Island Market for Sale! - Richards Landing, St. Joseph Island, ON - LoopNet.com
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Island Market for Sale!
Richards Landing, St. Joseph Island, ON
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.
Island Market, 1192-1198 Richards St, Richards Landing, ON $1,299,000
Property Profile
Highly successful and growing Island Market fresh local grocery business and primely
located downtown retail investment building. With long term tenants in all units, this
business and building present an excellent investment opportunity for the investor and/or
owner/manager. The Island Market has a full butcher shop, new produce cooler and floor
in 2021, delivery van, solid branding, and great reputation and repeat clientele in the local
community. Gross sales have doubled since the current owners purchased the business in
2014. Experienced store manager and five staff are already trained and ready to continue.
Two digitized Point of Sale check outs, wireless payment terminals, and ShopKeep
inventory management system are fully implemented. Commercial tenants include LCBO
and Moose Sweats Artisan Gallery. One bedroom residential unit above the store is
currently tenanted. Conveniently located on St. Joseph Island in the idyllic village of
Richards Landing surrounded by prime residential and vacation properties, this building
has angle parking in front and is located between the doctors office, pharmacy, LCBO,
stores, hospital, post office, municipal marina, and directly across from the credit union.
Overview
Full Business Profile and Financial Information Available On Request
Annual Gross Sales Have Increased 100% Between 2014 and 2021
5366 unique SKUs
Waterview Building
7098 sq. ft. (plus basement)
All Equipment and Coolers Included
Tenants Include LCBO and Moose Sweats Artisan Gallery
One Bedroom Tenanted Residential Apartment Above
Municipal Water and Sewer
Taxes $3977 for 2020
MLS # SM132409
View iGuide Floor Plans and Virtual Tour
https://youriguide.com/Island-Market-1192-1198_richards_st_richards_landing_on
Google Maps Link
https://goo.gl/maps/2i7EAoUaJZf7CFA16
L P c $1,299,000 MLS # SM132409
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R a R a LT 9 E/S RICHARDS ST, 10 E/S RICHARDS ST PL 101; PT LT 8 E/S RICHARDS ST PL 101 AS IN T424442; PT SHORE RDAL ST. JOSEPH IN
FRONT OF LOT 12 CON D CLOSED BY BYLAW T354219 BEING PARTS 1 & 2, 1R8543; S/T T426224E; ST. JOSEPH PT SHORE RDAL IN FRONT OF LT 12
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S a Ca ac # Pa 2 ANNUAL EXPENSES:
R a S F 3,500 #S 1 Wa /S 4,369.00
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R a S F 871 R a E C S C a d H
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L O c R a L Pa N Ad a a S a T a -O : L A J a a S a - OFF: 705-253-7105 BROKER OF
705-253-7105 @ a a .ca
:// a a .ca/ . a a .ca
S O c S A
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Island Market
Sale Information
FEB 2022
Authored by: Thomas Henshell, Owner
1
Overvie
Enjoy Significant Profits and a Simpler Relaxed Lifestyle with this
Waterfront Commercial Building and Grocery Store.
In 2014, we purchased the Island Market business together with the commercial building. The market
struggled under previous ownership, with an annual revenue of $800k and a $30k loss. As of fiscal
2021 ending Apr 30 2021, revenue doubled to $1.6 million with a net operating profit of $119k.
Over 7 years, we have grown a core sustainable business and significantly improved the building for all
tenants. This opportunity is for the sale of a grocery store business and a commercial building.
Island Market
We have built a valuable brand with a loyal and expanding customer base. We have established
ourselves as an excellent employer on St. Joseph Island. Our proficient staff know how to run the
market effectively, safely with increased health & safety standards, and profitably. As an owner, we
work no more than 4 hours a week, with a profit of $119k as we have a manager who handles the day-
to-day operations.
1192-1198 Richards Street Commercial Building
We have had a 100% tenancy rate for the last 7 years, and fully expect this to continue. The three
commercial units have each operated here for over 20 years: Island Market, LCBO Retail Outlet, and
Moose Sweats Gift Shop. Above the market is a 1 bedroom tenanted residential apartment. Rent
revenue is $30k with a $13k net operating profit.
Island Market: +201% Revenue Growth, +394% Profit
$194,120 net operating profit over the last 2 years
Why Are We Selling?
I have grown startups from zero to seven digit revenue, but I have never turned around a struggling
business. In 2014, under previous owners, the market was unsustainable and was likely to go out of
business. For the small town community which relies on it, I decided to invest time, money, and
2
experience in order to turn it around. Revenues are now double, the business is running well without
problems or surprises. One of my other businesses is taking off like a rocket, it is time to focus on this
next challenge.
