DAN COOPER BOB HAVASI - LOOPNET
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Dan Cooper
dcooper@coopergrp.com
(888) 525-5695 x12
Cooper Commercial Investment Group Bob Havasi
6120 Parkland Blvd., Suite 206 bhavasi@coopergrp.com
Cleveland, OH 44124 (888) 525-5695 x10
www.coopergrp.com In Cooperation with Licensed WI Broker
Table of Contents
INVESTMENT SUMMARY
Investment Highlights ………...…………….. 4
Investment Overview ……………………….. 5
Location Overview…………………………….. 6
Offering Summary …….……………………… 7
FINANCIAL ANALYSIS
Rent Roll ……………….…………………….…… 9
Financial Analysis …...………………….…….. 10
PROPERTY ANALYSIS
Site Plans ..….…………………………………….. 12
Aerial Maps .…………………………………….. 13-15
Location Maps .…………………………………. 16
Demographics ..………………………………… 17
TENANT ANALYSIS
Tenant Profiles ……….………….…………….. 19-32
Disclosure & Confidentiality …..….……… 33
2
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Badger Plaza
INVESTMENT HIGHLIGHTS
• 90% Occupied, Grocery Anchored Offering with Low Sales
Price of $57/SF, High 12.12% Projected Year-1
Cash-on-Cash Return & Additional Upside Potential Due to
Below Market Rental Rates and Through the Lease-Up of
Remaining Vacant Units
• Long-Term Tenants In Place with Recent Extensions,
Executions and Expansions Proving Commitment and
Success at the Location: Extension & Expansion From
Anchor Tenant Piggly Wiggly Through 2025 Plus Many
More
• High-Performing Piggly Wiggly Demonstrating Continued
ADDITIONAL HIGHLIGHTS
Success/Commitment to the Location: Rent to Sales Metric • Extremely Diverse Mix of Tenants Offering Recession
of Less Than 1% Shows Outstanding Performance Easily Proof Retailers As Well As Service-Oriented Businesses
Surpassing Industry Average Health Ratios Providing Long-Term Stability
• Lease Backed by Piggly Wiggly Midwest: Over $2 Billion in • County Seat City with Easy Commuting Distance of Both
Annual Revenue, 100+ Locations, Over 2,800 Employees Milwaukee (25 Miles) and Chicago (65 Miles): Milwaukee’s
and HQ Less Than 85 Miles Away From Badger Plaza General Mitchell International Airport Located Less Than
30 Minutes North, Chicago’s O’Hare International Airport,
• Game Changer! FoxConn Technology Group Plans to Build Only One Hour South and Midway International Airport
a New $10 Billion Plant/Factory, Adding 10,000 Employees Located 75 Minutes South
to Racine Along the I-94 Corridor Approx. 5 Miles Away • High Visibility & Frontage Ideally Positioned Along Durand
• Centered in Heart of Established Neighborhoods Offering Avenue Just Off Its Signalized Intersection with Lathrop
Great Demographics: 120,000 People Within a 5-Mile Avenue (56k VPD): Durand Avenue Connects to I-94 which
Radius and Average Household Incomes of $71,000 Within is the Main Interstate to Milwaukee or Chicago
5-Miles of the Center • Direct Vicinity of Major Employers : S.C. Johnson, Jockey
International, Modine Manufacturing, CNH Global and
Runzheimer International, Nestle, BRP North America and
All Saints Hospital
• Ideal Location Surrounded by Residential But Still Close
Proximity to Complimentary Retailers Encompassing More
Than 3.5 Million S.F. Including: Regency Mall (1 Million
S.F.) Anchored by Boston Store, JCPenney, Burlington Coat
Factory & Target, As Well As Other Nearby Prominent
Retailers, Walmart Supercenter, Dick’s Sporting Goods,
Menards, Barnes & Noble, Best Buy, Michael’s, Home 4
Depot, TJ Maxx, Toys R Us and Many More
INVESTMENT OVERVIEW
The Cooper Commercial Investment Group has been exclusively retained by ownership to
sell the 100% fee simple interest in the 148,000 S.F., Badger Plaza located in Racine,
Wisconsin. Offered for $8,530,000, representing a low $57/S.F. and year-1 projected
cash-on-cash return of 12.12%; an investor has the opportunity to acquire a
well-established grocery anchored asset centrally positioned in a well-known residential
community with great population density and high income levels.
The 90% occupied Piggly Wiggly anchored center is home to many well-known national
and regional tenants. Piggly Wiggly has a proven track record at this location and has been
located at the center since its original construction. The grocer has continued to renew its
lease time and time again and expanded in 2014, proving its desire to be located at the
center and market. Piggly Wiggly’s consistently high sales volume and outstanding rent to
sales metric of less than 1% clearly demonstrates the need for the grocer at the
neighborhood center. The grocer is backed by Piggly Wiggly Midwest, LLC (Headquartered
84 miles away in Sheboygan, WI), which has over 100 locations, supplies distribution for all
of their own stores, employs over 2,800 people and rang up an estimated $2 billion in sales
last year. The parent company C&S is the tenth-largest privately held company in the
United States, as listed by Forbes. C&S owns the Piggly Wiggly grocery brand (which is
independently franchised to store operators) and is the largest wholesale grocery
distributor in the United States, based on revenue.
