Net Lease Property For Sale


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Net Lease Property For Sale

  1. 1. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comShopko3271 Market Place DriveCouncil Bluffs, IA 51501 (Omaha MSA)
  2. 2. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.com1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) 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 to bereviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entitywithout the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary,unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has notmade any investigation, and makes no warranty or representation. The information contained in this Offering Memorandumhas been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify,any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.All potential buyers must take appropriate measures to verify all of the information set forth herein.CONFIDENTIALITY & DISCLAIMERCONFIDENTITALITY & DISCLAIMER
  4. 4. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comThe Boulder Group is pleased to exclusively market for sale a single tenant net leased Shopko property located inthe Omaha MSA. The property is located less than three miles from downtown Omaha and benefits from a tradearea population in excess of 248,000. Shopko has a long term lease with 17 years remaining that features a 10%rental escalation in the primary term. Shopko is a chain of 136 retail stores that provides quality name-brandmerchandise along with pharmacy and optical services.The property is located adjacent to a multi-tenant shopping center, directly off Interstate 80, less than three milesfrom downtown Omaha. Interstate 80 experiences traffic volumes in excess of 100,000 vehicles per day. Theproperty is located within The Marketplace, a shopping center featuring JCPenney, Shoe Carnival, Petco, TexasRoadhouse, Culvers and Verizon Wireless.Additionally, less than one half mile from the property is a primary tourist and retail destination anchored by theMid-America Convention Center. The area is home to several casinos including Horseshoe, Harrah’s, AmeristarCasino and numerous hotels. The Mid-America Center is an 8,000 seat arena and convention center. The centeris the home of the Iowa Blackhawks (Arena Football League team), and hosts concerts for several nationalrecognized performers. Other retailers in the immediate area include Bass Pro Shops, Camping World, andan AMC Star 17 screen movie theater. Additionally, Wal-Mart Supercenter, Sam’s Club, Home Depot, Best Buy,Menards and Gordmans are located less than two miles east of the property along with Metro Crossing, a shoppingcenter anchored by Target, Hobby Lobby, Kohl’s, Bed Bath and Beyond and T.J Maxx.Shopko’s original lease term was for 20 years and the lease expires in January 2030. The lease features a 10%rental escalation in 2019 as well as four 5-year renewal options at escalated rents. Shopko is a privately-heldcompany with a 136 locations in 13 states.INVESTMENT HIGHLIGHTS• Located within the Omaha MSA• Long term lease with over 17 years remaining• 10% rental escalation in the primary term of the lease• Directly off Interstate 80 (100,000 VPD)• One-half mile from Mid-America Center (8,000 seat arenaand convention center), Horseshoe Casino, Harrah’s Casino,Ameristar Casino and several hotels• Nearby retailers include Bass Pro Shops, Camping World, and an AMC Star 17 screen movie theater• Close proximity to Wal-Mart Supercenter, Sam’s Club, Home Depot and TargetEXECUTIVE SUMMARYEXECUTIVE SUMMARY
  5. 5. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comPrice: $8,021,261Cap Rate: 8.40%Rent Schedule: NOI Escalation Date $673,786$741,165 02/27/19$815,281 02/01/30 (Option 1)$896,809 02/01/35 (Option 2)$986,490 02/01/40 (Option 3)$1,085,139 02/01/45 (Option 4)Renewal Options: Four 5-yearLease Commencement Date: February 27, 2009Lease Expiration Date: January 31, 2030Tenant: ShopkoYear Built: 2009Lease Type: NNRentable Square Feet: 80,000Land Size: 6.10 acresPROPERTY OVERVIEWPROPERTY OVERVIEW
  9. 9. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comShopko 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,great values, pharmacy and optical services in small to mid-sized cities. In December 2005, the company wasacquired by an affiliate of Sun Capital Partners. In 1999, Shopko purchased Pamida, a regional discount chainthat operated mainly in smaller communities of 3,000 to 8,000 people. Shopko operated Pamida as a separatedivision until 2007, however in 2012, Shopko and Pamida merged into one company with most Pamida storesbecoming Shopko Hometown stores.Shopko operates under three different brands; Shopko, Shopko Express and Shopko Hometown. Shopko Expressis a chain of pharmacies that carry a limited selection of general merchandise, groceries, beer, wine, health andbeauty supplies, and over-the-counter medicines. Shopko Hometown, is Shopko’s newest concept which is aimedat smaller communities ranging from 3,000 to 8,000 in population, and carry about 70% of the merchandisecarried at Shopko’s larger stores. In addition to the multiple brands Shopko operates under Shopko, in 1999,signed a contract with 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, 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: 136State Locations: 13Standard & Poor’s Rating: PrivateEmployees: 16,000TENANT PROFILETENANT PROFILE
  10. 10. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comPopulation 3-mi 5-mi 7-miTotal Population 45,223 145,651 269,264Total Households 17,771 54,100 102,900IncomeMedian Household Income $37,090 $35,732 $36,762Average Household Income $47,331 $48,149 $49,589DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT
  11. 11. NET LEASED INVESTMENT OFFERINGwww.bouldergroup.comCouncil Bluffs is located in Southwest Iowa on the banks of the Missouri River in PottawattamieCounty. Pottawattamie County is part of the Omaha metropolitan area which is ranked as the 60thlargest metropolitan area in the United States. At the time of the 2010 U.S. Census, Council Bluffshad a population of 62,230 and the Omaha-Council Bluffs metropolitan area had a population of865,350. The Council Bluffs economy is benefitted by the casino gaming industry. Council Bluffsis has the 19th largest Casino market in the United States, with revenue reaching nearly $435million. Casinos in Council Bluffs include Ameristar Casino Hotel Council Bluffs, Harrah’s and Horseshoe. CouncilBluffs also has a large manufacturing presence and Tyson Foods, Con-Agra, Grundorf, American Games and OmahaStandard all have manufacturing plants in the city.www.councilbluffs-ia.orgOmaha is the largest city in the state of Nebraska and is the county seat of Douglas County. At thetime of the 2011 U.S. Census, Omaha had a population of 415,068 making it the 42nd largest cityin the U.S. Omaha has a thriving economy and according to USA Today, Omaha ranks eighth amongthe nation’s 50 largest cities in both per-capita billionaires and Fortune 500 companies. Fortune500 companies headquartered in Omaha include ConAgra Foods, Union Pacific Corporation,Mutual of Omaha, Kiewit Corporation and Berkshire Hathaway. In 2009, Forbes identified Omaha as the nation’snumber one “Best Bang-For-The Buck City” and number one on “America’s Fastest-Recovering Cities” lists.Omaha has been a tourist destination for many years and attractions include history, sports, outdoors and culturalexperiences. Its primary attractions are the Henry Doorly Zoo, the College World Series and The Old Market indowntown Omaha. Henry Doorly Zoo is considered one of the premier zoos in the world. The zoo is home to theworld’s largest nocturnal exhibit and indoor swamp, indoor rainforest, desert and the largest geodesic dome. www.cityofomaha.orgLOCATION 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