pick `n save center - Mid-America Real Estate Group

PICK ‘N SAVE CENTER
Southwest Corner of I-41/45 and Mayfair Road
Wauwatosa (Milwaukee MSA), Wisconsin
A 69,749 square foot Pick ‘n Save (
) grocery-anchored shopping center
For further information contact owner’s exclusive representatives.
Ben Wineman
in cooperation with
(630) 954-7336
bwineman@midamericagrp.com
Dan Rosenfeld
(414) 390-1402
drosenfeld@midamericagrp.com
INVESTMENT HIGHLIGHTS
100% Occupied Grocery Anchored Center - Pick ‘n Save Center
is a 100% leased grocery-anchored center located in the affluent,
infill community of Wauwatosa, Wisconsin, and part of the Milwaukee
area’s most dominant regional trade zone. Pick ‘n Save (Kroger Co.)
has 14 years remaining on its lease term. The center is an excellent
quality asset and an attractive real estate investment.
Dominant Grocery Anchor (Pick ‘n Save (Roundy’s) – Kroger
Co. (NYSE: KR; S&P BBB)) – Pick ‘n Save is the #1 market share
grocer in Wisconsin with 39% of the Milwaukee area grocery sales.
Kroger recently purchased Roundy’s, Pick ‘n Save’s parent company,
and retired their debt. Kroger is the largest grocery store operator in
the country with 2,774 stores nationwide and the Roundy’s merger
provides Kroger with an entry into the mid-west. The combination of
the nation’s largest traditional grocery chain as their parent company
and Pick ‘n Save’s long term market share dominance provides an
investor with a very stable anchor tenant.
Increasing Grocer Sales and Rent Bumps - Pick ‘n Save at the
center has enjoyed increasing sales, growing 3.5% between 2014 and
2015. They also have 5% rent bumps every 5 years (next rent step in
January 2020).
Dynamic Retail Location – Pick ‘n Save Center is located in the
Mayfair regional trade area less than one mile south of Mayfair Mall,
which is the top performing enclosed mall in the State of Wisconsin
with average sales of approximately $600 per square foot. The first
Nordstrom in Wisconsin recently opened at Mayfair Mall.
Trade Area Growth – The Mayfair trade area is undergoing a
substantial transformation with several industrial sites being repurposed
to accommodate the growing demand for retail and residential in
Wauwatosa. Two miles north of the center, The Mayfair Collection is
an adaptive reuse of an existing warehouse site that now boasts topperforming national tenants Whole Foods, Nordstrom Rack, TJ Maxx,
Dick’s Sporting Goods, Saks Off 5th, DSW, and Ulta Beauty.
Unparalleled Demographics and Strong Daytime Population
(108,000+) – Within a three mile radius of the center, there are 95,000
residents enjoying average household incomes of $80,000. The
daytime population within a 3-mile radius is over 108,000.
Excellent Visibility and Access – Pick ‘n Save Center features
excellent visibility from Mayfair Road (34,400+ VPD) and benefits
from the signalized intersection at Walnut Road. The center is well
positioned within one mile of I-41/45 (140,000 VPD).
Long Term Lease + Stable Cash Flow – Pick ‘n Save contributes
83% of the center’s total gross income of the property and has a lease
through December 2029. 96% of the GLA is leased through July
2022, and the overall average weighted remaining lease term is 12.8
years, demonstrating the stability of the center as a retail investment
opportunity.
Free & Clear – The property is being offered free and clear of any
existing debt, allowing a Purchaser to procure an attractive market rate
loan that should substantially enhance investment yields.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information.
References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.
LOCATION & MARKET
• Pick ‘n Save Center is located in Wauwatosa, Milwaukee County, Wisconsin, less than 10 miles from downtown Milwaukee. The strong
demographics profile of the customer base features 95,000 residents, $80,000 average household incomes in a three mile radius, and
315,000 residents with average household incomes of $64,000 within a five mile radius.