The center is home to other well-known tenants, Dollar General (NYSE: DG/S&P “BBB”/
Moody’s “Baa2”), CitiTrends (NASDAQ: CTRN), Advance America, Little Caesars Pizza, ATC
Income Tax and Tri City National Bank, among others. Furthermore, due to overwhelming
demand, Optimum Beauty just expanded their footprint at the plaza. The majority of the
tenants are on NNN lease structures and many of the tenants have long-term leases in
place, providing stability to the rent roll well into the future. Although initial returns on
the center are attractive, Badger Plaza offers additional upside through the lease-up of
remaining vacant units as well as below market rental rates that should increase over time.
The center has a welcoming curb appeal and has recently underwent major renovations
and improvements in 2013, including an updated façade. The densely populated
neighborhood community has an abundance of rooftops, over 120,000 people and average
household incomes of over $71,000 within a 5-mile radius of the center. The center is
ideally positioned along Durand Avenue just off its signalized intersection with Lathrop
Avenues with traffic counts of 56,000 VPD.
Racine is the county's largest city and county seat and is experiencing a boom in residential
development, with condos and other developments springing up along the Root River and
Downtown Racine. The center benefits from its position only 25 miles from Milwaukee
(largest city in the state) and only 65 miles from Chicago. Racine provides quick access to
both Milwaukee and Chicago and the city's fastest-growing communities and business
parks are along I-94, where residents are just a 30-minute drive from downtown
Milwaukee and a 60-minute drive from Chicago. Racine offers Amtrak services which
draws people to reside in Racine and commute to the larger cities. Racine itself though
offers a center of commerce. The city is home to several international companies, including
S.C. Johnson, Jockey International, Modine Manufacturing, CNH Global (a business unit of
Fiat) and Runzheimer International. In addition, several foreign-based companies have
major operations, including Nestle, BRP North America and CNH. Racine recently made
“game changing” headlines with its expected growth from company Foxconn Technology
Group that has announced their plans to build a $10 billion manufacturing plant, which
would add 10,000 employees to the area along the I-94 corridor. With the grocer and
diverse mix of uses, services, staggered lease terms and growing economy; the asset is well
insulated for possible shifts in consumer retail demands and trends.
5
LOCATION OVERVIEW Racine is the county seat of Racine County, Wisconsin. The city is located on the shore of Lake Michigan at the mouth of the Root River. Racine is located 25 miles south of Milwaukee and 65 miles north of Chicago, Illinois. Racine’s location on Lake Michigan, within easy commuting distance of both Milwaukee and Chicago, makes it an attractive location. Commuting is a large part of Racine’s culture; whether it be commuting to work outside the city in Milwaukee or Chicago or vice versa. Due to the large commuting base, the area offers major highways/interstates (I-94 runs from Chicago to Milwaukee through Racine), Amtrak Passenger Rail Service and Air Services from major international airports. Milwaukee’s General Mitchell International Airport is located less than 30 minutes north of Racine. Chicago’s O’Hare International Airport, rated the fourth busiest in the world, is only one hour south of Racine and Midway International Airport is located 75 minutes south of Racine. Racine is the home of internationally respected companies, a vibrant downtown and revitalizing neighborhoods. A strong history of innovation and hard work continues with the evolving economy and affordable housing costs creating advantageous reasons to live and work in Racine. The cost of living in Racine is at or below the national average and the city offers all of the services and amenities that are expected from a city of its size. Racine is the county's largest city and is experiencing a boom in residential development, with condos and other developments springing up along the Root River and downtown Racine. In January 2017, Racine was rated "the most affordable place to live in the world" by the Demographic International Housing Affordability survey. Additionally, Racine offers many cultural attractions of its own, including the Racine Art Museum, the Charles A. Wustum Museum of Fine Arts, the Racine Symphony Orchestra and the Racine Zoological Gardens, which is located on the lakefront. Racine County boasts more than 4,000 businesses and more than 350 manufacturing companies. Some of the major employers (all with over 1,000 employees) in Racine, include: J. I. Case (heavy equipment), S. C. Johnson (cleaning and chemical products), Ascension, Jockey International, Modine Manufacturing, CNH Global (a business unit of Fiat), Runzheimer International, Dremel Corporation, Reliance Controls Corporation (time controls and transfer switches) and Twin Disc. Racine is also home to InSinkErator, the first garbage disposal manufacturer and Malted Milk Balls were developed in Racine. Nestle has a large presence in the Burlington community of Racine. Furthermore, All Saints Hospital is the primary hospital serving Racine through the more than 175 physicians and advanced level practitioners of Wheaton Franciscan Medical Group. Racine continues to make headlines with its expected growth as Foxconn Technology Group has announced their plans to build a $10 billion manufacturing plant, which would add 10,000 employees to the area along the I-94 corridor, approximately 5 miles away from Badger Plaza. While Racine is thriving on its own, its close proximity to Milwaukee, the largest city in the state, offers many major employers for the residents in the area. Milwaukee is known for its brewing economy as it is home to Miller Brewing Company, which employs over 2,200 of the city’s workers. Additionally, AT&T, Aurora Health Care, BMO Harris, Cooper Power Systems, GE Healthcare and Briggs & Stratton Corporation are all some of the major employers in Milwaukee creating a huge draw to the area for the vast employment opportunities. 6
SUMMARY
Price: $8,530,000
Down Payment: $2,132,500
Gross Leasable Area: 148,001 S.F.
