cash wise foods grocery store - loopnet€¦ · foods/bird’s eye division, waseca public schools,...

Cash Wise Foods Grocery Store

1230 - 1270 N State St, Waseca, MN 56093

James Capital Advisors

Marketing Package

Cash Wise Foods Grocery StoreWaseca, MN




The Offering

PROPERTY INFOTenants

Street Address

City

Zip

APN

GLA

Lot Size

Year Built

Cash Wise Foods

Monson Eyecare Center

1230 - 1270 N State St

Waseca, MN

56093

171570011

43,693 SF

3.14 AC

1987

$3,872,826

8.00%

$309,826.09

$88.64

Triple-Net (NNN)

Fee Simple (Condominium)

Ryan Sobel

(424) 325-2613

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Price / SF

Lease Type

Type of Ownership

Listing Agent

Phone Number

Email




Lease Summary

Actual Site

REAL ESTATE HIGHLIGHTSNeighboring Waseca Senior High & Junior High SchoolLocated just half a mile from Waseca Senior High and Junior High Schools with over 1,000 students enrolled.

Newly Repaved Parking LotIn 2018, the 468 space parking lot was repaved and leveled to refresh the on-site parking and make the property more visually appealing.

Full-Service Grocery StoreCash Wise Foods features a deli, bakery, meat department, produce, pharmacy space, and a conjoining 4,000-square foot liquor store.

Prime Central LocationThe subject property is located in a strong retail center and offers a combination of the best location in this market with the strongest co-tenancy and traffic available.

Affluent DemographicsThe average household income within five miles of the subject property exceeds $70,000, which is higher than the national average.

Proximity to Major EmployersMajor employers located near the site include Dean Foods/Bird’s Eye Division, Waseca Public Schools, EF Johnson Company, Federal Credit Institution, Waseca Area Medical Center and numerous others.

Substantial Rental UpsideThere are regularly scheduled rental increases across the rent roll, creating positive rent growth and a hedge against inflation.

Value Add OpportunitySignificant Rental Upside by leasing the last vacancy in the center. On Pro-Forma, ROI increases by over 100 basis points.

Corporate Guarantee Cash Wise Foods is guaranteed by Coborn’s, Inc., a fast-growing 121-unit retail operator with $1.4 billion in revenue and stores in multiple states throughout the country.

Long-Term Triple-Net (NNN) LeaseCash Wise Foods recently signed a new 10-year Triple-Net (NNN) Lease, providing a passive investment and holding the landlord responsible only for the structure and foundation.

Historically Strong Supermarket LocationHigh volume location with an extremely low historical rent to sales ratio (please contact listing broker for additional details).

Only Supermarket in the City of WasecaCash Wise Foods faces limited competition with the nearest competing supermarket more than 15 miles from the subject property.

INVESTMENT HIGHLIGHTS




Waseca County Taxes (Units 2,3 &4)

Total Real Estate Taxes

Association Dues Unit 2



Building Repairs & Maintenance

Insurance

Total Repairs & Maintenance

Property Management *

Total Operating Expenses

OPERATING EXPENSES

$66,286.00

$66,286.00

$1,924.20

$1,928.14

$23,921.28

$5,000.00

$1,860.00

$34,633.62

$14,400.00

$115,319.62

Income & Expense

Base Rental Income

Gross Potential Rent

Property Management *

Admin Income

CAM Reimbursements

Tax Recoveries

Gross Potential Income

Effective Gross Income

Total Expenses

Net Operating Income

Cap Rate

INCOME & EXPENSE PRO FORMA

$332,257.02

$332,257.02

$14,400.00

$5,092.00

$48,180.34

$66,286.00

$466,215.36

$466,215.36

$115,319.62

$350,895.74

9.06%

CURRENT

$298,481.52

$298,481.52

$14,400.00

$4,738.23

$45,289.52

$62,236.44

$425,145.71

$425,145.71

$115,319.62

$309,826.09

8.00%

* Cash Wise and Monson Eyecare Center fully reimburse for Landlord expenses and Condo Association expenses. These are two separate entities and two separate reimbursements. The Seller self manages both entities and is paid management and accounting fees accordingly. In our underwriting, we are assuming the new Landlord will hire a 3rd party vendor to manage the Condo Association responsibilities and self manage the Landlord responsibilities. Common Area Maintenance expenses fall under the Condo Association responsibilities.




Snow Plowing/Shoveling/Salt/Sand

Lawn (Mowing/Triming/Lawn Trash Pickup etc.)

