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ROSEAU, MINNESOTA
NORTHSTAR RETAIL GROUP | OFFERING MEM
ORANDUM
Presented By
NORTHSTARof
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
INVESTMENT SUMMARY
PRICE$ 1,861,000 9.00% CAP Rate
ADDRESS1087 3rd Street NWRoseau, Minnesota
NET OPERATING INCOME$167,500 ($5.62/SF)
APN54.0255000
LEASE TERM REMAINING10 Years
LEASE TYPEAbsolute Net
BUILDING/LOT SIZE29,812 SF / 3.49 Acres
TYPE OF OWNERSHIPFee Simple
YEAR BUILT1990
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
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.
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
LEASE SUMMARY
LEASE SUMMARYTenant 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 SCHEDULEDate Range Annual Rent Per SF
Current $167,500 $5.62
12/1/2027 (Option 1) $180,900 $6.07
12/1/2032 (Option 2) $195,372 $6.55
12/1/2037 (Option 3) $211,002 $7.08
12/1/2042 (Option 4) $227,882 $7.64
REPRESENTATIVE PHOTO
CORPORATE OFFICE & DISTRIBUTION CENTER
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
8,300 VEHICLES
SHOPKO HOMETOWN | ROSEAU, MNAERIAL
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
TENANT SUMMARY
TENANT SUMMARYTenant Shopko Stores Operating Co., LLC
Ownership Private
Headquartered Green Bay, WI
Number of Employees 18,000+
Number of Locations 350+
Website www.Shopko.comFounded 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.
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”
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
PROPERTY PHOTOS
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MN
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
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 IndustriesMarvin Doors & WindowsLifeCare Medical Center
5 Miles
3 Miles
1 Mile
SHOPKO
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Population 1,309 3,183 3,854
2022 Population 1,319 3,170 3,847
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Total Households 595 1,336 1,599
2022 Total Households 612 1,357 1,627
1 Mile Radius 3 Mile Radius 5 Mile Radius
2017 Average HH Income $62,025 $66,307 $67,397
2022 Average HH Income $63,476 $73,707 $74,737
CORPORATE OFFICE & DISTRIBUTION CENTER SHOPKO HOMETOWN | ROSEAU, MNDEMOGRAPHICS
CORPORATE OFFICE & DISTRIBUTION CENTER
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of Marcus & Millichap Real Estate Investment Services of Chicago, Inc. © 2017 Marcus & Millichap. All rights reserved.
AJ PRINSFirst Vice President | [email protected](952) 852-9743
MATT HAZELTONFirst Vice President | [email protected](952) 852-9729
SEAN DOYLEFirst Vice President | [email protected](952) 852-9719
CORY VILLAUMEFirst Vice President | [email protected](952) 852-9728
Presented By
NORTHSTARof
1350 Lagoon AvenueSuite 840
Minneapolis, MN 55408
www.NorthstarRetailGroup.com
SHOPKO HOMETOWN | ROSEAU, MNCONTACT
