:: OFFERING MEMORANDUM
Capital Markets l Investment Properties – Net Lease
1215 N STATE STREET
FAIRMONT, MN
Gregory M. Dalton
Senior Vice President
CA Lic 00525726
+1 916 781 4816
[email protected]
:: REDEVELOPMENT
Pam Willetts
Client Services Coordinator
CA Lic 00909593
+1 916 781 4831
[email protected]
Matt Friday
Senior Vice President
+1 612 336 4209
[email protected]
Eric Sheaffer
Associate
+1 612 336 4251
[email protected]
1215 N STATE STREET, FAIRMONT, MN | Affiliated Business Disclosure and Confidentiality Agreement
CBRE, Inc. operates within a global family of
companies with many subsidiaries and/or
related entities (each an “Affiliate”) engaging
in a broad range of commercial real estate
businesses including, but not limited to,
brokerage services, property and facilities
management, valuation, investment fund
management and development. At times
different Affiliates may represent various
clients with competing interests in the same
transaction. For example, this Memorandum
may be received by our Affiliates, including
CBRE Investors, Inc. or Trammell Crow
Company. Those, or other, Affiliates may
express an interest in the property described in
this Memorandum (the “Property”) may submit
an offer to purchase the Property and may be
the successful bidder for the Property. You
hereby acknowledge that possibility and agree
that neither CBRE, Inc. nor any involved
Affiliate will have any obligation to disclose to
you the involvement of any Affiliate in the sale
or purchase of the Property. In all instances,
however, CBRE, Inc. will act in the best interest
of the client(s) it represents in the transaction
described in this Memorandum and will not
act in concert with or otherwise conduct its
business in a way that benefits any Affiliate to
the detriment of any other offeror or
prospective offeror, but rather will conduct its
business in a manner consistent with the law
and any fiduciary duties owed to the client(s) it
represents in the transaction described in this
Memorandum.
This is a confidential Memorandum intended
solely for your limited use and benefit in
determining whether you desire to express
further interest in the acquisition of the
Property.
This Memorandum contains selected
information pertaining to the Property and
does not purport to be a representation of the
state of affairs of the Property or the owner of
the Property (the “Owner”), to be all-inclusive
or to contain all or part of the information
which prospective investors may require to
evaluate a purchase of real property. All
financial projections and information are
provided for general reference purposes only
and are based on assumptions relating to the
general economy, market conditions,
competition and other factors beyond the
control of the Owner and CBRE, Inc.
Therefore, all projections, assumptions and
other information provided and made herein
are subject to material variation. All references
to acreages, square footages, and other
measurements are approximations. Additional
information and an opportunity to inspect the
Property will be made available to interested
and qualified prospective purchasers. In this
Memorandum, certain documents, including
leases and other materials, are described in
summary form. These summaries do not
purport to be complete nor necessarily
accurate descriptions of the full agreements
referenced. Interested parties are expected to
review all such summaries and other
documents of whatever nature independently
and not rely on the contents of this
Memorandum in any manner.
Neither the Owner or CBRE, Inc, nor any of
their respective directors, officers, Affiliates or
representatives make any representation or
warranty, expressed or implied, as to the
accuracy or completeness of this
Memorandum or any of its contents, and no
legal commitment or obligation shall arise by
reason of your receipt of this Memorandum or
use of its contents; and you are to rely solely
on your investigations and inspections of the
Property in evaluating a possible purchase of
the real property.
The Owner expressly reserved the right, at its
sole discretion, to reject any or all expressions
of interest or offers to purchase the Property,
and/or to terminate discussions with any entity
at any time with or without notice which may
arise as a result of review of this
Memorandum. The Owner shall have no legal
commitment or obligation to any entity
reviewing this Memorandum or making an
offer to purchase the Property unless and until
written agreement(s) for the purchase of the
Property have been fully executed, delivered
and approved by the Owner and any
conditions to the Owner’s obligations therein
have been satisfied or waived.
By receipt of this Memorandum, you agree
that this Memorandum and its contents are of
a confidential nature, that you will hold and
treat it in the strictest confidence and that you
will not disclose this Memorandum or any of
its contents to any other entity without the prior
written authorization of the Owner or CBRE,
Inc. You also agree that you will not use this
Memorandum or any of its contents in any
manner detrimental to the interest of the
Owner or CBRE, Inc.
© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not
verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions,
assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and
other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to
determine to your satisfaction the suitability of the property for your needs.
1215 N STATE STREET, FAIRMONT, MN
THE OFFERING
Greg Dalton of CBRE’s Investment Properties | Net Lease group is pleased to present this formerly Kmort-occupied asset in Fairmont, MN.
The ±89,291 gross square foot building is on ±8.286 acres (along State Highway 15, less than a mile from Interstate 90. The property
provides an opportunity to re-develop the asset by re-tenanting with either single or multiple tenants.
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1215 N STATE STREET, FAIRMONT, MN
INVESTMENT HIGHLIGHTS
•
Redevelopment/reposition asset
•
Owner, user and/or redeveloper opportunity
•
Flexible B-3 zoning
•
Ingress/egress to Interstate 90, a major east-west freeway route
•
Low price psf
•
Multiple building subdivisions opportunity
•
Motivated seller
INVESTMENT SUMMARY
Price .................................................. $850,000
Terms ......................... All Cash or Cash to Loan
Total Square Feet ................................. ±89,291
Total Acres ............................................ ±8.286
Price per Square Foot ................................. $9.52
Year Built .................................................... 1990
Martin County Parcel Number ........ 2303900360
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1215 N STATE STREET, FAIRMONT, MN
OFFERING HIGHLIGHTS
With existing tenant not renewing their lease, the
property is prime candidate for re-positioning.
•
Building is ±89,291 gross square feet
•
±8.286 acres
•
Existing lease with Kmart expiring soon - have
given their notice that they will not renew*
•
Vacant building ready for renovation
•
B-3 “General Business District” zoning allows
for flexibility – from strip center to commercial
PUD units to light industrial, and much more
•
Located on a state highway less than one mile
to a major interstate highway
•
Municipal airport with two runways and
services
•
Union Pacific and Canadian Pacific rail lines
in proximity
•
Many retail amenities in area
•
Labor pool draws from multiple counties
•
Area draws from seven counties, two states
•
City is situated at the southern border of
Minnesota ±11 miles from Iowa
•
±150 miles from Minneapolis/St. Paul,
±209 miles from Des Moines
LEASE SUMMARY
Lessee:
Lease Term:
Lease Options:
Expiration Date:
Annual Base Rent:
Lease Type:
K-mart Corporation
1/24/1990 – 11/30/2015
*10 – five year options
11/30/2015
$346,482
NNN
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1215 N STATE STREET, FAIRMONT, MN
FAIRMONT, MINNESOTA
Fairmont, the City of Lakes, is a smaller town of over 11,000 which supports a regional service area population of over 20,000 and is the
county seat of Martin County. More than half of its labor force are local residents as Fairmont is comprised of over 50% of the county’s
population. Its central location provides convenient access to major highways, railroads (Union Pacific and Canadian Pacific) and air travel.
The Municipal Airport (with two runways) is equipped to handle just about any size prop or corporate jet aircraft. The retail base has added
such businesses as Walgreens, Arby’s, Kwik Trip, Fareway Foods, True Value Hardware, a Walmart Supercenter and O’Reilly Auto Parts.
The Fairmont Economic Development Authority has been strong in helping businesses develop and assists the area in developing
momentum as a value-added agriculture processing center and an area beginning to explore alternative fuels. The area is also number
one in pork production, number four in corn and in the top five in soybean production, indicating that the Fairmont area is one of
Minnesota’s strongest agricultural areas.
Fairmont averages new home construction of 8-10 single family dwelling per year and several new housing developments are targeted
toward seniors in various stages of health. This small town has lots going for it - five lakes within the city, over 25 parks, an aquatic center,
public and private golf courses, historic venues, approximately 500 businesses in the town – including a Mayo Health System center and a
fairly significant industrial manufacturing base, the County fairgrounds and a racetrack. with a population of ±93,000 living in seven
counties within a 30 minute drive, this assortment of activities, work and shopping draws both visitors and a labor force.
