Ground Lease Bank for Sale


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Ground Lease TCF Bank for sale in Minneapolis MSA

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Ground Lease Bank for Sale

  1. 1. NET LEASED INVESTMENT OFFERINGTCF Bank Ground Lease (Investment Grade) 6501 Richfield Parkway Richfield, MN 55423 (Minneapolis MSA)
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Site Plan5) Aerial6) Map7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant TCF Bank ground lease located within theMinneapolis MSA. TCF Bank is an investment grade company with a Standard & Poor’s Rating of BBB-. The TCF Bank islocated on a 1.01 acre parcel as an outlot to a Super Target and Home Depot anchored shopping center. The leasefeatures 10% rental escalations every five years with the next escalation in 2017. This is a proven location for TCF bank asevidenced by its well above average deposits for a bank branch.The property is located in Cedar Point Commons Shopping Center, a 350,000 square foot retail center anchored by SuperTarget and Home Depot. Cedar Point Commons is located off Highway 77 (66,000 VPD) at the intersection of 66th Streetand Richfield Parkway. 66th Street has a full access interchange with Highway 77 less than ¼ mile from the property.Constant traffic is abundant along Highway 77 as the Mall of America is located approximately two miles south of CedarPoint Commons along Highway 77. Additionally, there is a IKEA adjacent to the Mall of America. The property is located in adense area with over 300,000 people living within five miles of the property. There are high barriers to entry in the area asthe land directly across Highway 77 is used for the Minneapolis/St. Paul International Airport.TCF Bank’s original ground lease term was for 20 years with four 5-year renewal options and the lease expires in October2027. The net operating income increases by 10% every five years during the primary term as well as the option periods.TCF Bank is a publicly traded company on the New York Stock Exchange (TCB), with a market capitalization of $2 billion.TCF Bank is an investment grade rated company with a Standard & Poor’s rating of BBB-.INVESTMENT HIGHLIGHTS • Investment grade rated company (S&P: BBB-) • Located within the Minneapolis MSA • Long term ground lease • Superior bank branch deposits • No landlord responsibilities • 10% rental escalations every five years (Next escalation in 2017) • Located as an outparcel to a Super Target and Home Depot • Located off Highway 77 Interchange (66,000 VPD) • Two miles from the Mall of America and an IKEA • Over 300,000 people living within five miles of the property
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW Price: $2,946,428 Cap Rate: 5.60% Rent Schedule: NOI Escalation Date $ 165,000 $ 181,500 11/1/2017 $ 199,650 11/1/2022 $ 219,615 11/1/2027 (Option 1) $ 241,577 11/1/2032 (Option 2) $ 265,734 11/1/2037 (Option 3) $ 292,308 11/1/2042 (Option 4) Renewal Options: Four 5-Year Renewal Rate: 10% each option period Lease Commencement Date: October 16, 2007 Lease Expiration Date: October 31, 2027 Tenant: TCF Bank Credit Rating: BBB- (Standard and Poor’s) Year Built 2007 Lease Type: Ground Lease – NNN* Rentable Square Feet: 4,500 SF Land Size: 1.01 Acres* Should structural repairs be required during the last three years of the Tenants primary term orany renewal term, Tenant shall not be required to make such structural repairs should Tenant deliverto Landlord a written waiver of all rights to renew the Lease beyond the term in effect.
  9. 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILETCF is a Wayzata, Minnesota‐based national bank holding company with $17.8 billion in total assets as of March 31,2012. TCF has over 430 branches in Minnesota, Illinois, Michigan, Colorado, Wisconsin, Indiana, Arizona, and SouthDakota, providing retail and commercial banking services. TCF also has business lines in commercial leasing andequipment finance, including leverage lending in all 50 states, commercial inventory finance business in the U.S. andCanada, and indirect auto finance business in over 30 states. They are the 11th largest VISA Classic debit cardissuer in the U.S. by sales volume.Website: www.tcfbank.comNumber of Locations: 430+Stock Symbol: TCB : NYSEStandard & Poor’s Rating: BBB-Market Capitalization: $2 billion
  10. 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 7-miTotal Population 98,609 303,180 586,475Total Households 41,304 129,123 254,769IncomeMedian Household Income $53,756 $51,126 $50,403Average Household Income $69,602 $70,132 $72,149
  11. 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEWRichfield is located in Hennepin County, Minnesota, approximately 8 miles south ofDowntown Minneapolis. Richfield has a population of over 35,000. Best Buy is thecity’s largest employer and its corporate headquarters is located in Richfield. Otherlargest employers in Richfield include US Bank, Richfield Public Schools and Target.Hennepin County is the most populous county in the state of Minnesota. One in everyfive Minnesotans lives in Hennepin County. At the time of the 2010 U.S. Census,Hennepin County had a population of 1,152, Paul is the most populous urban area in Minnesota is nicknamed theMinneapolis-“Twin Cities”. Minneapolis is the most populous city in Minnesota and St. Paul servesas the state’s capital. The Minneapolis St. Paul MSA is the 16th largest in the United Minneapolis-St.States with a total population of 3,317,308. The Minneapolis Minneapolis-St. Paul area is home to19 of the 20 Fortune 500 headquarters (Target, 3M and General Mills) located within (Target,Minnesota and has the second largest economy in the Midwest only behind Chicago.The largest companies in Minneapolis include Target, US Bank, Xcel Energy,Ameriprise Financial and Thrivent
  12. 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003