NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Shopko Hometown
1140 East Fifth Street
Winner, SD 57580
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
1)	 Confidentiality & Disclaimer
2)	 Executive Summary
3)	 Property Ov...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The information contained in the following Offering Memorandum is prop...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The Boulder The Boulder Group is pleased to exclusively market for sal...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Price: $2,685,000
Current Cap Rate: 8.60%
Rent Schedule: Base Rent Per...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
SITE PLAN
SITE PLAN
N
E.5THSTREET
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
MAP
MAP
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Shopko is a chain of retail stores based in Green Bay, Wisconsin. Shop...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Population 3-mi 5-mi 7-mi
Total Population 3,271 3,444 3,564
Total Hou...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Winner, South Dakota is a city in Tripp County. It is the county seat ...
NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
CONTACT INFORMATION
CONTACT INFORMATION
666 Dundee Road, Suite 1801
No...
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Single Tenant Net Leased Shopko For Sale

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Single Tenant Net Leased Shopko For Sale

  1. 1. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Shopko Hometown 1140 East Fifth Street Winner, SD 57580
  2. 2. NET LEASED INVESTMENT OFFERING www.bouldergroup.com 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Site Plan 5) Map 6) Tenant Profile 7) Demographic Comparison Report 8) Location Overview 9) Contact Information TABLE OF CONTENTS TABLE OF CONTENTS
  3. 3. NET LEASED INVESTMENT OFFERING www.bouldergroup.com The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without 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 not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has 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 matters and 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 & DISCLAIMER CONFIDENTITALITY & DISCLAIMER
  4. 4. NET LEASED INVESTMENT OFFERING www.bouldergroup.com The Boulder The Boulder Group is pleased to exclusively market for sale a single tenant net leased Shopko Hometown property located in Winner, South Dakota. The property is well located along US Route 183 and Shopko has been operating at this location for over twenty years. This is a successful Shopko Hometown location as evidenced by the percentage rent that the retailer has historically paid as well as Shopko’s decision to execute an early lease extension in 2007. There are eight years remaining on this net lease that features a rental escalation in the primary term and in each renewal option period. Shopko is a privately owned $3 billion retailer with 330 stores in 21 states. The Shopko Hometown property is located along US Route 183 at the southern entry point to the town of Winner. US Route 183 is the primary thoroughfare in the region. Shopko Hometown faces limited competition as the closest Walmart is located over 75 miles away in Pierre, South Dakota. Furthermore, Shopko Hometown is the only national pharmacy in the community. The Shopko benefits from a long standing operating history at this location and strong brand recognition within the community. Shopko has successfully operated at this location since 1991 and executed an early lease extension in 2007 to extend the lease until 2022. This Shopko location has above average store sales and pays percentage rent. Additionally, this store has a rent-to-sales ratio significantly below five percent, inclusive of percentage rent. There are eight years remaining on this absolute net lease that expires on November 30, 2022 and features a rental escalation in the primary term and in each renewal option. The lease has two 5-year renewal options. Shopko is $3 billion retailer that operates over 330 stores in 21 states. INVESTMENT HIGHLIGHTS • Tenant is a privately held $3 billion retailer that operates over 330 locations in 21 states • Absolute net lease with no landlord responsibilities • Rental escalation in the primary term and in each renewal option period • Low rent-to-sales ratio (below 5%)* • Long standing operating history at this location (1991) • High-end construction • Proven location as evidenced by the early lease extension that was executed in 2007 • Located along the region’s primary thoroughfare • Only national pharmacy in the community • Closest Walmart is located over 75 miles away in Pierre, South Dakota • New roof in 2012 • Located approximately 50 miles to the east of the Rosebud Sioux Indian Reservation which is home to 25,000 Native Americans. Residents of the reservation go mainly to Valentine, NE and Winner, SD for shopping. Valentine does not have a Walmart or a Shopko. The residents are an important part of the Winner economy. *Inclusive of percentage rent EXECUTIVE SUMMARY EXECUTIVE SUMMARY
  5. 5. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Price: $2,685,000 Current Cap Rate: 8.60% Rent Schedule: Base Rent Percentage Rent Total NOI Escalation Date $219,727 $10,900 $230,627 $225,924 $10,900 $236,824 12/1/17 $231,583 $10,900 $242,483 12/1/22 (Option 1) $237,372 $10,900 $248,272 12/1/27 (Option 2) Renewal Options: Two 5-Year Lease Commencement Date: March 14, 1991 Lease Expiration Date: November 30, 2022 Tenant: Shopko Hometown Year Built: 1991 Lease Type: NNN Building Size: 41,912 SF Land Size: 4.02 acres PROPERTY OVERVIEW PROPERTY OVERVIEW
  6. 6. NET LEASED INVESTMENT OFFERING www.bouldergroup.com SITE PLAN SITE PLAN N E.5THSTREET
  7. 7. NET LEASED INVESTMENT OFFERING www.bouldergroup.com MAP MAP
  8. 8. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Shopko is a chain of retail stores based in Green Bay, Wisconsin. Shopko operates approximately 330 stores located in 21 states and generates annual sales of approximately $3 billion. Shopko provides quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities. In December 2005, the company was acquired by an affiliate of Sun Capital Partners. In 1999, Shopko purchased Pamida, a regional discount chain that operated mainly in smaller communities of 3,000 to 8,000 people. Shopko operated Pamida as a separate division until 2007, when Pamida was separated from Shopko and reestablished as a separate company. However in 2012, Shopko and Pamida merged into one company with most Pamida stores becoming Shopko Hometown stores. The Winner, South Dakota location was rebranded as a Shopko. Shopko operates under three different brands; Shopko, Shopko Express and Shopko Hometown. Shopko Express 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 concept which is aimed at smaller communities ranging from 3,000 to 8,000 in population, and carry about 70% of the merchandise 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, and other investments 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 in excess 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.com Number of Locations: 330 State Locations: 21 Standard & Poor’s Rating: Private Employees: 17,500 TENANT PROFILE TENANT PROFILE
  9. 9. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Population 3-mi 5-mi 7-mi Total Population 3,271 3,444 3,564 Total Households 1,445 1,519 1,568 Income Median Household Income $42,232 $42,189 $42,222 Average Household Income $53,959 $53,939 $54,071 DEMOGRAPHIC COMPARISON REPORT DEMOGRAPHIC COMPARISON REPORT
  10. 10. NET LEASED INVESTMENT OFFERING www.bouldergroup.com Winner, South Dakota is a city in Tripp County. It is the county seat of Tripp County and also serves as the administrative center of neighboring Todd County, which does not have its own county seat. As of the 2010 census, Winner had a population of 2,897. Winner is very well known for its pheasant season. Pheasant season runs from October to December and brings many tourists to the region from all over. www.winnersd.org LOCATION OVERVIEW LOCATION OVERVIEW
  11. 11. NET LEASED INVESTMENT OFFERING www.bouldergroup.com CONTACT INFORMATION CONTACT INFORMATION 666 Dundee Road, Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 rblank@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com

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