Caribou Coffee - Zimmerman, MN
12495 5th Ave N, Zimmerman, MN, 55398-6501, US
A$2,002,000 | 51 m²
Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in Icehouse Plaza (the “Property”) located at 2522-2550 Nicollet Ave in Minneapolis, MN. The 37,884 SF retail/residential mixed use asset is 100% leased and has a WALT on the commercial portion of 6.0 years. Featuring seven commercial and 13 residential tenants, this asset offers the unique opportunity to acquire a fully occupied, mixed-use property on the best corner in one of Minneapolis' most sought after submarkets.
At list price, the building is well-below replacement cost on a per square foot basis. Additionally, over $500k in structural improvements, a roof replacement with warranties, and various common area improvements have been recently completed. The most recent new lease, which is with Starbucks, has a per square foot rent rate that is 67% higher than the next highest rate in the center, illustrating the mark-to-market potential of the investment.
The property features iconic Minneapolis restaurants in the heart of Eat Street, a historic submarket with excellent fundamentals. The two largest tenants, Icehouse and Vertical Endeavors, which take up over half of the commercial space, have been at the property for over 11 years. Additionally, the property benefits from being in a high-density area central to essential amenities; within a three-mile radius, the area has a population of over 262,000 people, and the property is located between the downtown Minneapolis and the Minneapolis-Saint Paul International Airport, being just 10 minutes from both.
FULLY OCCUPIED MULTI-TENANT CENTER WITH RESIDENTIAL COMPONENT AND ASSUMABLE DEBT
• Icehouse Plaza is a multi-tenant center that is 100% leased by seven retail tenants, all of which are on net leases, and has 13 residential units, which are also fully occupied
• The in-place loan on the asset is assumable and features a below-market interest rate of 4.45%
ICONIC MINNEAPOLIS RESTAURANTS WITH AMPLE OUTDOOR SPACE IN THE HEART OF EAT STREET
• The tenant mix includes some of Minneapolis' most iconic restaurants, such as Icehouse and Black Sheep Pizza
• Icehouse and Luna & The Bear each have patio/deck space and there is additional outdoor seating for several other tenants
BELOW MARKET RENTS AND STRONG WALT
• The most recent new lease, which is with Starbucks, has a per square foot rent rate that is 67% higher than the next highest rate in the center, illustrating the mark-to-market potential of the investment
• The center boasts a WALT of 6.0 years, and the two largest tenants each have 7+ years of term remaining
BEST CORNER IN THE SUBMARKET WITH MULTIPLE ACCESSES AND PARKING
• The property is ideally situated on the best corner in the submarket, the signalized intersection of Nicollet Ave and W 26th St
• The center is easily accessible from both roadways and has on-site parking in a parking-restricted part of tow