3
The Right Bu er
We are seeking a new owner or owner-operator for the market and the building. The ideal candidate
has professional retail experience and management/executive experience. Personally, the right
candidate has a passion for food: technique, exciting ingredients, interesting substitutes, and recipes.
This passion flows through the product assortment, weekly ads, and social media.
This community is 100% British cuisine; a roast beef and mashed potatoes kind of place. Our top
selling products are bananas, ground beef, spinach-feta sausage, strip loin steaks and always will be.
Owner
As an owner, you will be relying on the store manager and full complement of 5 staff to continue to
grow and improve operations. Your role is primarily one of executive coach, talking through difficult
problems, identifying opportunities for improvement, keeping the staff on vision and quality high.
The store manager is happy to continue being the store manager.
You will also be the property manager for the building, but this amounts to hiring local contractors for
small jobs like snow removal and landscaping.
At most, this requires about 4 hours of work per week. Some weeks it is zero.
As an owner you can expect an annual profit of $70-120k.
Owner-Operator
As an owner operator, you can step into the role as manager and receive a monthly salary.
Historically, we have paid our manager about $45,000 salary with a revenue based bonus. A good
wage in this area.
The current store manager was an assistant manager for 4 years and has now been manager for just
over a year. It has been discussed, and they will happily step back into the assistant manager role. No
problem at all.
4
As store manager, you can expect to work 40-45 hours a week, historically always Monday to Friday.
Occasionally, there is the need to come in after hours or a weekend, but this is rare.
As an owner-operator you can expect an annual profit of $115-165k.
(You are paying yourself as manager in addition to the market and building profits.)
A Profitable Business
If you owned the Island Market since , you’d be , richer.
Year Net Profit
2019 33,768
2020 74,406
2021 119,741
2022 YTD (9 months) 92,312
As of Feb 12 2022
Total: $320,200
We base the value of the business on the hard assets (shelving, coolers) and the operating profit. But
what profit? We use an average of , , and YTD to arrive at , . If we don’t sell, we
expect to continue to make about $95k each year, going forward.
Note: Our financials show an entry for Rent/Lease each year. This is because we own the building
through our separate property management corporation. An owner operator would not have this
need to pay rent to themselves. Therefore, we include the rent values in our profit calculations, as it
is money we paid to ourselves.
Sale Valuation
We are seeking $1,294,000 + inventory. Here is how we arrived at this figure:
Building & Property Fair market value 799,000
Island Market Business 3x $95,000 Avg Net Operating Income 285,000
Fixed Assets and Goodwill 210,000
Total $1,294,000
+Inventory (approx.) 80,000
5
Inventory
St Joseph Island is a tourist destination for cottages and RV parks. People come from
Sault Ste Marie, Upper Peninsula Michigan, and Southern Ontario. Island Market sales
in July and August are about double other months. We performed a full physical
inventory April 2021 and it was $79,544.68. During the summer months inventory
increases to as much as $120,000.
About Island Market
The Island Market is a fully stocked grocery store serving St. Joseph Island and the
surrounding North Shore community. It has been operating for over 100 years. The
closest competitor is in Sault Ste Marie, 45 minutes away.
6
While only 3,400 sq.ft., we manage to carry 5,366 unique skus:
Fresh produce sourced abroad and locally, including organic grown on St. Joseph
Island
Trained butcher with all cuts of fresh meat, including our famous in-house made
spinach-feta sausage
Sliced meats all cut in-house
Fresh dairy sourced locally by Lock City Dairy and Beatrice
Bakery (serviced by Weston Bakery)
Frozen foods & Ice cream
Gluten Free
Pharmacy
7Household & Cleaning products
Dry and canned goods (sourced from Sobeys Wholesale)
Chips and snacks (serviced by Frito-Lay and Humpty Dumpty)
Softdrinks (service by Pepsi and Coca-Cola)
Fresh cut flowers
A typical family of five can have 90% of their grocery needs met at Island Market. This
allows Islanders to comfortably live on the island with no need to cross the bridge and
drive to the big city.
We do not sell alcohol, cigarettes, or lotto.
8Improvements
When we purchased the store in 2014 it used pricing stickers, electronic cash registers,
no inventory management, had just one checkout line, and had only $25,000 of
inventory. The owner worked full time without pay, and employed 3 part-timers.
We immediately computerized and updated all operations. We now have two
checkout lines and use iPad based scanners and POS with cloud based inventory
management and real-time reporting (Shopkeep).
