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CBRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL RETAIL <br />Figure 3: Top Retail Sales Transactions <br />Property <br />Size (Sq. Ft.) City <br />Buyer <br />Price <br />Macy's <br />1,161,655 <br />Minneapolis <br />601W Cos. <br />S59,000,000 <br />Walgreens <br />15,374 <br />Wayzata <br />POMCO LLC <br />S11,720,000 <br />Shops at Southwest Station 10,975 <br />Eden Prairie <br />Naper Corner TRP LLC S6,720,849 <br />Walgreens <br />14,490 St. Paul <br />1180 Arcade LLC S6,500,000 <br />South Pond Center <br />Source: CBRE Research, Q1 2017. <br />12,655 Champlin <br />TOP SALE TRANSACTIONS, CONTINUED <br />The fourth highest sale was another Walgreens <br />but this time in St. Paul. Located at 1180 Arcade <br />St., it traded to a California -based investor for <br />$449 per sq. ft. It sold for 10.2% more than it did <br />in 2011 and Walgreens has a long-term, triple net <br />lease in the building. <br />Rounding out the top five was the sale of South <br />Pond Center in Champlin. The retail center was <br />constructed in 2015 and is currently fully leased <br />to tenants including Pacific Dental, Chipotle and <br />Leann Chin. TOLD Development sold the <br />property for $488 per sq. ft. to Minnesota -based <br />Wallingford Properties. <br />NOTABLE CONSTRUCTION PROJECTS AND <br />2017 EXPECTATIONS <br />According to the 2016 Midwest Trends report by <br />CBRE Research, mixed -use projects <br />(developments where there is more than one <br />primary use) are the dominant form of <br />development across the Midwest with over 40 <br />completed in 2016 and over 90 are currently <br />underway. <br />In Minneapolis/St. Paul, developers are favoring <br />Wallingford Properties S6,175,000 <br />mixed -use developments in the form of both <br />lifestyle -type centers (like Central Park Commons <br />in Eagan) and ground floor retail of multifamily <br />and commercial development (like the currently <br />under construction Rex 20 Apartments in <br />Minneapolis). Of the current large construction <br />projects noted in Figure 4, The Village at Arbor <br />Lakes fits the trend. <br />Figure 4: Notable Twin Cities Retail Construction Projects <br />Project <br />Sq. Ft. Submarket <br />Woodbury Castro <br />164,000 Woodbury <br />The Village at Arbor 150,000 Maple Grove <br />Lakes <br />Schneiderman's 122,000 A.V./Lakeville <br />Furniture <br />Grove Plaza Hy-Vee 95,700 Cottage Grove <br />Source: CBRE Research, 01 2017. <br />Q1 2017 CBRE Research © 2017 CBRE, Inc. I 3 <br />