Otsego Marketplace 9175 Quaday Ave NE, Otsego, MN 55330
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Otsego Marketplace 9175 Quaday Ave NE, Otsego, MN 55330
NON-ENDORSEMENT AND DISCLAIMER NOTICE
CONFIDENTIALITY AND DISCLAIMER
The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from
Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has
been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The
information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty
or representation, 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 presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations,
the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its
occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus &
Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters
and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate
measures to verify all of the information set forth herein.
Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap.
All rights reserved.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s
logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any
agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to
prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR
MARCUS & MILLICHAP AGENT FOR DETAILS.
SPECIAL COVID-19 NOTICE
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem
necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot
conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries
between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers
are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical
condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers
should be comfortable with and rely solely on their own projections, analyses, and decision-making.)
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FINANCIAL OVERVIEW
Investment Summary
Investment Highlights
Offering Summary
Offering Statement
TABLE OF Rent Roll
10
CONTENTS PROPERTY OVERVIEW
Tenant Profiles
Aerial Photos
Local Map
Regional Map
19
MARKET OVERVIEW
Demographic Summary
INVESTMENT SUMMARY
INVESTMENT OVERVIEW
Marcus and Millichap is pleased to present for your acquisition
review Otsego Marketplace in Otsego, Minnesota.
Otsego Marketplace has excellent exposure and frontage just off of Highway 101
at the intersection of Parish Avenue and 90th Street. The property is positioned
directly in the middle of the growth that Otsego is currently experiencing and sits
adjacent to Target, Holiday Inn, Rockwood, and Cowboy Jacks. The center sits
in the middle of the fastest growing thoroughfare in Minnesota that connects Elk
River to Rogers.
The strip center is over 91 percent occupied, providing an investor with stability
in the leases that are in-place, but also the opportunity for upside in leasing the
remaining 878 square feet of vacant space. In addition to the stability in the
occupancy and the long-term nature of most leases, the property also offers
minimal deferred maintenance. LED Lighting was installed in 2016, the roof
and HVACs units were all replaced in 2018, the parking lot was chip-sealed in
2020, and the cement sidewalks and pavers were also replaced.
Otsego Marketplace is anchored by several national tenants including Edward
Jones, American Family Insurance, and Sarpino’s Pizza. There are several leases
that are currently well below market rent, offering additional upside for an
investor to capture in a market with high population growth (25% since 2010).
This growth has translated into retail demand as demonstrated by the new
Coburn’s (regional grocer).
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o 31,186 Square Foot Multi-Tenant Retail Building Situated on 2.40 Acres o 91% Occupied | Stabilized Investment with Upside in Leasing the Vacant Suite & in Converting the Gross Leases to Triple Net o Adjacent to Target, Holiday Inn, Rockwood & Cowboy Jacks o Long-Term Leases in Place | Minimal Near-Term Lease Rollover Risk o Minimal Deferred Maintenance | New Roof, HVACs in 2018 | Chip-Seal Parking Lot and Cement Sidewalk Replacement in 2020 | LED Lighting 2016 o Otsego is just 32 Miles Outside of Minneapolis o Otsego is Ranked #7 Safest City in Minnesota o 25% Population Growth since 2010 | 2nd Fastest Growing Suburb of Minneapolis
OFFERING SUMMARY EXECUTIVE SUMMARY
OTSEGO MARKETPLACE
Click to View Map: 9175 Quaday Ave NE, Otsego, MN 55330
Pricing
Price $3,425,000
Cap Rate 8.31%
Building Square Footage 31,186 Avg. HH Income Population Rentable Square Footage
Price Per SF $109.82
$101,646 within 1 Miles 46,373 within 5 Miles 31,186
Current Occupancy 91.5%
Year 1 NOI $284,461
Lot Size 2.40 Acres
Year Built 2003
Net Operating Income Cap Rate Year Built
$284,461 8.31% 2003
Annualized Operating Data (Year 1)
OPERATIONS (YEAR 1)
Scheduled Gross Income $449,045
CTI Reimbursements $36,314
Vacancy Factor (5%) $24,268
Operating Expenses $176,630 Financing Options
Net Operating Income $284,461 Approximate Rate 4.00%
Capital Reserves $4,678 Loan To Value 75%
Loan Payments $162,706 Fixed Term 5 Years
Cash Flow After Debt Service $117,077 Amortization 25 Years
Multiple financing options are available based on buyer requirements. Please contact listing agents
Cash On Cash Return 13.67%
to discuss options in detail.