We increased inventory from $25,000 to around $100,000 by increasing category
breadth and depth. We consolidated suppliers with Sobeys Wholesale realizing at least
5% savings. We installed new shelving and coolers to better display the expanded
inventory, then reorganized and increased shelving in the warehouse for greater
efficiency.
We aggressively advertised in the local paper with full page ads, invested in social
media marketing, sponsored local community events, and partnered with local charities
like the Food Bank.
68 of 84 months have beaten previous year sales.
We created a Store Manager position and invested heavily in training. We instituted a
revenue-based bonus system for the manager, meat cutter, and assistant manager.
We introduced uniforms to help employees feel more professional and allow customers
to easily identify staff.
Starting in 2014 with an unpaid store manager and 3 part-timers, today we have a store
manager (45,000/year), 3 full-time positions, and 3-6 part-time positions. Team morale
is excellent with much of the staff working with us for 4+ years.
9In 2019 we added home-delivery service. We purchased a cargo van and invested in
wireless debit/credit. This set us up well for the 2020 covid pandemic, being able to
offer free home delivery for those in quarantine and curbside pickup with payment.
Finally, in the last fiscal year we have reinvested profits into a brand new $80,000
produce cooler and $24,000 for a new floor.
All of these efforts resulted in significant growth and profitability.
ANNUAL REVENUE
1,613,162
1,435,371
1,296,956
1,193,033
1,094,750 1,116,119
971,145
800,000
2014 2015 2016 2017 2018 2019 2020 2021
New Owner Opportunity
There are opportunities for a new owner to realize additional profits. For example, we
own and operate multiple companies and therefore are required to pay Employer
10Health Tax across all the companies at the higher rate. In 2020 the tax was $2,526.36.
A new owner can reduce or eliminate this cost.
About 1192-1198 Richards Street
The building is located in downtown Richards Landing and is the center of the
commercial district. Across the street is a bank, two restaurants and two stores. The
Island Market is nestled in between the hospital and pharmacy on one side and the
post office on the other side. The building has waterview and is a few doors down from
the municipal marina. In the summertime some customers will arrive by boat.
Property Details
Address 1192-1198 Richards Street, Richards Landing, Ontario, P0R 1J0
PIN: 314580375
Property Type: Mixed-Use Commercial/Residential Building
Zoning GC, General Commercial Zone
Site Area ±11,916 SF
Building Area ±7,532 SF
Date of Construction 1928-1955
Rental Income Fiscal 2021
Tenant Unit Tenant Lease End Net Semi-Gross Annually
Since Date Rentable Rental Rate
Area (SF)
Island Market 1 1980 N/A ±3,383 N/A 0
11Moose Sweats 2 1990 Apr 2024 ±1,044 $5.25 PSF $6,942
LCBO 3 1984 Jul 2027 ±1,800 $5.25* PSF + TMI $12,883
Residential 4 2020 Apr 2021 ±871 $795 PM $9,540
Total: ±7,098 $29,365
*LCBO just renewed for 5 years at $6.75 PSF + TMI
Expenses Fiscal 2021
Annually
Property Taxes 3,977
Insurance 6,210
Sewer 4,369
Maintenance & Repair 1,490
Total: 16,046
Net Operating Profit $13,319
Improvements
We have invested significantly in upgrading the building. A new roof was installed fall
of 2020. All tenants have new air conditioning. This spring the market has new
flooring, and a new expanded electrical panel. The LCBO has a new furnace.
Everything is running well with no known issues.
1213
14
Island Market, 1192-1198 Richards Street, Richards Landing, ON
Grocery Store Total Exterior Area 3803.84 sq ft
Total Interior Area 3518.63 sq ft
2PC BATH
5'4" x 3'7"
STORAGE 19 sq ft
OFFICE
9'1" x 7'10"
71 sq ft
BUTCHER SHOP
9'2" x 16'11" STORAGE
155 sq ft
12'6" x 22'5"
278 sq ft
RAMP
COOLER
8'2" x 24'7"
GROCERY STORE 194 sq ft
38'1" x 58'6"
2075 sq ft
STORAGE
14' x 34'6"
310 sq ft
DN
UP
ENTRANCE
FREEZER
8' x 8'
OFFICE 64 sq ft
8'9" x 5'8"
50 sq ft
N
0 5 10
ft PREPARED: Jun 2021
White regions are excluded from total floor area in iGUIDE floor plans. All room dimensions and floor areas must be considered approximate and are subject to independent verification.Island Market, 1192-1198 Richards Street, Richards Landing, ON
Property Details
Room Measurements Floor Area Information
Only major rooms are listed. Some listed rooms may be excluded from total interior floor area Floor areas include footprint area of interior walls. All displayed floor areas are rounded to two
(e.g. garage). Room dimensions are largest length and width; parts of room may be smaller. decimal places. Total area is computed before rounding and may not equal to sum of displayed
Room area is not always equal to product of length and width. floor areas.
