Triple Net Property For Sale


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Triple Net Property For Sale

  1. 1. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comShopko Hometown598 West LucasEllsworth, WI 54011 (Minneapolis MSA)
  2. 2. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.com1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Building Information5) Site Plan6) Maps7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact InformationTABLE OF CONTENTSTABLE OF CONTENTS
  3. 3. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from The Boulder Group and should not be made available to any other personor entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to providesummary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough due diligence investigation. TheBoulder Group has not made any investigation, and makes no warranty or representation. The information containedin this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Grouphas not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conductedany investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracyor completeness of the information provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.CONFIDENTIALITY & DISCLAIMERCONFIDENTITALITY & DISCLAIMER
  4. 4. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comThe Boulder Group is pleased to exclusively market for sale a Shopko Hometown property located in Ellsworth,Wisconsin (Minneapolis MSA). The property was built in 2008 as a Pamida and is currently being converted into aShopko Hometown with a grand re-opening in November 2013. Shopko is committed to the area as evidenced bythe renovation and conversion of the store to Shopko Hometown, while extending the lease for an additional year.The 32,100 square foot property has a connecting roadway from Maple Street (Highway 65) allowing easy accessin and out of the property. There is an abundance of parking with approximately 160 parking spaces. This locationserves the entire community as Shopko Hometown’s are typically located in areas similar to Ellsworth, where majorretailers such as Wal-Mart do not locate. The property is located on the southwest corner of West Crosstown Roadand Highway 65, which is the primary thoroughfare connecting the Ellsworth community. Interstate 94 is only 19miles north, and the new River Falls bypass provides nonstop access to the Twin Cities metro area.Shopko Hometown is the only national pharmacy in Pierce County and allows customers added convenience withdrive-thru access. The property is the most dominant pharmacy in the county, with the only competitors being twolocal pharmacies located over 12 miles from the Village of Ellsworth. Additionally, the property benefits from itslocation along the primary roadway leading into central Ellsworth. This location provides durable and sustainabletraffic at the site into the foreseeable future.The original lease term was for 15 years and expires in May 2024 with the new extension. Shopko Hometown’s grandre-opening will be November 1, 2013. Shopko is a privately-held company with a nearly 350 locations in 22 states.INVESTMENT HIGHLIGHTS• Located within the Minneapolis MSA• Recently extended the lease• Shopko is committed to the area as evidenced by theconversion of an existing Pamida into a new Shopko Hometown• Rental escalations every three years• Located on a hard corner on major north-south thoroughfare• Zero landlord responsibilities• Low price per foot for a retail building• Only national pharmacy located in Pierce County• Drive-thru pharmacy for added customer convenience• Ideal location for Shopko Hometown, with limited competition in the areaEXECUTIVE SUMMARYEXECUTIVE SUMMARY
  5. 5. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comPrice: $2,352,697Cap Rate: 8.75%Net Operating Income: $205,8611Rental Escalations: Every 3 Years2Renewal Options: Three 5-YearsLease Commencement Date: May 3, 2008Lease Expiration Date: May 2, 2024Tenant: Shopko HometownYear Built: 2008Lease Type: NNNRentable Square Feet: 32,100Land Size: 4.03 acres(1) Seller will credit, at closing, the difference between the current rent of $196,996, until the rent escalates in May 2014to $205,861.(2) Lesser of 4.5% or the percentage change in CPI for the three year period with the next escalation May 3, 2014.PROPERTY OVERVIEWPROPERTY OVERVIEW
  6. 6. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comBUILDING INFORMATIONBUILDING INFORMATIONTenant Shopko HometownAddress: 598 West Lucas Lane, Ellsworth, WISite DescriptionZoning: Business Park DistrictYear Built: 2008Square Footage: 32,100Acreage: 4.03Type of Ownership: Fee SimpleParking: 160 spacesDrive Through: YesLoading Facilities: 2 dock high doorsConstruction:Foundation: Concrete foundationExterior: Metal panels and concreteFrame: Steel and concreteRoof: Metal dock on metal joists with EPDMrubber roofingHVAC: Roof mounted unitsInterior DetailsWalls: Gypsum board on metal studsCeilings: 16’ - 19’Lighting: Flourescent and incandescentFloor Coverings: Sealed concrete and carpetSprinklered: 100%Utilities: City of Ellsworth
