Overview
Newmark is pleased to present the opportunity to acquire the 100% fee simple interest in 2575 Fairview Avenue North, Roseville, MN (the “Property”), a 100% occupied, Petco anchored 34,624 square foot multitenant retail property located just north of Rosedale Center, the epicenter of the 17.5 million square foot Rosedale Trade Area. The Rosedale Trade Area is the #1 ranked retail submarket in the Minneapolis-St. Paul metropolitan area and produces approximately $4.71b in total goods and services expenditure annually.
The Property is occupied by six (6) tenants with a weighted average tenure of 26 years, led by Petco, which is approximately 50% of the net rentable area and has been a tenant since 1991 (35 years). The Property is situated on 2.71 acres and features approximately 150 parking spaces, a 4.3:1,000 ratio. Notable nearby retailers include Von Maur, Target, Macy’s, Marshall’s, Best Buy, Kohl’s, Home Goods, REI, Restoration Hardware Outlet, Sierra Trading and Total Wine, among many others.
Investment Highlights
Dominant Retail Trade Area
The Property is located just north of the County Road B-2 and Fairview intersection, the epicenter of the vast Rosedale retail trade area, ranked #1 submarket in Minneapolis-St. Paul metropolitan area. Rosedale Center is an approximately 1.3 million square foot super-regional mall with 160 specialty stores and 14 million annual visitors.
Leading Pet Retailer, Corporate Tenancy
Petco Health and Wellness Company, Inc. (Nasdaq: WOOF) is a leading pet specialty retailer, operating +1,500 locations throughout the United States, Puerto Rico, and Mexico. Petco has a market cap of +/- $903 million and annual revenue of +/- $6 billion.
Long-Term Tenancy
Play It Again Sports has been a tenant for 30 years and Petco, as the anchor tenant of the Property, has been an occupant for 35 years. Petco has a lease maturity in April 2031 with one (1) additional option to extend the term for five (5) years, effectively extending the tenancy to April 2036.
Easy Regional Access
The Property is near I-35W and Minnesota State Highway 36, each major traffic corridors that intersect the trade area providing ease of access to area consumers.
Below Replacement Cost
Priced at just $163 psf compared to an estimated replacement cost of $350-$400 PSF, this investment offers a substantial discount to replacement cost, providing investors with a highly attractive low basis.
Low Average Rent
Petco’s base rent is just $9.00 PSF and the Property’s total average rent a mere $13.40 PSF, compared to the submarket’s average rent of $25.00 psf
Convenient and Ample Parking
The Property has approximately 150 parking spaces providing consumers immediate access to the tenants.
High Historical Occupancy
Over the past 12+ years, the Property’s occupancy has been at least 95%.
Pride of Ownership
Current ownership has owned the building for 40+ years, keeping the property in a well maintained condition.
Photo Gallery
Minnesota Capital Markets
