Single Tenant Sky Zone
Blaine, MN
The Opportunity
Summary
- Price: $3,890,000
- Cap Rate: 8.50%
- NOI: $330,668
- Lease Type: Gross
- Building Size: 30,499 SF
- Parcel Size: 3.10 Acres
- Year Renovated: 2019 (New Roof)
- Remaining Lease Term: 3.5+ Years
- Options: Two (2), Five (5) Year Options
- Rental Increases: 4.66% on 4/1/2026
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in a single tenant property leased to Sky Zone, (the “Property”) Blaine, Minnesota, a city thirteen (13) miles north of Minneapolis. The property sits adjacent to the signalized intersection of Highway 47 (31,500 VPD) and 85th Ave NW (15,600 VPD). Sky Zone opened here in 2019 and has over three and a half (3.5+) years of terms remaining on their lease with a 4.66% rental increase in April of 2026. Sky Zone has roof and structure responsibility and put a brand-new thermoplastic polyolefin (TPO) roof on the building in 2019. The property sits approximately one (1) mile from multiple major highways in the area including Highway 65 (58,000 VPD) and Highway 47 (31,500 VPD), and US-10, a major thoroughfare boasting 97,105 VPD. Sky Zone lies as an outparcel to the Northtown Mall, which ranks in the top 75th percentile of regional malls in the country proving the region as a retail hub. Additionally, the Burlington within the mall is the top performing Burlington location in Minnesota and in the top 85th percentile of Burlington stores in the United States. Just thirteen miles north of Minneapolis, the five-mile area surrounding the property boasts excellent demographics with a population of over 225,000 more than 83,000 households. Additionally, the average household income within that area is $106,000.
Investment Highlights
Tenant
Sky Zone
Snapshot
Ownership: PRIVATE
Credit Rating: N/R
Headquarters: LOS ANGELES, CA
#of Locations: 300+
In February of 2018, CircusTrix acquired Sky Zone's chain of indoor trampoline parks and family entertainment centers. Then in January 2023, CircusTrix, the world's largest developer, operator and franchisor of indoor active entertainment parks, announced it changed its name to Sky Zone, Inc. (Sky Zone). Sky Zone is now the umbrella organization for three distinct indoor active entertainment brands: Sky Zone, Defy and Rockin' Jump. "2022 was a phenomenal year for Sky Zone and our family of brands," said Elizabeth Blair, CEO of Sky Zone. "We added nine parks to our owned portfolio, signed dozens of new franchise agreements and renewals, and added hundreds of new attractions across our owned and franchised parks. For our owned parks, we hosted 70% more parties than our prior peak year in 2019, and exit the year with well over 300,000 active members. Our franchised parks put up similarly strong increases.”
For nearly 20 years, Sky Zone has been at the forefront of innovating and reinventing the family entertainment center industry. The company offers over 60 different attractions across its Sky Zone, Defy and Rockin' Jump brands. Spanning 45 states, Sky Zone has something for everyone, including the Toddler Zone for kids under the age of six, Air Courts that give tricks and sports a boost for kids and teens, and thrilling Slick Slides (exclusive to Sky Zone parks) that offer an exhilarating free-fall along with social media-worthy landing. In addition to monthly memberships, Sky Zone, Defy and Rockin' Jump offer birthday parties, fundraising events, school field trips, corporate outings, and countless opportunities to make memorable moments.
