NET LEASE INVESTMENT OFFERING - Pick 'n Save (Kroger Guaranty) & Tractor Supply Company 709-711 US Highway 45 (Railroad Street) Eagle River ...
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NET LEASE INVESTMENT OFFERING Pick ‘n Save (Kroger Guaranty) & Tractor Supply Company 709-711 US Highway 45 (Railroad Street) Eagle River, Wisconsin 54521
TABLE OF CONTENTS
I. Executive Summary II. Location Overview III. Market & Tenant Overview
Executive Summary Site Plan Tenant Profile
Investment Highlights Aerials Location Overview
Property Overview Maps Demographics
Rent Roll Photos
As-Is Operating Statement
NET LEASE INVESTMENT OFFERING
DISCLAIMER STATEMENT
DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. It
STATEMENT: is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made
available to any other person or entity without the written consent of The Boulder Group.
This Offering Memorandum has been prepared to provide summary, unverified information to prospective
purchasers, and to establish only a preliminary level of interest in the subject property. The information
contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not
made any investigation, and makes no warranty or representation.
The information contained in this Offering Memorandum has been obtained from sources we believe to be
reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained
herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty
or representation whatsoever regarding the accuracy or completeness of the information provided. All potential
buyers must take appropriate measures to verify all of the information set forth herein.
NET LEASE INVESTMENT OFFERINGEXECUTIVE SUMMARY
EXECUTIVE The Boulder Group is pleased to exclusively market for sale a fully leased two-tenant property located in Eagle
SUMMARY: River, Wisconsin. The property is occupied by Pick ‘n Save (Kroger Guaranty) and Tractor Supply Company.
The property is strategically positioned at a signalized intersection with easy access and excellent visibility along
the area’s primary thoroughfare. The two tenants have more than 9 years remaining on their leases that feature
rental escalations in the primary term and renewal option periods.
The 91,100 square foot building is located within the retail corridors in the area. The property is situated at
the signalized intersection of US Highway 45 (Railroad Street) and McKinley Boulevard. US Highway 45 is
the area’s primary thoroughfare and commercial corridor in the area. Pick ‘n Save and Tractor Supply serve as
primary shopping destination for residents in the area with limited competition. The subject property is located
within close proximity to multiple residential communities, local businesses and schools. National retailers in
the area include Shopko, Walgreens and McDonald’s. Local draws include Eagle River Memorial Hospital,
Eagle River Union Airport, the International Snowmobile Hall of Fame, Wisconsin Hockey Hall of Fame and
the Northland Pines School District (K-12).
Eagle River, the “Snowmobile Capital of the World”, is a popular vacation and retirement destination. The
area contains many seasonal vacation homes, cabins and popular summer camps due to the many lakes in the
area. Eagle River is geographically centered within the largest concentration of freshwater lakes in the world
with nearly 3,000 lakes within an hour’s car ride from downtown. Eagle River has been ranked by numerous
publications as one of the best retirement community in the United States.
Pick ‘n Save has over 9 years remaining on the lease which expires December 31, 2026. The lease features a
5% rental escalation in 2021 and four 5-year renewal option periods with 5% rental escalations. The lease also
features a recent corporate guarantee from The Kroger Company showing their dedication to the location and
comfort with the stores performance. Pick ‘n Save is owned and operated by Roundy’s Supermarkets, Inc.,
a wholly owned subsidiary of The Kroger Company. There are more than 100 Pick ‘n Save stores servicing
communities across Wisconsin. Kroger is investment grade rated with a Standard & Poor’s rating of BBB.
Tractor Supply recently executed a ten year lease which expires June 30, 2027. The lease features a 5% rental
escalation in 2022 and four 5-year renewal option periods with 5% rental escalations. Tractor Supply is the
largest operator of rural lifestyle retail stores in the United States with over 1,600 retail stores in 49 states.
