A 339-Unit Value-Add Multifamily Investment

NICOLLET RIDGE
A 339-Unit Value-Add Multifamily Investment Opportunity in Burnsville, Minnesota
LOCATION
THE BEST IN BURNSVILLE
VALUE-ADD
Conveniently located immediately north
of the I-35E & I-35W split in Burnsville
adjacent to Fairview Ridges Hospital,
Burnsville Center regional mall, numerous
medical clinics, and abundant retail.
Nicollet Ridge offers in-unit washer/dryer,
elevators, and underground parking in the
Apple Valley School District.
Nicollet Ridge can be the premier
property in the Dakota County submarket
after re-introducing market-leading
amenities. Upgrades to unit interiors
would further differentiate the Property.
/ Cou
nty
Kmart
Eaga
n Dr
Costco
Burnsville
Fire Dept
Walgreen’s
US Bank
>1.1
>
1.1M SF OF RETAIL
Burnsville
Sports
p
Authority
y
35W
Kohls
Target
SPACE AND
OVER 120 STORES
Nicollet
Midas
apartments
Coldwell
Banker
35W
Home Depot
Fairview
Burnsville
Medical Center
Metro Dental
Care
Rd
/C
Ridgepoint
Medical
Building
s
ew
dr
An
Mc
Cobblestone
Court
R
nty
ou
Nicollet Ave
8
d3
Fairview Drive
Ni
Park Nicollet Clinic
Clinic
co
tB
lle
Child Development
& Learning Center
lvd
Under Construction
133,000 SF Specialty-Care
Center
Fairview Ridges
Hospital & Clinic
150 Beds
1,200 Employees
Ebenezer Ridges
Care Center
Moran & Company is pleased to present Nicollet Ridge, a 339-unit apartment community in Burnsville, Minnesota, in the Dakota County
submarket of suburban Minneapolis-St. Paul. This premier value-add candidate presents an immediate opportunity to reposition the
Property through the creation of a new marketing window by moving the leasing office to the clubhouse and renovating prime unfinished
amenity space. Upgrades to unit interiors would further differentiate Nicollet Ridge from all other competitors.
Nicollet Ridge should have the highest rents in the market because it features best-in-class unit amenities such as in-unit washer/dryers,
elevators, heated underground parking, abundant storage, large balconies, and 3rd floor vaulted ceilings. It also has the potential for best
-in-class common area amenities with its large stand-alone clubhouse with outdoor swimming pool, sundeck and fitness center. Adjacent
to a fast growing medical campus anchored by a hospital system nationally ranked in the top 10, the Property has very recently begun
a dramatic repositioning after current ownership spent over $2 million in capital expenditures. Major capital projects include new siding,
new HVAC units, new balcony railings, fully renovated interior hallways, and new roofs. The exceptional location also provides most
convenient access to abundant retail, Interstates 35W and 35E and the highly ranked Apple Valley School District.
PROPERTY SUMMARY
UNIT MIX
Location
Unit
Type
51 McAndrews Rd W
Burnsville, Minnesota 55337
County
Submarket
Site Size
Year Built
Buildings
Stories
Dakota
Dakota County
26.49 acres
1988
5 Residential + 1 Clubhouse
Three-Story
Unit Count
Average Unit Size (SF)
Total Property Size (SF)
Occupancy (July 2013)
319 (0.94 per unit)
318 (0.94 per unit)
637 (1.88 per unit)
Nicollet
apartments
Parking - Garage
Parking - Surface
Parking - Total
339
982
332,999
99%
STUDIO
COMMON AREA AMENITIES
#
Units
Unit
SF
Total
SF
%
Total
15
664
9,960
4%
1BD/1BA
112
771
86,406
33%
2BD/1BA
12
998
11,976
4%
2BD/2BA
170
1,087
184,817
50%
3BD/2BA
30
1,328
39,840
9%
Totals/Avg.
