Portillo’s

IMPROVEMENTS

Property consists of a +/- 8,964 SF single-tenant building incorporating Portillo’s latest prototype and branding elements. It features seating for up to 200, an outdoor patio and two drive-thru lanes which wrap from the southern side of building around to the northern side with two service windows.

HMX Realty Advisors, as the exclusive advisor to Ownership, is pleased to present the opportunity to acquire the 100% fee simple interest in the Portillo’s Absolute NNN, ground lease located at 8450 Hudson Road in Woodbury, Minnesota (the “Property”).

Built in 2017, the Property represents Portillo’s entry into the Minneapolis-St. Paul market as the iconic restaurant brand continues its national expansion. The Property encompasses 8,964 square feet on 2.54 acres and is strategically located just 10 minutes east of the Twin Cities along I-94. It benefits from an affluent and growing trade area, with more than 165,000 residents within a five-mile radius and average household income exceeding $138,000 within one mile.

Portillo’s operates under a 20-year Absolute NNN ground lease, with 11 years remaining and no landlord responsibilities. The lease features attractive 10.0% rental increases every five years throughout the initial term, as well as at the commencement of each of the four, five-year renewal options. The lease is fully guaranteed by Portillo’s corporate, an industry-leading operator with a long history of successful restaurant operations and continued national growth.

Woodbury is one of the fastest-growing and most highly regarded communities in the Twin Cities metropolitan area. Known for its exceptional quality of life, strong demographics, and business-friendly environment, the city has experienced population growth of more than 44% since 2000, with an additional 28% increase projected through 2040. More than 200 new businesses have opened in the area since 2016, further demonstrating the strength and momentum of the market.

The Property is strategically positioned at two hard, signalized corners within the region’s most densely occupied retail corridor, which generates more than $4 billion in annual retail sales. Located as an outparcel to Cabela’s within the 800,000+ square-foot Tamarack Village power center and directly across from the newly developed, 100-acre Whole Foods-anchored City Place mixed-use development, the Property is exceptionally positioned to benefit from the area’s continued growth.

With a nationally recognized tenant, Absolute NNN lease structure, attractive contractual rent growth, strong corporate credit, and a premier location within one of the Twin Cities’ most affluent and rapidly expanding suburbs, 8450 Hudson Road represents a compelling opportunity to acquire a high-quality, long-term net-leased investment in the Minneapolis-St. Paul market.

Woodbury, Minnesota is a rapidly growing and highly desirable Twin Cities suburb, supported by strong population growth, affluent demographics, and a thriving local economy. The community has experienced significant residential and commercial development over the past two decades, with continued investment driving the expansion of the city’s retail, dining, employment, and residential offerings. Woodbury’s strategic location, strong household incomes, quality of life, and access to major transportation corridors have helped establish it as one of the Twin Cities’ premier suburban markets. With substantial ongoing development and continued demand from residents, businesses, and consumers, Woodbury is well positioned for sustained long-term growth.

Portillo’s has established a highly productive restaurant model focused on strategically located suburban markets, drive-thru convenience, and strong off-premise sales. The company’s differentiated restaurant format and strong brand recognition have supported attractive unit-level sales, providing a proven operating platform and a strong foundation for the Property’s long-term tenancy.

Woodbury offers one of the most densely occupied retail markets in the country, with more than five million square feet of retail space generating over $4 billion in annual sales. Four major retail developments anchor the market, and the Property is strategically positioned at the center of them all. It is located within the 800,000+ SF Tamarack Village power center and directly across from the newly developed, 100-acre City Place mixed-use development, which continues to expand and attract additional retailers, restaurants, and consumers.

The Property occupies two prominent signalized corners, offering more than 1,250 feet of combined frontage along major arterials. This exceptional positioning provides outstanding visibility and exposure to over 150,000 vehicles per day.

The Property benefits from premier demographics with a population of roughly 164K within five miles and average household income in excess of $138K within one mile.