Destination Pet - Hound Dog Pet Hotel - Chanhassen, MN

Jones Lang LaSalleAmericas, Inc.(“JLL”) is pleased to offer the opportunity to acquire the fee simple interest in two freestanding retail buildings located in Chanhassen, MN (Minneapolis MSA). The occupied portion of 14,944 SF is leased to Destination Pet, LLC (“Tenant”), a leading operator with over 160 pet resort and veterinary locations across 31+ states. The Tenant will commit to a 20-year Absolute Triple Net (NNN) lease with four, 5-year renewal options, which will commence upon close of escrow. The annual rent will be $166,400 and has scheduled increases of 2.0% annually in the primary term and through the options. This modest starting rent is supported by strong site-level performance—demonstrating a robust 2.2x rent to EBITDAR coverage—and will be fully backed by a corporate guarantee from Destination Pet, LLC.

The vacant building of 8,552 SF formerly housed a veterinary office. The property is zoned PUD, Planned Unit Development, providing a wide range of retail and commercial uses. The site presents an excellent lease-up or redevelopment opportunity with current in-place rental income in a very strong submarket of Minneapolis with retail vacancy rates at 1.1%.

The subject property is located in Arboretum Business Park, a 151-acre commercial and industrial campus with a wide array of retail tenants, corporate offices, and industrial warehouses. Notably, the site is less than a mile away from the corporate headquarters of Life Time Fitness, benefitting from the immediate exposure to the largest employer in Chanhassen, MN, with over 1,170 employees.

This offering presents the opportunity to acquire a highly profitable site with a value-add component in an exceptionally affluent suburb of Minneapolis with a surrounding average household income of $213,845 in a 1-mile radius, benefit from a completely passive and growing in-place income stream, and partner with a trusted operator.