Shopko Hometown | Mauston, WI Offering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

Actual Site

EXCLUSIVE LISTINGOffering Memorandum

CASEY WEISS, CCIMBROKER OF RECORD

ACCESS COMMERCIAL REAL ESTATE

WI LIC #54666-90

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C A L K A I N .C O MC A L K A I N .C O M

Shopko Hometown | Mauston, WI

Shopko Hometown | Mauston, WI Offering Memorandum

406 Gateway Ave | Mauston, WI 53948

Asking Price $4,541,050 | Cap Rate 8.00%

Net Operating Income (NOI) $363,284

Rent/Month $30,274

Rent/SF $14.05

Rentable Square Feet 25,860+/- SF

Land Area 2.5+/- Acres

Tenant Name Shopko Hometown

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NN

Landlord Responsibilities Structure and HVAC Costs Over $5,000

Store Open 2015

Lease Term Remaining 13+ Years

Rent Commencement October 2015

Lease Expiration October 2030

Increases 3% Every 5 Years

Options Four (4), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly RentYears 1-5 - $363,284 $30,274

Years 6-10 3% $374,182 $31,182

Years 11-15 3% $385,408 $32,117

Years 16-20 (Option 1) 3% $396,970 $33,081

Years 21-25 (Option 2) 3% $408,879 $34,073

Years 26-30 (Option 3) 3% $421,145 $35,095

Years 31-35 (Option 4) 3% $433,780 $36,148

Investment Highlights • 13+ years remaining on existing lease

• 3% rent increases every 5 years in the primary lease term as well in the option periods

• Located off Interstate 90 and adjacent to Walgreens & other nearby national retailers including Family Dollar, O’Reilly Auto Parts & more

• Drive-thru pharmacy

• Shopko operates 363 stores with $3.2 billion in annual revenue

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Financial Summary

Shopko Hometown | Mauston, WI Offering Memorandum

Sun Capital Partners targets a variety of industries and has a strong history of working with companies specializing in consumer products like Shopko.

Facts: • Headquarters in Green Bay, WI

• 10,000+ employees

• Founded in 1962

• 363 stores in 24 states

About Shopko HometownFounded in 1962 and headquartered in Green Bay, Wisconsin, Shopko Stores Operating Co., LLC is now a $3 billion retailer that operates over 363 stores in 24 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. Retail formats include 134 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; 203 Shopko Hometown locations, a smaller concept store developed to meet the needs of smaller communities; 5 Shopko Express Rx stores, a convenient neighborhood drugstore concept; and 18 Shopko Pharmacy locations. Shopko stores are simple, clean and welcoming. Not overwhelming. Just the essentials you need, from brands you trust – at a fair price. Because at the end of the day, it really isn’t about the stuff...It’s about the life you live with it. Shopko. The stuff that counts.

Sun Capital Partners, Inc. and Shopko partner to improve business modelSun Capital Partners, Inc. has been partnering with Shopko since December 2005 to improve the retail company’s business model and market position. Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, private equity, debt and other investments in market-leading companies that can benefit from the financial investor’s in-house professionals and operating experience. Sun Capital affiliates invest in companies which typically have the number one or two market position in their industry, long-term competitive advantages and significant barriers to entry. Sun Capital has offices located in Boca Raton, Los Angeles and New York and affiliates in London, Frankfurt, Paris, Luxembourg, Shanghai and Shenzhen.

Sun Capital affiliates have invested in more than 285 companies worldwide since Sun Capital’s inception in 1995, with combined sales in excess of $45 billion and more than 200,000 employees. On a consolidated basis, Sun Capital’s affiliated portfolio companies would rank in the top 100 of Fortune Magazine’s listing of the 500 largest companies in the United States.

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Tenant Overview

Shopko Hometown | Mauston, WI Offering Memorandum

Site Photos

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Shopko Hometown | Mauston, WI Offering Memorandum

Distance To:La Crosse, WI 70 miles

Madison, WI 73 miles

Oshkosh, WI 85 miles

Green Bay, WI 138 miles

Milwaukee, WI 141 miles

Minneapolis, MN 197 miles

Chicago, IL 213 miles

Milwaukee, WI

Mauston, WI

Minneapolis, MN

Location Overview

Subject Site

Oshkosh, WI

Green Bay, WI

La Crosse, WI

Chicago, IL

Madison, WI

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406 Gateway Ave | Mauston, WI 53948

Shopko Hometown | Mauston, WI Offering Memorandum

Subject Site

Bank of Mauston

Null’s Quick Lube

Central Union Auto

Log Cabin Deli & Cheese

J & S Liquors

Mauston Bowling

90

Gateway Ave 10,336 VPDN Unio

n St

113,3

30 V

PD

Gateway Ave 10,336 VPD

Mauston Veterinary

Clinic

Western Technical College

90Roman Castle

Interstate 90 27,498 VPD

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Shopko Hometown | Mauston, WI Offering Memorandum

Site Plan

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Shopko Hometown | Mauston, WI Offering Memorandum

Radius 3 Miles 5 Miles 10 MilesPopulation2016 Population 5,586 7,098 14,559

2021 Population 5,608 7,127 14,729

2010-2016 Annual Rate 0.04% 0.05% 0.27%

2016-2021 Annual Rate 0.08% 0.08% 0.23%

2016 Male Population 51.7% 51.6% 54.3%

2016 Female Population 48.3% 48.4% 45.7%

2016 Median Age 41.4 42.5 44.0

Households2016 Total Households 2,261 2,852 5,556

2021 Total Households 2,267 2,860 5,620

2016-2021 Annual Rate 0.05% 0.06% 0.23%

2016 Average Household Size 2.23 2.30 2.35

Median Household Income2016 Median Household Income $44,640 $46,971 $47,286

2021 Median Household Income $49,150 $51,230 $51,598

2016-2021 Annual Rate 1.94% 1.75% 1.76%

Average Household Income2016 Average Household Income $54,984 $56,937 $58,100

2021 Average Household Income $58,958 $61,278 $62,850

2016-2021 Annual Rate 1.41% 1.48% 1.58%

Per Capita Income2016 Per Capita Income $22,720 $23,583 $23,527

2021 Per Capita Income $24,234 $25,278 $25,324

2016-2021 Annual Rate 1.30% 1.40% 1.48%

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Demographics

Shopko Hometown | Mauston, WI Offering Memorandum

Mauston, WIMauston’s unique name originally was

“Maughs Town,” named after its founder

Milton Maugh. Incorporated in 1887, the city’s

beginning was based on the lumber industry

of early Wisconsin. Located on the Lemonweir

River and next door to Wisconsin’s second

and fourth largest lakes, Petenwell and Castle

Rock Lake, Mauston finds you surrounded by

natural wonder, wildlife and a rich variety of

outdoor activities. Mauston also has a rich

rural history with easy access to cranberry bogs, dairy farms, apple orchards, and

Amish country.

With a population of 4,500, Mauston maintains a small town feel, and yet serves

as the Juneau County seat and a local retail center. Mauston is a full service

municipality providing police and fire protection, public works, water/wastewater

utilities, solid waste collection, curbside recycling, a small airport, parks and

recreation, planning/zoning and other services.

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Market Overview

Shopko Hometown | Mauston, WI Offering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 afallon@calkain.com

Who Are We? We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make 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.

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