Best Buy at Burnsville Market
Retail | 6.00% CAP | 45,000 SqFt
Marketing description
CBRE NRP Midwest is pleased to present the Best Buy at Burnsville Market, a newly constructed, single-tenant retail investment with 11.8 years of term remaining. Best Buy (NYSE: BBY) is a publicly traded, investment-grade retailer with a BBB+ credit rating, ranking #109 on the Fortune 500 List. The 45,000-square-foot building was completed in 2024. Best Buy relocated to this site from another location within the market, reflecting a reinvestment in this trade area. Headquartered in Minneapolis, approximately 10 miles north of the property, Best Buy's substantial capital investment in this new build within its home market shows their long-term commitment to the location.
The Property is shadow-anchored by Cub Foods, Minnesota's leading grocer, which reopened in 2025 following the development of Burnsville Market. Cub Foods now operates a brand-new 87,764-square-foot flagship store, inclusive of Cub Wine & Spirits, and executed a new 20-year lease, reinforcing the center's long-term stability. The surrounding tenant mix includes nationally recognized brands such as LensCrafters, Wingstop, and Smoothie King driving consistent daily traffic to the Property. Adjacent to the Best Buy, 7 Brew has recently signed a 15-year ground lease on a future pad development site.
Ideally positioned in Burnsville's premier retail corridor, the Property benefits from exceptional visibility along County Road 5 and Egan Drive, generating over 64,000 vehicles per day, and immediate access to both I-35E and I-35W. The site sits directly across from Burnsville Center, the only enclosed shopping center south of the Minnesota River, and is surrounded by dominant national retailers including Costco, Target, Home Depot, and Total Wine, reinforcing the corridor's role as a regional shopping destination. Recent redevelopment has repositioned Burnsville Market as a best-in-class, grocery-anchored center in a supply-constrained market, offering durable cash flow and long-term upside.
Investment highlights
- Brand-New Construction - Brand-new, state-of-the-art building constructed for Best Buy. The building was delivered in 2024 and currently has 11.8 years of term remaining.
- Ideal Passive Management Structure - Best Buy operates under an NN lease, reimbursing CAM, insurance, and real estate taxes. The Common Areas will be maintained by the adjacent shopping center owner pursuant to an REA. All CAM expenses will be reimbursed in full by Best Buy to the future Landlord and subsequently passed through to the "Declarant".
- Minimal Capital Exposure - The landlord's responsibilities are limited to the roof and structure of the 2024-constructed building, which are under warranty through December 2040. As a result, near-term capital and maintenance exposure is minimal.
- Attractive Contractual Rent Increases - Best Buy's base term includes two scheduled rent increases: a 10% increase effective February 2030 and a second 10% increase effective February 2035. The lease also features 5, 5-year extension options, with rent increasing by approximately 10% in the second year of each renewal term.
- Leading Grocer Shadow Anchor - This Best Buy is shadow anchored by a recently built Cub Foods, which reopened in May of 2025 in a brand-new 87,764 square foot store that also features Cub Wine & Spirits. Cub Foods has been part of Burnsville Market for nearly 21 years, and as part of the development, executed a new 20-year lease underscoring its long-term commitment to this location.
- Prime Position in Well-Established Retail Corridor - Best Buy at Burnsville Market is positioned in the top retail destination in Burnsville with nearly 4M square feet of retail space. The property is located across from Burnsville Center, the only enclosed shopping center south of the Minnesota River that is anchored by Dick's Sporting Goods and JCPenney, and is adjacent to other major retailers such as Costco, Target, Total Wine, and Home Depot - all of which have substantial regional draws and enhance cross traffic at the property.
- Exceptional Visibility & Regional Connectivity - The Property benefits from a highly visible position along two major thoroughfares, County Road 5 and Egan Drive, both of which experience significant daily traffic combining for 64,272 AVPD. Further, Burnsville Market is located less than one mile from the I-35E and I-35W interchanges, providing exceptional regional connectivity and seamless access to both Minneapolis and St. Paul.
- Strong Demos Driving Consistent Traffic - The Property benefits from a densely populated and expansive trade area of 87,995 residents, supported by strong average household incomes of $122,917. The market also benefits from a substantial daytime population and a highly skilled workforce drawing from nearby business parks, a local hospital, and a regional mall, driving consistent traffic throughout the area.
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