Island Market Island Market
GROCERY STORE GROCERY STORE
2pc Bath: 5'4" x 3'7" | 19 sq ft Interior Area: 3518.63 sq ft
Butcher Shop: 9'2" x 16'11" | 155 sq ft Perimeter Wall Length: 253 ft
Cooler: 8'2" x 24'7" | 194 sq ft Perimeter Wall Thickness: 13.5 in
Freezer: 8' x 8' | 64 sq ft Exterior Area: 3803.84 sq ft
Grocery Store: 38'1" x 58'6" | 2075 sq ft
Office: 8'9" x 5'8" | 50 sq ft
Office: 9'1" x 7'10" | 71 sq ft Total Above Grade Floor Area
Storage: 12'6" x 22'5" | 278 sq ft Island Market Interior: 3518.63 sq ft
Storage: 14' x 34'6" | 310 sq ft Island Market Exterior: 3803.84 sq ft
Customer Name: Jonathan Stewart, Broker of Record
Customer Company: Royal LePage Northern Advantage Stewart Team, Brokerage
Prepared: Jun 17, 2021
Questions? Or would you like to arrange a showing? Give the Stewart Team office a call at 705-253-7105!
White regions are excluded from total floor area in iGUIDE floor plans. All room dimensions and floor areas must be considered approximate and are subject to independent verification.Island Market, 1192-1198 Richards Street, Richards Landing, ON
iGUIDE Method of Measurement
Definitions
Interior Area is a per floor calculation, made by measuring to the inside surface of the exterior walls.
Excluded Area is a sum of interior areas of all rooms (measured to the inside surface of room walls) that are excluded from the Interior Area for
a floor. Prescribed area exclusions can vary from region to region. Examples of exclusions are spaces open to below, garages, cold cellars, crawl
and reduced height spaces, non-enclosed open spaces, such as decks and balconies.
The footprint of all interior walls and staircases is typically included in the reported Interior Area for a floor. The iGUIDE PDF floor plans use color
to highlight all included areas. All excluded areas are shown white.
Exterior Area is a per floor calculation, made by measuring to the outside surface of the exterior walls, see below for calculation details.
Grade is the ground level at the perimeter of the exterior finished surface of a house. A floor is considered to be above grade if its floor level is
everywhere above grade.
Total Interior Area is the sum of all Interior Areas.
Total Excluded Area is the sum of all Excluded Areas.
Total Exterior Area is the sum of all Exterior Areas.
Unfinished Area is the sum of interior areas of all unfinished rooms (measured to the inside surface of room walls).
Finished Area is Exterior Area minus Unfinished Area. Finished Area includes the footprint of interior and exterior walls.
iGUIDE Exterior Area Calculation
Exterior Area = [Perimeter Wall Thickness] x [Perimeter Wall Length] + [Interior Area]
Notes
A. Perimeter Wall Thickness is an independent measurement taken from the property, typically, at the main entrance. Considerations are not made for varying wall
thickness around the perimeter.
B. Perimeter Wall Length is the sum of lengths of all exterior wall segments on a particular floor. When used to calculate Total Exterior Area Above Grade based on
Total Interior Area Above Grade, it is the sum of perimeter wall lengths of all floors above grade.
Disclaimer
All dimensions and floor areas must be considered approximate and are subject to independent verification.
White regions are excluded from total floor area in iGUIDE floor plans. All room dimensions and floor areas must be considered approximate and are subject to independent verification.2270 10th Side Rd, Richards Landing, O
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.2270 10th Side Rd, Richards Landing, O
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.2270 10th Side Rd, Richards Landing, O
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.2270 10th Side Rd, Richards Landing, O
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.Island Market for Sale!
Richards Landing, St. Joseph Island, ON
Presented by Jonathan Stewart, Broker of Record
Jonathan Stewart, Broker of Record
Royal LePage Northern Advantage Stewart Team,
Brokerage
705-253-7105 (Office)
info@stewartteam.ca
http://www.stewartteam.ca
Not intended to solicit sellers or buyers under contract with another Realtor.You can also read
