Investment Highlights
- Brand New 2015 Construction - Developed For Shopko Hometown
- New 15 Year Double Net Lease (14+ Years Remaining)
- Corporate Guarantee (Over 330 Stores In 21 States) & $3 Billion In Sales
- Ideal Demographics For Shopko Hometown Concept
- Direct Competitor Walmart - Nearest Location Is 22 Miles Away
This investment consists of a 25,869 square foot Single Tenant building on 3.44 acres. The building was built in 2015 as a build-to-suit for Shopko, doing business as a ShopKo Hometown. Shopko Hometown is the newest concept by Shopko aimed at smaller communities ranging from 3,000 to 8,000 in population, and carry about 70% of the merchandise carried at Shopko's larger stores.
Currently there are over 14 years remaining on an original 15-year lease with four-five year options to extend. Starting at year 11 (10/1/2025) there is scheduled to be 3% rental increases every five years, including during the option terms.
The lease is structured as double-net lease whereas the tenant is responsible for common area maintenance & repairs, snow removal, utilities, taxes directly paid, insurance, HVAC under $1,000 annually and parking lot & landscaping maintenance. Landlord is responsible for replacement of the parking lot, general liability insurance, roof, structure and HVAC or $1,000 annually.
Shopko is a private company owned and operated by Sun Capital. Shopko is headquartered in Green Bay, Wisconsin. Shopko has 330+ locations across 21 States. Recent reports indicate that Shopko plans to rapidly expand their newer Shopko Hometown brand over the next two years, without adjusting their current locations.
Tremonton is a city in Box Elder County, Utah. The population is estimated to be about 8,066 according to 2014 record, nearly double the 1990 population of 4,264. Within five miles of the subject property there are over 13,600 residents.
