Agenda - Council - 04/11/2017 - Laserfiche WebLink

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• Along Highway 10, very few get full access. • He knew of the subject property and thought that the underlying land value would be in the $5.00 to $7.00 per SF range. • Broker 2— (Confidential) Comments: • Very active in the northern/northwestern Twin Cities market area. • Knew the subject property and has been inside of it in the past. • In order to convert the space to general retail, he estimated the following costs: o $6.00 to $10.00 per SF for interior demising of the existing retail/c-store space. o $20.00 to $25.00 per SF for remodeling of the car wash space, converting it to rentable retail space, considering the possibility for it to be either fully functional retail space or perhaps storage space for the retail units. o In addition, a landlord-paid tenant improvement allowance of $5.00 to $10.00 would be required, above and beyond the vanilla shell conversion, which would go toward minimal interior finish for the local-credit, low quality build out that would be anticipated (not a Starbuck's build-out requirement, or rent amount). o In a scenario with better access, rents could be high teen's to as high as $20 per SF. But as a result of the access issue at the subject,the rent would most likely be in the $10.00 to $12.00 per SF range on a net basis. • Market Participant 1—(Confidential) Comments: • Canopy and Tank Removal costs would likely be as low as $20,000, but no higher than $100,000 unless major environmental issues were identified. • Market Participant 2—(Confidential) Comments: • Tank Removal costs are typically $1.00 per gallon of tank size, noting economies of scale with smaller versus larger sizes. 51