Price/SF: $57.63
NOI: $669,729
CAP Rate: 7.85%
Small Store Space Built: 1970
Piggly Wiggly Portion Built: 1962 Operating Data
Renovated: 2013
Rental Income: $819,241
Lot Size: Approx. 13.57 Acres
Tenant Reimbursements: $358,796
Foundation: Concrete
Potential Gross Income: $1,178,037
Exterior: Concrete Block/Metal
Vacancy (Actual 10.03%): ($82,210)
Vacancy for Reimbursements: ($34,093)
Effective Gross Income: $1,061,734
Expenses: $392,005
NOI: $669,729
Annual Debt Service: $388,982
Structural Reserve ($0.15/S.F.): $22,200
Cash Flow After Reserves: $258,547
Cash-on-Cash Return: 12.12%
Anticipated New Financing
Loan Amount: $6,397,500
Loan Type: New Loan
Interest Rate: 4.50%
Amortization: 30 Years
Term: 10 Years
Loan-to-Value (LTV): 75.00%
Monthly Debt Payment: $32,415 7
8
% of Tenant Lease Lease Rent/ Annual Lease Rental Option
Tenant GLA Total Since Start Expiration SF Rent Type Bumps Rate/SF
(2) 5-Yr.
Piggly Wiggly 41,326 27.92% 1962 11/1/2012 12/31/2025 $4.10 $169,437 NNN None
Option 1: $4.41/SF
Modified Gross
(1) 5-Yr.
Furniture Zone 18,920 12.78% 2012 10/15/2017 10/14/2022 $3.75 $70,956 (Pays In-Suite None
Option 2: $4.25/SF
Utilities)
(2) 5-Yr.
Value Village 6/1/2018 - $4.00/SF
26,000 17.57% 2013 2/1/2013 5/31/2023 $3.91 $101,530 NNN Option 1: $4.75/SF
(1) 6/1/2021 - $4.50/SF
Option 2: $5.00/SF
(4) 5-Yr. Remaining
Option 2: $8.44/SF
Citi Trends
16,235 10.97% 2010 10/1/2015 9/30/2020 $6.98 $83,760 NNN None Option 3: $9.29/SF
(2)
Option 4: $10.21/SF
Option 5: $11.24/SF
(1) 5-Yr.
China House 1,400 0.95% 2008 12/1/2017 11/30/2019 $15.07 $21,096 NNN None
Option 1: $15.52/SF
(1) 3-Yr.
Advance America 1,200 0.81% 1998 8/1/2016 7/31/2019 $16.03 $19,236 NNN None
Option 1: 2% Annual Increases
(4) 5-Yr.
Option 1: $7.05/SF
Dollar General Modified
11,000 7.43% 2012 5/1/2013 4/30/2023 $6.52 $71,667 5/1/2018 - $6.60/SF Option 2: $7.50/SF
(3) NNN
Option 3: $7.95/SF
Option 4: $8.40/SF
Michelle's Nail &
2,000 1.35% 2016 2/23/2016 8/31/2026 $12.25 $24,500 NNN 10/1/2021 - $12.50/SF N/A
Spa
Express Cleaners
2,600 1.76% 2010 9/6/2015 9/5/2020 $9.15 $23,800 NNN 9/5/2018 - 10.00/SF N/A
(4)
(2) 5-Yr.
Little Caesars 1,200 0.81% 2009 2/1/2015 1/31/2020 $16.97 $20,364 NNN None Option 1: $17.60/SF
Option 2: $19.36/SF
(1) 2-Yr.
2/1/2020 - $6.00/SF Option 1: $6.25/SF
Optimum Beauty 8,515 5.75% 2011 2/1/2017 1/31/2022 $5.80 $49,350 NNN
(Only on 5,700 SF) Expanded Space Option Rent
$8.53/SF
8/1/2018 - $75.00/SF
Tri-City Bank
720 2.40% 1974 8/1/2015 7/31/2025 $74.15 $53,386 NNN 8/1/2021 - $77.34/SF N/A
(5)
8/1/2024 - $79.65/SF
Modified Gross
ATC Income Tax 1,200 0.81% 2017 10/28/2017 10/27/2020 $13.00 $15,600 (Pays In-Suite None N/A
Utilities)
Body 360 1,300 0.88% 2017 12/19/2017 12/18/2018 $9.50 $12,350 NNN N/A N/A
Vacant 6,185 4.18% N/A N/A N/A $6.00 $37,110 NNN N/A N/A
Vacant 8,200 5.54% N/A N/A N/A $5.50 $45,100 NNN N/A N/A
Total Building 148,001 101.91% $5.54 $819,241
Vacancy 14,385 9.72% $5.71 $82,210
March 1, 2018 Through February 28, 2019 (1) Blended rental rate for increase effective 6/1/2018. (2) Lease states 15,914 SF, however LL has the measured at
16,235 SF. For billing purposes, tenant is billed at 12,000 SF. 9
(3) Blended rental rate for increase effective 5/1/2018. (4) Blended rental rate for increase effective 9/5/2018. (5) Blended rental rate for increase effective 8/1/2018.
Pro Forma 2018
2016 2017 2018 $/SF
INCOME:
Potential Rental Income
Rental Income $ 673,062 $ 682,671 $ 819,241 $ 5.54
Percentage Rent 4,771 - 7,000 0.05
Temporary Income from Spaces (License Agreements) (5) 3,259 9,825 18,000 0.12
Tenant Reimbursements
Real Estate Taxes 125,724 126,411 174,801 1.18
CAM (1) 85,756 110,558 113,409 0.77
Prior Year Recoveries (2) 86,749 80,951 - -
Insurance 17,835 16,800 15,437 0.10
Admin. Fees (1) - - 12,328 0.08
Management (1) - - 17,822 0.12
Gross Potential Rental Income $ 997,156 $ 1,027,216 $ 1,178,037 $ 7.96
Vacancy (Actual) 10.03% $ (82,210) $ (0.56)
Non-Reimbursements from Vacancy 10.06% (34,093) (0.23)
Effective Gross Income $ 997,156 $ 1,027,216 $ 1,061,734 $ 7.17
OPERATING EXPENSES:
Management Fee 4% $ 37,385 $ 41,295 $ 29,481 $ 0.20
Real Estate Taxes 198,474 196,023 196,023 1.32
Insurance 18,370 18,503 18,500 0.12
Landscaping (3) 11,613 5,308 6,500 0.04
Snow Removal 30,208 36,250 35,000 0.24 (1) Historically, all Admin./Management
Utilities reimbursements have been included in CAM
Electric 16,318 19,604 18,000 0.12 reimbursements.