NET LEASE INVESTMENT OFFERINGINVESTMENT HIGHLIGHTS
INVESTMENT • Recently renovated building (2017)
HIGHLIGHTS:
• Over 9 years remaining on each lease
• Rental escalations in primary terms and renewal option periods
• Corporate guarantees
• Located along the area’s primary thoroughfare
• 91,100 square feet on 12.34 acres
• Positioned at a signalized intersection with exceptional visibility and access
• Tenants are industry leaders
• Brand new roof, parking lot and HVAC units
NET LEASE INVESTMENT OFFERINGPROPERTY OVERVIEW
Price: $8,595,370
PROPERTY
OVERVIEW:
Cap Rate: 7.00%
Net Operating Income: $601,676
Tenant/Pro Rata Share: Pick ‘n Save (Roundy’s/Kroger) – 69.79%
Tractor Supply Company – 30.21%
Year Built/Renovated: 1969/2017
Parking: 200+ Spaces
Building Size: 91,100 SF
Land Size: 12.34 Acres
NET LEASE INVESTMENT OFFERINGRENT ROLL
RENT ROLL:
Tenant Square Feet Commencement Expiration Options Annual Rent Step-Up Date CAM/TAX/INS
Pick ‘n Save (Kroger Guaranty) 63,578 SF March 26, 2006 December 31, 2026 $483,511 Current - 12/31/2021 NNN
$507,687 1/1/2022 - 12/31/2026 10% Admin Fee
Option 1 $533,072 1/1/2027 - 12/31/2031
Option 2 $559,725 1/1/2032 - 12/31/2036
Option 3 $587,711 1/1/2037 - 12/31/2041
Option 4 $617,097 1/1/2042 - 12/31/2046
Tractor Supply Company 27,522 SF * June 24, 2017 June 30, 2027 $130,563 Current - 6/30/2022 NNN
$137,160 7/1/2022 - 6/30/2027
Option 1 $144,032 7/1/2027 - 6/30/2032
Option 2 $151,179 7/1/2032 - 6/30/2037
Option 3 $158,600 7/1/2037 - 6/30/2042
Option 4 $166,571 7/1/2042 - 6/30/2047
Total 91,100 SF $614,075
* Includes 8,648 SF of fenced outdoor display area.
NET LEASE INVESTMENT OFFERINGOPERATING STATEMENT
OPERATING Square
STATEMENT: Feet
Income
Base Rent 91,100 $ 614,075
Recoveries
CAM $ 59,138
Real Estate Taxes 63,386
Insurance 10,213
Administrative Fee 2,589
Total Recoveries $ 135,325
Effective Gross Income $ 749,400
Expenses
CAM $ (59,138)
Taxes (63,386)
Insurance (10,213)
Management Fee (2% of Gross Income) (14,988)
Total Expenses $ (147,724)
Net Operating Income $ 601,676
* Tenants pay Expenses equal to:
Pick ‘n Save – 69.79%
Tractor Supply – 30.21%
NET LEASE INVESTMENT OFFERINGSITE PLAN
INDIANA STREET
E. HOTPITAL ROAD
E. MCKINLEY
FENCED
AREA
Gardener’s
Gate
U.S. 45 (15,200 VPD)
*Pick ‘n Save has the option to develop a gas station on the land currently subleased to the Gardener’s Gate.
N
NET LEASE INVESTMENT OFFERINGAERIALS
Northland Pines Middle
School & Elementary School
(15,200 VPD)
ro a d S tr e et (US-45)
N Ra il
NET LEASE INVESTMENT OFFERINGAERIALS
N Railroad
Street (US-45)
(15,200 VPD)
NET LEASE INVESTMENT OFFERINGMAPS
N
NET LEASE INVESTMENT OFFERINGMAPS
N
NET LEASE INVESTMENT OFFERINGEXTERIOR PHOTOS NET LEASE INVESTMENT OFFERING
TENANT PROFILE
TENANT Pick ‘n Save is the premier supermarket chain in Wisconsin. The first Pick ‘n Save opened March 25, 1975 in Milwaukee
PROFILE: and today, more than 100 Pick ‘n Save stores serve communities across Wisconsin. Current stores are filled with fresh
products, restaurant quality prepared foods, full service counters, meal ideas, food and beverage pairings and more.
Pick ‘n Save is the number one market share grocer in the Milwaukee MSA and is owned and operated by Roundy’s
Supermarkets, Inc.
Roundy’s Supermarkets, Inc. (Roundy’s), a wholly owned subsidiary of The Kroger Company, is a supermarket chain
with over 150 stores in Wisconsin and Illinois. Roundy’s operates under the names “Pick ‘n Save” throughout Wisconsin,
“Copps Food Center” in northern Wisconsin and the Madison area, “Metro Market” in the Milwaukee and Madison
area, and “Mariano’s Fresh Market” in the Chicago metropolitan area. It is the number one market share grocer in the
Milwaukee MSA, Madison MSA and has recently grown to number two in the Chicago MSA under its flagship names.
Roundy’s Supermarket’s was acquired on December 18, 2015 by The Kroger Company.
