Shopko Net Lease Property For Sale, Great Lakes - Big Rivers Region

Property Description

Shopko Net Lease Property For Sale

This is a Private, Confidential and Off-Market Offering. This property is quietly being offered and is not being widely marketed on commonly used large listing services.

Losing out on properties as fast as you see them? Tip: Shoot first, then aim later. If a property hits most of your high points, move to lock it up first with our Non-Binding Letter of Intent ("LOI") rather than over-analyzing then losing the property when ready to pull the trigger. Email or call us at (800) 664-1031 to request that we send you our buyer-friendly LOI.

The guarantor is Shopko with a net worth of $80M, and after the merger, the net worth will be $150M. Audited financials are available.

DESCRIPTION:80,000 SF multi-department retail store situated on an 8-acre plot; completed in 2008; parking for over 500 autos.

LOCATION: Major Road and Highway. Daily traffic count - 22,000 cars.

Demographics (5 mile radius):
Population - 43,459
Average HH Income - $88,436

The store is adjacent to a corporately-owned Kohl's Department Store.

LEASE: $807,202 annual rent through 10/2028; rent increase to $887,922 on 11/2018. Four 5-year options at 10% rental increases.

LANDLORD OBLIGATIONS: Roof, structure and lot replacement-tenant pays all operating expenses. Roof has 20-year Firestone Warranty .

CASH FLOW: $807,202
(20,000) Reserve @ 25¢/SF
$787,202 NET CASH FLOW

CAP RATE: 7-3/4% - 8.5% (2018)

Financing Quote: Non-recourse, 65% LTV, 5.35% interest, 22-year amortization schedule, 7 year term. A total loan amount of $12,200,000 is avilable for the purchase of two Shopkos (total $18,730,000 purchase price. This will yield a Cash on Cash of 8.73% today which jumps to 11.1% Cash on Cash in 2018!!

Also available: A second Shopko found at this Link

Latest Ground Lease Arrivals

About the Tenant

Shopko Stores, Inc. 50-year old retail chain which operates 136 stores throughout 13 Midwestern states. Was listed on the NYSE until 2005 when it was purchased by Sun Capital Partners (owns 285 companies with sales in excess of $45 Billion). In January, 2012, Shopko merged with Pamida Stores and the new Shopko entity will operate 350 stores in 22 states with revenue of over $3,000,000,000. Products include clothing, electronics, grocery items, pharmacy, furniture, toys and home decorations.

Rather than be a jack-of-all-retailing-trades across the country, Shopko Stores is content to concentrate on a limited product range in a few regions of the US. The company operates about 135 Shopko discount stores, five Shopko Express Rx drugstore outlets, and a few Shopko Hometown shops in about a dozen states throughout the Midwest, Mountain, and Pacific Northwest regions. It also sells goods online. Instead of offering a watered-down selection of many retail categories, it focuses on popular, higher-margin categories such as casual apparel, health and beauty items, and housewares. Most Shopko stores have optical centers and pharmacies. Shopko Stores is owned by the investment firm Sun Capital Partners.

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