339
982
332,999 100%
•
•
•
•
•
•
•
•
Clubhouse with Great Room & Kitchen
Fitness Center
Sauna
Outdoor Swimming Pool and Sundeck
Heated Underground Parking
Elevators
Wooded Site
Two Natural Ponds
UNIT AMENITIES
•
•
•
•
•
•
•
•
•
In-Unit Washer/Dryer (Except Studio Units)
Large Balcony*
Central Heat & Air Conditioning
Balcony Storage Units*
Walk-in Closets*
Fireplaces*
Vaulted Ceilings on 3rd Floor
Generous Use of Bay Windows
2BD Deluxe & 3BD Units Feature Two Balconies
* Select Units
Hall
Sky Oaks
Elementary
apartments
Nicollet
Nicollet Jr HS
Burnsville
38
McAndrews Rd / County Rd
Metro Dental
Care
Cobblestone
Court
ive
Dr
Nicollet Blvd
Burnsville
Medical Center
Fairview
iew
Home Depot
Child Development
& Learning Center
irv
Fa
Nicollet Ave
35W
Ebenezer Ridges
Care Center
Park Nicollet Clinic
Clinic
Fairview Ridges
Hospital & Clinic
150 Beds
1,200 Employees
Ridgepoint
Medical Building
g
35E
Under Construction
133,000 SF Specialty-Care
Medical Office Building
THE OPPORTUNITY
Nicollet Ridge presents an opportunity to acquire one of the best-located apartment properties in the
affluent, fast-growing Dakota County submarket with a clear multi-faceted value-add strategy. The Property
offers strong competitive advantages in a market-leading location that offers convenient access to suburban
Minneapolis’s strongest job markets.
Property Performance Nicollet Ridge is 99% occupied as of July 2013 evidencing the appeal of the
Property and the excellent location. This performance has been achieved despite a substantially unfinished
clubhouse, leasing out of a reconfigured unit, a re-siding program, hallway renovations, balcony repairs
and roof replacements. In-place net effective rent of $0.98 PSF implies there is significant organic revenue
growth imbedded in the rent roll.
Walk to Medical Jobs The Property is adjacent and walkable to the Burnsville Medial Campus providing
a strong and expanding job base at Fairview Ridges Hospital, Park Nicollet Clinic, Gillette Children’s Clinic,
Ebenezer Ridges Campus for Senior Living, and many additional medical offices and dental clinics. Fairview
Ridges is currently building a new 133,000 SF Specialty Care Clinic for completion in mid-2014. This new
clinic is just the latest project in a series of expansion initiatives at the campus. In 2011, Fairview opened
a new and improved Fairview Ridges Breast Center and recently opened Arbors II at Ridges, a $12 million
assisted living community. Thomson Reuters identified Fairview Health Services as one of the top ten
health care systems in the United States and HealthGrades listed Fairview Ridges in Burnsville as “A
Distinguished Hospital for Clinical Excellence,” with a ranking in the top 5% of hospitals in the area.
Surrounded by Retail Jobs The Property is also minutes from Burnsville Center, a three-anchor, 1.1 million
SF enclosed regional shopping mall with over 120 shops, restaurants, a food court and 15-screen movie
theater. Additional surrounding retailers in this large retail hub serving the entire southern suburbs of the
Twin Cites include The Home Depot, Target, Costco, Kohl’s, HomeGoods, Petco, LA Fitness, Barnes & Noble,
Byerly’s, and many car dealerships. These retailers offer not only thousands of jobs but also provide
convenient lifestyle amenities.
KITCHE
KIT
CHE
C
CH
HEN
FIT
TN
NES
ES
SS CENTER
ER
Strongest Market Fundamentals Ever with Projections for Further Strengthening Market occupancy is
97.7% across the metro and 98.0% in the Dakota County submarket. Rents have increased by 3.6% over
the past 12 months and 10.6% since 1Q2010. REIS projects that annual net effective rent growth will be
4.3% and occupancy will average 97.4% for the Twin Cities market through 2017, above the long-term
market average annual rent growth rate of 4.0%.