• Pick ‘n Save Center serves a dynamic trade area that has almost 1.4 million square feet of retail and features 98% occupancy. Notable
big-box tenants in the trade area include Whole Foods, Walgreens, Nordstrom, Nordstrom Rack, Aldi, Lowe’s, Dick’s Sporting Goods,
Macy’s, Meijer, Saks Off 5th, Ulta Beauty, Boston Store, and Best Buy.
• Located along the major thoroughfare of Mayfair Road (34,400 VPD), Pick ‘n Save Center is strategically positioned less than one mile
from two full interchanges with I-41/45 (140,000 VPD).
•The economy of Milwaukee is well diversified between the following sectors: trade, transportation, and utilities; manufacturing;
educational and health services; and professional and business services. The City is also home to the international headquarters of six
Fortune 500 companies: Johnson Controls, Northwestern Mutual, Manpower, Rockwell Automation, Harley-Davison, and Joy Global.
•Three of Milwaukee’s largest employers are headquartered in Wauwatosa, including Briggs & Stratton Corp., the world’s largest
manufacturer of air-cooled engines for law and garden and other outdoor power equipment; Froedtert Health, a regional hospital
system; and the Medical College of Wisconsin, a private medical school, research institution and multi-specialty medical and graduate
school of biomedical sciences. The daytime population adjusts to 108,000 people within a three mile radius.
PROPERTY DESCRIPTION
• Built in 2008 (the Pick ‘n Save building) and 2012 (the outlot buildings), Pick ‘n Save Center is situated on 5.24 acres and has 69,749
square feet of gross leasable area.
• The property includes three single-story retail buildings with five total tenant suites.
• The property is accessible from three total points of ingress and egress: two points along Mayfair Road and a signalized entrance along
Walnut Road.
• There are 4.1 spaces per 1,000 square feet of gross leasable area available to the customers of the shopping center.
TENANCY
• Pick ‘n Save Center features strong national tenancy and is 100% leased with an average weighted remaining lease term of 12.8 years,
providing a Purchaser with stable in-place cash flow. Pick ’n Save, Mattress Firm, and Supercuts together represent 93% of the gross
leasable area and 91% of the gross income at the property.
• Pick ‘n Save anchors the property and is the #1 market share grocer in the State of Wisconsin. Kroger is the nation’s leading traditional
grocer and recently purchased Pick ‘n Save’s parent company, Roundy’s, and repaid their debt obligations at closing. Pick ‘n Save built
this store to fill a critical missing hole in the surrounding grocery market landscape.
• The chart below details the dynamic mix of strong credit national and regional retailers at the center.
Retailer
S&P Credit Rating
Pick 'n Save (Kroger)1
BBB (KR)
Mattress Firm
B+
Bubon Orthodontics
N/A
Supercuts
N/A
Firehouse Subs
N/A
Locations
2,626
2,200
11
2,400
900+
Revenue
$108.47B
$1.22B
N/A
$11.8B
$594.4M
Net Income
$1.73B
$52.9M
N/A
N/A
N/A
Net Worth
$5.4B
$328.5M
N/A
$627M
N/A
Exchange/Symbol
NYSE: KR
NASDAQ: MFRM
N/A
NYSE: RGS
N/A
1. Pick ‘n Save is a wholly owned subsidiary of Kroger and is the dominant grocer in the Milwaukee MSA with 93 locations.
PRICING
Pick ‘n Save Center offers a purchaser the opportunity to acquire a 100% leased shopping center in the affluent Milwaukee suburb of
Wauwatosa, Wisconsin. The property is being offered free and clear of any existing debt.
In-Place Net Operating Income: $1,250,954
For further information contact owner’s
exclusive representatives.
Ben Wineman
(630) 954-7336
bwineman@midamericagrp.com
in cooperation with
Dan Rosenfeld
(414) 390-1402
drosenfeld@midamericagrp.com
CLICK HERE to sign Confidentiality Agreement
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