Shopko | Adjacent to East Towne Mall
Madison, WI
Price: $10,793,000Cap Rate: 6.50%Building SF: 94,120 SFLot Size: 7.20 AcresYear Built: 1987Status: Available

Investment Highlights: 

Shopko: $3B Retailer – 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 – Top Performing Store – $11.8M 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 787,000-Square-Foot East Towne Mall – Destination Retail Trade Area  – 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 access 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 Wisconsin – 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”.


Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977