Water/Sewer 9,985 7,507 10,000 0.07 (2) Although prior year recoveries are
Maintenance & Repair (4) 2,463 14,150 15,000 0.10 collected in the following year shown, we
Parking Lot Repairs & Maintenance 21,095 31,879 15,000 0.10 moved the reimbursement back to the
Lot Sweeping 12,180 12,180 12,500 0.08 corresponding year to more accurately
Trash Removal 3,171 3,731 2,500 0.02 reflect income and expenses for each year
Roof Repairs 24,033 9,238 10,000 0.07
Non-Reimbursable R&M 2,009 5,393 3,500 0.02 (3) 2016 was high due to $6,305 of extra
Non-Reimbursable Utilities (Vacancies) 5,715 2,405 20,000 0.14 plantings.
Total Expenses $ 393,019 $ 403,466 $ 392,005 $ 2.65 (4) Electrical, plumbing, HVAC and general
repairs and maintenance are included in this
Net Operating Income $ 604,136 $ 623,750 $ 669,729 $ 4.53 line item. In 2016, $31,129 was removed for
a one-time plumbing repair (sprinkler head
Loan Analysis that froze and bust in a vacant unit) and
Cash Flow Available Before Debt Service $ 669,729 $ 4.53 $33,221 was removed for CapX electrical
repairs (replacement of most parking lot
Capitalization Rate 7.85% 7.85% lights).
Valuation $ 8,530,000 $ 57.63 (5) Since January of 2016, Furniture Zone has
Loan to Value 75.00% 75.00% occupied vacant units through a temporary
Loan Amount $ 6,397,500 $ 43.23 license agreement that can be cancelled at
any time. They currently occupy the vacant
Rate 4.50% 4.50% units of 6,185 S.F. and the 8,200 S.F. space.
Term 10 10 Furniture Zone is looking at possibly taking
Amortization 30 30 one of these spaces on a permanent basis
with a new lease for a retail location and
Annual Debt Service
Debt Service Coverage Ratio
$ 388,982
1.72
2.63
1.72
ownership is also talking with another tenant
to possibly lease the smaller 6,185 S.F. space.
1011
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4003 Durand Ave
1 mi radius 3 mi radius 5 mi radius 10 mi radius
Racine, WI 53405
2017 Estimated Population 12,429 67,042 120,286 241,347
2010 Census Population 12,870 67,820 121,253 241,816
POPULATION 2000 Census Population 13,258 69,359 118,955 231,810
Projected Annual Growth 2017 to 2022 - 0.4% 0.3% 0.2%
2017 Median Age 39 36.9 37.1 37.4
2017 Estimated Households 5,319 27,296 48,788 96,290
2022 Projected Households 5,409 28,283 50,489 99,509
HOUSEHOLDS
2010 Census Households 5,327 26,737 47,543 93,159
2000 Census Households 5,411 26,800 45,979 88,190
Projected Annual Growth 2017 to 2022 0.3% 0.7% 0.7% 0.7%
2017 Estimated White 71.2% 63.0% 68.1% 73.3%
RACE
2017 Estimated Black or African American 16.3% 21.2% 17.7% 13.6%
AND
2017 Estimated Asian or Pacific Islander 1.6% 1.6% 1.6% 1.8%
ETHNICITY
2017 Estimated American Indian or Native Alaskan 0.4% 0.4% 0.4% 0.5%
2017 Estimated Other Races 10.4% 13.8% 12.1% 10.9%
2017 Estimated Average Household Income $68,713 $67,297 $70,767 $74,507
INCOME
2017 Estimated Median Household Income $55,220 $54,876 $56,806 $59,827
2017 Estimated Per Capita Income $29,431 $27,580 $29,179 $30,084
2017 Estimated Elementary (Grade Level 0 to 8) 4.0% 5.0% 4.5% 3.6%
2017 Estimated Some High School (Grade Level 9 to 11) 7.5% 9.5% 8.7% 7.6%
EDUCATION 2017 Estimated High School Graduate 31.9% 29.4% 28.7% 30.1%
(AGE 25+) 2017 Estimated Some College 27.1% 24.2% 24.1% 23.1%
2017 Estimated Associates Degree Only 9.0% 10.0% 9.3% 10.3%
2017 Estimated Bachelors Degree Only 13.8% 14.3% 15.9% 16.5%
2017 Estimated Graduate Degree 6.6% 7.6% 8.8% 8.8%
2017 Estimated Total Businesses 299 2,609 4,190 8,259
BUSINESS 2017 Estimated Total Employees 2,929 39,655 61,271 112,365
2017 Estimated Employee Population per Business 9.8 15.2 14.6 13.6
2017 Estimated Residential Population per Business 41.5 25.7 28.7 29.2
1718
Building on its 100+ year history in the grocery business, Piggly
Wiggly Midwest continues to grow the Piggly Wiggly banner. Currently
the Company operates corporate stores and services independent
franchisees under a chain-style program. Piggly Wiggly® Midwest LLC
has over 100 locations, supplies distribution for all of its own stores,
employs over 2,800 people and reported an estimated $2 billion in
sales last year. The company’s three distribution centers supplies
grocery, produce, meat, bakery, deli, frozen, dairy, health and beauty
care and general merchandise to the Piggly Wiggly stores.
