Single Tenant Net Leased Shopko For Sale

NET LEASED INVESTMENT OFFERING

www.bouldergroup.com

Shopko Hometown1140 East Fifth Street

Winner, SD 57580



1) Confidentiality&Disclaimer

2) ExecutiveSummary

3) PropertyOverview

4) SitePlan

5) Map

6) TenantProfile

7) DemographicComparisonReport

8) LocationOverview

9) ContactInformation

TABLE OF CONTENTS

TABLE OF CONTENTS



TheinformationcontainedinthefollowingOfferingMemorandumisproprietaryandstrictlyconfidential.ItisintendedtobereviewedonlybythepartyreceivingitfromTheBoulderGroupandshouldnotbemadeavailabletoanyotherpersonorentitywithoutthewrittenconsentofTheBoulderGroup.ThisOfferingMemorandumhasbeenpreparedtoprovidesummary,unverifiedinformationtoprospectivepurchasers,andtoestablishonlyapreliminarylevelofinterestinthesubjectproperty.Theinformationcontainedhereinisnotasubstituteforathoroughduediligenceinvestigation.TheBoulderGrouphasnotmadeanyinvestigation,andmakesnowarrantyorrepresentation.TheinformationcontainedinthisOfferingMemorandumhasbeenobtainedfromsourceswebelievetobereliable;however,TheBoulderGrouphasnotverified,andwillnotverify,anyoftheinformationcontainedherein,norhasTheBoulderGroupconductedanyinvestigationregardingthesemattersandmakesnowarrantyorrepresentationwhatsoeverregardingtheaccuracyorcompletenessoftheinformationprovided.Allpotentialbuyersmusttakeappropriatemeasurestoverifyalloftheinformationsetforthherein.

CONFIDENTIALITY & DISCLAIMER

CONFIDENTITALITY & DISCLAIMER



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



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



SITE PLAN

SITE PLAN

NE.

5TH

STR

EET



MAP

MAP



ShopkoisachainofretailstoresbasedinGreenBay,Wisconsin.Shopkooperatesapproximately330storeslocatedin21statesandgeneratesannualsalesofapproximately$3billion.Shopkoprovidesqualityname-brandmerchandise,greatvalues,pharmacyandopticalservicesinsmalltomid-sizedcities.InDecember2005,thecompanywasacquiredbyanaffiliateofSunCapitalPartners.

In1999,ShopkopurchasedPamida,aregionaldiscountchainthatoperatedmainlyinsmallercommunitiesof 3,000 to 8,000 people. Shopko operated Pamida as a separate division until 2007,when Pamidawasseparated fromShopko and reestablished as a separate company. However in 2012, Shopko and PamidamergedintoonecompanywithmostPamidastoresbecomingShopkoHometownstores.TheWinner,SouthDakotalocationwasrebrandedasaShopko.

Shopko operates under three different brands; Shopko, Shopko Express and Shopko Hometown. ShopkoExpressisachainofpharmaciesthatcarryalimitedselectionofgeneralmerchandise,groceries,beer,wine,healthandbeautysupplies,andover-the-countermedicines.ShopkoHometownisShopko’snewestconceptwhichisaimedatsmallercommunitiesrangingfrom3,000to8,000inpopulation,andcarryabout70%ofthemerchandisecarriedatShopko’slargerstores.InadditiontothemultiplebrandsShopkooperates,in1999,ShopkosignedacontractwithPaylessShoestoleasethechainfloorspacewithinShopkostores.

Sun Capital Partners, Inc. isaleadingprivateinvestmentfirmfocusedonleveragedbuyouts,equity,debt,andotherinvestmentsinmarket-leadingcompaniesthatcanbenefitfromitsin-houseoperatingprofessionalsandexperience.SunCapitalaffiliateshave invested inandmanagedmore than165companiesworldwidewithcombinedsalesinexcessof$35.0billionsinceSunCapital’sinceptionin1995.SunCapitalhasofficesinBocaRaton,LosAngeles,andNewYork,andaffiliateswithofficesinLondon,Tokyo,andShenzhen,China.

Website: www.shopko.comNumberofLocations: 330StateLocations: 21Standard&Poor’sRating: PrivateEmployees: 17,500

TENANT PROFILE

TENANT PROFILE



Population 3-mi 5-mi 7-mi

TotalPopulation 3,271 3,444 3,564TotalHouseholds 1,445 1,519 1,568

Income

MedianHouseholdIncome $42,232 $42,189 $42,222AverageHouseholdIncome $53,959 $53,939 $54,071

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT



Winner, South Dakota isacity inTrippCounty. It is thecountyseatofTrippCountyandalsoservesas theadministrativecenterofneighboringToddCounty,whichdoesnothave itsowncountyseat.Asofthe2010census,Winnerhadapopulationof2,897.

Winner is very well known for its pheasant season. Pheasant season runs from October toDecemberandbringsmanytouriststotheregionfromallover.

www.winnersd.org

LOCATION OVERVIEW

LOCATION OVERVIEW



CONTACT INFORMATION

CONTACT INFORMATION

666DundeeRoad,Suite1801Northbrook,IL60062

Randy [email protected]

Jimmy [email protected]

Single Tenant Net Leased Shopko For Sale

Real Estate

Transcript of Single Tenant Net Leased Shopko For Sale