Major Tenants
MAJOR TENANTS GLA LEASE TYPE
Three Rivers Fitness 9,785 Gross
Edward Jones 1,118 Gross
American Family Insurance 685 Gross 7
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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap
OPERATING SUMMARY FINANCIAL ANALYSIS
Annualized Operating Data (Year 1)
SUMMARY STATEMENT PROPOSED FINANCING
Price: $3,425,000 First Loan Amount: $2,568,750
Terms: 4.00% Interest
Current Cap Rate: 8.31%
25 Year Amortization
5 Year Term
Square Feet: 31,186
Monthly Payment: $13,558.81
Price Per Square Foot: $109.82 Annual Payment $162,705.71
Year Built: 2003
OPERATING DATA OPERATING EXPENSES (Year 1)
Scheduled Gross Income: $449,045 Taxes (2020): $1.86/psf $58,012
Insurance (Actual): $0.30/psf $9,200
CAM/Tax/Insurance $36,314
CAM (17-19 Avg.): $2.23/psf $69,695
Reimbursements:
Management: 4.00% $18,334
Total Income: $485,359
Non-Reimbursable Utilities: $0.69/psf $21,389
Vacancy Factor: $24,268 5.00% Total Expenses $5.66 $176,630
Effective Gross Income: $461,091
Less Expenses: $176,630
Net Operating Income: $284,461 8.31%
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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & Millichap
RENT ROLL RENT ROLL
TENANT APPROX. RENT LEASE APPORX. BASE ANNUAL LEASE RENT RENEWAL
SUITE OCCUPANCY REIMB.
NAME SF COMMENCE EXPIRATION RENT/SF RENT/MONTH RENT TYPE INCREASES OPTIONS
101-9175 Turbo Nails 1,520 4.87% 6/1/2010 5/31/2020 $16.96 $2,148.00 $25,776.00 NNN $7,566
Three Rivers
101-9201 9,785 31.38% 10/1/2018 12/31/2023 $11.04 $9,000.00 $108,000.00 Gross Option I-$12.26psf (1) 5-Year
Fitness
6/1/21-$11.67psf
102 SC Realty 852 2.73% 6/1/2019 5/31/2022 $11.32 $804.00 $9,648.00 NNN Option I-$12.02psf $4,241 (2) 1-Year
Option II-$12.38psf
104 The Fresh Squeeze 706 2.26% 10/1/2014 9/30/2024 $23.00 $1,353.17 $16,238.04 Gross 10/1/2021-$24.00psf
Options I&II – 2%
105 National Guard 1,925 6.17% 10/1/2020 9/30/2025 $23.23 $3,726.00 $44,712.00 Gross (2) 5-Year
Annual Increases
106 Vacant 878 2.82% $16.25 $2,021.77 $24,261.25 Gross
8/1/2021-$22.64psf
108 Sarpino's Pizza 1,289 4.13% 8/1/2014 7/31/2024 $22.31 $2,361.06 $28,757.74 Gross 8/1/2022-$22.98psf
8/1/2023-$23.33psf
11/1/2021-$16.65psf
109 Edward Jones 1,118 3.58% 11/1/2014 10/31/2024 $16.32 $1,520.48 $18,245.76 Gross 11/1/2022-$16.98psf
11/1/2023-$17.32psf
Emmer for 1/1/2021-$18.75psf
112 1,718 5.51% 7/1/2013 12/31/2024 $18.38 $2,631.47 $31,577.64 Gross
Congress 1/1/2023-$19.12psf
American Family
201 685 2.20% 11/25/2009 12/31/2022 $16.80 $958.98 $11,507.76 Gross
Insurance
202 Artistic Salon 1,251 4.01% 11/1/2017 10/31/2022 $9.83 $1,025.25 $12,303.00 NNN 11/1/2021-$10.13psf $6,227
1/1/2022-$14.07psf
203-204 ChiroFix 892 2.86% 1/1/2018 12/31/2023 $19.24 $1,430.00 $17,160.00 Gross
1/1/2023-$14.68psf
2/1/2021-$11.83psf
2/1/2022-$12.00psf
Parasol Wellness
205 2,295 7.36% 2/1/2019 1/31/2036 $11.67 $2,232.59 $26,791.08 NNN 2/1/2023-$12.17psf $11,424
Collaborative
*Tenant also pays $671.99/mo for TI 2/1/2024-$12.34psf
2/1/2025-$12.52psf
Emmer
206 2,490 7.98% 1/3/2015 1/2/2021 $22.48 $4,663.70 $55,964.40 Gross
Congressional
207 GBR Interpreting 1,352 4.34% 8/1/2016 7/31/2021 $9.13 $1,028.65 $12,343.80 Fixed NNN $6,855
Option I-$16.48psf
First American
209 669 2.15% 4/15/2020 4/30/2021 $16.00 $892.00 $10,704.00 Gross Option II-$16.97psf (3) 1-Year
Title Insurance
Option III-$17.48psf
Common Area
1,761 5.65%
(Vacant)
TOTAL SQUARE FEET: 31,186 100% MONTHLY INCOME: $37,385
TOTAL OCCUPIED SQUARE
28,547 91.54% ANNUAL INCOME: $449,045
FEET:
TOTAL AVAILABLE SQUARE
2,639 8.46% AVERAGE RENT PSF: $14.40
FEET:
TENANT OVERVIEW TENANT OVERVIEW
Three Rivers Fitness has one goal in mind, to provide members with a First American Financial Corporation is a United States financial services
friendly, affordable, and fun place to workout. At Three Rivers Fitness, company which provides title insurance and settlement services to the