The parent company, Piggly Wiggly operates more than 530 Piggly
Wiggly stores serving communities in 17 states. Piggly Wiggly, LLC is
an affiliate of C&S Wholesale Grocers, Inc., which has been ranked in
the top 10 largest privately-held company in the US by Forbes
magazine. C&S Wholesale Grocers, Inc., based in Keene, NH, is the
largest wholesale grocery supply company in the U.S. and an industry
leader in supply chain innovation with reported revenue of over $28
billion.. C&S services customers of all sizes, supplying more than
14,000 independent supermarkets, chain stores, military bases, and
institutions with over 140,000 different products.
www.shopthepig.com
www.pigglywiggly.com Source: www.pigglywiggly.com; www.shopthepig.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Sheboygan, WI Annual Monthly PSF
# of Total Locations: 530+ in 17 States
Guaranty: Piggly Wiggly Midwest LLC Current: $169,436.60 $14,119.72 $4.10
Midwest LLC Locations: 100+ Option 1: $182,247.67 $15,187.30 $4.41
GLA: 41,326 Option 2: $200,431.10 $16,702.59 $4.85
Tenant Since: 1962
Current Term Start: 11/01/2012 Tenant Recapture
Lease Expiration: 12/31/2025
Common Area Maintenance: Pro Rata Share
Rental Bumps: None Insurance: Pro Rata Share
Options: (2) 5-Yr. Real Estate Taxes: Pro Rata Share
Exclusive Use: Grocery Store Admin. Fee: 15% on CAM Expenses
Co-Tenancy: None Mgmt. Fee: Pro Rata Share
Termination Clause: None
19Dollar General (NYSE: DG/S&P “BBB”/Moody’s “Baa2”) operates
general merchandise retail discount stores offering branded
and private label merchandise typically priced $10 or less,
including consumables, seasonal, home products and apparel.
The stores deliver everyday low prices on items including food,
snacks, health and beauty aids, cleaning supplies, family
apparel, housewares, seasonal items, paper products and much
more from America’s most trusted brands and products, along
www.dollargeneral.com
with Dollar General’s high-quality private brands.
Source: www.dollargeneral.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Goodlettsville, TN Annual Monthly PSF
# of Total Locations: 14,321 in 44 States
Corporate: Dolgencorp, LLC Current: $71,667.00 $5,972.25 $6.52
Ticker Symbol: NYSE: DG Bump 2018*: $72,600.00 $6,050.00 $6.60
S&P Credit Rating: BBB Option 1: $77,550.00 $6,462.50 $7.05
Moody’s Credit Rating: Baa2 Option 2: $82,500.00 $6,875.00 $7.50
GLA: 11,000 Option 3: $87,450.00 $7,287.50 $7.95
Tenant Since: 2013 Option 4: $92,400.00 $7,700.00 $8.40
Current Term Start: 05/01/2013
Lease Expiration: 04/30/2023 * Blended current rental rate for increase effective 5/1/2018. Pro Forma
Calendar Year based on March 1, 2018 through February 28, 2019.
Rental Bumps*: Yes, 05/01/2018
Options: (4) 5-Yr.
Tenant Recapture
Exclusive Use: Dollar Type Store and Stores
Offering Variety Merchandise Common Area Maintenance: Fixed Rate
Current $1,125/Month
(CVS, Walgreens, Rite Aid, 5/1/2018 = $1,250/Month
Big Lots & Walmart) Insurance: Pro Rata Share
Co-Tenancy: None Real Estate Taxes: Pro Rata Share
Termination Clause: None Admin. Fee: None
Mgmt. Fee: None
20Tri City National Bank Corporation is a wholly owned banking
subsidiary of Tri City Bankshares, Inc., a single bank holding company
headquartered in Oak Creek, WI. The bank has two subsidiaries, Tri
City Capital Corporation, a Nevada corporation and Tri City
Investment Services, a division of the parent. Tri City National Bank
offers personal banking services, along with business services and
investments.
Source: www.tcnb.com
www.tcnb.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Oak Creek, WI Annual Monthly PSF
# of Total Locations: 17+
Corporate: Tri City National Bank Current*: $53,386.00 $4,448.83 $74.15
GLA: 720 Bump 2018*: $54,000.00 $4,500.00 $75.00
Tenant Since: 1974 Bump 2021: $55,684.80 $4,640.40 $77.34
Current Term Start: 08/01/2015 Bump 2024: $57,348.00 $4,779.00 $79.65
Lease Expiration: 07/31/2025
* Blended current rental rate for increase effective 8/1/2018. Pro Forma
Rental Bumps: Yes, 2018, 2021, 2024 Calendar Year based on March 1, 2018 through February 28, 2019.
Options: None
Exclusive Use: None Tenant Recapture
Co-Tenancy: None
Common Area Maintenance: Pro Rata Share
Termination Clause: None Insurance: Pro Rata Share
Real Estate Taxes: Pro Rata Share
Admin. Fee: None
Mgmt. Fee: Pro Rata Share
21Citi Trends (NASDAQ: CTRN) is a value-priced retailer of urban
fashion apparel, shoes, accessories and home décor for the
entire family. The company’s merchandise offerings are
designed to appeal to the preferences of fashion & value
conscious consumers. The goal is to provide merchandise at
discounts to department and specialty stores’ regular prices of
20% to 70%. Citi Trends’ buyers source merchandise from over
1,800 vendors to deliver quality fashion product at outstanding
www.cititrends.com
value for customers.
