maurices and mgm wine & spirits - constant...

850 Menard Street - WINONA, MINNESOTA 55987

Maur ices and MGM Wine & Spir i ts

Actual Property

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. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330534


Investment Overv iew

• Two-Tenant Asset in Winona, Minnesota | 120 Miles Southeast of Minneapolis

• Tenants are Maurices Corporation and MGM Wine & Spirits, Incorporated

• Both Tenants Demonstrate Commitment to this Location | Exercised Renewal Options Early | Remaining Renewal Options Feature Rent In-creases

• Tenants Operating Under Net Leases | Fully Reimbursing for Taxes, Insurance, and CAM

• Corporate Guaranty from Maurices Corporation | Backed by 993 Units | Wholly Owned Subsidiary of Ascena Retail Group (NASDAQ: ASNA, S&P: BB)

• Corporate Guaranty from MGM Wine & Spirits, Incorporated | 37-Unit Regional Concept With Corporate and Franchise Locations

• Pad Site to 181,000 Square Foot Walmart Super Center

• Asset is Located within the Menard’s Anchored Center | More Than 550,000-Square Feet of Retail

• One Block from Winona Health Main Campus | 99-Bed Hospital | 125-Bed Nursing Home

• Winona is Home to Three Colleges | Winona State University, Saint Mary’s University of Minneso-ta, and Southeast Technical Winona | More Than 14,000 Students

• Additional Tenants in the Vicinity Include: Target, Mill’s Fleet Farm, Wells Fargo, Walgreens, Ver-izon, McDonald’s, O’Reilly Auto Parts, Perkins

Marcus & Millichap is pleased present this two-tenant investment opportunity in college town of Winona, Minnesota, which is home to Winona State University, and approximately 120 miles southeast of Minneapolis.

Tenants include Maurices and MGM Wine & Spirits, who both demonstrated commitment to this location by exercising their renewal options early. Both tenants are operating under net leases, fully reimbursing for real estate taxes, common area maintenance, and insurance. Both leases have a corporate guaranty. Maurices is a woman’s fashion retailer with over 990 locations, and is also a subsidiary of Ascena Retail Group. MGM Wine & Spirits is a regional liquor store concept. The average lease term remaining exceeds three and a half years.

This asset is located on Menard Street, which is in the heart of a 550,000-square foot shopping center anchored by Menard’s, Target, Walmart, and Mill’s Fleet Farm. Directly adjacent to this shopping center is Winona Health Hospital’s main campus, which features a 99-bed hospital and a 125-bed nursing home. In close proximity to this asset are three colleges, which have a combined enrollment of more than 14,000 undergraduate students.

Additional tenants in the vicinity include: Wells Fargo, Walgreens, Verizon, McDonald’s, O’Reilly Auto Parts, Perkins Restaurant and more.



PRICE: $2,650,000

CAP RATE: 7.43%

NOI: $197,006

PRICE PER SQUARE FOOT: $265.00

RENT PER SQUARE FOOT: $19.70

YEAR BUILT: 2007

APPROXIMATE LOT SIZE: 1.28 Acres

GROSS LEASEABLE AREA: 10,000

TYPE OF OWNERSHIP: Fee Simple

Financia l Overv iew

Offer ing Summary

Annua l i zed Operat ing Data :Base Rent

Occupied Space $197,023

Gross Potential Rent $197,023

Expense Reimbursements

Real Estate Taxes $39,773

Insurance $4,481

CAM $15,538

Management Fee $4,258

Total Expense Reimbursements $64,049

Effective Gross Income $261,072

Expenses

Real Estate Taxes $39,773

Insurance $4,481

CAM $19,813

Total Expenses $64,066

Net Operating Income $197,006

Artist Rendering



Lease Summary

Actual Property

Maurices

GLA 4,300

Lease Type Double-Net (NN)

% of Total GLA 43%

Lease Commence 12/28/2006

Lease Expire 6/30/2022

Annual Rent $75,895

Rent/SF $17.65

Increases 4.5% July 2017

Options Remaining 2, 5-Year

MGM Wine & Spirits

GLA 5,700

Lease Type Triple-Net (NNN)

% of Total GLA 57%

Lease Commence 7/1/2016

Lease Expire 5/20/2019

Annual Rent $121,128

Rent/SF $21.25

Increases 2% Annually in Options

Options Remaining 2, 5-Year



Tenant Overview - Maurices

The Maurices segment includes 993 specialty retail and outlet stores and ecommerce operations, offering up-to-date core and plus-size fashion apparel. Maurices stores are concentrated in small markets, approximately 25,000 to 150,000 people, and cater to local market preferences through a core merchandise assortment that is refined to reflect individual store demands. Through its proprietary label, the Maurices product line encompasses women’s casual clothing, career wear, dressy apparel, active wear, and accessories. Maurices retail stores are typically located near large discount and department stores to capitalize on the traffic those retailers generate, while differentiating itself by offering a wider selection of style, color and current fashion, along with an elevated shopping experience. Founded in 1931 by Maurice Labovitz as a single shop in Duluth, Minnesota, the company is now owned by apparel retailer Ascena Retail. In 2016, Maurices opened 52 new locations.