their staff knows you buy name and welcomes you with a friendly smile, real estate mortgage industries. Their core business lines include title
showering you with the community spirit that the gym embodies. Three insurance and closing/settlement services. First American is publicly
Rivers Fitness was started in 2012 and caters to all ages and fitness levels. traded on the New York Stock Exchange under the ticker symbol “FAF”
Their fully-certified personal trainers will make sure that you reach your and are an S&P 400 Component. Founded in 1889, they now have
goals. From Spin to Zumba to Pump and Yoga-they have it all! In grown to having more than 18,705 employees and reporting annual
additional, they also have a fully equipped Pilates studio and a highly revenue in excess of $6.2 Billion.
experienced Pilates trainer.
OWNERSHIP: Private OWNERSHIP: Public
TENANT: Corporate TENANT: Corporate
LOCATIONS: 1 EMPLOYEES: 18,705
COMPANY REVENUE: Unknown COMPANY REVENUE: Unknown
YEAR FOUNDED: 2012 YEAR FOUNDED: 1889
HEADQUARTERED: Otsego, Minnesota HEADQUARTERED: Santa Ana, California
WEBSITE: www.threeriversfitness.com WEBSITE: www.firstam.com
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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & MillichapTENANT OVERVIEW TENANT OVERVIEW
When it comes to crafting mouth-wateringly delicious gormet pizza, Edward Jones is a financial services firm headquartered in Des Peres,
there is no doubt that Sarpino’s reigns supreme. We stand by our mission Missouri and serves investment clients in the U.S. and Canada, through
to serve excellent food and offer exceptional experience for our customers its branch network of more than 14,000 locations and currently have
every time they place an order. At Sarpino’s, there’s no need to sacrifice relationships with nearly 7 million clients and $1 trillion assets under
convenience for a truly gourmet meal. Their specialty pizzas come management worldwide. The firm focuses solely on individual investors
topped with only the highest-quality ingredients, including rich tomato and small-business owners. Edwards Jones is a subsidiary of The Jones
sauce, savory meats, tangy mozzarella cheese, and the freshest vegetables Financial Companies, L.L.L.P., owned only by its employees and retired
to compliment it all. Sarpino’s is headquartered in Lincolnshire, Illinois employees and therefore is not publically traded.
and now operates over 250 locations.
OWNERSHIP: Private OWNERSHIP: Private
TENANT: Corporate TENANT: Corporate
LOCATIONS: 250+ LOCATIONS: 14,000+
COMPANY REVENUE: Unknown COMPANY REVENUE: $8.594 Billion
YEAR FOUNDED: 2012 YEAR FOUNDED: 1922
HEADQUARTERED: Lincolnshire, Illinois HEADQUARTERED: Des Peres, Missouri
WEBSITE: www.gosarpinos.com WEBSITE: www.edwardjones.com
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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & MillichapTENANT OVERVIEW TENANT OVERVIEW
American Family Insurance is a private mutual company that focuses on GBR Interpreting & Translation Services provides spoken and sign
property, casualty, and auto insurance while also offering commercial language interpreting services to a diverse spectrum of clients, including
insurance, life, health, and homeowners coverage as well as investment MN State Courts, US Immigration Courts, Medical Providers, Insurance
and retirement-planning products. Abbreviated as “AmFam”, Amercian companies, Law Firms, Immigration applicants, and Schools. Our goal is
Family Insurance was founded in 1927 and is headquartered in Madison, to provide complete and precise communication, where all parties to the
Wisconsin. In it’s 90th year, American Family Insurance became the 4th conversation would feel as close as possible to as if they spoke the same
largest Wisconsin-based company and ranks #315 on the Fortune 500 language.
list nationally with revenues of $8.8 Billion. AmFam has more than
10,000 employees and nearly 3,000 agents.