Source: www.cititrends.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Savannah, GA Annual Monthly PSF
# of Total Locations: 549 in 31 States
Corporate: Citi Trends, Inc. Current: $83,760.00 $6,980.00 $6.98
GLA: 16,235 Option 1: $101,280.00 $8,440.00 $8.44
PRS GLA: 12,000 Option 2: $111,480.00 $9,290.00 $9.29
Tenant Since: 2010 Option 3: $122,520.00 $10,210.00 $10.21
Current Term Start: 10/01/2015 Option 4: $134,880.00 $11,240.00 $11.24
Lease Expiration: 09/30/2020
Rental Bumps: None Tenant Recapture
Options: (4) 5-Yr. Common Area Maintenance: Pro Rata Share
Exclusive Use: In no event, will another Cap on CAM: 5% Over Previous Year,
tenant use more than 15,000 Excluding Security, Snow
SF for the sale/display of and Utilities
apparel or more than 7,500 Insurance: Pro Rata Share
SF for the display of shoes Real Estate Taxes: Pro Rata Share
Co-Tenancy: Piggly Wiggly & 35,000 SF Admin. Fee: 15% on CAM Expenses
(Excluding Utilities)
of “Shops” Occupancy
Mgmt. Fee: None
Excluding Anchors
Termination Clause: None
22Advance America is one of the nation’s largest consumer
lending companies offering a variety of financial services.
Advance America is a wholly owned subsidiary of Grupo Elektra
(Moody’s “Ba3”), one of the world’s leading providers of
banking services, consumer finance, personal loans and
specialty retailing. Whether customers need a Payday Loan or
Installment Loan, Advance America Racine is the place to go.
Advance America is a nationally recognized, fully licensed
financial company that helps millions of people every year. The
company’s services include: Payday Loans, Installment Loans,
www.advanceamerica.net Online Installment Loans, Title Loans, MoneyGram Services and
Visa Prepaid Cards.
Source: www.advanceamerica.net
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Spartanburg, SC Annual Monthly PSF
# of Total Locations: 2,000+
Guaranty: Advance America Cash Current: $19,236.00 $1,603.00 $16.03
Advance Centers, Inc. Option 1: 2% Annual Increases
GLA: 1,200
Tenant Since: 1998 Tenant Recapture
Current Term Start: 08/01/2016 Common Area Maintenance: Pro Rata Share
Lease Expiration: 07/31/2019 Insurance: Pro Rata Share
Rental Bumps: None Real Estate Taxes: Pro Rata Share
Options: (1) 3-Yr. Admin. Fee: 15% on CAM Expenses
Exclusive Use: Financial Institution Mgmt. Fee: Pro Rata Share
Co-Tenancy: None
Termination Clause: May terminate with 90 days
notice if prohibited from
continuing its business by
regulations/legislation OR if
in tenant's discretion, the
performance is determined to
be economically non-viable;
Should tenant terminate,
Tenant to pay a one-time
penalty fee of $10,906.02.
23As one of the fastest growing pizza chain in the U.S., there’s no denying
that Little Caesars is doing something right. The pizza restaurant chain
is an international brand that’s a household name and a front-of-mind
decision when customers got pizza on the brain. The company has
grown tremendously since opening the first store in 1959 – and still
growing. The chain offers a variety of original and deep-dish pizzas
along with cheese bread, salads, and sandwiches. The company is
famous for its advertising catchphrase, "Pizza! Pizza!" and offering
www.littlecaesars.com "Hot-N-Ready", a large pizza or cheese bread sold for $5.
Source: www.shopfurniturezone.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Detroit, MI Annual Monthly PSF
# of Total Locations: 4,800+
Franchise/Corporate: Little Caesars Enterprises, Inc. Current: $20,364.00 $1,697.00 $16.97
GLA: 1,200 Option 1: $21,120.00 $1,760.00 $17.60
Tenant Since: 2009 Option 2: $23,232.00 $1,936.00 $19.36
Current Term Start: 02/01/2015
Lease Expiration: 01/31/2020 Tenant Recapture
Rental Bumps: None Common Area Maintenance: Pro Rata Share
Options: (2) 5-Yr. Insurance: Pro Rata Share
Exclusive Use: Pizza & Related Products Real Estate Taxes: Pro Rata Share
Co-Tenancy: None Admin. Fee: 10% on CAM Expenses
Termination Clause: None Mgmt. Fee: None
24ATC’s core focus is primarily in individual and small business tax
services. But what drives ATC the most is the desire to continue to
improve and find ways to add value for clients by expanding product
offerings. Be it refund transfer, tax advance, or tax loans.
Source: www.atcincometax.com
www.atcincometax.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Decatur, GA Annual Monthly PSF
# of Total Locations: 29
Guaranty: Personal Current: $15,600.00 $1,300.00 $13.00
GLA: 1,200 Tenant Recapture
Tenant Since: 2017
Current Term Start: 10/28/2017 Common Area Maintenance: Modified Gross
(Pays In-Suite Utilities)
Lease Expiration: 10/27/2020
Insurance: Gross
Rental Bumps: None Real Estate Taxes: Gross
Options: None Admin. Fee: None
Exclusive Use: None Mgmt. Fee: None
Co-Tenancy: None
Termination Clause: Tenant has a one-time right
to terminate in the event that
Tenant has not prepared at
least 300 tax returns prior to
April 15 - Tenant to provide
notice prior to April 15 and
will have 30 days from the
notice to vacate. Termination
Date will not be sooner than
April 30, 2018.
