Real Estate Services Commercial Office Space for Lease 6636 Cedar Ave S, Richfield MN 55423 Trust. Value. Results. Contact Ross Malinski, Broker/Owner 612.619.2200 ross@guardiancompanies.com www.guardiancompanies.com
Table of Contents 3... Property Summary 5... Location Maps 7... Surrounding Area 9... Richfield Revitalization 10... Business Market Overview 12... General Market Overview 14... Additional Site Views Real Estate Services 6636 Cedar Ave S, Suite 180 Minneapolis, MN 55423 Office 612.455.4000 Cell 612.619.2200 Fax 612.455.4001 ross@guardiancompanies.com www.guardiancompanies.com DISCLAIMER While the information contained herein is from sources deemed reliable, it has not been independently verified. We use information provided by organizations and agencies which track market data, and therefore, make no representation with respect to the information. The projections contained within this document represent best estimates based on assumptions considered reasonable to the circumstances at the time of publication. No representations or warranties, expressed or implied, are made that actual results will confirm to such projections. The advisors or Owner or any of their affiliates reserve the right to reject any or all proposals or expressions of interest in the subject property at their discretion, and to terminate discussions with prospects at any time with or without notice.
Property Summary Location Southwest corner of Cedar Avenue and 66th Street Address 6636 Cedar Avenue S, Richfield, MN 55423 Property Size 84,070 SF Gross Building Area 63,470 SF Office Area 20,600 SF Warehouse Area 4-Story Building approximately 21,000 SF per floor Year Built 1988 Parking Land Size Zoning Property Highlights 3-Level Concrete Parking Structure with 379 Parking Spaces All levels have direct access to building Lowest and Middle levels have fire prevention sprinkler systems Lowest level underground with electronically controlled access doors 171,275 SF 2.784 Acres Planned General Commercial PC2 Prominent, highly visible Cedar Avenue location just north of Mall of America Easy freeway access, including interstates 494 and 35W 10 minutes from MSP airport 10 minutes from downtown Minneapolis Several Metro Transit stops within minutes of property Located in the hub of Cedar Ave Corridor Redevelopment in Richfield Both commercial and warehouse space available, with warehouse loading facilities Light-filled entry with beautiful water fountain and common areas Mature, tastefully designed and professionally maintained landscaping with sprinkler systems Fully landscaped and in excellent condition with attractive, modern appearance Accent exterior lighting highlights features of the front of the building. (Continued on next page) 3
Property Summary (Continued from previous page) Warehouse Features Utilities Telecommunications Heat and Air Conditioning Safety & Welfare Fire Prevention Two dock-high bays and one drive-in bay Trash compaction unit in third dock-high bay 20-foot ceilings Climate controlled with fire prevention sprinklers Electrical: Xcel Energy, 1600 amp 3-phase power distributed to all floors Back-up Generator: Ziegler Cat 400kVA self-contained power generator, new in 1998 Qwest phone lines, SONET dual fiber data and voice connections Multiple gas-fired boilers and rooftop chillers serve the building; Zoned heat exchange units throughout all floors Elevators: Two Otis elevators serve all floors, with dual doors providing front and rear access to first floor and warehouse Fire escape routes and alarm system conform to applicable local codes, all floors and warehouse are fully equipped with monitored sprinkler system PID 26-028-24-41-0063 Offerings Available space for lease PRICING AVAILABLE UPON REQUEST 4
Location Maps 5
Location Maps 6
Surrounding Area Chipotle Caribou Coffee Verizon Super Target Home Depot TCF Bank Redevelopment Multi-Family Subject Property 66th Street Cedar Ave Redevelopment Commercial 7
Surrounding Area I-35W Hwy 62/Crosstown Downtown Minneapolis 55 Hiawatha Avenue Subject Property MSP Airport Cedar Ave Interstate 494 Mall of America 8
Richfield Revitalization As existing commercial space, the 6636 Cedar Ave S building is considered an important stakeholder in the revitalization of the City of Richfield. New expansion at the Minneapolis/St Paul airport prompted the city to move its concept from primarily single family homes to a combination of single family and multi-family housing, retail and commercial expansion. 6636 Cedar Ave S is in the hub of this redevelopment. 66th and Cedar Avenues become the gateway into the City of Richfield. The master plan proposed a corridor combining a welcoming, active atmosphere enhanced by places to meet other people and socialize a place that is uniquely Richfield. When residents and visitors enter the city through this eastern gateway, they ll see new lighting, building fronting the street, introduction of retailers such as Target and Home Depot, and pedestrian walkways leading to park, recreation, housing, offices and schools. The 6636 Cedar Ave S property sits at the portal to this newly energized city. For more information about Richfield s redevelopment plans visit the Community Development page at www.ci.richfield.mn.us. 9