Parking Lot Sweeping

Sidewalk Pressure Washing

Fire Sprinkler Monitoring/Inspection /Service

Parking Lot Lighting CAM Repairs

Asphalt CAM - Striping/Sealing/Pothole Patching

Flat Work CAM

Association Accounting

Association Management

Total Operating Expenses

Cost / SF

CAM FEE BREAKDOWN

$ 17,000

$5,300

$3,500

$1,300

$3,600

$1,500

$8,500

$1,000

$2,100

$12,000

$55,800

$0.66

CAM Fee Breakdown & Analysis

Bomgaars (Unit 1)

Monson Eyecare Center (Unit 2)

Vacant (Unit 3)

Cash Wise Foods (Unit 4)

TOTAL

CAM ANALYSIS MONTHLY DUES

$2,335.53

$160.35

$160.68

$1,993.44

$4,650

ANNUAL DUES

$28,026.38

$1,924.23

$1,928.17

$23,921.23

$55,800.01

SQ. FT / UNIT

42,690 SF (50%)

2,931 SF (3.5%)

2,937 SF (3.5%)

36,437 SF (43%)

84,995 SF (100%)




Rent Roll

NNN*

-

NNN*

4.00-4.76% Annually

-

5% Every Five Years

$33,706.56 ($11.50/SF)

$0.00 ($0.00/SF)

$264,774.96 ($7.00/SF)

$298,481.52

None

-

Two, Five-Year Options

01/16/1992 - 04/30/2022

-

10/05/2018 - 10/31/2028

2,931 SF (6.71%)

2,937 SF (6.72%)

37,825 SF (86.57%)

43,693 SF (100%)

40,756 SF (93.28%)

2,937 SF (6.72%)

Monson Eyecare Center

Vacant

Cash Wise Foods

TOTAL

Occupied

Available

LEASE TYPERENTAL INCREASESCURRENT RENTOPTIONSCURRENT LEASE TERMGLARent Roll

* Landlord is responsible for Structure and Foundation




About the Brand

COBORN’S, INCSince 1921, Coborn’s, Inc. has served up freshness and value to communities, with a continuing legacy of giving and volunteerism. St. Cloud, MN- based Coborn’s, Inc. is a fast-growing employee-owned grocery retailer with stores in Minnesota, North Dakota, South Dakota, Iowa, Illinois and Wisconsin.

Coborn’s employee-owned company includes 120+ retail locations throughout the Midwest with more growth on the way. The brands included under the Coborn’s, Inc. portfolio are Coborn’s, Cash Wise, Marketplace Foods, Hornbacher’s and Save-A-Lot.

In addition to brick and mortar grocery stores, Coborn’s also has a unique service called Coborns Delivers and Cash Wise Delivers, an online grocery ordering and home delivery service. The corporation also owns and operate 35 liquor stores, under the brands of Coborn’s Liquor, Cash Wise Liquor, and Captain Jack’s. Today, much of Coborn’s growth is tied to the Cash Wise Foods group of stores.

ABOUT THE BRANDIn 1979, Coborn’s, Inc. saw the opportunity to try a new business model and go big. They began plans to change the Willmar Coborn’s store from a conventional supermarket layout to a discount warehouse format under the name Cash Wise Foods.

From there, Cash Wise Foods grew to become a significant part of the company’s portfolio, with a supersized store built in Waite Park, MN in 1982. There are now 17 Cash Wise Foods stores across Minnesota and North Dakota, with a recent significant expansion throughout North Dakota.

Cash Wise Foods is continuing to build new stores, update current stores and when the opportunity is right, even acquire stores throughout the Midwest that fit its portfolio.

Locations

120+

Employees

8,000+

States

6




Property Image




Site Plan




Demographics

10 MILE

6,622

6,575

6,533

0.71%

$71,201

$57,999

5 MILE

4,273

4,250

4,255

0.54%

$70,018

$55,930

3 MILE

3,975

3,956

3,975

0.48%

$68,425

$54,109

1 MILE

2,181

2,174

2,202

0.32%

$61,515

$47,831

HOUSEHOLDS

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

HOUSEHOLDS

Avg. HH Income

Med. HH Income

10 MILE

17,102

17,007

17,181

0.56%

5 MILE

11,169

11,136

11,411

0.30%

3 MILE

10,393

10,372

10,681

0.20%

1 MILE

5,474

5,467

5,651

0.13%

DEMOGRAPHICSPOPULATION

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

Waseca County Waseca County has the fifth-highest manufacturing employment per capita in Minnesota. Waseca offers quick commuting, easy access to businesses, shopping and community facilities.




DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & Moshe Bukrinsky (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer




Contact Information

Contact Information

SUBMIT OFFER

Moshe BukrinskyMN Real Estate Broker

(952) [email protected] RE Lic. 534372

Ryan SobelSenior Associate

(424) [email protected] RE Lic. 02005465

cash wise foods grocery store - loopnet€¦ · foods/bird’s eye division, waseca public schools,...

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