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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL RETAIL <br />TOP LEASE TRANSACTIONS <br />The top lease of Q1 2017 was Scheels sporting <br />goods executing a 204,566-sq.-ft. lease for the <br />former Sears space in Eden Prairie Center, 8301 <br />Flying Could Dr. The retailer has a smaller space <br />in the mall already, so its occupancy is expected <br />in 2019. The former Sears space was vacated in <br />2016 and sold in Q3 2016 to the owner of Eden <br />Prairie Center, Cypress REIT LLC. At the time, <br />Sears had occupied 130,800 sq. ft. meaning the <br />mall was able to lease additional vacancy to <br />Scheels. <br />New -to -market trampoline park franchiser, Urban <br />Air, leased 40,319 sq. ft. in Coon Rapids. The <br />Texas -based company is one of many <br />entertainment and adventure companies to enter <br />the Minneapolis/St. Paul market over the last few <br />years. Urban Air plans to open in Q2 2017. <br />In 2013, Macy's vacated a 360,000-sq.-ft. building <br />and the St. Paul Port Authority had been working <br />with partners to redevelop the building. It was <br />renamed in Q1 2017 "Treasure Island Center" <br />after the Prairie Island Sioux Community bought <br />the naming rights and Walgreens signed a 24,928 <br />sq. ft. lease. Treasure Island Center will also be <br />home to the practice facility for the Minnesota <br />Wild hockey team for 15 years. 'Fria Sports <br />Medicine clinic bought the naming rights of the <br />practice facility and will also open a clinic in <br />2017. <br />The fourth largest lease transaction of Q1 2017 <br />was PetSmart leasing 20,700 sq. ft. at Westlake <br />Figure 2: Notable Retail Lease Transactions <br />Center at 112 12th St. in Forest Lake. Westlake <br />Center had been mostly vacant since 2013 when <br />Rainbow Foods vacated. ALDI later filled a <br />portion of the vacancy in 2014. <br />TOP SALE TRANSACTIONS <br />The top sale transaction of Q1 2017 the former <br />Macy's store in downtown Minneapolis. New <br />York -based 601W Cos. bought the building for <br />$59 million, or $51 per sq. ft. The retail store <br />vacated towards the end of Q1 2017 but the sale <br />was finalized in January. The new owner plans to <br />redevelop the building and has partnered with <br />Minneapolis -based United Properties on the <br />renovation. Preliminary plans include retail in <br />the new iteration of the building but office and <br />multifamily are also options. <br />The second largest sale was a Walgreens that sold <br />at 1055 Wayzata Blvd in Wayzata that sold for <br />$762 per sq. ft. It was sold 20 months after Doran <br />Companies purchased the building. <br />The Shops at Southwest station was a former <br />Greek-themed restaurant in Eden Prairie that had <br />been closed since 2014. Minnesota -based Venture <br />Pass Partners purchased the building in 2016 <br />from Minnwest Bank and redeveloped it, leasing <br />all available space. A private investor paid $612 <br />per sq. ft. for the building in Q1 2017, making it <br />the third highest sale. <br />Tenant Location <br />City <br />Size <br />(Sq. Ft.) <br />Type <br />Scheels <br />Eden Prairie Center <br />Eden Prairie <br />204,566 New/ <br />Urban Air <br />Northtown Village Shopping Center <br />Coon Rapids <br />40,319 New <br />Walgreens <br />Treasure Island Center <br />St. Paul <br />24,928 New <br />PetSmart Westlake Center <br />Forest Lake <br />20,700 New <br />Source: CBRE Research, 01 2017. <br />Q1 2017 CBRE Research <br />© 2017 CBRE, Inc. I 2 <br />