Maple Grove, MN, US, Americas

Arbor Lakes Business Park III & IV - Maple Grove, MN

Attributes

Building area net

41,165 m²

Year built

2023

Occupancy

100%

WAULT

7.4 years

Clear height

9.75 m

Number of loading docks

Grade level doors

NOI

NT$120,915,000

Portfolio description

Deal Overview & Aerial Tour

https://www.youtube.com/watch?v=fpnMHHjt3cg

Jones Lang LaSalle (“JLL”), as exclusive advisor to the Owner, is pleased to present to investors the opportunity to acquire Arbor Lakes Business Park III & IV, a two (2) building portfolio totaling 443,098 square feet of Class A new industrial construction built to institutional quality; located in Maple Grove, MN.

This best-in-class portfolio presents a prime investment opportunity in the infill Northwest quadrant. Located minutes away from downtown Minneapolis, the Portfolio sits in the heart of the Northwest Interchange, a leading micro-market that has been the focus for industrial leasing and development for the past 20-years. The fully occupied assets offers a stable income stream with weighted annual escalations above 3.15%. Additionally, there is significant potential for value appreciation, as current rents are 25.0% below market rates; this figure is projected to rise to an impressive 36.1% upon cumulative lease expirations.

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Investment Highlights

100% Occupied Class A New Development in the Infill Northwest Interchange secured by long-term stable cash flows appreciating over 3.15% annually.
Consistent staggered future value-add opportunities through significant mark-to-market growth. In-place rents are 25% below market today, with a cumulative 36.1% mark-to-market captured upon cumulative expiration
Strong tenant roster anchored with a WALT of 7.4 years with no tenant occupying over 25% of the Portfolio's square footage
The Asset is well located in the infill Northwest quadrant within the 494/694 loop. The Northwest Quadrant has seen the highest activity for active tenants for the past 10-years accounting for over 35% of Q1's total leasing activity
Minneapolis is the 12th largest Industrial market in the U.S. bolstered by its consistently strong fundamentals and high concentration of Fortune 500 headquarters in the market.
Extremely low vacancy in growing Northwest submarkets, with the Northwest Interchange micromarket sitting at 3.4%.
The Offering includes a supplemental cash flow stream through a pay-as-you-go Tax Increment Financing Note (TIF Note) which enhances financing leverage and boosts upfront liquidity.