OWNERSHIP: Private OWNERSHIP: Private
TENANT: Corporate TENANT: Corporate
# OF EMPLOYEES: 10,000 LOCATIONS: 1
COMPANY REVENUE: $10.3 Billion COMPANY REVENUE: Unknown
YEAR FOUNDED: 1927 YEAR FOUNDED: Unknown
HEADQUARTERED: Madison, Wisconsin HEADQUARTERED: Otsego, Minnesota
WEBSITE: www.amfam.com WEBSITE: www.gbrinterpreting.com
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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & MillichapMARKET AERIAL
LOCAL MAP 4.4 MILES 11.0 MILES 12.4 MILES Elk River, Big Lake, Monticello, Minnesota Minnesota Minnesota
REGIONAL MAP 30.5 MILES 307.2 MILES 365.9 MILES Minneapolis, Green Bay, Milwaukee, Minnesota Wisconsin Wisconsin
DEMOGRAPHIC SUMMARY
MARKET OVERVIEW
POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles
▪ 2023 Projection Total Average Household Retail Expenditure $87,987 $84,399 $87,717
Total Population 1,972 26,448 49,095 ▪ Consumer Expenditure Top 10 Categories
▪ 2018 Estimate Housing $24,056 $22,286 $23,410
Total Population 1,830 25,140 46,373 Transportation $13,648 $12,645 $13,273
▪ 2010 Census Shelter $12,415 $13,912 $13,980
Total Population 1,638 23,192 42,214 Personal Insurance and Pensions $9,965 $8,712 $9,376
▪ 2000 Census Food $9,680 $8,939 $9,361
Total Population 1,266 15,653 28,539 Health Care $8,016 $7,168 $7,602
▪ Current Daytime Population Entertainment $4,536 $4,195 $4,371
2018 Estimate 666 25,560 39,146 Utilities $4,150 $3,777 $3,976
HOUSEHOLDS 1 Miles 3 Miles 5 Miles Household Furnishings and Equipment $3,141 $2,838 $3,030
▪ 2023 Projection Cash Contributions $2,505 $2,337 $2,480
Total Households 691 9,956 17,785 POPULATION PROFILE 1 Miles 3 Miles 5 Miles
▪ 2018 Estimate ▪ Population By Age
Total Households 635 9,347 16,598 2018 Estimate Total Population 1,830 25,140 46,373
Average (Mean) Household Size 2.78 2.63 2.75 Under 20 28.45% 28.59% 29.10%
▪ 2010 Census 20 to 34 Years 17.18% 19.27% 18.39%
Total Households 550 8,328 14,688 35 to 39 Years 7.31% 7.78% 7.52%
▪ 2000 Census 40 to 49 Years 15.51% 14.12% 14.34%
Total Households 387 5,373 9,488 50 to 64 Years 23.04% 18.79% 19.77%
▪ Occupied Units Age 65+ 8.50% 11.45% 10.90%
2023 Projection 691 9,956 17,785 Median Age 38.00 36.36 36.67
2018 Estimate 649 9,675 17,010 ▪ Population 25+ by Education Level
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate Population Age 25+ 1,215 16,628 30,473
▪ 2018 Estimate Elementary (0-8) 0.29% 0.74% 0.57%
$150,000 or More 15.43% 13.88% 16.52% Some High School (9-11) 3.12% 3.77% 3.45%
25.39% 26.61% 29.45% High School Graduate (12) 31.37% 25.88% 25.13%
$100,000 - $149,000 21.06% 17.15% 17.00% Some College (13-15) 25.57% 26.61% 25.85%
$75,000 - $99,999 19.17% 17.16% 15.75% Associate Degree Only 15.47% 13.25% 13.36%
$50,000 - $74,999 10.53% 10.72% 9.36% Bachelors Degree Only 18.49% 22.39% 23.25%
$35,000 - $49,999 8.40% 14.47% 11.93% Graduate Degree 5.65% 6.83% 7.82%
Under $35,000 $101,646 $99,969 $109,664
Average Household Income $88,722 $86,039 $94,178
Median Household Income $35,319 $37,487 $39,454
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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus &
Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Services, Inc. © 2015 Marcus & MillichapOTSEGO MARKETPLACE
OTSE GO, MN
Minnesota BOR: Jon Ruzicka
License: 40583288
EXCLUSIVE OFFERING
PRESENTED BY:
OFFICES
NATIONWIDE
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