Mayowood Commons | New NNN Leases
793 16th Street SW Rochester, MN 55902
Price: $6,000,000
Status: Sold
Cap Rate: 5.40%
Year Built: 2018
NOI: $324,080
Lot Size: 2.07 acres
Price Per Foot: $560
Lease Type: NNN
Remaining Term: Various
GLA: 10710 sqft
Property Intro
Lee & Associates is pleased to exclusively offer for sale to qualified investors, the opportunity to purchase the Mayowood Commons, a multi-tenant retail shopping center located in Rochester, MN (the “Property”). The subject property is located approximately 90 miles southeast of Minneapolis-Saint Paul.
Mayowood Commons is fully leased to an attractive mix of national and regional credit tenants including Buffalo Wild Wings, Associated Bank, and First Meeting Noodle. The current rent roll ideally provides for both staggered lease expirations and steady rent growth. Strategically located at the hard corner signalized intersection of 16th St SW & Mayowood Commons Dr, the center benefits from visibility to 31,000 cars per day. It is situated 1/2 mile from the on/off ramp to Hwy 52 (21,350 CPD), offering quick access to Downtown Rochester and north to Minneapolis-St Paul.
investment highlights
- 100% LEASED MULTI-TENANT RETAIL CENTER – STRONG MIX OF NATIONAL/REGIONAL RETAILERS – END CAP DRIVE-THRU LANE & OUTDOOR PATIO SEATING – NEW CONSTRUCTION
- Mayowood Commons is 100% leased to an attractive mix of national and regional tenants including Buffalo Wild Wings, Associated Bank, and First Meeting Noodle. The property was built in 2018 and consists of a 10,710-square-foot retail building that sits on an approximately 2.07-acre parcel. The east end of the property features a drive-thru lane for the Associated Bank space and the Buffalo Wild Wings end-cap benefits from an outdoor patio area for additional seating.
- MANAGEMENT FEES 100% PASS THROUGH TO TENANTS – NEWER NNN LEASES – STAGGERED LEASE EXPIRATIONS – STRONG RENT GROWTH
- The current rent roll ideally provides for both staggered lease expirations and steady rent growth. The Associated Bank lease features 2% annual rent increases and First Meeting Noodle’s lease featured an annual rent increase of $1.00/sf/year. The Buffalo Wild Wings lease features a 10% increase in Year 8 of the lease. Additionally, the leases allow for 100% pass-through of management fees or administrative costs to all three tenants.
- SITUATED AT THE ENTRANCE TO RED44 APARTMENT COMPLEX (159 UNITS) & HOME2SUITES BY HILTON HOTEL (103 ROOMS) – ACROSS FROM 141-UNIT SENIOR LIVING COMMUNITY – BLOCKS FROM THE APACHE MALL – STRONG DRAW TO THE TRADE AREA
- Mayowood Commons is located at the entrance to Red44, a 159-unit furnished apartment complex, and the Home2Suites by Hilton hotel (103 rooms). It is across from The Waters on Mayowood, a 5-story luxury senior living community with 141 units that focuses on a variety of programs that nurture the wellbeing of its residents and promotes an active lifestyle. Additionally, the center is located near the Apache Mall, a 782,318-square-foot super-regional shopping center anchored by Macy’s and Scheels, with other national retailers American Eagle Outfitters, Barnes & Noble, lululemon athletica, H&M, and Bath & Body Works. These surrounding tenants provide a strong draw to the immediate area, supporting the tenants’ success.
- PROXIMITY TO MAYO CLINIC FACILITIES – SHUTTLE SERVICES PROVIDED BY ADJACENT HOTEL/APARTMENTS – AFFLUENT DEMOGRAPHICS
- The property is located just 3 miles from Mayo Clinic Hospitals including the Saint Mary’s Campus, with 1265 beds & 70 operating rooms and the Methodist Campus, which features 794 beds and 37 operating rooms. The adjacent Red44 Apartments and Home2Suites offer shuttle services to these and many other facilities. The site offers outstanding surrounding demographics, with over 105,000 people living withiin a 5-mile radius of the subject property with an average household income over $102,000. lending well to the center’s success.
- HARD CORNER SIGNALIZED LOCATION AT INTERSECTION OF 16TH ST SW & MAYOWOOD COMMONS (31,000+ CPD) – EXCELLENT VISIBILITY & SIGNAGE – QUICK ACCESS TO HWY 52 (21,350 CPD)
- Strategically located at the hard corner signalized intersection of 16th St SW & Mayowood Commons Dr, the center benefits from visibility to 31,000 cars per day. It is situated 1/2 mile from the on/off ramp to Hwy 52 (21,350 CPD), offering quick access to Downtown Rochester and north to Minneapolis-St Paul.
- LOCATED IN ROCHESTER: 3RD-LARGEST CITY IN MINNESOTA – ONE OF THE BEST CITIES TO LIVE IN THE U.S. – HOME OF THE WORLD RENOWNED MAYO CLINIC, CONSISTENTLY RATED #1 HOSPITAL IN THE COUNTRY
- Mayowood Commons is located in Rochester, the third-largest city in Minnesota after Minneapolis-St Paul with an estimated population of nearly 120,000 people. Rochester is consistently rated one of the best cities to live in the U.S. (U.S. News & World Report), with an excellent quality of life, plentiful outdoor recreation opportunities, scenic beauty, and abundant dining, shopping and entertainment options. Rochester is home of the Mayo Clinic, a nonprofit academic medical center focused on integrated health care, education, and research that is consistently rated the #1 hospital in the U.S. As one of the largest employers, the Mayo Clinic is the core of Rochester’s economy, employing 34,000 people and making an economic impact of $9.8 billion.
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