PA G E H E A D E RSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

F O R S A L E

SKY ZONEINDOOR TRAMPOLINE PARK7 6 2 5 C A H I L L R O A D • E D I N A , M N 5 5 4 3 9

BUILDING ENTRANCE

Affiliated Business Disclosure

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

Confidentiality Agreement

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

Disclaimer

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the

Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

Copyright Notice

© 2019 CBRE, Inc. All Rights Reserved.

I N V E S T M E N T S U M M A R YSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

PRICE

$3,650,0006.50% CAP Rate

ADDRESS7625 Cahill RoadEdina, MN 55439

APN08-116-21-44-0001

NET OPERATING INCOME$237,312

BUILDING/LOT SIZE32,799 SF/2.68 Acres

YEAR BUILT/RENOVATED1968/2019

TERM REMAINING11.2 YearsAs of November 2019

TYPE OF OWNERSHIPFee Simple

SUMMARY

Strong Guarantor Acquisition by CircusTrix in 2018 makes this the largest indoor active recreation and entertainment company in the world with 300 locations.

Innovative Tenant Concept CircusTrix and Skyzone have received numerous accolades from reputable ranking publishers, including Entrepreneur Magazine and Franchise Times. Additionally, the Tenant’s use fits well in today’s market, providing an experience-based concept and rendering them Internet-resistant.

Substantial Capital Investments Made The tenant has invested $1.3 million in capital expenditure to renovate and retrofit the building to suit their needs.

Wealthy Suburb Populated with Young Families Edina and the neighboring suburb of Bloomington are considered to be among the most affluent in the Twin Cities, with the average annual household income in a 1-mile radius exceeding $175,000, and twenty-one percent of the population in a three-mile radius under the age of 20.

HedgeAgainstInflation Lease terms include attractive scheduled rental increases of 3% annually.

Centrally Located Property sits just off of Interstate 494 and Highway 100, making it easily accessible to anyone traveling through Edina, Bloomington, or Eden Prairie.

I N V E S T M E N T S U M M A R YSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

RENT SCHEDULE

DATE START DATE END ANNUAL RENT PER SF

Lease Year 2 Current 12/31/2019 $230,399.86 $7.02

Lease Year 3 1/1/2020 12/31/2020 $237,311.85 $7.24

Lease Year 4 1/1/2021 12/31/2021 $244,431.21 $7.45

Lease Year 5 1/1/2022 12/31/2022 $251,764.14 $7.68

Lease Year 6 1/1/2023 12/31/2023 $259,317.07 $7.91

Lease Year 7 1/1/2024 12/31/2024 $267,096.58 $8.14

Lease Year 8 1/1/2025 12/31/2025 $275,109.48 $8.39

Lease Year 9 1/1/2026 12/31/2026 $283,362.76 $8.64

Lease Year 10 1/1/2027 12/31/2027 $291,863.65 $8.90

Lease Year 11 1/1/2028 12/31/2028 $300,619.56 $9.17

Lease Year 12 1/1/2029 12/31/2029 $309,638.14 $9.44

Lease Year 13 1/1/2030 12/31/2030 $318,927.29 $9.72

Option 1 1/1/2028 12/31/2032 FMV TBD

Option 2 1/1/2033 12/31/2037 FMV TBDV

EXPENSES

Real Estate Tax Tenant reimburses LL, cost are included in operating expenses

Property Insurance Tenant reimburses LL, cost are included in operating expenses

Utilities Tenant pays directly

Roof & Structure

LL responsibility except for the replacement of the southern-half of the Existing roof which will be included in Op Ex subject only to the op ex cap (3% of controllable expenses on a non-cumulative

basis)

Parking Lot Tenant reimburses LL for repair, replacement and maintenance

HVAC Tenant reimburses LL for repair, replacement and maintenance

Repairs & Maintenance (CAM)Tenant reimburses LL, cost are included in operating expenses

except for replacement of roof and the maintenance and repair of the existing roof if cost exceed $1,000

Management Fee Tenant reimburses LL, cost are included in operating expensesV

LEASE SUMMARY

Lease Commencement (Estimated) March 1st, 2018

Rent Commencement (Estimated) July 1st, 2018

Lease Expiration (Estimated) December 31st, 2030

Renewal Options Two 5-Year Options

Notice for Options Six (6) Months

Estoppel Request Time 10 DaysV

You are solely responsible for independently verifying the information in this Memorandum. ANY RELIANCE ON IT IS SOLELY AT YOUR OWN RISK.

A chain of indoor active entertainment facilities with 210 locations, Sky Zone was acquired by CircusTrix in February 2018. The acquisition made CircusTrix the largest indoor active recreation and trampoline park company in the world. Sky Zone is the original and largest brand in the trampoline park market, having founded the first park in 2004.