25The Furniture Zone family has been in business for years in
Racine. The company carries wide selections of bedroom, living
room, and dining room furniture, in the beautifully decorated
20,000 square feet showroom. Furniture Zone carries some of
the most recognized names in furniture and mattresses: Ashley,
Coaster, Albany, Cramco, and many more well known brands.
The family buyers continue to always search for the best buys
and values in the furniture market and shop during four
international shows each year; making certain to always find
products coming from around the world. Today's fine furniture
www.shopfurniturezone.com
is built in The United States, Indonesia, South American, Canada
and China.
Source: www.shopfurniturezone.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
Guaranty: Personal Current: $70,956.00 $5,913.00 $3.75
GLA: 18,920 Option 1: $80,410.00 $6,700.83 $4.25
Tenant Since: 2012
Current Term Start: 10/15/2017 Tenant Recapture
Lease Expiration: 10/14/2022 Common Area Maintenance: Modified Gross
Rental Bumps: None (Pays In-Suite Utilities)
Options: (1) 5-Yr. Insurance: Gross
Real Estate Taxes: Gross
Exclusive Use: Competitor; Furniture Sales
Admin. Fee: None
Co-Tenancy: None Mgmt. Fee: None
Termination Clause: Either party may terminate
with 120 days notice at any
time after the first 24 months.
Percentage Rent: 4% Over $900,000
26The company offers all resale needs. From fashion to home and
holiday merchandise, Value Village provides savings for every
item. Every day, the store offers discounts on select
merchandise to make all items even more affordable.
www.valuevillagewi.com
Source: www.valuevillagewi.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 3 Stores Regionally
Guaranty: Mercantile Thrift Stores, Inc. Current*: $101,530.00 $8,460.83 $3.91
GLA: 26,000 Bump 6/1/2018: $104,000.00 $8,666.67 $4.00
Tenant Since: 2013 Bump 6/1/2021: $117,000.00 $9,750.00 $4.50
Current Term Start: 02/01/2013 Option 1: $123,500.00 $10,291.67 $4.75
Lease Expiration: 05/31/2023 Option 2: $130,000.00 $10,833.33 $5.00
Rental Bumps: Yes, 2018 & 2021
* Blended rental rate for increase effective 6/1/2018. Pro Forma Calendar
Options: (2) 5-Yr. Year: March 1, 2018 Through February 28, 2019
Exclusive Use: None
Co-Tenancy: None Tenant Recapture
Termination Clause: None Common Area Maintenance: Pro Rata Share
Insurance: Pro Rata Share
Real Estate Taxes: Pro Rata Share
Admin. Fee: 15% on CAM Expenses
Mgmt. Fee: Pro Rata Share
27michelles-nail-and-spa.business.site
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
Guaranty: Personal Current: $24,500.00 $2,041.67 $12.25
GLA: 2,000 Bump 10/01/2021: $25,000.00 $2,083.33 $12.50
Tenant Since: 2016
Current Term Start: 02/23/2016
Tenant Recapture
Lease Expiration: 08/31/2026 Common Area Maintenance: Pro Rata Share
Rental Bumps: Yes, 10/01/2021 Insurance: Pro Rata Share
Options: None Real Estate Taxes: Pro Rata Share
Exclusive Use: None Admin. Fee: 15% on CAM Expenses
Co-Tenancy: None Mgmt. Fee: Pro Rata Share
Termination Clause: None
28Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
Guaranty: Personal Current: $49,350.00 $4,112.50 $5.80
GLA*: 8,515 Bump 2020* (5,700 SF): $52,200.00 $4,350.00 $6.00
Tenant Since: 2011 Option 1 (5,700 SF): $6.25
Current Term Start: 02/01/2017 Option 1 (2,815 SF): $8.53
Lease Expiration: 01/31/2022 TOTAL OPTION: $59,636.95 $4,969.75 $7.00
Rental Bumps: Yes, 02/01/2020
Tenant recently expanded by 2,815 SF. Expanded space rent is $18,000/
Options: (1) 2-Yr. Annual until Option period. Bump is only for original space. Option rates are
Exclusive Use: Beauty Store separated.
Co-Tenancy: None
Termination Clause: None Tenant Recapture
Common Area Maintenance: Pro Rata Share
Insurance: Pro Rata Share
Real Estate Taxes: Pro Rata Share
Admin. Fee: 15% on CAM Expenses
Mgmt. Fee: Pro Rata Share
29Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
GLA: 2,600 Current*: $23,790.00 $1,982.50 $9.15
Tenant Since: 2010 Bump 9/5/2018*: $26,000.00 $2,166.67 $10.00
Current Term Start: 09/06/2015 * Blended current rental rate for increase effective 5/1/2018. Pro Forma
Lease Expiration: 09/05/2020 Calendar Year based on March 1, 2018 through February 28, 2019.
Rental Bumps: Yes, 9/5/2018
Options: None Tenant Recapture
Exclusive Use: None
Common Area Maintenance: Pro Rata Share
Co-Tenancy: None Insurance: Pro Rata Share
Termination Clause: None Real Estate Taxes: Pro Rata Share
Admin. Fee: 15% on CAM Expenses
Mgmt. Fee: Pro Rata Share
30China House provides Chinese food services to Racine, WI.
Operating in Racine for 16 years, the restaurant specializes in
delivery, dine in, and carry out of Chinese food. China House
offers experienced cooks to serve the oriental taste of Chinese
cuisine.
