FREE STANDING SINGLE TENANT OFFERING NNN LEASE …€¦ · FREE STANDING SINGLE TENANT. NNN LEASE...

FREE STANDING SINGLE TENANTNNN LEASEVERONA, WI (MADISON, WI MSA)

OFFERINGMEMORANDUM

https://youtu.be/oClBwb1oHHg

414.271.1111 | www.founders3.comInformation shown herein was provided by Seller/Lessor and/or third parties and has not been verified by the broker unless otherwise indicated.

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G O O D W I L L S T N L O F F E R I N G M E M O R A N D U M

Contact

Jon ThoresenPrincipal

[email protected]

Tom Treder, CCIMPrincipal

[email protected]

The material contained in this Offering Memorandum is confidential and for the purpose of the Real Estate described herein. It is subject to the terms and provisions of the Confidentiality Agreement signed by the recipient of this material and is not be used for any purpose or made available to any other person without the express written consent of Founders 3 Retail Services, LLC (“Broker”).

This Offering Memorandum was prepared on February 18, 2020 by Broker solely for the use of prospective purchasers of 114 S Main Street, Verona, WI (the “Real Estate”). Neither Broker, DGR Verona, LLC, nor any of their respective officers, employees or agents, make any representation or warranty, expressed or implied, as to the completeness or the accuracy of the material contained in the Offering Memorandum or any of its contents and no legal commitments or obligations shall arise by reason of the package or any of its contents. Seller reserves the right to eliminate any portion or all of the Real Estate for any offer for sale at any time prior to the completion of a binding contract of sale executed by both Seller and a prospective purchaser.

Prospective purchasers of the Real Estate are advised (i) that changes may have occurred in the condition of the Real Estate since the time of the Offering Memorandum or the financial statements therein were prepared and that (ii) all financial projections are provided for general reference purposes only in that they are based on assumptions relating to the general economy, competition, and other factors beyond the control of Broker and the Seller and therefore, are subject to material variation. Prospective purchasers of the Real Estate are advised and encouraged to conduct their own comprehensive review and analysis of the Real estate.

The Offering Memorandum is a solicitation of interest only and is not an offer to sell the Real Estate. The Seller and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Real Estate and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time with or without notice. The Seller shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Real Estate unless and until a written agreement satisfactory to the Seller hereunder have been satisfied or waived.

This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior written authorization of Broker, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Interest of the Seller or Broker.

The terms and conditions stated in the section will relate to all of the sections of the package as if stated independently therein. If, after reviewing this package, you have no further interest in purchasing the Property at this time, kindly return this brochure to Broker at your earliest convenience.


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GOODWILL10-YEAR NET LEASE

Founders 3 Real Estate Services is pleased to offer for sale the fee-simple interest in a Goodwill (the “Property” or “Asset”) located in Verona, Wisconsin approximately 10 miles away from downtown Madison. Situated within the downtown Verona market position on Main Street, the Property is positioned just off of Verona Avenue, providing customers with seamless in-gress/egress access to the Asset.

The building renovation will be completed in Spring 2020 with Goodwill opening for busi-ness in June, 2020. Combined with reliable tenancy in Goodwill Industries of South Central Wisconsin, with 13 locations, investors have the opportunity to acquire this newly renovated building with a fresh 10-year lease in place.

The site is located in Dane County, which accounts for more than a quarter of Wisconsin’s population growth in 2018.

