Les Schwab - Otsego, MN SWC of 87th St and Parrish ave 10,638 SF Retail Building Otsego, MN 55330 $2,524,000 ($237.26/SF) 5.15% Cap Rate
INVESTMENT HIGHLIGHTS
- Les Schwab signed a 20-year ground lease, which commences in March 2025
- The pad will be delivered in early 2025 and Les Schwab will construct a brand-new building
- Les Schwab is the 4th largest independent tire dealer in the country and has over 500+ locations nationwide
- The property shares an intersection with Target and a newly-developed Aldi
- The lease features a corporate guarantee and landlord-friendly assignment language
EXECUTIVE SUMMARY
Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in Les Schwab located on the southwest corner of 87th St and Parrish Ave in Otsego, MN, within the Twin Cities MSA. The single tenant asset is secured by a corporate guarantee on a 20-year ground lease, which leaves no responsibilities for the landlord. The ground lease commences in March of 2025, and Les Schwab will be constructing the building according to their specifications.
Les Schwab is the 4th largest independent tire dealer in the country and has a nationwide presence with their 500+ locations, providing a strong credit case to the investment. The 2.26 acre site is strategically situated on the signalized intersection of 87th St and Parrish Ave. This intersection is shared by Target and a newly-developed Aldi, which both drive heavy traffic to the area. The site also benefits from its proximity to MN-101, which is the primary thoroughfare serving Otsego and carries approximately 52,000 VPD. Within a three-mile radius, the average household income is higher than the national average, and in the last five years the population has grown at a rate higher than the national average.
Please see OM for more information.
Les Schwab is the 4th largest independent tire dealer in the country and has a nationwide presence with their 500+ locations, providing a strong credit case to the investment. The 2.26 acre site is strategically situated on the signalized intersection of 87th St and Parrish Ave. This intersection is shared by Target and a newly-developed Aldi, which both drive heavy traffic to the area. The site also benefits from its proximity to MN-101, which is the primary thoroughfare serving Otsego and carries approximately 52,000 VPD. Within a three-mile radius, the average household income is higher than the national average, and in the last five years the population has grown at a rate higher than the national average.
Please see OM for more information.
DATA ROOM Click Here to Access
- Offering Memorandum
PROPERTY FACTS
Sale Type
Investment NNN
Property Type
Retail
Property Subtype
Building Size
10,638 SF
Building Class
C
Year Built
2025
Construction Status
Proposed
Price
$2,524,000
Price Per SF
$237.26
Cap Rate
5.15%
NOI
$130,000
Tenancy
Single
Building Height
1 Story
Building FAR
0.11
Lot Size
2.26 AC
NEARBY MAJOR RETAILERS
PROPERTY TAXES
| Parcel Number | 118-360-027010 | Improvements Assessment | $0 |
| Land Assessment | $922,100 | Total Assessment | $922,100 |