Business Market Overview Industry and Commerce More than 90 percent of the primary U.S. industries are represented in the state of Minnesota, making it no surprise that Goldman Sachs calls the state one of the most economically diverse in America. Minnesota s companies, from food manufacturers to medical device companies and financial service firms, are represented on the Fortune 500 list, and are recognized worldwide. Minnesota s strong economy makes it an ideal place to start and expand a business. Fifteen Minnesota industries with at least 3,000 employees grew over 82 percent between 1990 and 1999. According to the Development Report Card for the States 2001, a publication that provides an assessment of each state s economy and projected growth, Minnesota ranks among only 10 other states with the highest indexes in performance, business development and capacity. The Report Card indexes are based on entrepreneurial energy, structural diversity and infrastructure resources among other factors. The fastest growing industries between 1990-1999 include: misc. fabricated textiles & communications equipment (manufacturing) and computer and data processing, medical service and health insurance (service). The service sector experienced 2,444 net new businesses between 4th quarter 1998 and 4th quarter 1999. This represents the largest number, and the largest share (57%) of new businesses of the other sectors. In addition, ADC Telecommunications, Best Buy, American Express, U.S. Bancorp, Medtronic and Avalon Group all announced expansion plans in 2001. According to Inc. (Dec. 2000), the Twin Cities ranked 15th among the best large metro areas in the country to start and grow a company. Minnesota has a variety of sources for venture capital to support these new and growing businesses. The state ranked 12th in the country in concentrations of commerical and industrial loans in 2000, and Minnesota received the most venture capital investment per capita in 2002. Some of the largest industrial corporations headquartered in Minnesota include General Mills, 3M Company, and Medtronic. In fact, Minnesota ranks 4th in the nation in the number of Fortune 500 company headquarters per capita. Job Growth and Labor Force Minnesota and the Twin Cities area have a growing job market and a labor pool with a strong work ethic both of which are essential for a business s success. The business services sector displayed the strongest growth among employers in Minnesota. Approximately 39,000 jobs were added to the finance, insurance and real estate industries between 1999-2000. These new jobs accounted for a 31.9 percent increase in the business services sector, substantially higher than the 12.7 percent increase nationally. (Continued on next page) 10
Business Market Overview (Continued from previous page) Private employers in Minnesota s high tech industries added over 34,000 jobs from 1999 to 2000. This 21.9 percent increase for the sector also out paced the national average growth rate of 8.6 percent. The Twin Cities ranks 10th among U.S. metropolitan areas for the number of high tech jobs. The number of people projected to be employed in Minnesota overall is expected to reach 3.2 million by 2008 a 15.7 percent increase from 1998. With lower than average unemployment, Minnesota s labor force had the highest participation rate in the country at 75.1 percent. Infrastructure Expansion Management ranked the Twin Cities 9th in a comparison of infrastructure for manufacturing and distribution among other major U.S. metropolitan areas. The ranking is based on such critical factors as water ports, road congestion, truck safety and interstate highway access. For all customer classes, average electricity prices are lower than the national average. Average gas prices are lower for residential and commerical users. Minneapolis/St. Paul is in the forefront of the growing telecommunications industry. The Twin Cities ranked 15th among cities offering high-speed Wi-Fi wireless Internet connections on Intel s 2004 survey of the nation s most unwired places. Area Commerical Market The Twin Cities area s vacancy rates were below average compared to other major markets at 5.2% in Central Business Districts, and 5.8 percent in Suburban markets according to 2001 Comparative Statistics of Industrial and Office Real Estate Markets published by the Society of Industrial and Office Realtors. Gross rental rates of Class A office space in the Twin Cities are competitive with other North American metropolitan areas in both Central Business Districts and Suburban markets. In the second quarter of 2001, 2.7 million square feet of office space was under construction in the Twin Cities with an additional 3.4 million square feet planned. 4.6 million square feet was proposed or under construction in between 2001-2002. Sources 1. Compare Minnesota, Minnesota Department of Employment and Economic Development, June 2003. 2. Why Minnesota - 10 Good Reasons, Minnesota Department of Employment and Economic Development, October 2004 11
