INVESTMENT OPPORTUNITY SHOPKO CENTER ADJACENT TO EAST TOWN MALL MADISON,ST. PAUL, MNWI MIDDLETON • MADISON CONCRETE PIPE MADISON • STEARNS PACKAGING WAREHOUSE • QUICK FUEL COVANCE LABORATORIES WISCONSIN NAT’L GUARD • LINCOLN CONTRACTOR SUPPLY • J&M MACHINING • • Lake Mendota ALFALIGHT STEPHEN & BRADY • SUNDBERG AMERICA • AMERICAN MINI WAREHOUSE • • Lake Monona PENSKE TRUCK RENTAL TRUAX HEALTH • A+ STORAGE • DALTILE SALES • • BELL LABORATORIES RODELL AUTO • BADGER SELF STORAGE • KRIETE LEASING & RENTAL WISCONSIN DEPT • • FEDEX AMERICAN FREIGHT • SMITH’S SERVICE CENTER • MCGANN CONSTRUCTION OF CORRECTIONS • • SILLIKER LABORATORIES WISCONSIN DEPT OF MILITARY • MADTOWN TWISTERS GYMNASTICS 151 • • 51 30 • MENASHA CORPORATION AFFAIRS STONEWOOD VILLAGE APARTMENTS 30 GOODWILL OF DANE COUNTY 30 51 REGIONAL AIRPORT SOUTH CENTRAL 51 WISCONSIN NORTHWOODS MADISON AREA LYCON EAST TOWNE APARTMENTS TECHNICAL COLLEGE SYCAMORE PARK STORAGE CENTER 51 EAGAN RD LIEN RD E T 151 OW N EAST TOWNE MALL E B L V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY ZEIER RD (11,000 CPD) E T O W E SPRINGS DR N E BL VD 151 OFFERED AT: $10,793,000 | 6.50% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Lease Summary & Rent Overview PROPERTY INFORMATION 8 Location Maps 9 Site Plan 10 Property Photos 12 Neighboring Tenants 16 Aerials TENANT OVERVIEWS 22 About Shopko AREA OVERVIEW 24 Madison Overview 25 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY REPRESENTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT BROKER OF RECORD: Lee & Associatesf Madison LLC WI Brokers Lic#701361-91 SHOPKO | Madison, WI | 2 EXECUTIVE SUMMARY SHOPKO | MADISON, WI MIDDLETON • MADISON CONCRETE PIPE MADISON • STEARNS PACKAGING WAREHOUSE • QUICK FUEL COVANCE LABORATORIES WISCONSIN NAT’L GUARD • LINCOLN CONTRACTOR SUPPLY • J&M MACHINING • • Lake Mendota ALFALIGHT STEPHEN & BRADY • SUNDBERG AMERICA • AMERICAN MINI WAREHOUSE • • Lake Monona PENSKE TRUCK RENTAL TRUAX HEALTH • A+ STORAGE • DALTILE SALES • • BELL LABORATORIES RODELL AUTO • BADGER SELF STORAGE • KRIETE LEASING & RENTAL WISCONSIN DEPT • • FEDEX AMERICAN FREIGHT • SMITH’S SERVICE CENTER • MCGANN CONSTRUCTION OF CORRECTIONS • • SILLIKER LABORATORIES WISCONSIN DEPT OF MILITARY • MADTOWN TWISTERS GYMNASTICS 151 • • 51 30 • MENASHA CORPORATION AFFAIRS STONEWOOD VILLAGE APARTMENTS 30 GOODWILL OF DANE COUNTY 30 51 REGIONAL AIRPORT SOUTH CENTRAL 51 WISCONSIN NORTHWOODS MADISON AREA LYCON EAST TOWNE APARTMENTS TECHNICAL COLLEGE SYCAMORE PARK STORAGE CENTER 51 EAGAN RD LIEN RD E TO 151 W EAST TOWNE MALL N E B L V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY ZEIER RD (11,000 CPD) E T O W N E B L V E SPRINGS DR D (7 ,0 00 C PD ) 151 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Overview -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS Offering Price: $10,793,000 151 Net Operating Income: $701,521 Cap Rate: 6.50% Price/SF: $114 PROPERTY OVERVIEW EAST TOWNE MALL 2201 Zeier Rd Address: Madison, WI 53704 Property Size: Approx 94,120 sq ft Land Size: 7.20 Acres Ownership: Fee Simple Year Built: 1987 / Renovated 2004 Parking Spaces: 440 151 Lee & Associates is pleased to exclusively offer for sale to qualified investors the opportunity to purchase a 100% fee-simple interest in a Shopko property located at 2201 Zeier Rd in Madison, WI (the “Property”). Constructed in 1988, the Property consists of a 94,120-square foot building that sits on an approximately 7.20 acre parcel. The subject property is leased to Shopko, a chain of retail stores with over 350 locations throughout the country. Shopko has been operating successfully at this location since 1987. Shopko has 11+ years remaining on its 15 year lease, which features (2) 10-year options to renew. The lease features strong rent growth with rent increases every three years in the Primary Term and Option Periods. In addition, the Absolute Triple-net (NNN) lease provides an investor with limited landlord responsibilities. This location benefits from a below market rent of $7.45 per square foot which provides an investor with future value when you consider the strong demand for retail real estate in the West Madison submarket. Market rent is closer to $14.00 per square foot making the current rent replaceable in event the tenant was to ever vacate. This location is a top performing store, reporting roughly $11,800,000 in sales annually. Shopko is situated in a dense retail trade area, providing for outstanding synergy. Adjacent co-tenants include Ulta, DSW Shoes, Babies R’ Us, Party City, Kirkland’s, Marshall’s, Burlington, and Staples. Directly behind the Shopko is a Kohl’s anchored center with co-tenants PetSmart, Best Buy, Old Navy, and Ashley Home Store, as well as Menard’s, Goodwill, and Home Depot close