LARGEST EMPLOYERS:
#
Employer
# of Employees
1
Mayo Clinic Health System
680
2
Avery Weigh-Tronix
331
3
Fairmont Area Schools
325
4
REM Minnesota
275
5
Torgerson Properties
273
6
Fairmont Foods of Minnesota
272
7
Lakeview Health Services
256
8
Walmart
195
9
Hy-Vee
180
10
MRCI WorkSource
155
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1215 N STATE STREET, FAIRMONT, MN
LOCATION OVERVIEW
Fairmont, Minnesota is a small town with lots going for it – from agriculture to industrial manufacturing to recreation opportunities to senior
care to a municipal airport. There are more than 500 businesses in town, with the single largest employer being the Fairmont Medical
Center component of the Mayo Health System. Near the Iowa border on Interstate 90 midway between South Dakota and Wisconsin, it is
about 2 hours to Minneapolis and about 1½ hours to Rochester; it is a definite draw for employment for a seven county area of Minnesota
and Iowa.
AREA HIGHLIGHTS
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1215 N STATE STREET, FAIRMONT, MN
SITE PLAN
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1215 N STATE STREET, FAIRMONT, MN
BUILDING
Loading Docks
Garden Entrance
Front
Outside Garden Area
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1215 N STATE STREET, FAIRMONT, MN
An area of many lakes
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1215 N STATE STREET, FAIRMONT, MN
FAIRMONT, MN AREA
The city of Fairmont itself has been built around a chain of five lakes: Lake George, Sisseton Lake, Budd Lake, Hall Lake, and Amber Lake.
All except Amber Lake are connected by channels and are used extensively for recreational boating and fishing. There are another five
lakes within the county. According to the United States Census Bureau, the city has a total area of 16.5 square miles, of which, 14.6 square
miles of it is land and 2.0 square miles of it (11.86%) is water. From arts to water activities to shopping to recreation to education and health
services, there are amenities and activities to draw from all of the neighboring communities, the closest of which is about 8 miles away.
For the last several years Fairmont has been gaining momentum as a value-added ag processing center and an area beginning to explore
alternative fuels. CHS, Inc. (soybean processing facility) and Green Plains Renewable (ethanol producer) each have 200 acre facilities
adjacent to one another in the northwest portion of Fairmont. Fairmont has also been home to companies such as Avery Weigh-Tronix (one
of the worlds largest supplier of weighing solutions) and Fairmont Railway Motors Inc. (now a part of Harsco Corporation), a leader in
railway machinery and stock, for many years. There are at least 25 manufacturing firms within the City limits, with the nine largest
employing between 1,500 and 2,500 total.
Some of the locational advantages are the access to major interstate highways, strong work ethic and educated work force, dual rail access,
available land which is less expensive, low cost of living, low electrical costs, low natural gas costs, abundant supply of good quality water
ad waste water, good airport access, excellent and safe quality of life, quality health care, and the nearness of major cities such as
Minneapolis/Saint Paul and Rochester.
Source: www.fairmont.org
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1215 N STATE STREET, FAIRMONT, MN
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1215 N STATE STREET, FAIRMONT, MN
DEMOGRAPHICS
Radius
2014 Est. Population:
2019 Proj.
Population:
2010 Census:
2014 Est. Avg.
Household Income
1 mile
3 mile
5 mile
2,968
2,956
9,344
9,308
11,449
11,410
3,003
9,455
11,581
$43,170
$52,376
$56,028
Source: Claritas
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1215 N STATE STREET, FAIRMONT, MN
AREA MAP
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1215 N STATE STREET, FAIRMONT, MN
BUILDING SUBDIVISION POSSIBILITIES
An area architect has some ideas of possible layouts for renovating the property. Here are a few of their ideas.
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1215 N STATE STREET, FAIRMONT, MN
MAJOR INTERSTATE INTERCHANGE
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Capital Markets l Investment Properties – Net Lease
For more information, please contact:
Gregory M. Dalton
+1 916 781 4816
[email protected]
Pam Willetts
+1 916 781 4831
[email protected]
Matt Friday
+1 612 336 4209
[email protected]
Eric Sheaffer
+1 612 336 4251
[email protected]
CBRE, Inc.
1512 Eureka Road, Suite 100
Roseville, CA 95661
CBRE, Inc.
81 South 9th Street, Suite 400
Minneapolis, MN 55402
For more information on 1215 N. State Street, visit:
www.cbre.com/inv-sac-netlease
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