  9. 9. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comShopko is a chain of retail stores based in Green Bay, Wisconsin. Shopko operates nearly 350 stores locatedin 22 states and generates annual sales of approximately $2.75 billion. Shopko provides quality name-brandmerchandise, great values, pharmacy and optical services in small to mid-sized cities. In December 2005, thecompany was acquired by an affiliate of Sun Capital Partners. In 1999, Shopko purchased Pamida, a regionaldiscount chain that operated mainly in smaller communities of 3,000 to 8,000 people. Shopko operated Pamidaas a separate division until 2007, when Pamida was separated from Shopko and reestablished as a separatecompany. However in 2012, Shopko and Pamida merged into one company with most Pamida stores becomingShopko Hometown stores.Shopko operates under three different brands; Shopko, Shopko Express and Shopko Hometown. ShopkoExpress is a chain of pharmacies that carry a limited selection of general merchandise, groceries, beer, wine,health and beauty supplies, and over-the-counter medicines. Shopko Hometown is Shopko’s newest conceptwhich is aimed at smaller communities ranging from 3,000 to 8,000 in population, and carry about 70% of themerchandise carried at Shopko’s larger stores. In addition to the multiple brands Shopko operates, in 1999,Shopko signed a contract with Payless Shoes to lease the chain floor space within Shopko stores.Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, equity, debt, andother investments in market-leading companies that can benefit from its in-house operating professionals andexperience. Sun Capital affiliates have invested in and managed more than 165 companies worldwide withcombined sales in excess of $35.0 billion since Sun Capital’s inception in 1995. Sun Capital has offices in BocaRaton, Los Angeles, and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.Website: www.shopko.comNumber of Locations: 350State Locations: 22Standard & Poor’s Rating: PrivateEmployees: 17,500TENANT PROFILETENANT PROFILE
  10. 10. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comPopulation 5-mi 10-mi 15-miTotal Population 6,417 14,709 59,781Total Households 2,511 5,671 22,775IncomeMedian Household Income $54,520 $57,974 $54,956Average Household Income $63,552 $68,279 $66,539DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT
  11. 11. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comLocated just 30 miles from the Twin Cities, Ellsworth offers a rural lifestyle with easyaccess to all the advantages of a big city. As the county seat of Pierce County, Ellsworth isproud of its many community celebrations and of its status as the Cheese Curd Capital ofWisconsin.Ellsworth’s great location is near many recreational options, including the Mississippi and the St. Croix rivers, stateand local parks, hiking trails and golf courses. Ellsworth is the hub of Pierce County’s 210 miles of snowmobiletrails. Several nearby streams and rivers provide outstanding trout fishing. The village’s Summit Park Young Fieldis home to the popular Ellsworth Hubbers baseball team.Visitors will also appreciate the architecture of the Pierce County Court House, which is listed in the NationalRegister of Historic Places. Built in 1905, the building was constructed for a cost of $85,000. The courthouse isopen to the public on weekdays.U.S. Highways 10 and 63, along with State Highway 65 intersect at Ellsworth. Interstate 94 is only 19 miles north,and the new River Falls bypass provides nonstop access to the Twin Cities metro area. Several interstate andlocal trucking firms serve the region. International air service is available 50 minutes west at the Minneapolis/St.Paul International Airport, and the local service is available in Hager City (12 miles south). Burlington Northerndaily rail is available 10 miles south of Hager City.www.villageofellsworth.orgMinneapolis-St. Paul is the most populous urban area in Minnesota and is nicknamed the “TwinCities” and St. Paul serves as the state’s capital. The Minneapolis-St. Paul MSA is the 16th largestin the United States with a total population of 3,317,308. The Minneapolis-St. Paul area is home to19 of the 20 Fortune 500 headquarters (Target, 3M and General Mills) located within Minnesotaand has the second largest economy in the Midwest only behind Chicago. The largest companiesin Minneapolis include Target, US Bank, Xcel Energy, Ameriprise Financial and Thrivent OVERVIEWLOCATION OVERVIEW
  12. 12. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.com666 Dundee Road, Suite 1801Northbrook, IL 60062Randy BlanksteinPresident847.562.0003rblank@bouldergroup.comJimmy GoodmanPartner847.562.8500jimmy@bouldergroup.comCONTACT INFORMATIONCONTACT INFORMATION