For Sale. Mill Stream Shops & Lofts St. Joseph, MN $ 2,900,000. Leased Investment Property

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1 For Sale Leased Investment Property Mill Stream Shops & Lofts St. Joseph, MN $ 2,900,000 Presented By: Mike Bobick, Broker, CCIM Direct: mikeb@granitecityproperties.com 58 10th Ave S Waite Park, MN

2 Mill Stream Shops and Lofts - a Mixed-Use Community - 15 East Minnesota Street St. Joseph, MN St. Joseph is located in central Minnesota, on the western edge of the St. Cloud Metropolitan statistical area of approximately 190,000 people. St. Joseph is also home to the four-year private colleges, College of St. Benedict (across the street from Mill Stream) and St. John s University, 3 miles to the west. The two liberal arts colleges combine for an enrollment of approximately 4,100 students. Mill Stream Shops and Lofts is a fantastic development in downtown St. Joseph, consisting of commercial/retail street level condominiums and residential loft style condo units on second floor. The project was developed in 2008 and the developer has sold a majority of the residential condos and one main floor retail unit. The remaining units are now offered as a unique investment opportunity in this college town. The Package: 7 of the 8 street level retail/commercial condominiums are offered for sale, as well as 4 of the 13 residential condos. (Additional residential condos may be available). There are also 7 garage units included in the package. 1

3 Located Across From Campus 2

4 More About the Colleges The College of St. Benedict (all women) and St. John s University (all men) are nationally recognized Catholic liberal arts colleges and ranked as two of the top three Catholic colleges in the nation (combined enrollment.) They share an academic program with students attending classes on both campuses. CSB/SJU are among the top 100 liberal arts colleges in the Washington Monthly s 2012 rankings. Schools are rated on their contribution to the public good in three broad categories: social mobility, research and service. The College of St. Benedict and Saint John s University have been recognized nationally in the U.S. News and World Report 2013 college rankings. Both CSB and SJU were again ranked among the top 100 liberal arts colleges in the country. CSB/SJU is listed in The Princeton Review s Guide to 322 Green Colleges: 2012 Edition as an institution of higher education that demonstrates notable commitments to sustainability in their academic offerings, campus infrastructure, activities and career preparation. The two private liberal arts institutions bring highly educated professionals and cultural opportunities to the City of St. Joseph. The long term presence of the highly respected educational institutions means cultural opportunities and educated citizens abound and are woven in the fabric of the community. 3

5 More About St. Joseph Demographics (2010 Census) 2010 Census Population: 6, Households: 1, Vacancy Rate Housing: 3.5% 76.3% Owner-Occupied, 23.7% Renter Occupied Median Family Income: $ 66,100 Median Household Income: $ 59,680 McComb Group LTD completed a market analysis for the City of St. Joseph in November of The study found abundant factors supporting retail and service potential in St. Joseph including: Demographics A recent history of strong growth within St. Joseph trade area - more rapid than the St. Cloud MSA The current St. Joseph trade area includes over 17,000 persons and 5,000 households. Population and households in the current St. Joseph trade area are growing at a faster rate than the St. Cloud MSA The current trade area for St. Joseph is capable of supporting an estimated 135,900 square feet of retail goods and services at this time. The same area is projected to support an estimated 187,300 square feet of retail goods and services in 2016 Average household income ( $ 65,500) in current St. Joseph trade area is higher than the St. Cloud MSA The percentage of households with incomes above $ 75,000 and $100,000 are consistently higher in the current St. Joseph trade area than the St. Cloud MSA Total purchasing power for the current St. Joseph trade area was estimated at $ 207 million in 2010, and is expected to rise to $ 348 million in 2020 The current St. Joseph trade area purchasing power for shopping goods is expected to increase from $ 57.5 million in 2010, to $ 96.8 million in 2020 According to the Minnesota Revenue Department Sales and Use Data, gross sales in St. Joseph in 2010 totaled over $ 100,671,500 with taxable sales over $ 22,525,000 St. Joseph has a highly educated population with nearly 30% of the population over age 24 having college degrees and over 10% having graduate degrees; nearly 92% of all persons over the age of 25 have graduated from high school Interstate 94, CSAH 75, CSAH 2, CR 133 and CR 134 provide excellent access to St. Joseph College of St. Benedict and St. John s University have a combined enrollment of 4,100 and a combined staff of nearly 1,000 CSB/SJU host an estimated 140,000 visitors each year 4

