,854 2018 Total Population 16,158 174,759 323,617 61 Bedford St SE, Minneapolis, Minnesota, 55414 Prepared by Esri 2018 Group Quarters 813 18,361 8,151 Ring Bands: 0-1, 1-3, 3-5 mile radii Latitude: 44.96767 2023 Total Population 18,871 184,205 338,119 Longitude: -93.20896 2018-2023 Annual Rate 3.15% 1.06% 0.88% 2018 Total Daytime Population 24,572 301,041 345,914 Workers 17,028 223,296 209,390 Residents 7,544 77,745 136,524 Household Summary 2000 Households 4,277 62,252 134,250 2000 Average Household Size 2.18 2.23 2.20 2010 Households 5,412 63,821 134,039 2010 Average Household Size 2.25 2.22 2.17 2018 Households 6,704 69,542 144,549 2018 Average Household Size 2.29 2.25 2.18 2023 Households 7,793 73,554 150,911 2023 Average Household Size 2.32 2.25 2.19 2018-2023 Annual Rate 3.06% 1.13% 0.87% 2010 Families 1,745 27,487 60,551 2010 Average Family Size 2.72 3.05 3.08 2018 Families 2,102 29,102 63,724 2018 Average Family Size 2.72 3.06 3.10 2023 Families 2,407 30,395 65,968 2023 Average Family Size 2.72 3.06 3.10 2018-2023 Annual Rate 2.75% 0.87% 0.69% Housing Unit Summary 2000 Housing Units 4,367 64,384 139,285 Owner Occupied Housing Units 35.4% 43.8% 49.8% Renter Occupied Housing Units 62.5% 52.9% 46.6% Vacant Housing Units 2.1% 3.3% 3.6% 2010 Housing Units 5,727 68,717 145,645 Owner Occupied Housing Units 31.1% 40.6% 46.3% Renter Occupied Housing Units 63.4% 52.3% 45.8% Vacant Housing Units 5.5% 7.1% 8.0% 2018 Housing Units 6,927 74,444 156,149 Owner Occupied Housing Units 28.5% 39.9% 45.1% Renter Occupied Housing Units 68.2% 53.5% 47.5% Vacant Housing Units 3.2% 6.6% 7.4% 2023 Housing Units 8,020 78,322 162,394 Owner Occupied Housing Units 26.8% 41.2% 46.9% Renter Occupied Housing Units 70.3% 52.7% 46.1% Vacant Housing Units 2.8% 6.1% 7.1% Median Household Income 2018 $42,658 $46,556 $56,437 2023 $48,336 $52,335 $65,150 Median Home Value 2018 $294,581 $240,697 $239,643 2023 $322,653 $269,258 $268,247 Per Capita Income 2018 $30,052 $31,027 $37,526 2023 $34,025 $35,574 $43,653 Median Age 2010 24.7 28.7 33.4 2018 25.9 30.0 35.0 2023 26.0 30.6 35.8 Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households. Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received by all persons aged 15 years and over divided by the total population. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023 Esri converted Census 2000 data into 2010 geography. December 02, 2018

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN Market Profile Market Profile

