Highlights

• New Construction, 20 Year Net Lease
• Located in New Grocery Anchored Shopping Center
• 10.1 Percent Cash-on-Cash Return

• 9.3 Percent Blended Capitalization Rate in Primary Term
• Excellent Visibility and Accessibility from Interstate 35

Description

The subject property is an 80,000-square foot single-tenant net leased Shopko located in North Branch, Minnesota. The property is located in the recently developed North Branch Marketplace Shopping Center, at the Route 95 interchange on Interstate 35. The Shopping Center is co-anchored by County Market (SuperValu) and a retail strip with Fantastic Sam' s, AVON, and Papa Murphy' s.

The subject property is offered an 9.0 percent capitalization rate. If a loan is secured at market rates, an investor can realize an immediate 10.1 percent cash-on-cash return with a thirty-five percent down payment and inclusive of a capital reserve expense. Based on the scheduled rent bumps in the primary term, the average cap rate is approximately 9.3 percent. This investment provides an investor with reliable and predictable cash flow in a solid retail location without nearby competitors.

The city of North Branch is approximately 40 minutes from St. Paul and is strategically located on Interstate 35. The city is encircled by three of the state' s Metropolitan Statistical Areas (MSA). The city' s location on the main east-west arterial serves as a link to the major transportation corridors as well as to St. Paul, Duluth and St. Cloud. Combined, these cities have a growing population of 3,380,013.

North Branch is considered a suburb of St. Paul and is home to over 10,000 residents. Families constitute 76.3% of the city' s population giving the city an above average concentration of households. As a consequence, the home ownership rate in the city is also high. The average annual income is between $50,000 and $75,000.