The number of trampoline parks has doubled each year since 2013; Sky Zone has amplified their programming by offeringmore experiences and activities like dodgeball, basketball, and even fitness classes, and marketing using celebrity influencers. Sky Zone was ranked in the top 500 of franchises by Entrepreneur Magazine in 2019.

CircusTrix operates over 300 locations in the United States, Europe, and Asia.

RECENT ACCOLADES

Franchise 500Entrepreneur 2017, 2018, 2019

#1 Franchise ‘Feel Like a Kid Again’ CategoryFranchise Times - 2017

#2 Fastest Growing FranchiseFranchise Times - Fast and Furious 2017

“Fastest Growing Franchise”Franchise Times - 2017

#24 Fast & Serious RankingFranchise Times - 2019

T E N A N T S U M M A R YSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

156,000 VEHICLES

74,000 VEHIC

LES10,000 VEHICLES

6 SQUARECABINETS

PLATINUM DANCECENTER

CITY SPRINTCOURIER

A E R I A LSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

“ONE OF THE COUNTRY’S RICHEST ZIP CODES”

Situated immediately southwest of Minneapolis in Hennepin County, Edina has a population of 47,941. It is a first-ring suburb known for its shopping and dining, its parks and recreational facilities and the excellent quality of life for residents. Edina is just a few minutes’ drive from downtown Minneapolis and easily reachable from multiple highways and freeways. The City is divided into quadrants by Minnesota State Highways 62 and 100.

The city is highly educated and highly affluent, with one third of residents holding a graduate or professional degree, and nearly forty percent holding a bachelor’s degree.

In 2018 Bloomberg Business compiled their top 200 list of richest zip codes in the country. Edina’s 55424 zip code came in at 151st nationally and 16th in the Midwest region.

Source: https://bringmethenews.com/life/2-of-americas-richest-zip-codes-are-in-minnesota, April 11, 2018

INCOME

$107,757 2019 Edina Median Household Income ($61,372 National Average, CNBC.com)

$71,307 2019 Edina Per Capita Income ($31,177 National Average, www.census.gov)

M A R K E T S U M M A R YSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

M S P M A R K E T S N A P S H O TSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

TOP FORBES PRIVATE MINNESOTA COMPANIES

#1

#4

#3

#6

#2

#5

TOP TEN MAJOR EMPLOYERSMinneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area

#1Allina Health System27,635 Employees

#2Target Corporation26,694 Employees

#3University of Minnesota

26,436 Employees

#4HealthPartners

22,500 Employees

#5Fairview Health System

22,000 Employees

#6Wells Fargo & Co. 20,000

Employees

#7UnitedHealth Group15,750 Employees

#8CHS Inc.

12,157 Employees

#9U.S. Bancorp

12,010 Employees

#10Land O’Lakes Inc.10,000 Employees

MINNESOTA FORTUNE 500

MAJOR RETAIL BRAND HEADQUARTERS

Sources: Minneapolis Saint Paul Economic Development Partnership, 2017. Minneapolis/St. Paul Business Journal, 2017.

M S P M A R K E T S N A P S H O TSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

15CommercialPassenger

Airlines

163NonstopMarketsServed

38MTravelers

Delta Airlines Hub

Sun Country Airlines Headquarters

MSP AIRPORT TRAFFIC HEALTHCARE & RESEARCHMinnesota Has the

2nd Highest Total Number of Medical

Device PatentsIn the Nation - “Compare Minnesota:

Invention Patents”, MN.gov

Minneapolis - St. Paul MSA is a

Top Ten U.S. Cityfor Corporate Innovation

MSP DEMOGRAPHICS

3,628,856Minneapolis-St. Paul, Bloomington Population

- U.S. Census Bureau, 2018

3% Unemployment Rate3.8% National Average, January 2019 - U.S. Census Bureau, 2018

93.6%of Persons Age 25+Hold High School Diploma or Higher | 88% National Average - U.S. Census Bureau, 2018

#2 in the Nation#2 State in Percentage of the Population with Associate Degree or Higher

- MN Office of Higher Education, http://www.ohe.state.mn.us/sPages/educ_attain.cfm

LIFE & RETAIL IN MSP

$2 Billionin Economic Activity

Generated for Minnesota by Mall of America

“Mall of America: By the Numbers.” Mall of America, 2016,

www.mallofamerica.com/upload/ FactSheets_2016.pdf

- “About MSP - MSP by the Numbers”, MSPairport.com/about-msp

- “Top 10 Cities for Corporate Inno-vation”, Innovation Leader Magazine,

May 2017

#3 Best StateOverall in the United States Based on 70

Metrics, 2019

“Best States Rankings.” U.S. News, 2019,

https://www.usnews.com/news/best-states/rankings

$59,736Average Per Capita Personal

Income (2017), $53,658 National Average (2018)

“Per Capita Personal Income in Minneapolis-St. Paul Bloomington

MSA”, Federal Reserve Bank of St. Louis, Economic Research

Best ParksSystem in the Nation

According to The Trust for Public Land’s ParkScore®

Index

“Minneapolis Repeats as Nation’s Best Park System.”