MADISON, WI MSA

NEWLY RENOVATED BUILDINGAND STRONG

ESTABLISHED TENANCY

HIGH RETAIL VISIBILITY& REGIONAL ACCESS TO

MADISON

EXCELLENT SUBURBAN MARKET WITH STRONG RESIDENTIAL

POPULATION GROWTH


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T A B L E O F C O N T E N T S • Property Overview 5-6

• Offering Highlights 7-8

• Site Plan 9

• Lease Abstract & Rent Schedule 10

• Tenant Overview 11

• Aerials 12-13

• Location and Market Overview 14-16



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ADDRESS• 114 S Main Street, Verona, WI 53593

ACCESS• Direct access from Main Street and Park Avenue;

cross easement access to Verona Avenue

TRAFFIC COUNTS • Verona Ave.: 13,500 cpd• Main St.: 11,900 cpd

IMPROVEMENTS• Full exterior facade and interior renovation

completed in 2020

PARKING• 25 Surface Parking Spaces, plus Street Parking

YEAR BUILT/RENOVATED• 1994 / 2020

BUILDING SIZE• Approximately 13,455 SF

PARCEL SIZE• Approximately 0.62 Acres

PARCEL NUMBER• 0608-153-6137-2

TAXES• $23,385 (2019)

ZONING• Single Story Retail Building - G2

PROPERTY OVERVIEW

43,607EMPLOYEES5 MILES



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AREA DEMOGRAPHICS

2019 Demographics

1 MILE 3 MILE 5 MILE

Population 7,498 31,236 77,271

AVG HH Income $110,394 $115,057 $106,326

Total Employees 8,195 19,189 43,607

OVER $106K AVERAGE HOUSEHOLD INCOMES IN A 1,3, AND 5-MILE RADIUS OFTHE SUBJECT PROPERTY



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OFFERING HIGHLIGHTS

OFFERING

Pricing $3,032,554

Cap Rate 6.50%

Net Operating Income $197,116

Tenant Goodwill Industries of South Central Wisconsin, Inc.

Lease Type NNN

Landlord Responsibilities Exterior Structure & Foundation

PROPERTY SPECIFICATIONS

Rentable Area 13,455 SF

Land Area 0.62 Acres

Year Built/Remodeled 1994/2020

Ownership Fee Simple (Land and Building)



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OFFERING HIGHLIGHTS


Brand New 10-Year LeaseUpon completion of construction, Tenant will operate under a brand new 10-year lease giving investors a substantial cash flow stream.

NNN Lease with Limited Landlord ResponsibilitiesTenant takes care of almost everything, including paying taxes directly, so Landlord can simply collect a passive income stream.

Rental Increases for Higher Yield and UpsideBase rent increases 8.00% every 5 years, giving investors a hedge against future inflation. This also increases the value of the property based on future higher rent.

Experienced OperatorGoodwill of South Central Wisconsin has operated for 50+ years via 13 retail store/donation centers and offers services across 14 counties in Wisconsin. The nonprofit organization reported 2018 total revenues in excess of $32.9 Million, all of which is donated back to local communities.

Recession Proof TenantGoodwill was one of the most successful tenants during the 2008 market downturn. The thrift store business has been thriving and has no online competition. This is a true brick and mortar concept with excellent longevity in the future.

Main Street Retail CorridorGoodwill is surrounded by tenants such as strong, local grocer Miller & Sons, Walgreens, True Value, and more, creating strong foot traffic for the area.

SITE PLAN


9


13,455 SF


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LEASE ABSTRACT


Tenant

Doing Business As

Space Size

Pro-Rata Share

Lease Commencement

Rent Commencement

Lease Expiration

Primary Lease Term

Term Remaining

Rent Increases (Primary)

Renewal Options

Rent Increases (Optional)

Lease Type

Landlord Obligations

Roof

Parking Lot

HVAC

CAM

Taxes

Insurance

Utilities

ROFR

Goodwill Industries of South Central Wisconsin, Inc.