by. Located across the street from Shopko, the East Towne Mall is a 787,000 square foot center with notable retailers including Boston Store, JC Penney, Barnes and Noble, and Dick’s Sporting Goods. In mid-2016, officials announced that the East Towne Mall will undergo a multimillion- dollar renovation that will include new flooring, lighting, seating areas, color schemes, and new furniture in the food court. The subject property is located on Zeier Rd, which is a main access road into the East Towne Mall. The property is only a 1/4 mile from the on/off ramp to Interstate 90 from Hwy 151, providing shoppers and nearby residents quick access to downtown Madison. The subject property is only 7 miles northeast of downtown Madison, the the capital and second-largest city in the State of Wisconsin and the county seat of Dane County. As the urban center of the region, Dane County is home to the state’s capital in the City of Madison, the University of Wisconsin flagship campus, the world-class Overture Center for the Arts, and an abundance of parks, lakes, and unique neighborhoods. Home to the fastest growing population of any county in Wisconsin, Dane County boasts a highly educated workforce to power its diverse and innovative industries. With assets in information technology, life sciences, and agriculture, Madison and Dane County consistently rank among the top communities for work and play. SHOPKO | Madison, WI | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Overview -- INVESTMENT HIGHLIGHTS -- SHOPKO: $3B RETAILER WITH 360 STORES IN 24 STATES • CORPORATE LEASE GUARANTY • SUCCESSFUL 30+ YEAR OPERATING HISTORY The property is leased to Shopko, a chain of retail stores headquartered in Green Bay, Wisconsin. Shopko is a privately held $3 billion retailer that operates over 360 stores in 24 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. The lease has a corporate guaranty from Specialty Retail Shops Holding Corp. Shopko has been operating successfully at this location since 1987. BELOW MARKET RENT ($7.45 PSF) • TOP PERFORMING STORE • $11,800,000 REPORTED ANNUAL SALES This location benefits from a below market rent of $7.45 per square foot which provides an investor with future value when you consider the strong demand for retail real estate in the West Madison submarket. Market rent is closer to $14.00 per square foot making the current rent replaceable in the event the tenant ever vacates. This location is a top performing store, reporting roughly $11,800,000 in sales annually. A+ REAL ESTATE LOCATION • ACROSS FROM EAST TOWNE MALL (787,000 SF) • HIGHLY DESIRABLE DENSE NORTHEAST MADISON RETAIL TRADE AREA • OUTSTANDING CUSTOMER DRAW TO SITE Shopko is located in the dense northeast Madison retail trade area across from the 787,000 SF East Towne Mall, providing for outstanding synergy with co-tenants including Ulta, DSW, Marshall’s, Kirkland’s, Party City, and Burlington, as well as adjacent national retailers such as Menard’s, Kohl’s, Old Navy, Ashley Home Store, Home Depot, and Goodwill. The East Towne Mall is undergoing a multimillion-dollar renovation currently. LONG TERM ABSOLUTE NNN LEASE • ZERO LANDLORD RESPONSIBILITIES • PARKING LOT RECENTLY REPLACED Shopko has 11+ years remaining on its current 15 year lease, which features (2) 10-year options to renew. The lease features strong rent growth with rent increases every three years in the Primary Term and Option Periods. In addition, the Absolute Triple-net (NNN) lease provides an investor with limited landlord responsibilities. Tenant recently replaced the parking lot at their expense. LOCATED ALONG MAJOR RETAIL/COMMUTER CORRIDOR • EXCELLENT VISIBILITY & ACCESS The subject property benefits from outstanding visibility with its location on Zeier Rd (11,000 CPD), which is a main access road into the East Towne Mall, and intersects directly onto Hwy 151 (46,000 CPD) to Interstate 90 (89,000 CPD), providing shoppers and nearby residents easy acces in/out of the center, and offering quick access to downtown Madison. LOCATED IN THE DESIRABLE CAPITAL CITY OF MADISON • HOME TO THE UNIVERSITY OF WI • ONE OF THE FASTEST GROWING COMMUNITIES IN WISCONSIN The subject property is located in Madison, Wisconsin. Madison is the second-largest city in Wisconsin and the county seat of Dane County. The area has a strong, diverse economy based on healthcare, education, insurance, and hi-tech businesses. It is one of the fastest growing communities in Wisconsin and has won numerous awards including “Healthiest City”, “Best Places to Live”, “Best Cities for Young Professionals”, and “Best City for Families”. The Wisconsin state government and the University of Wisconsin–Madison remain the top two dominant economic influences within the city.