triple net lease property for sale

1. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Shopko Hometown
598 West Lucas
Ellsworth, WI 54011 (Minneapolis MSA)

2. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Building Information
5) Site Plan
6) Maps
7) Tenant Profile
8) Demographic Comparison Report
9) Location Overview
10) Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTS

3. NET LEASED INVESTMENT OFFERING
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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. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
The Boulder Group is pleased to exclusively market for sale a Shopko Hometown property located in Ellsworth,
Wisconsin (Minneapolis MSA). The property was built in 2008 as a Pamida and is currently being converted into a
Shopko Hometown with a grand re-opening in November 2013. Shopko is committed to the area as evidenced by
the renovation and conversion of the store to Shopko Hometown, while extending the lease for an additional year.
The 32,100 square foot property has a connecting roadway from Maple Street (Highway 65) allowing easy access
in and out of the property. There is an abundance of parking with approximately 160 parking spaces. This location
serves the entire community as Shopko Hometown’s are typically located in areas similar to Ellsworth, where major
retailers such as Wal-Mart do not locate. The property is located on the southwest corner of West Crosstown Road
and Highway 65, which is the primary thoroughfare connecting the Ellsworth community. Interstate 94 is only 19
miles north, and the new River Falls bypass provides nonstop access to the Twin Cities metro area.
Shopko Hometown is the only national pharmacy in Pierce County and allows customers added convenience with
drive-thru access. The property is the most dominant pharmacy in the county, with the only competitors being two
local pharmacies located over 12 miles from the Village of Ellsworth. Additionally, the property benefits from its
location along the primary roadway leading into central Ellsworth. This location provides durable and sustainable
traffic at the site into the foreseeable future.
The original lease term was for 15 years and expires in May 2024 with the new extension. Shopko Hometown’s grand
re-opening will be November 1, 2013. Shopko is a privately-held company with a nearly 350 locations in 22 states.
INVESTMENT HIGHLIGHTS
• Located within the Minneapolis MSA
• Recently extended the lease
• Shopko is committed to the area as evidenced by the
conversion of an existing Pamida into a new Shopko Hometown
• Rental escalations every three years
• Located on a hard corner on major north-south thoroughfare
• Zero landlord responsibilities
• Low price per foot for a retail building
• Only national pharmacy located in Pierce County
• Drive-thru pharmacy for added customer convenience
• Ideal location for Shopko Hometown, with limited competition in the area
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

5. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Price: $2,352,697
Cap Rate: 8.75%
Net Operating Income: $205,8611
Rental Escalations: Every 3 Years2
Renewal Options: Three 5-Years
Lease Commencement Date: May 3, 2008
Lease Expiration Date: May 2, 2024
Tenant: Shopko Hometown
Year Built: 2008
Lease Type: NNN
Rentable Square Feet: 32,100
Land Size: 4.03 acres
(1) Seller will credit, at closing, the difference between the current rent of $196,996, until the rent escalates in May 2014
to $205,861.
(2) Lesser of 4.5% or the percentage change in CPI for the three year period with the next escalation May 3, 2014.
PROPERTY OVERVIEW
PROPERTY OVERVIEW

6. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
BUILDING INFORMATION
BUILDING INFORMATION
Tenant Shopko Hometown
Address: 598 West Lucas Lane, Ellsworth, WI
Site Description
Zoning: Business Park District
Year Built: 2008
Square Footage: 32,100
Acreage: 4.03
Type of Ownership: Fee Simple
Parking: 160 spaces
Drive Through: Yes
Loading Facilities: 2 dock high doors
Construction:
Foundation: Concrete foundation
Exterior: Metal panels and concrete
Frame: Steel and concrete
Roof: Metal dock on metal joists with EPDM
rubber roofing
HVAC: Roof mounted units
Interior Details
Walls: Gypsum board on metal studs
Ceilings: 16’ - 19’
Lighting: Flourescent and incandescent
Floor Coverings: Sealed concrete and carpet
Sprinklered: 100%
Utilities: City of Ellsworth

7. NET LEASED INVESTMENT OFFERING
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SITE PLAN
SITE PLAN
CROSS TOWN
STATEHIGHWAY65
LUCASLANE
DEBRAST.EXTENSION
DRIVE-THRU

8. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
MAPS
MAPS

9. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
Shopko is a chain of retail stores based in Green Bay, Wisconsin. Shopko operates nearly 350 stores located
in 22 states and generates annual sales of approximately $2.75 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.
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: 350
State Locations: 22
Standard & Poor’s Rating: Private
Employees: 17,500
TENANT PROFILE
TENANT PROFILE

10. NET LEASED INVESTMENT OFFERING
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Population 5-mi 10-mi 15-mi
Total Population 6,417 14,709 59,781
Total Households 2,511 5,671 22,775
Income
Median Household Income $54,520 $57,974 $54,956
Average Household Income $63,552 $68,279 $66,539
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT

11. NET LEASED INVESTMENT OFFERING
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Located just 30 miles from the Twin Cities, Ellsworth offers a rural lifestyle with easy
access to all the advantages of a big city. As the county seat of Pierce County, Ellsworth is
proud of its many community celebrations and of its status as the Cheese Curd Capital of
Wisconsin.
Ellsworth’s great location is near many recreational options, including the Mississippi and the St. Croix rivers, state
and local parks, hiking trails and golf courses. Ellsworth is the hub of Pierce County’s 210 miles of snowmobile
trails. Several nearby streams and rivers provide outstanding trout fishing. The village’s Summit Park Young Field
is home to the popular Ellsworth Hubbers baseball team.
Visitors will also appreciate the architecture of the Pierce County Court House, which is listed in the National
Register of Historic Places. Built in 1905, the building was constructed for a cost of $85,000. The courthouse is
open to the public on weekdays.
U.S. Highways 10 and 63, along with State Highway 65 intersect at Ellsworth. Interstate 94 is only 19 miles north,
and the new River Falls bypass provides nonstop access to the Twin Cities metro area. Several interstate and
local trucking firms serve the region. International air service is available 50 minutes west at the Minneapolis/St.
Paul International Airport, and the local service is available in Hager City (12 miles south). Burlington Northern
daily rail is available 10 miles south of Hager City.
www.villageofellsworth.org
Minneapolis-St. Paul is the most populous urban area in Minnesota and is nicknamed the “Twin
Cities” and St. Paul serves as the state’s capital. The Minneapolis-St. Paul MSA is the 16th largest
in the United States with a total population of 3,317,308. The Minneapolis-St. Paul area is home to
19 of the 20 Fortune 500 headquarters (Target, 3M and General Mills) located within Minnesota
and has the second largest economy in the Midwest only behind Chicago. The largest companies
in Minneapolis include Target, US Bank, Xcel Energy, Ameriprise Financial and Thrivent Financial.
www.ci.minneapolis.us
LOCATION OVERVIEW
LOCATION OVERVIEW

12. NET LEASED INVESTMENT OFFERING
www.bouldergroup.com
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
CONTACT INFORMATION
CONTACT INFORMATION