Goodwill

13,455 SF

100.00%

February 5, 2020

Estimated to be July 1, 2020 (30 days after delivery date or opening for business, whichever is sooner)

June 30, 2030 (10 yrs from Rent Commencement)

10 Years

10 Years

8.00% Every 5 Years

Four, 5-Year Options (180 days’ notice required)

8.00% Each Option

NNN

Exterior structure and foundation

Tenant responsible for replacement

Tenant responsible

Tenant responsible

Tenant responsible

Tenant responsible

Tenant responsible

Tenant responsible

None

Lease Years Annual Rent PSF Rent

1-5

6-10

11-15

16-20

21-25

26-30

$197,115.95

$212,858.60

$229,945.95

$248,379.30

$268,158.15

$289,686.15

$14.65

$15.82

$17.09

$18.46

$19.93

$21.53

RENT SCHEDULE


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TENANT OVERVIEW


Goodwill Industries International Inc. (“Goodwill”) is a not-for-profit organization that provides job training, employment placement services and other community-based programs for people who have a disability, lack education or job experience, or face employment challenges. Goodwill was founded in 1902 as a small operation that collected discarded clothes from affluent areas. The company then hired people from low income areas and trained them to mend the clothes. While charity is still Goodwill’s number one priority, the now $6.1 billion nonprofit entity has grown by leaps and bounds with over 2,800 locations in the U.S. and Canada and additional operations in 14 countries across the globe. Goodwill employs more than 71,000 retail workers and is the 14th largest charity in the United States. The charity also operates an online auction site at shopgoodwill.com.

In 2017, Goodwill helped more than 242,000 people train for careers in industries such as banking, IT and health care, to name a few - and get the supporting services they needed to be successful - such as English language training, additional education, or access to transportation and child care. Overall, the company served more than 36 million people through virtual and face-to-face services. Goodwill organizations generated more than $6.1 billion in revenue in which 87% of that revenue was spent directly on programs. Goodwill operates through its network of 158 independent local Goodwill operators in the United States and Canada.

Goodwill of South Central Wisconsin (GSCWI) is one of Goodwill Industries’ 158 total national independent, community-based organizations and supports more than 14 counties in south central Wisconsin. GSCWI was founded in Madison in 1962 as a division of the Milwaukee Goodwill. First located in the basement of an old grocery store, the Madison division separated from the Milwaukee Goodwill and formed Goodwill of South Central Wisconsin in 1971. Since then, GSCWI has opened 13 retail stores/donation centers across its designated region. In 2016, the 540 area residents employed by GSCWI helped to serve more than 1,665 individuals and families through various support programs including the Goodwill Career Center, free income tax preparation assistance, academic support for Madison College students with disabilities, and many more. GSCWI generated total 2018 revenues of $32.9 million, all of which is donated back to local communities.

TENANT PROFILE

Company

Doing Business As

Entity Type

Business Use

# Locations

FYE

Total Revenue

Source

Founded

Headquartered

Website

Parent Company

Goodwill Industries of South Central Wisconsin, Inc.

Goodwill

Nonprofit

Nonprofit Retailer & Service Provider

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2018 2017 2016

$32,988,482 $28,629.028 $28,267,909

Annual Reports - Goodwill of South Central WI

1962

Madison, WI

www.goodwillscwi.org

Goodwill Industries International, Inc.

PARENT COMPANY PROFILE

Company

Doing Business As

Entity Type

Business Use

# Locations

Employees

Independent Operators

Charity Size

FYI

Total Revenue

Source

Founded

Headquartered

Website

Goodwill Industries International, Inc.

Goodwill

Nonprofit

Nonprofit Retailer & Service Provider

2,800+

71,000+

158

14th Largest in US

2018 2017 2016

$6.1B $5.9B $5.7B

Forbes

1902

Rockville, MD

www.goodwill.org


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LOCATION & MARKET OVERVIEW

DemographicsThe city of Verona, located about 10 miles southwest of Downtown Madison in Dane County, is home to a total population of 12,806. Approximately 140,000 people live within a 15-minute drive of the city of Verona. It is also about 90 miles West of Downtown Milwaukee. The median age in Verona is 38.9 and boasts a median household income of $96,984. It is part of the Madison Metropolitan Statistical Area with a total population of 605,435 as of 2010. The city of Verona covers an area of 6.36 square miles, only 0.06 square miles of which is water. Verona is a diverse geographical region with proximity to the Verona Sugar River Valley, the Badger Mill Creek, the Sugar River State Trail, and access to a portion of the Ice Age National Scenic Trail.

