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INVESTMENT HIGHLIGHTS
Two Long-term Tenants
Arkray has occupied the Property for nearly three decades and is committed to investing $2.9 million on improvements to their space. Not long ago, BARR completed the transformation of a standard industrial space to modern lab, testing, office and equipment outfitting facility located just 1.2 miles from their headquarters.
Location
Located in one of the Twin Cities premier industrial parks, the Property is situated in an irreplaceable location with significant barriers to entry. The easy access and urban in-fill location offers great convenience to Arkray’s employees and customers as well as BARR’s engineers and scientists as they routinely visit metro area projects.
Significant Capital Improvements
The recently announced $3.7 million Arkray improvements are in addition to the custom improvements of over $600,000 made by BARR.
Build-to-Suit Tested
Prior to Arkray’s recent renewal and expansion they completed a “Build-to-Suit” analysis for a new location throughout the Twin Cities metropolitan area. They concluded that the expense to relocate and rebuild their vast improvements were too expensive, and would result in an inferior location.
Below Market Rents
Both Arkray and BARR enjoy a net rent structure significantly below what similar space in the Edina market would command for similarly improved space.
Below Replacement Cost
As demonstrated by Arkray’s recently completed build-to-suit exercise, the Edina V property and the tenant improvements would be significantly more expensive to replicate than the asking price.
Steady Cash Flow / Increasing Revenue
Each tenant has annual rent increases. BARR’s option term includes 3% annual increases.
No Debt
The Property is being delivered free and clear of existing debt, allowing investors to size their loan to fit their need and take advantage of historically low interest rates.
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