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F O R S A L E
QDOBA MEXICAN EATS9 5 0 F R O N T E N A C D R I V E • W I N O N A , M N 5 5 9 8 7
Affiliated Business Disclosure
CBRE, Inc. operates within a global family of companies with many subsidiaries and 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, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
Confidentiality Agreement
Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
Disclaimer
This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the
Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.
The Owner expressly reserves 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 at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.
Copyright Notice
© 2019 CBRE, Inc. All Rights Reserved.
I N V E S T M E N T S U M M A R YQDOBA | WINONA, MN
PRICE
$1,430,0006.25% CAP Rate
ADDRESS950 Frontenac DriveWinona, MN 55987
APN32-511-0020
NET OPERATING INCOME$89,375
BUILDING SIZE2,750 SF
NUMBER OF BUILDINGSOne
YEAR BUILT2019
TYPE OF OWNERSHIPFee Simple
SUMMARY
Outlot to Major Retailers Situated in Winona’s Most Prominent Retail Development Among Major Anchors Including: Walmart, Menard’s, Target, and Fleet Farm.
Internet-Resistant Retailer Dining experiences such as Qdoba are internet-resistant, requiring patrons to visit in person.
Low Vacancy Area There is over 700,000 square feet of retail space with only four other small-shop multi-tenant centers in the immediate are. There are no vacancies currently available in any of the properties.
Ease of Access Easy Access from Mankato Avenue & Highway 61, Carrying 22,400 and 20,200 Vehicles Per Day Respectively.
Proximity to Major University Campuses Winona Has Several Universities Including Winona State University and Saint Mary’s University, Collectively Enrolling Approximately 15,000 Students.
Strong Local Trade Area Immediate Trade Area Includes Winona Health Hospital & Clinic, a “Top 100 US Rural & Community Hospital” For Three Consecutive Years. The Chartis Group, LLC, www.ivantageindex.com, 2019
Fastenal Headquarters Winona is Home to Corporate Headquarters of Fastenal, a Publicly Traded Company with 2,200 Locations and Over 20,000 Total Employees.
T E N A N T S U M M A R YQDOBA | WINONA, MN
TENANT SUMMARY - QDOBA*Official Name, if applicable CMP Foods, Inc.
Lease Commencement 1/1/2020
Lease Expiration 1/30/2030
Lease Expiration with Options Exercised 1/30/2050
Gross Leasable Area (SF) 2,750
Term years Remaining 10
Renewal Options 4- 5 Year
Guarantor Mark Miller
Headquartered (Franchisee) Austin, MN
Years in the Business 24
Website www.qdoba.com
* Tenant has termination option at the end of the 7th year with 12 months notice.*If tenant exercises termination option, the are responsible for unamortized tenant improvement and leasing commission costs.
QDOBA MEXICAN EATS
A chain of fast casual restaurants in the US and Canada serving Mexican-
style food, the company was a wholly owned subsidiary of Jack in the
Box before being sold to Apollo Global Management (“APO”, NYSE)
in 2018. As of March 2018, Apollo managed over $247 billion of investor
commitments, making it the second-largest US-based alternative asset
management firm.
Today there are over 700 Qdoba locations in the United States in 46 states.
PROPERTY EXPENSE RESPONSIBILITIESTaxes Tenant responsible for proportionate share.
Insurance Tenant responsible for proportionate share.
CAM Tenant responsible for proportionate share.
Roof/Structure Tenant to reimburse proportionate share for repairs through CAM.
HVAC Tenant responsible for maintenance.
Utilities Tenant responsible and pays direct.
Management/Admin Fee shall not exceed 10% of CAM, exclusive of taxes. No additional reimbursement.
Capital Expenditures Landlord responsible
Other Tenant is responsible to report gross sales - 14 days within previous year.
RENT SCHEDULERent Start Rent End Annual Rent Per SF
Current 1/1/2020 12/31/2024 $89,375 $32.50
1/1/2025 12/31/2029 $93,500 $34.00
Option 1 1/1/2030 12/31/2024 $97,625 $35.50
Option 2 1/1/2035 12/31/2039 $104,500 $38.00
Option 3 1/1/2040 12/31/2044 $114,125 $41.50
Option 4 1/1/2045 12/31/2049 $123,750 $45.00
P R O P E R T Y P H O T OQDOBA | WINONA, MN
E X C E L L E N T O U T PA R C E L L O C AT I O NQDOBA | WINONA, MN
M A R K E T S U M M A R YQDOBA | WINONA, MN
LOCAL, REGIONAL HUB IN PICTURESQUE BLUFFS
The county seat of Winona County, Winona, Minnesota, enjoys pastoral settings on the shores of the Mississippi River in the southeast corner of the state. The city is home to a well-diversified set of company headquarters, including Watkins Corporation, Fastenal, Badger Equipment Company, and Thern Inc. In 2017 Winona was the 34th largest city in the state.