General Market Overview Demographics Businesses in Minnesota benefit from steady demographic growth, leading to a larger, more diverse, labor pool. Minnesota has the fastest growing population in the Midwest and is projected to grow at a faster rate than most other Midwestern states. Minneapolis/St. Paul is the largest metropolitan area in Minnesota with 11 counties and over 2.9 million people. Experiencing a net gain of almost 400,000 residents between 1990-1999, Minnesota s population saw a significant boost, bringing it to 4.7 million in 1999. By 2015, the state s population is expected to grow by 360,000 people, bringing the state s total to 5.3 million. The median age of Minnesota residents, at 35.4 years, is about the same as the rest of the Midwest and the nation. The population is diverse, and becoming more so according to census data. In 2000, 11.8 percent of Minnesotans described themselves as non-white. This is up from 6.3 percent in 1990 and reflects high birth rates among minority groups, and immigration from other states and countries. Income Levels Minnesota s personal and disposable income, per capita and per household, are very strong against national benchmarks. Minnesota s personal per capita income of $33,101 ranked 1st in the Midwest and 9th nationally in 2001. Median household income in Minnesota exceeded the U.S. median by more than $10,000, placing the state 1st in the Midwest and 4th in the U.S. Disposable household income in Minnesota tells a similar story. At $42,245, Minnesota exceeded the national median of $38,365. Between 1991-2001, Minnesota s per capita disposable income increased almost 58%, ranking 3rd nationally and 1st in the Midwest. The Twin Cites metro area s median disposable income of $49,330 ranked 4th among the 20 largest U.S. metropolitan areas. Education Education is a priority in Minnesota, which can be seen in many key measures. Over 90 percent of the state s residents are within half an hour of a post secondary institution. The U.S. Bureau of the Census ranked Minnesota 7th highest in the state in 2002 for percentage of the population with Bachelor s degrees. In addition, the Department of Education has designated 81 Minnesota schools as centers of educational excellence since 1982. Access to such high quality education shows in Minnesota s workforce. Graduates of the University of Minnesota s Institute of Technology founded over 1,000 companies, including Medtronic, TSI, Control Data and Cray Research. (Continued on next page) 12
General Market Overview (Continued from previous page) The Twin Cities ranks 10th as the most competitive knowledge region based on factors like the number of patents, number of managers as a percentage of the total population, and per capita spending on education. Since patents serve as an indicator of the available talent and commitment to research in the state, it s important to note in 2000 Minnesota ranked 4th in the country in the average annual number of U.S. patents issued per 10,000 people. Quality of Life The State of Minnesota is known not only for its natural beauty and tourism, but also for the quality of life residents enjoy in the Land of 10,000 Lakes. Minnesota strives to embody its motto Minnesota: a Great Place to Live, Visit, and Do Business, by nurturing a supportive atmosphere for technology, industry and a variety of other businesses. A thriving cultural and recreation center, the Twin Cities of Minneapolis and St. Paul are known for distinctive shopping areas, ethnic restaurants, bustling professional sectors and reknowned theatrical, musical and dance institutions. In fact, for seven consecutive years, Morgan Quinto s Press has named Minnesota Most Livable State. Kid Friendly Cities, 2004, ranks Minneapolis as the 5th friendliest city in the U.S. Minnesota touts a strong health care system, low crime rates, high home ownership and access to over 244,000 acres of state parks. In 2002, Morgan Quinto Press named Minnesota the second healthiest state in the U.S. Minnesota s crime rate is 55% lower than the national average, and 76 percent of households own their home placing Minnesota 4th in the country in home ownership. Twin Cities entertainment opportunities include the Minnesota Orchestra, Guthrie Theater, Mall of America, college and pro sports, and much more. Places Rate Almanac ranked Minneapolis/St. Paul 9th among U.S and Canadian metropolitan areas based on attraction and art scores. Comfortable suburbs are a short distance of Minneapolis. The Western Metro Area or Western Suburbs offers a blend of urban, pastoral and natural settings, all just minutes from each other. The numerous communities in the Western Suburbs are known for having great schools and a wide range of home styles in cities like Bloomington, Chanhassen, Chaska, Eden Prairie, Golden Valley, Hopkins, Plymouth, Richfield, St. Louis Park, and many others. Sources 1. Compare Minnesota, Minnesota Department of Employment and Economic Development, June 2003. 2. Why Minnesota - 10 Good Reasons, Minnesota Department of Employment and Economic Development, October 2004 3. Twin Cities Living, Twin Cities Area Living Information Guide 13
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