Apartments, a 12-Story Office Conversion to a 254-Unit Luxury Apartment the Nicollet Pedestrian Mall, Just One Block from the 25-33 Buildings

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Apartments, a 12-Story Office Conversion to a 254-Unit Luxury Apartment the Nicollet Pedestrian Mall, Just One Block from the 25-33 Buildings ±0.32 ACRES IN THE HEART OF DOWNTOWN SOUTH 5TH ST HENNEPIN AVE FOR SALE MIXED-USE DEVELOPMENT 25-33 SOUTH 5TH ST | MINNEAPOLIS, MN AFFILIATED BUSINESS DISCLOSURE DISCLAIMER This Memorandum contains select information pertaining to CBRE, Inc. operates within a global family of companies with the Property and the Owner, and does not purport to be all- CONTACTS many subsidiaries and related entities (each an “Affiliate”) inclusive or contain all or part of the information which engaging in a broad range of commercial real estate prospective investors may require to evaluate a purchase of businesses including, but not limited to, brokerage services, the Property. The information contained in this Memorandum BRIAN PANKRATZ property and facilities management, valuation, investment has been obtained from sources believed to be reliable, but fund management and development. At times different has not been verified for accuracy, completeness, or fitness First Vice President Affiliates, including CBRE Global Investors, Inc. or Trammell for any particular purpose. All information is presented “as is” Crow Company, may have or represent clients who have without representation or warranty of any kind. Such competing interests in the same transaction. For example, information includes estimates based on forward-looking +1 952 924 4665 Affiliates or their clients may have or express an interest in assumptions relating to the general economy, market [email protected] the property described in this Memorandum (the Property”), conditions, competition and other factors which are subject and may be the successful bidder for the Property. Your to uncertainty and may not represent the current or future receipt of this Memorandum constitutes your performance of the Property. All references to acreages, acknowledgement of that possibility and your agreement square footages, and other measurements are approximations. MIKE WILHELM that neither CBRE, Inc. nor any Affiliate has an obligation to This Memorandum describes certain documents, including disclose to you such Affiliates’ interest or involvement in the leases and other materials, in summary form. These summaries Senior Vice President sale or purchase of the Property. In all instances, however, may not be complete nor accurate descriptions of the full CBRE, Inc. and its Affiliates will act in the best interest of their agreements referenced. Additional information and an respective client(s), at arms’ length, not in concert, or in a opportunity to inspect the Property may be made available to +1 612 336 4261 manner detrimental to any third party. CBRE, Inc. and its qualified prospective purchasers. You are advised to [email protected] Affiliates will conduct their respective businesses in a manner independently verify the accuracy and completeness of all consistent with the law and all fiduciary duties owed to their summaries and information contained herein, to consult with respective client(s). independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s CONFIDENTIALITY AGREEMENT suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK. Your receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum The Owner expressly reserves the right, at its sole discretion, solely for your limited use and benefit in determining whether to reject any or all expressions of interest or offers to purchase you desire to express further interest in the acquisition of the the Property, and/or to terminate discussions at any time with Property, (ii) you will hold it in the strictest confidence, (iii) or without notice to you. All offers, counteroffers, and you will not disclose it or its contents to any third party negotiations shall be non-binding and neither CBRE, Inc. nor without the prior written authorization of the owner of the the Owner shall have any legal commitment or obligation Property (“Owner”) or CBRE, Inc., and (iv) you will not use except as set forth in a fully executed, definitive purchase and any part of this Memorandum in any manner detrimental to sale agreement delivered by the Owner. the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc. © 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited. 2 TABLE OF CONTENTS PROPERTY SUMMARY 4 NEIGHBORHOOD