Top National Demographics Minnesota had the 5th fastest growing economy in 2012, according to a
national report from the Bureau of Economic Analysis. Minnesota is also ranked as the second best area
for wage growth after adding 43,000 jobs over the past year and maintaining an unemployment rate
of less than 5%. The Minneapolis-St. Paul apartment market will continue to benefit from the strongest
demographics in the Midwest including the lowest unemployment rate (4.7%), highest area median income
($82,300), and most Fortune 500© companies per capita (18 total).
CL BHO
CLU
HO
H
OUSE
USE PO
US
OISE
SED FOR REP
POSI
OS
SIITIO
IO
ONIN
NING
G
MORAN & COMPANY
65
252
Maple Grove
94
169
HENNEPIN
Medina
494
Plymouth
Crystal
New Hope
Orono
8
Long Lake
12
Greenwood
St. Anthony
12
494
394
Edina
62
5
494
Eden
Prairie
3
19
FLYING CLOUD
AIRPORT
W
Landfall
West
St. Paul
Mendota Heights
Woodbury
494
61
South
St. Paul
Sunfish
Lake
494
10
52
Mendota
Newport
4
494
Inver Grove
Heights
77
35E
10
SOUTH ST. PAUL
AIRPORT
52
Cottag
61
St. Paul
Park
FORTUNE 500 COMPANY HEADQUARTERS
IN THE TWIN CITIES (2013)
Nicollet
SCOTT
Scale of Miles
CHICAGO
Richfield
MINNEAPOLIS/ST. PAUL
INTERNATIONAL
AIRPORT
Bloomington
169
12
3
35E
55
Chanhassen
2
35W
694
HOLMAN
FIELD
62
62
Oakdale
55
Lilydale
1
La
11
169
494
36
36
Maplewood
94
100
Hopkins
North St. Paul
St. Paul
Minneapolis
212
1
18
35E
35W
Shorewood
0
15
17
2 7 14
55
St. Louis
Park
7
Little Canada
Roseville
Birchwood Vill
Pine Springs
694
6
Lauderdale
Falcon Heights
Golden
Valley
394
Minnetonka
RAMSEY
94
Gem Lake
694
35W
4
DALLAS
Eagan
apartments
Deephaven
100
White Bear
Lake
Vadnais Heights
36
Medicine
55 Lake
Woodland
Columbia
Heights
35E
10
694
Hilltop
Robbinsdale
13
Wayzata
9
Brooklyn
Center
CRYSTAL
AIRPORT
New
Brighton
Fridley
694
1
2
3
4
5
6
75
85
6
9
7
10
DAKOTA
Burnsville
Savage
Apple Valley
United Health Group
Target Corporation
Best Buy
CHS
Supervalu
3M
U.S. Bancorp
General Mills
Medtronic
Land O’Lakes
Rosemount
5
DENVER
HOUSTON
THE INVITATION
Moran & Company invites you to explore this exciting investment
opportunity.
All prospective purchasers desiring complete sales
materials should sign the Confidentiality Agreement electronically
on the Property’s website or print and fax it to Pete Evans at (312)
407-6717. You will be given electronic access to the complete
sales package upon receipt of the executed agreement. A hard copy
of the Offering Memorandum can be mailed to you upon request.
Sales materials and due diligence materials will also be available
on the Moran & Company website (www.moranandco.com).
To
schedule a property tour, please call Pete Evans or Tom Moran.
No warranty or representation, expressed or implied, is made as to the accuracy or completeness of the information
contained herein. No legal obligation shall arise by reason of the distribution of this summary statement.
IRVINE
PHOENIX
MORAN
SEATTLE
& COMPANY
Peter W. Evans
Thomas F. Moran
Chicago Office:
One North Franklin, Suite 700, Chicago, IL 60606
Phone 312-407-6700 Fax 312-407-6717
www.moranandco.com
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17
12 St. Jude Medical
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WASHINGTON, D.C.