Property details
Shopko Investment Property For Sale, Great Lakes - Big Rivers Region
Property Description
Shopko Investment 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.
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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: 39,000 daily traffic count at nearby intersection.
Demographics:
MSA Population - 280,000+
Average HH Income - $58,120+
Menards and Festival Foods are located in the immediate vicinity.
LEASE: $731,124 annual rent through 03/2028; rent increase to $804,236 on 03/2018. Four 5-year options at 10% increases.
LANDLORD OBLIGATIONS: Roof, structure and lot replacement-tenant pays all operating expenses. Roof has 20-year Firestone Warranty.
CASH FLOW: $731,124
(20,000) Reserve @ 25¢/SF
$711,124 NET CASH FLOW
PURCHASE PRICE: $9,175,000
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.
Images
Highlights
- Status:
- Withdrawn
- Price:
- $9,175,000
- PSF:
- $115
- Cap Rate:
- 7.75%
- Annual Rent:
- $711,124
- Rent Increases:
- $731,124 annual rent through 03/2028; rent increase to $804,236 on 03/2018.
Property Information
- Building Size:
- 80,000 sq.ft.
- Property Type:
- Net Lease
- Industry Type:
- Retail
- Units/Spaces:
- 1
- Land Area:
- 8.00 acres
- Purchase Tenure:
- Fee Simple
Lease information
- Tenant:
- Shopko
- Lease Type:
- NN
- Lease Expiration:
- 03/31/2018
- Lease Remaining:
- -7.0 years
- Landlord Responsibilities:
- Roof, structure and lot replacement—tenant pays all operating expenses. Roof has 20-year Firestone Warranty .
- Options:
- Four 5-year options at 10% increases.
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.