Source: www.chinahouseracine.com
www.chinahouseracine.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
Guaranty: Personal Current*: $21,096.00 $1,758.00 $15.07
GLA: 1,400 Option 1: $21,728.00 $1,810.67 $15.52
Tenant Since: 2008
Current Term Start: 12/01/2017 Tenant Recapture
Lease Expiration*: 11/30/2019 Common Area Maintenance: Pro Rata Share
Rental Bumps: None Insurance: Pro Rata Share
Options: (1) 5-Yr. Real Estate Taxes: Pro Rata Share
Exclusive Use: None Admin. Fee: 15% on CAM Expenses
Co-Tenancy: None Mgmt. Fee: Pro Rata Share
Termination Clause: None
*Per most recent Amendment, the Landlord to
provide one new HVAC unit to service the
tenant; If tenant does not exercise the extended
term through 2024, Tenant to pay unamortized
amount of unit ($12,000).
31Body 360 is a family owned store selling body jewelry and
piercings. The company started as a small kiosk and has
expanded to its own store and hopes to grow into tattoo
services.
Source: www.body360racine.com
www.body360racine.com
Tenant Lease Abstract Tenant Base Rent Schedule
Headquarter: Racine, WI Annual Monthly PSF
# of Total Locations: 1
Guaranty: Personal Current: $12,350.00 $1,029.17 $9.50
GLA: 1,300
Tenant Since: 2017
Tenant Recapture
Current Term Start: 12/19/2017 Common Area Maintenance: Pro Rata Share
Lease Expiration*: 12/18/2018 Insurance: Pro Rata Share
Rental Bumps: None Real Estate Taxes: Pro Rata Share
Options: None Admin. Fee: 15% on CAM Expenses
Exclusive Use: None Mgmt. Fee: None
Co-Tenancy: None
Termination Clause: None
32DISCLOSURE, CONFIDENTIALITY & DISCLAIMER
CONFIDENTIALITY AGREEMENT DISCLOSURE & DISCLAIMER
The information within this Offering Memorandum will set forth an The Memorandum contains selected information pertaining to the property
understanding regarding the relationship between the Recipient of this and does not purport to be a representation of the state of affairs of the
package (the “Recipient”) and The Cooper Group and the confidentiality Property or the owner of the Property, to be all-inclusive or to contain all or
of the investment information to be supplied to you and your part of the information which perspective Recipients may require to
organization for use in considering, evaluating and/or purchasing this evaluate the purchase of real property. All financial projections and
property (the “Property”). The recipient acknowledges that all financial, information are provided for general reference purposes only and are based
contractual, marketing, and informational materials including but not on assumptions relating to the general economy, market conditions,
limited to lease information, occupancy information, financial competition and other factors beyond the control of the owner or The
information, projections, data information and any other similar Cooper Group. All references disclosed herein related to acreage, square
information provided by The Cooper Group which relates to the footages and/or other measurements may be approximations and the best
Property (collectively, the Confidential Information), whether said information available. The summaries of information included herein do not
information was transmitted orally, in print, in writing or by electronic purport to be complete nor necessarily accurate descriptions of the full
media is confidential in nature and is not to be copied or disseminated agreements referenced. Photos herein are the Property and respective
to any party without the prior consent of The Cooper Group. The owners and use of these images without the express written consent of the
Recipient acknowledges and agrees that the Confidential Information is owner is prohibited.
of such a confidential nature that severe monetary damage could result
from dissemination of that information to unauthorized individuals. The owner and the Cooper Group expressly reserve the right, at its sole
The Recipient shall limit access to the Confidential Information to those discretion, to reject any or all expressions of interest or offers to purchase
individuals in the Recipient’s organization with a “need to know” and the Property, and/or terminate discussions with any entity and any time
shall take all precautions reasonably necessary to protect the with or without notice which may arise as a result of review of this
confidentiality of the Confidential Information. The Recipient Memorandum.
acknowledges and agrees that the Confidential Information and any
copies thereof are the property of The Cooper Group and that all such Neither the owner or the Cooper Group, nor any of their respective
information will be returned to The Cooper Group upon written directors, officers, affiliates or representatives make any representation or
request. Any offers or inquiries from Recipient in connection with this warranty, expressed or implied, as to the accuracy or completeness of this
investment proposal shall be forwarded, confidentiality, to The Cooper Memorandum or its contents; and you are to rely solely on your
Group. Other than The Cooper Group, recipient agrees that neither investigators and inspections of the property in evaluating a possible
Recipient nor The Cooper Group shall be obligated to pay any procuring purchase of the Property. The information contained in this document has
broker fees in connection with this investment unless a separate been obtained from sources to be reliable. While the Cooper Group does
written Brokerage Agreement is entered into and written not doubt its accuracy, the Cooper Group has not verified it and makes no
acknowledgement of any procuring Brokerage Agreement is received guarantee, warranty or representation about it. It is your responsibility to
from all parties to the investment transaction. Procuring brokers must independently confirm the accuracy and completeness. Any projections,
provide written introductions of potential investors and receive written opinions, assumptions or estimates used are for example only and do not
acknowledgment from The Cooper Group for representation to be represent the current or future performance of the Property. The value of
recognized. This is a confidential Memorandum intended solely for your this transaction to you depends on tax and other factors which should be
limited use and benefit in determining whether you desire to express evaluated by your tax, financial and legal advisors.
further interest in the acquisition of the Property.
33Dan Cooper
dcooper@coopergrp.com
(888) 525-5695 x12
Cooper Commercial Investment Group
6120 Parkland Blvd., Suite 206 Bob Havasi
Cleveland, OH 44124 bhavasi@coopergrp.com
www.coopergrp.com (888) 525-5695 x10You can also read
