Single Tenant Property for Sale


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Single Tenant Property for Sale

  1. 1. NET LEASED INVESTMENT OFFERING Shopko N66W25201 County Highway VVSussex, WI 53089 (Milwaukee MSA)
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) Map6) Tenant Profile7) Demographic Comparison Report8) Location Overview9) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant net leased Shopko property located in theMilwaukee MSA. The long term lease features rental escalations in the primary term and options periods and the propertyfeatures a drive thru pharmacy on site. The property benefits from its location in the Shops at Sussex, adjacent to Kohl’s.Shopko is a chain of 136 retail stores that provides quality name-brand merchandise along with pharmacy and opticalservices.The 80,000 square foot property was built in 2009 and has over 16 years remaining on the primary term of the lease. Theproperty is located in the primary retail trade area and is adjacent to Kohl’s. There are three points of ingress and egress;two along County Highway VV and the other on Highway 164 for the Shops at Sussex, which is anchored by Shopko andKohl’s. Other nearby retailers include Pick N’ Save, Walgreens, McDonald’s, Starbucks and AutoZone. Highway 164 is aprimary north-south thoroughfare of the trade area and has traffic volumes in excess of 22,000 vehicles per day. Sussex isan affluent community and residents living within ten miles of the property enjoy average household income in excess of$95,000 annually.Shopko’s original lease term was for 20 years and the lease expires in February 2029. The lease features a 10% rentalescalation in 2019 as well as four 5-year renewal options at escalated rents. Shopko is a privately-held company with a136 locations in 13 states.INVESTMENT HIGHLIGHTS• Located within the Milwaukee MSA• Long term lease with over 16 years remaining• 10% rental escalation in the primary term of the lease• Adjacent to Kohl’s• Nearby retailers include Pick N’ Save, Walgreens, Starbucks, McDonalds and AutoZone• Traffic volumes along Highway 164 (22,900 VPD)• Average household income in excess of $95,000 within ten miles of the property• On site drive thru pharmacy
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $9,965,457Cap Rate: 8.10%Rent Schedule: NOI Escalation Date $ 807,202 $ 887,922 2/4/2019 $ 976,714 2/4/2029 (Option 1) $ 1,074,384 2/4/2034 (Option 2) $ 1,181,824 2/4/2039 (Option 3) $ 1,300,700 2/4/2044 (Option 4)Renewal Options: Four 5-Year with escalationsLease Commencement Date: February 4, 2009Lease Expiration Date: February 3, 2029Year Built: 2009Tenant: ShopkoLease Type: NNRentable Square Feet: 80,000 SFLand Size: 8.00 acres
  8. 8. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEShopko is a chain of retail stores based in Green Bay, Wisconsin. Shopko operates 136 stores located in 13 statesand generates annual sales of approximately $2.2 billion. Shopko provides quality name-brand merchandise, greatvalues, pharmacy and optical services in small to mid-sized cities. In December 2005, the company was acquired byan affiliate of Sun Capital Partners. In 1999, Shopko purchased Pamida, a regional discount chain that operatedmainly in smaller communities of 3,000 to 8,000 people. Shopko operated Pamida as a separate division until2007, however in 2012, Shopko and Pamida merged into one company with most Pamida stores becoming ShopkoHometown stores.Shopko operates under three different brands; Shopko, Shopko Express and Shopko Hometown. Shopko Express is achain of pharmacies that carry a limited selection of general merchandise, groceries, beer, wine, health and beautysupplies, and over-the-counter medicines. Shopko Hometown, is Shopko’s newest concept which is aimed at smallercommunities ranging from 3,000 to 8,000 in population, and carry about 70% of the merchandise carried atShopkos larger stores. In addition to the multiple brands Shopko operates under Shopko, in 1999, signed a contractwith Payless Shoes to lease the chain floorspace within Shopko stores.Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, and otherinvestments in market-leading companies that can benefit from its in-house operating professionals and experience.Sun Capital affiliates have invested in and managed more than 165 companies worldwide with combined sales inexcess of $35.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in Boca Raton, Los Angeles,and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.Website: www.shopko.comNumber of Locations: 136State Locations: 13Standard & Poor’s Rating: PrivateEmployees: 16,000
  9. 9. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 10- 10-miTotal Population 17,948 45,326 250,432Total Households 6,740 17,855 99,255IncomeMedian Household Income $84,831 $84,262 $80,474Average Household Income $92,925 $96,440 $95,993
  10. 10. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEWSussex is located in Waukesha County, Wisconsin, approximately 19 miles northwestof Milwaukee. Sussex is home to Quad Graphics, an American printing company thathas forty printing facilities in the United States and employs 28,000 people. QuadGraphics prints numerous magazines, including BusinessWeek, Milwaukee Magazine,Newsweek, Time, Sports Illustrated and People. Waukesha County has a populationof 380,629. is the largest city in Wisconsin and the 28th most populous city in theUnited States. Milwaukee is located on the southwestern shore of Lake Michigan.According to the 2010 U.S. Census, the City of Milwaukee had a population of594,833 and the Milwaukee MSA had a population of 1,751,316.Milwaukee and its suburbs are the home to the international headquarters of 13Fortune 1000 companies, including Johnson Controls, Northwestern Mutual,Manpower Inc., Jefferson Wells, Kohls, Harley-Davidson, Rockwell Automation,Fiserv, Inc., Hal Leonard, Wisconsin Energy, Briggs & Stratton, Joy Global, BucyrusInternational, A.O. Smith, GE Healthcare Diagnostic Imaging and Clinical Systems andMGIC Investments. The Milwaukee metropolitan area ranks fifth in the United Statesin terms of the number of Fortune 500 company headquarters as a share of thepopulation.
  11. 11. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003