INFORMATION 11 OFFICE OVERVIEW 15 RESIDENTIAL OVERVIEW 25 HOTEL OVERVIEW 30 ADDITIONAL PROPERTY INFORMATION 33 DEMOGRAPHICS 39 MARKET OVERVIEW 45 3 PROPERTY SUMMARY PROPERTY SUMMARY The 25-33 property offers a well located redevelopment or adaptive reuse property in FUTURE CONVERSION OR REUSE POTENTIAL the heart of the Minneapolis CBD. The property is located adjacent to two stops on the Blue Line Light Rail creating an immediate Transited Oriented Development (TOD) for The 25-33 buildings provide an ideal conversion or re-use to hotel, office, or residential tenants or residents of the property. The City of Minneapolis has issued over $1 billion of users by renovating the buildings. The potential to add onto the buildings vertically is a permits for the last 6 years making the property ideally suited for hotel, office, or residen- possibility along with including a rooftop entertainment/amenity space that is highly tial uses. The zoning allows the property to be developed to maximize Floor Area Ratio sought out by users. (FAR) within the CBD and within close proximity of multiple parking garages to meet demand. REDEVELOPMENT DIMINISHING COMPETITIVE SET The property is a prime redevelopment opportunity located along the light rail allowing for hotel, office, or residential uses. Being located amongst recently completed luxury Since 2007, over one million square feet of previously competitive office space has been apartment buildings and the new XCEL Headquarters creates a prime redevelopment converted to apartment or hotel space. location. There is limited supply of new condo projects creating great demand from • 317 2nd Ave S: (2017) 71,500 square foot office building conversion to hotel buyers pushing up pricing. • Plymouth Building: (2016)) 259,000 square foot office conversion to Embassy Suites MINNEAPOLIS CENTRAL BUSINESS DISTRICT (CBD) • Soo Line: (2012-2013) 267,000 square foot office conversion to Multi Family • 730 Hennepin: (2013) 72,000 square foot office conversion to Multi Family The 25-33 Buildings are located in the Minneapolis CBD, the region’s largest and most • 401 S 2nd Avenue: (2007) 179,000 square foot office conversion to Hotel vibrant submarket. Since the mid-1990s, Minneapolis has been designated as one of the Minneapolis few 24-hour CBDs by several leading institutions. The dynamics that make it a 24-hour • Foshay Tower: (2007-2008) 162,000 square foot office conversion to W Hotel city have only improved since that time. The Minneapolis CBD has evolved over recent • 520 Marquette: (2006-2007) 153,000 square foot office conversion to Westin years with the 2.9 million square foot Target Corporate CBD campus, 1.0 million square Hotel foot Ameriprise Financial Center, US Bank Headquarters, 1.0 million square feet Wells Fargo regional consolidation, Whole Foods and a two-story urban Target retail store. EPICENTER OF RESIDENTIAL CBD BUILDING BOOM Downtown Minneapolis is home to over 43,000 residents and a workforce of more than 165,000, according to the U.S. census results analyzed by the Minneapolis Reflecting current and future needs of the urban center of more than 38,000 residents Community Planning and Economic Development Department. The downtown and aligning with the city’s vision to expand the downtown population to 70,000 by residential population has grown by over 10,000 people in the last ten years, and 4,700 2025. The Minneapolis CBD is in the midst of a residential boom and at 5th Street and housing units were added to the downtown area with plans to add an additional 15,000 Hennepin Avenue; The 25-33 Buildings are located in the epicenter of the CBD units over the next 15 years. development and redevelopment action. Nearby projects include Opus’ Nic on Fifth and 365 Nicollet, 26 and 30-story luxury high-rise apartment buildings respectively; The downtown continues to build upon its strengths including easy access for Interstates Mortenson’s 4Marq, a 30-Story upscale apartment tower; and Village Green’s SOO Line 35W and 94, ample parking, and a vibrant restaurant and entertainment district along Building City Apartments, a 12-story office conversion to a 254-unit luxury apartment the Nicollet Pedestrian Mall, just one block from the 25-33 Buildings. The 2 year old $1.1 complex offering amenities and services unlike any other currently in Minneapolis. These billion US Bank stadium is blocks from the property as is the recently upgraded Target projects are transforming the north end of Nicollet Mall and will help shape the culture
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