Winona is also home to a substantial number of college students attending one of the several universities within city limits, including Winona State University (9,990 students enrolled) and Saint Mary’s University (5,900 students enrolled).
TOP EMPLOYING INDUSTRIES [2018 Labor Market Area, PortofWinona.com]
Education and Health Services (33,499 Jobs)Trade, Transportation and Utilities (Private-Sector) (25,014 Jobs)Manufacturing (21,558 Jobs)Leisure and Hospitality (12,493 Jobs)
D E M O G R A P H I C SQDOBA | WINONA, MN
1 Mile 3 Miles 5 MilesPOPULATION
2019 Population - Estimate 5,315 21,507 32,001
2024 Population - Five Year Projection 5,431 21,732 32,340
2019-2024 Annual Population Growth Rate Projection 0.43% 0.21% 0.21%
GENERATIONS
Generation Z (Born 1999-2016) 20.1% 26.5% 26.6%
Millennials (Born 1981-1998) 29.9% 31.3% 28.3%
Generation X (Born 1965-1980) 16.7% 13.8% 14.6%
Baby Boomers (Born 1946-1964) 20.7% 18.3% 19.6%
HOUSEHOLD INCOME
2019 Average Household Income $55,675 $60,719 $65,642
2024 Average Household Income $62,304 $67,315 $72,751
EDUCATION
High School Diploma 23.0% 21.4% 21.1%
Some College - No Degree 27.6% 23.0% 22.4%
Associate`s Degree 8.3% 9.6% 11.1%
Bachelor`s Degree 16.9% 21.4% 21.2%
Graduate or Professional Degree 9.9% 13.5% 13.4%
EMPLOYMENT
2019 Employed Civilian Population (16+) 93.7% 93.7% 94.6%
2019 Unemployed Population (16+) 6.3% 6.3% 5.4%
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© 2018 Google
© 2018 Google
© 2018 Google
D E M O G R A P H I C SQDOBA | WINONA, MN
20,200 VEHICLES
22,4
00 V
EHIC
LES
M
AN
KATO
AVE
9,000 VEHICLES
ACE SELF STORAGE
L O C A L T R A D E A R E AQDOBA | WINONA, MN
C O N S U M E R B A S E - 5 M I L E R A D I U SQDOBA | WINONA, MN
DOMINANT TAPESTRY SEGMENT DOMINANT LIFEMODE GROUP
DOMINANT URBANIZATION GROUP
OTHER TOP SEGMENTS
21.0% 30.2%
16.0% 11.1%
84.8%
• Many live alone but preserve close connections with their family
• Conscious of their image and seek to bolster their status with latest fashions
• Tapped into popular music and the local music scene
• Prefer name brands but will buy generic when it’s a better deal
• Quick meals on the run are a reality of life
• GenX in middle age; families with fewer kids and a mortgage• Own older single-family homes, with 1 or 2 vehicles• Live and work in the same county• Invest wisely, well-insured, comfortable banking online or in person
• Affluent, family-oriented market with country flavor• Partial to new housing away from the bustle of the city but close
enough to commute to professional job centers• Favor time-saving devices, like banking online or housekeeping• Family-oriented purchases and activities dominate
• Enrolled in college while the rest work for a college or the services that support it
• Students with busy schedules, but make time between studying and part-time jobs for socializing sports
• Heavily influenced by celebrity endorsements and trends in magazines• They feel anything that can be done online is easier in person
• Affordable city life including smaller metropolitan cities or satellite cities with mix of single-family and multiunit housing
• Consumers include college student, affluent GenX couples, and retirement communities
• Residents share an interest in city life and its amenities
SET TO IMPRESSGENXURBAN
METRO CITIES
IN STYLE COLLEGE TOWNS
C O N TA C T U S
SEAN DOYLEFirst Vice President
+1 612 336 [email protected]
Lic. 20588764
MATT HAZELTONFirst Vice President
+1 612 336 [email protected]
Lic. 40449423
AJ PRINSFirst Vice President
+1 612 336 [email protected]
Lic. 20395954
CORY VILLAUMEFirst Vice President
+1 612 336 [email protected]
Lic. 20591922
© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.
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