IndustryThe city is home to the headquarters of Epic Systems, a medical information systems company. The 1,100-acre campus hosts 25 buildings, with more being added frequently. Epic software is used by major health care institutions across the county including the Mayo Clinic, Memorial Sloan Kettering, and Cedars-Sinai. More than 50 percent of the United States medical patients’ records are kept on Epic Systems software. The company employs nearly 10,000 people, which is nearly the same as the population of the entire town. Epic Systems reports revenue in 2018 was $2.9 billion dollars, showing the size of their market share. Other top employers in the area are Verona Area School District, Carnes Co., and JT Packard. There are many thriving local businesses as well in the downtown area such as Hop Haus Brewing Co., The PUrple Goose, and The Sow’s Ear.

RecreationThe Verona area is a great getaway for the adventurous and its diverse geography offers impressive natural landscapes. The area is home to many state and national trails, rivers, and county parks. There is an abundance of outdoor opportunities through all four seasons. Tubing and skiing is available at Tyrol Basin in the winter months, combined with Badger Prairie County Park, the Ice Age National Trail, and the Military Ridge State Trail for year-round hiking. The city also has great athletic facilities located along Verona Ave. Hometown USA Community Park is home to 7 baseball fields and the Verona Little League and Connor Field. Right next door is the Verona Ice Arena and Verona Area Community Theatre. The Verona Ice Arena offers figure skating, hockey leauges, and open skating to the public.



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LOCATION & MARKET OVERVIEW - VERONA


KEY FACTS

12,806Population

38.9

Median Age

2.5

Average Household Size

$96,984Median Household

Income

EDUCATION

1%

No High School

Diploma 15%High School

Graduate

22%Some College 61%

Bachelor's/Grad/Prof Degree

BUSINESS

544Total Businesses

17,189Total Employees

EMPLOYMENT

80%White Collar

9%Blue Collar

11%Services

2.1%

Unemployment Rate

INCOME

$96,984

Median Household Income

$45,367

Per Capita Income

$234,153

Median Net Worth

Households By IncomeThe largest group: $100,000 - $149,999 (25.3%)

The smallest group: <$15,000 (3.8%)

Indicator Value Difference

<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

3.8%

$75,000 - $99,999

4.6%

$100,000 - $149,999

4.7%

$150,000 - $199,999

6.4%

$200,000+

14.9%

-4.3%

17.2%

-1.9%

25.3%

-2.2%

14.6%

-4.7%

8.5%

-2.6%

+2.0%

+6.5%

+6.1%

+1.1%

Bars show deviation from

Dane County


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LOCATION & MARKET OVERVIEW - DANE COUNTY


KEY FACTS

552,918Population

36.1

Median Age

2.3

Average Household Size

$74,881Median Household

Income

EDUCATION

4%

No High School

Diploma 17%High School

Graduate

27%Some College 53%

Bachelor's/Grad/Prof Degree

BUSINESS

22,240Total Businesses

410,694Total Employees

EMPLOYMENT

74%White Collar

13%Blue Collar

13%Services

2.4%

Unemployment Rate

INCOME

$74,881

Median Household Income

$40,208

Per Capita Income

$122,025

Median Net Worth

Households By IncomeThe largest group: $100,000 - $149,999 (18.8%)

The smallest group: $15,000 - $24,999 (6.5%)

Indicator Value Difference

<$15,000

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

8.1%

$75,000 - $99,999

6.5%

$100,000 - $149,999

6.9%

$150,000 - $199,999

11.1%

$200,000+

17.5%

-1.2%

15.2%

-2.8%

18.8%

-2.2%

8.5%

-2.4%

7.4%

-1.5%

+1.3%

+3.3%

+2.8%

+2.8%

Bars show deviation from

Wisconsin

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