NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM ROSEAU, MINNESOTA. Presented By NORTHSTAR

Transcription

1 NORTHSTAR RETAIL GROUP OFFERING MEMORANDUM ROSEAU, MINNESOTA Presented By NORTHSTAR of

2 INVESTMENT SUMMARY PRICE $ 1,861, % CAP Rate ADDRESS rd Street NW Roseau, Minnesota NET OPERATING INCOME $167,500 ($5.62/SF) APN LEASE TERM REMAINING 10 Years LEASE TYPE Absolute Net BUILDING/LOT SIZE 29,812 SF / 3.49 Acres TYPE OF OWNERSHIP Fee Simple YEAR BUILT 1990 The subject property is a freestanding, 29,812-square foot building, occupied by Shopko Hometown. It is located in Roseau, Minnesota. The property sits just off of Highways 89 & 11, the major thoroughfare through the city. The property benefits from minimal local competition, and the nearest Shopko Hometown is 25 miles away. The tenant originally opened at this location as Pamida in 1990, signing a 20-year NNN lease. The store was remodeled in 2012 after Pamida merged with Shopko. The store now operates as a Shopko Hometown. The tenant recently executed an early lease renewal, bringing the remaining lease term to just under ten years. Their current rent rate is below average for Shopko, at just $5.61 per square foot. There is a rental increase of 10 percent in the next renewal option. Shopko is a $3 billion retailer that operates over 330 stores in 21 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. They provide quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities. The City of Roseau serves as the county seat for Roseau county. It is home to major manufacturers, Marvin Windows and Polaris Industries. Roseau carries a population of roughly 2,700 residents. Highlights: Absolute Net Lease - No Landlord Responsibilities Nearly 30 Year Operating History Early Lease Extension Just Under 10 Years Remaining on Lease Minimal Local Competition

3 LEASE SUMMARY LEASE SUMMARY Tenant Pamida Stores Operating Co, LLC Tenant Trade Name Shopko Hometown Lease Commencement June 25, 1990 Rent Commencement (Estimated) December 1, 1990 Lease Expiration November 30, 2027 Lease Term Remaining 10 Years Renewal Options Four 5-Year Options Notice For Options 12 Months Early Termination Option None Right of First Refusal None RENT SCHEDULE Date Range Annual Rent Per SF Current $167,500 $ /1/2027 (Option 1) $180,900 $ /1/2032 (Option 2) $195,372 $ /1/2037 (Option 3) $211,002 $ /1/2042 (Option 4) $227,882 $7.64 REPRESENTATIVE PHOTO

4 AERIAL 8,300 VEHICLES

5 TENANT SUMMARY TENANT SUMMARY Founded in 1962 and operating 363 stores in 24 states today, Shopko Stores Operating Co., LLC specializes in stores that are clean, simple, and welcoming. Retail formats include 131 Shopko stores in small to mid-sized cities; 5 Shopko Express Rx stores; 5 Shopko Pharmacies; and 222 Shopko Hometown stores, a smaller concept store for smaller communities. The average size of a Shopko Store is 80,000 square feet, while smaller Shopko Hometown stores range from 15,000 to 35,000 square feet. Distribution centers for the company are located in DePere, Wisconsin; Boise, Idaho; Omaha Nebraska; and Lebanon, Indiana. Tenant Ownership Headquartered Shopko Stores Operating Co., LLC Private Green Bay, WI Number of Employees 18,000+ Number of Locations 350+ Website IN THE NEWS Shopko Joins Global Campaign Lemonade for Livy to Support Local Epilepsy Foundations Shopko Reinvents Baby Department Shopko Projects Significant Continued Growth Through 2017

6 PROPERTY PHOTOS

7 MARKET SUMMARY The county seat of Roseau County, Roseau is the regional center for commerce, healthcare and government for the Lake of the Woods region in Minnesota. The city economy is rooted in the two major employers within city limits: Polaris Industries, and LifeCare Medical Center, a general hospital and healthcare center. All Polaris snowmobiles are assembled, researched, and tested at the Roseau facility. Because of the city s close proximity to Lake of the Woods, Roseau has long been a popular vacation area of hunters, fishermen, and outdoor enthusiasts. The city is the birthplace of the modern snowmobile, remaining a summer and winter recreation today. A port of entry into Canada lies just 10 miles to the north of the city. MAJOR EMPLOYERS Polaris Industries Marvin Doors & Windows LifeCare Medical Center

8 DEMOGRAPHICS SHOPKO 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Population 1,309 3,183 3, Population 1,319 3,170 3,847 1 Mile 1 Mile Radius 3 Mile Radius 5 Mile Radius 3 Miles 2017 Total Households 595 1,336 1, Total Households 612 1,357 1,627 5 Miles 1 Mile Radius 3 Mile Radius 5 Mile Radius 2017 Average HH Income $62,025 $66,307 $67, Average HH Income $63,476 $73,707 $74,737

9 CONTACT Presented By SEAN DOYLE First Vice President Investments MATT HAZELTON First Vice President Investments AJ PRINS First Vice President Investments CORY VILLAUME First Vice President Investments (952) (952) (952) (952) NORTHSTAR of 1350 Lagoon Avenue Suite 840 Minneapolis, MN