The Kroger Company (Kroger) was founded in 1883 in Cincinnati, Ohio and currently operates more than 2,750
grocery retail stores in 35 states under nearly two dozen banners. Kroger is the country’s largest supermarket chain by
revenue ($115.3 billion for fiscal year 2016), second-largest general retailer (behind Walmart), and twenty-third largest
company in the United States. Kroger is also the fifth largest retailer in the world. Kroger is a publicly traded company
on the New York Stock Exchange using the symbol “KR”. The company is investment grade rated with a Standard &
Poor’s rating of BBB.
Website: www.picknsave.com
Year Founded: 1975
Number of Locations: 100+
Employees: 10,000±
Owner/Operator: Roundy’s Supermarkets, Inc.
Headquarters: Milwaukee, WI
Parent Company: The Kroger Company
Parent Number of Locations: 2,750+
Parent Headquarters: Cincinnati, OH
Stock Symbol: KR (New York Stock Exchange)
Standard & Poor’s Rating: BBB
NET LEASE INVESTMENT OFFERINGTENANT PROFILE
TENANT Tractor Supply Company is the largest operator of rural lifestyle retail stores in the United States. The company operates
PROFILE: over 1,600 retail stores in 49 states, employs more than 24,000 team members and is headquartered in Brentwood,
Tennessee. The company was founded in 1938 as a mail order catalog business offering tractor parts to America’s family
farmers. Today Tractor Supply is a leading edge retailer with annual revenues of approximately $6.8 billion. Its stock is
traded on the NASDAQ exchange under the symbol “TSCO”.
Tractor Supply stores are located primarily in towns outlying major metropolitan markets and in rural communities. The
typical Tractor Supply store has about 15,500 square feet of selling space inside, with a similar amount of outside space.
Stores supply the unique products to support their customers’ rural lifestyle, from welders and generators to animal care
products and men and women’s workwear. You can also find pet supplies, animal feed, power tools, riding mowers, lawn
and garden products and more. Each store team includes welders, farmers and horse owners who collectively provide an
exceptional depth of knowledge and resources.
Website: www.tractorsupply.com
Founded: 1938
Number of Locations: 1,600+
Number of Employees: 24,000+
Headquarters: Brentwood, Tennessee
Stock Symbol: TSCO (NASDAQ Stock Market)
NET LEASE INVESTMENT OFFERINGLOCATION OVERVIEW
LOCATION Eagle River is a city and county seat of Vilas County, Wisconsin with a population
OVERVIEW: of more than 1,500 people. Because of the many lakes in the area, the city is a popular
vacation and retirement destination. The area contains many seasonal vacation homes,
cabins and popular summer camps.
Eagle River was the site of the first permanent Indian settlement in the Wisconsin
Northwoods, located on the shores of Watersmeet Lake where the Wisconsin River
and Chain O’ Lakes meet. Eagle River’s name was derived from the abundance of
eagles nesting along the river. The city of Eagle River was created by an act of the
state legislature in 1885.
The major north-south highway serving Eagle River is US Highway 45. US Highway
45 runs throughout the state of Wisconsin. The major east-west artery serving Eagle
River and the rest of northern Wisconsin is State Highway 70. Eagle River is served by the Eagle River Union
Airport (KEGV).
Eagle River is geographically centered within the largest concentration of freshwater lakes in the world. There are
nearly 3,000 lakes within an hour’s car ride from downtown Eagle River. Also, Eagle River is nestled between the
Nicolet National Forest and the Northern Highland American Legion State Forest.
Eagle River is known as the “Snowmobile Capital of the World” because of the World Championship Snowmobile
Derby held for over 50 years at an ice oval on the north side of the city. There are over 500 miles of groomed
snowmobile trails in the county. The World Snowmobile Headquarters and International Snowmobile Hall of Fame
are located in Eagle River.
Eagle River has been ranked the #1 retirement community in Wisconsin by Rand McNally. Eagle River has been
named as one of the Top-100 retirement communities in the United States by Where to Retire magazine.
http://eagleriver.org/
NET LEASE INVESTMENT OFFERINGDEMOGRAPHICS
DEMOGRAPHIC
REPORT: Population 5 Mile 10 Mile 15 Mile
Total Population 5,501 10,501 15,824
Total Households 2,603 4,922 7,392
Income 1 Mile 3 Mile 5 Mile
Median Household Income $42,820 $44,145 $44,386
Average Household Income $60,120 $60,490 $60,550
NET LEASE INVESTMENT OFFERINGRandy Blankstein President 847.562.0003 randy@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com 666 Dundee Road, Suite 1801 Northbrook, IL 60062 www.bouldergroup.com
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