Minneapolis Park & Rereation Board, May 23, 2018, www.MinneapolisParks.

org

#3 Fittest CityRanked by the American Fitness Index Summary

2019

“ACSM American Fitness Index”, Ameri-can Fitness Index, May 2019, www.americanfitnessindex.org

#2 Ticket SalesIn the Nation, Theater Tickets

Sold Per Capita (NYC #1)

Meet Minneapolis - Things To Do, https://www.minneapolis.org/things-

to-do/arts-culture/theaters/

D E M O G R A P H I C SSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

1 Mile 3 Miles 5 Miles

POPULATION

2019 Population - Current Year Estimate 5,490 71,262 246,662

2024 Population - Five Year Projection 5,846 74,817 256,859

2010-2019 Annual Population Growth Rate 2.34% 1.08% 0.73%

2019-2024 Annual Population Growth Rate Projection 1.26% 0.98% 0.81%

GENERATIONS

Generation Z (Born 1999-2016) 17.9% 19.1% 20.2%

Millennials (Born 1981-1998) 13.4% 18.6% 22.4%

Generation X (Born 1965-1980) 16.7% 18.5% 20.0%

Baby Boomers (Born 1946-1964) 31.3% 26.6% 23.9%

HOUSEHOLD INCOME

2019 Average Household Income $176,916 $136,258 $122,671

2024 Average Household Income $194,727 $151,182 $138,473

EDUCATION

High School Diploma 6.6% 10.8% 12.5%

Some College - No Degree 15.0% 15.3% 16.5%

Bachelor`s Degree 40.6% 37.7% 34.4%

Graduate or Professional Degree 31.3% 25.5% 22.3%

EMPLOYMENT

2019 Employed Civilian Population (16+) 98.5% 97.6% 97.1%

2019 Unemployed Population (16+) 1.5% 2.4% 2.9%

HOUSEHOLD SIZE

2 Person Household 40.0% 35.9% 34.6%

3 Person Household 12.6% 12.9% 13.6%

4 Person Household 10.8% 11.3% 11.2%

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© 2018 Google

© 2018 Google

D E M O G R A P H I C SSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

I N T E R I O R P H O T OSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

E X T E R I O R P H O T OSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

I N T E R I O R P H O T O SSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

C O N S U M E R B A S E - 5 M I L E R A D I U SSKY ZONE INDOOR TRAMPOLINE PARK | EDINA, MN

DOMINANT LIFEMODE GROUP

DOMINANT URBANIZATION GROUP

OTHER TOP SEGMENTS

13.3% 26.6%

9.5% 8.4%

50.1%

• Urbane lifestyles that include support of the arts, travel, and extensive reading

• Professional couples or single households without children

• Slightly older population, already planning for retirement

• Connected and make full use of the advantages of mobile devices

• Attentive to price, they use coupons, especially mobile ones

• Gen X in middle age; families with fewer kids and a mortgage• Own older single-family homes in urban areas, with 1 or 2 vehicles• Invest wisely, well-insured• Enjoy reading, renting movies, going to museums and rock concerts,

and dining out

• Many are two-income married couples approaching retirement age, comfortable in their jobs and homes, and don’t plan on retiring soon

• Well-established neighborhoods are attracting new generation of young couples

• Financially shrewd market• Work force is diverse

• Professionals that live a sophisticated, exclusive lifestyle• Busy, well-connected, and well-educated consumers• Avid readers and moviegoers, environmentally active, andfinancially stable• Prefer to drive luxury imports and shop at upscale establishments

• Commuters who value low density living, but demand proximity to jobs, entertainment, and the amenities of an urban center

• Well educated, two-income households accept long commute times to raise children in family-friendly neighborhoods

• Residents invest for their future but also enjoy the fruits of their labor

IN STYLE GEN X URBAN

SUBURBAN

PARKS & REC URBAN CHIC

DOMINANT SEGMENT

C O N TA C T U S

SEAN DOYLEFirst Vice President

+1 612 336 4324sean.doyle2@cbre.com

Lic. 20588764

MATT HAZELTONFirst Vice President

+1 612 336 4328matt.hazelton@cbre.com

Lic. 40449423

AJ PRINSFirst Vice President

+1 612 336 4322aj.prins@cbre.com

Lic. 20395954

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.

S E E A L L L I S T I N G S A N D L E A R N M O R E A B O U T U S AT

W W W. C B R E . U S / I N V M I N N E A P O L I S R E TA I L

CORY VILLAUMEFirst Vice President

+1 612 336 4323cory.villaume@cbre.com

Lic. 20591922

STEVE LYSENFirst Vice President

+1 952 924 4600steve.lysen@cbre.com

Lic. 93357