6 The Facility Mill Stream Shops and Lofts consists of eight (8) street level condominium units and thirteen (13) second floor residential condominiums. There are 16 garage stalls and one additional stall for maintenance, equipment and supplies. The gross building square footage is approximately 25,000 square feet and the site is 1.25 acres. The two-story building is of wood frame 2 x6 construction with rubber membrane built-up roof. The residential condo decks are constructed of steel posts and reinforced concrete floors. The exterior is very low maintenance with Hardi-plank cement board siding, Thermo Tech windows on the second floor and powder coated aluminum commercial windows on the storefronts. Ceiling heights in second floor residential units are approximately 9 feet, street-level commercial units are 12 feet. Natural gas, electricity and city water and sewer are metered to each individual condo unit. In addition to the 16 garage stalls on site there are approximately 32 surface parking spaces behind the building. These are first come, first served for commercial, residential occupants and guests. The second floor residential units are served by roof mounted forced air gas furnaces and central air units. The ground floor commercial units are served by split heating and cooling systems. Each unit has a gas forced air furnace located within the unit and the air-conditioning units are located on the ground on the parking lot side of the building. 5

7 Condominium Sales History Ownership of the 13 residential condominiums consists of seven different parties. Collegeville Companies currently controls four of the units, The College of St. Benedict owns three of the units, another investor owns two units and the remaining four units are owned by different individuals. Two of the units have sold more than once and values have continued to increase. There is high demand for the residential units. Of the eight commercial condos, one has been sold to a pediatric psychiatrist, and is owneroccupied. Commercial Tenants Bello Cucina Restaurant. A very successful Italian restaurant featuring authentic, original entrees and an impressive wine list. The outdoor seating is one of the finest venues in Central Minnesota. The owners operate two other restaurants in Minnesota, both under the name of Bello Cucina, located in Fergus Falls and Morris. The St. Joseph restaurant is the highest volume of the three. A fourth restaurant is currently being contemplated in the Redwing Minnesota market. On A Lark. A gift shop featuring home decor, jewelry and gifts. On a Lark is proudly owned and operated by the College of St. Benedict. 100% of On A Lark s profits fund CSB scholarships and campus improvements. Collegeville Companies. A commercial and residential development company which conceived and developed Mill Stream Shops and Lofts. Collegeville Companies is currently involved in a residential development in St. Joseph, and several commercial projects in the greater St. Cloud market. Russell Eyecare & Associates. Dr. Russell has been providing high quality and affordable eye care since Condominium #106 (Not a part of this sale package). This condominium was sold and is the office of Developmental Diagnostics, Dr. Holly Heib Clausen, PhD, LP Pediatric. The clinic specializes in neuropsychology. Condominiums #108. Currently this unit is being marketed for lease and is operating as Mill Stream Wellness Arts, offering yoga, dance, tai chi, meditation, acupuncture, massage therapy and body works, by a team of independent practitioners. 6

8 Tax Increment Financing Note This project was developed with the creation of a Tax Increment Finance (TIF) District. The district encompasses the entire condominium development and the seller is in possession of the TIF note. The note is being offered for sale along with the real estate. Specifics on the finance district and note are as follows: The amount of the original note was $ 467,000 The TIF District has a duration of 28 years, which began June 1, 2007 The expiration date is February 1, 2035, or sooner if the note is paid off earlier This is a pay-as-you-go TIF District whereby 90% of the increment created by the development is available to retire the TIF note In effect all owners within the district pay taxes as usual, and TIF payments are made to the noteholder twice per year, on February 28 and August 31 The projected annual cash flow to retire the TIF note is $45,388, upon achieving full assessed value for the entire development. Tax Increment Finance notes are typically referred to as a super lien against the property because so long as real estate taxes are paid the note payments will occur 7

9 Exhibit to the TIF Development Agreement 8

10 Disclosures This Investment Brochure has been prepared by Granite City Real Estate, LLC for information purposes only and does not purport to contain all the information necessary to reach a purchase decision. The information contained herein has been carefully compiled from sources we consider reliable and while not guaranteed as to completeness and accuracy, we believe it to be correct as to this date. This proposal is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the property. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgements as to the advisability of purchasing the property described herein. The income and expenses set forth in this brochure do not constitute a representation, warranty or a guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Prospective purchasers should develop their own independent estimates of income and expenses before making any decisions on whether to acquire the property. This Investment Brochure is the property of Granite City Real Estate, LLC and may be used only by parties to whom Granite City Real Estate, LLC delivered the brochure or to whom Granite City Real Estate, LLC has approved such delivery. By accepting a copy of this brochure, the party who has possession thereof agrees to return it to Granite City Real Estate, LLC immediately upon request. No representations are made as to any changes in the affairs of the property subsequent to the date of this Investment Brochure. No copies of this Proposal may be made without Granite City Real Estate, LLC s prior written consent and no excerpts or summaries thereof may be distributed, reproduced, or included in any documentation without such consent. The property and improvements described in this investment brochure are being sold on an as is basis. We thank you for your time in considering acquisition of this property. Please respect the owner s desire that the tenants at this property not be disturbed. The owner requests that you schedule all visits to the property with Granite City Real Estate, LLC. 9