Single Tenant Property for Sale

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

ShopkoShopkoShopkoShopko

N66W25201 County Highway VVN66W25201 County Highway VVN66W25201 County Highway VVN66W25201 County Highway VV Sussex, WI 53089 (Milwaukee MSA)Sussex, WI 53089 (Milwaukee MSA)Sussex, WI 53089 (Milwaukee MSA)Sussex, WI 53089 (Milwaukee MSA)

NET LEASED INVESTMENT OFFERING


1)

2)

3)

4)

5)

6)

7)

8)

9)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Aerial

Map

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS



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

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant net leased Shopko property located in the Milwaukee MSA. The long term lease features rental escalations in the primary term and options periods and the property features a drive thru pharmacy on site. The property benefits from its location in the Shops at Sussex, adjacent to Kohl’s. Shopko is a chain of 136 retail stores that provides quality name-brand merchandise along with pharmacy and optical services.

The 80,000 square foot property was built in 2009 and has over 16 years remaining on the primary term of the lease. The property is located in the primary retail trade area and is adjacent to Kohl’s. There are three points of ingress and egress; two along County Highway VV and the other on Highway 164 for the Shops at Sussex, which is anchored by Shopko and Kohl’s. Other nearby retailers include Pick N’ Save, Walgreens, McDonald’s, Starbucks and AutoZone. Highway 164 is a primary north-south thoroughfare of the trade area and has traffic volumes in excess of 22,000 vehicles per day. Sussex is an affluent community and residents living within ten miles of the property enjoy average household income in excess of $95,000 annually.

Shopko’s original lease term was for 20 years and the lease expires in February 2029. The lease features a 10% rental escalation in 2019 as well as four 5-year renewal options at escalated rents. Shopko is a privately-held company with a 136 locations in 13 states.

• Located within the Milwaukee MSA

• Long term lease with over 16 years remaining

• 10% rental escalation in the primary term of the lease

• Adjacent to Kohl’s

• Nearby retailers include Pick N’ Save, Walgreens, Starbucks, McDonalds and AutoZone

• Traffic volumes along Highway 164 (22,900 VPD)

• Average household income in excess of $95,000 within ten miles of the property

• On site drive thru pharmacy

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $9,965,457

Cap Rate: 8.10%

Rent Schedule: NOI Escalation Date

$ 807,202

$ 887,922 2/4/2019

$ 976,714 2/4/2029 (Option 1)

$ 1,074,384 2/4/2034 (Option 2)

$ 1,181,824 2/4/2039 (Option 3)

$ 1,300,700 2/4/2044 (Option 4)

Renewal Options: Four 5-Year with escalations

Lease Commencement Date: February 4, 2009

Lease Expiration Date: February 3, 2029

Year Built: 2009

Tenant: Shopko

Lease Type: NN

Rentable Square Feet: 80,000 SF

Land Size: 8.00 acres

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



AERIAL

AERIALAERIALAERIALAERIAL



MAP

MAPMAPMAPMAP



Website: www.shopko.com

Number of Locations: 136

State Locations: 13

Standard & Poor’s Rating: Private

Employees: 16,000

Shopko is a chain of retail stores based in Green Bay, Wisconsin. Shopko operates 136 stores located in 13 states and 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 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, however in 2012, Shopko and Pamida merged into one company with most Pamida stores becoming Shopko Hometown stores.

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 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, 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.

TENANT PROFILE

TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE



PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mimimimi 10101010----mimimimi

Total Population 17,948 45,326 250,432 Total Households 6,740 17,855 99,255

IncomeIncomeIncomeIncome

Median Household Income $84,831 $84,262 $80,474 Average Household Income $92,925 $96,440 $95,993

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

SussexSussexSussexSussex is located in Waukesha County, Wisconsin, approximately 19 miles northwest of Milwaukee. Sussex is home to Quad Graphics, an American printing company that has forty printing facilities in the United States and employs 28,000 people. Quad Graphics prints numerous magazines, including BusinessWeek, Milwaukee Magazine, Newsweek, Time, Sports Illustrated and People. Waukesha County has a population of 380,629.

http://www.village.sussex.wi.us/

MilwaukeeMilwaukeeMilwaukeeMilwaukee is the largest city in Wisconsin and the 28th most populous city in the United States. Milwaukee is located on the southwestern shore of Lake Michigan. According to the 2010 U.S. Census, the City of Milwaukee had a population of 594,833 and the Milwaukee MSA had a population of 1,751,316.

Milwaukee and its suburbs are the home to the international headquarters of 13 Fortune 1000 companies, including Johnson Controls, Northwestern Mutual, Manpower Inc., Jefferson Wells, Kohl's, Harley-Davidson, Rockwell Automation, Fiserv, Inc., Hal Leonard, Wisconsin Energy, Briggs & Stratton, Joy Global, Bucyrus International, A.O. Smith, GE Healthcare Diagnostic Imaging and Clinical Systems and MGIC Investments. The Milwaukee metropolitan area ranks fifth in the United States in terms of the number of Fortune 500 company headquarters as a share of the population.

http://city.milwaukee.gov



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION

Single Tenant Property for Sale

Real Estate

Transcript of Single Tenant Property for Sale