61 Bedford St SE, Minneapolis, Minnesota, 55414 Prepared by Esri 61 Bedford St SE, Minneapolis, Minnesota, 55414 Prepared by Esri DemographicsRing Bands: 0-1, 1-3, 3-5 mile radii Latitude: 44.96767 Ring Bands: 0-1, 1-3, 3-5 mile radii Latitude: 44.96767 Longitude: -93.20896 Longitude: -93.20896 0 - 1 mile 1 - 3 mile 3 - 5 mile 0 - 1 mile 1 - 3 mile 3 - 5 mile 2018 Households by Income Top 3 Tapestry Segments Household Income Base 6,704 69,542 144,549 1. Dorms to Diplomas (14C) Emerald City (8B) Metro Renters (3B) <$15,000 21.4% 18.3% 12.2% 2. College Towns (14B) College Towns (14B) Emerald City (8B) $15,000 - $24,999 12.6% 11.3% 9.9% 3. Metro Renters (3B) Social Security Set (9F) In Style (5B) $25,000 - $34,999 8.8% 9.9% 9.0% 2018 Consumer Spending $35,000 - $49,999 12.3% 12.8% 13.3% Apparel & Services: Total $ $13,588,191 $141,704,715 $324,581,659 $50,000 - $74,999 14.5% 15.2% 16.9% Average Spent $2,026.88 $2,037.69 $2,245.48 $75,000 - $99,999 6.9% 9.7% 11.7% Spending Potential Index 93 94 103 $100,000 - $149,999 11.9% 11.6% 14.7% Education: Total $ $10,799,035 $99,446,248 $215,408,422 $150,000 - $199,999 5.7% 5.3% 5.9% Average Spent $1,610.83 $1,430.02 $1,490.21 $200,000+ 5.9% 5.9% 6.5% Spending Potential Index 111 99 103 Average Household Income $71,464 $74,415 $83,123 Entertainment/Recreation: Total $ $18,263,405 $196,414,920 $455,517,584 2023 Households by Income Average Spent $2,724.25 $2,824.41 $3,151.30 Household Income Base 7,793 73,554 150,911 Spending Potential Index 85 88 98 <$15,000 18.5% 15.9% 10.1% $15,000 - $24,999 11.8% 10.3% 8.5% Food at Home: Total $ $30,090,149 $320,613,220 $735,373,055 $25,000 - $34,999 8.8% 9.3% 8.0% Average Spent $4,488.39 $4,610.35 $5,087.36 $35,000 - $49,999 11.9% 12.5% 12.3% Spending Potential Index 89 92 101 $50,000 - $74,999 14.2% 15.1% 16.2% Food Away from Home: Total $ $22,590,226 $229,806,985 $525,630,883 $75,000 - $99,999 7.2% 10.2% 12.1% Average Spent $3,369.66 $3,304.58 $3,636.35 $100,000 - $149,999 14.4% 13.7% 17.9% Spending Potential Index 96 94 104 $150,000 - $199,999 6.7% 6.1% 7.1% Health Care: Total $ $28,898,922 $328,600,630 $772,924,284 $200,000+ 6.6% 6.9% 7.9% Average Spent $4,310.70 $4,725.21 $5,347.14 Average Household Income $81,699 $85,666 $97,009 Spending Potential Index 75 83 93 2018 Owner Occupied Housing Units by Value HH Furnishings & Equipment: Total $ $12,140,909 $128,288,167 $297,640,646 Total 1,976 29,684 70,401 Average Spent $1,810.99 $1,844.76 $2,059.10 <$50,000 0.4% 0.9% 1.3% Spending Potential Index 87 88 99 $50,000 - $99,999 1.1% 2.5% 3.3% Personal Care Products & Services: Total $ $4,845,138 $51,866,154 $120,673,801 $100,000 - $149,999 2.9% 8.0% 8.4% Average Spent $722.72 $745.82 $834.83 $150,000 - $199,999 10.5% 20.6% 18.5% Spending Potential Index 87 90 101 $200,000 - $249,999 19.6% 22.1% 23.4% Shelter: Total $ $106,245,356 $1,120,761,999 $2,549,293,257 $250,000 - $299,999 17.5% 13.7% 15.1% Average Spent $15,848.05 $16,116.33 $17,636.19 $300,000 - $399,999 27.3% 14.3% 15.5% Spending Potential Index 94 96 105 $400,000 - $499,999 11.5% 9.0% 6.6% Support Payments/Cash Contributions/Gifts in Kind: Total $ $12,884,774 $147,363,810 $343,302,172 $500,000 - $749,999 7.5% 5.7% 4.6% Average Spent $1,921.95 $2,119.06 $2,374.99 $750,000 - $999,999 1.5% 2.2% 2.1% Spending Potential Index 77 85 96 $1,000,000 - $1,499,999 0.1% 0.8% 0.8% $1,500,000 - $1,999,999 0.0% 0.1% 0.1% Travel: Total $ $11,523,587 $128,077,589 $301,633,420 $2,000,000 + 0.2% 0.1% 0.2% Average Spent $1,718.91 $1,841.73 $2,086.72 Average Home Value $326,797 $295,375 $288,400 Spending Potential Index 80 86 97 2023 Owner Occupied Housing Units by Value Vehicle Maintenance & Repairs: Total $ $6,331,396 $66,669,112 $153,339,333 Total 2,152 32,210 76,104 Average Spent $944.42 $958.69 $1,060.81 <$50,000 0.1% 0.4% 0.5% Spending Potential Index 88 89 99 $50,000 - $99,999 0.3% 1.0% 1.5% $100,000 - $149,999 0.7% 2.9% 3.2% $150,000 - $199,999 7.0% 16.5% 14.7% $200,000 - $249,999 16.8% 23.2% 23.6% $250,000 - $299,999 17.9% 15.9% 17.9% $300,000 - $399,999 31.2% 17.4% 19.9% $400,000 - $499,999 14.0% 11.3% 8.9% $500,000 - $749,999 9.8% 7.5% 6.2% $750,000 - $999,999 1.9% 3.1% 2.5% $1,000,000 - $1,499,999 0.0% 0.7% 0.8% $1,500,000 - $1,999,999 0.0% 0.1% 0.1% $2,000,000 + 0.1% 0.1% 0.3% Average Home Value $354,171 $327,745 $321,180 Data Note: Consumer spending shows the amount spent on a variety of goods and services by households that reside in the area. Expenditures are shown by broad budget categories that are not mutually exclusive. Consumer spending does not equal business revenue. Total and Average Amount Spent Per Household represent annual Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents, figures. The Spending Potential Index represents the amount spent in the area relative to a national average of 100. pensions, SSI and welfare payments, child support, and alimony. Source: Consumer Spending data are derived from the 2015 and 2016 Consumer Expenditure Surveys, Bureau of Labor Statistics. Esri. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023 Esri converted Census 2000 data into 2010 geography. Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023 Esri converted Census 2000 data into 2010 geography. December 02, 2018 December 02, 2018

61 BEDFORD ST SE • PROSPECT PARK • MINNEAPOLIS, MN JULIEKIMBLE ERICKAMILLER 612.670.8552 952.452.2919 [email protected] [email protected]

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Information deemed reliable but not guaranteed. All information should be independently verified. No guarantees or warranties are made as to the accuracy or timeliness of the information provided.