TENANT TRADE NAME Maurices Corporation OWNERSHIP Private

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 975

HEADQUARTERED Duluth, MIN

WEB SITE http://www.maurices.com/

SALES VOLUME $1.101 Billion

PARENT COMPANY Ascena Retail Group, Inc (NASDAQ: ASNA)

TENANT PROFILE

Actual Property



Tenant Overview - MGM Wines & Liquors

Actual Property

MGM Wines & Liquors opened their first location in 1982, and has since grown to a regional liquor store operator with 20 corporate locations and 17 franchised locations. MGM differentiates themselves in an extremely saturated retail space by focusing on three key activities providing their customers with an extremely wide range of unique beers, liquors, and wines; effectively creating an ecommerce platform for shoppers; and newsletters with a variety of information on current sales, new wines, and mixology courses.



Aer ia l Overv iew



5 MILE R

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3 MILE R

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1 MILE

SITE

53

53

14

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61

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14

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9090

248

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35

35

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43

54

35

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93

93Rollingstone

Minnesota City

GoodviewVinona

Winona StateUniversity

Saint Mary’sUniversity of Minnesota

Bluff SidingMarshland

Centerville

Galesville

Trempealeau

Donehower

Pickwick

Witoka

Wilson

Wyattville

Lewiston

Stockton

Fountain City

Area Overview & Demographics

1 Mile 3 Mile 5 Mile

P o p u l a t i o n

2000 Population 5,380 22,646 30,753

2010 Population 5,551 22,995 31,415

2016 Population 5,725 22,875 31,336

2021 Population 5,754 22,817 31,271

Daytime Employment 7,673 17,789 26,078


H o u s e h o l d s

2000 Households 2,365 8,777 11,801

2010 Households 2,372 8,849 12,016

2016 Households 2,460 8,798 11,986

2021 Households 2,474 8,772 11,957


H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $54,935 $56,536 $59,899

2016 Median HH Income $43,199 $40,177 $44,629

2016 Per Capita Income $23,605 $21,744 $22,911



The city of Winona is in southeastern Minnesota on the banks of the Mississippi River. The city is situated 50 miles east of Rochester and about 135 miles southeast of the Minneapolis-St. Paul metropolitan area. Home to Winona State University and Saint Mary’s College, the city is a commercial, manufacturing, and shipping center nestled within an agricultural and limestone-quarrying region.

Founded in 1851 by a steamboat captain and incorporated in 1857, Winona’s was originally named Montezuma but was later renamed for a Dakota Indian princess; Winona is the phonetic pronunciation of the Dakota term meaning “first-born daughter”. In 1858, Winona Normal School was founded, which eventually became Winona State University.

In 1912, St. Mary’s College was founded as a private Roman Catholic school which later went on to become St. Mary’s University.

Winona maintains a lively arts scene. In addition to the arts introduced to the community by its local educational institutions, Winona has two professional theater companies. The Great River Shakespeare Festival runs six weeks each summer, showcasing two Shakespeare plays in repertory. The Theatre du Mississippi presents original live plays and locally produced films in a variety of venues including the turn-of-the-century Masonic Theatre as well as outdoor sites. Housed in a 1915 brick fortress reminiscent of its original purpose as an armory, the Winona County Historical Museum displays artifacts depicting Winona’s city and county

history. The Minnesota Marine Art Museum, encompassing works of international and local artists, currently features four major art collections, and will soon present a United States Army Corps of Engineers river dredge as an exhibit.

Winona is rich in college sports, owing to the presence of Winona State University’s athletic teams. Known as the Warriors, the University’s teams compete in the NCAA’s Division II and participate in the Northern Sun Intercollegiate Conference (NSIC). The Warriors football team has won the NSIC conference championship nine times since 1993 and its men’s basketball team recently captured the 2006 NCAA Division II Basketball Championship, the first NCAA title for the University.

Market Overview - Winona



Broker of RecordCra ig Pa t te rson

Marcus & Mi l l i chap1350 Lagoon Avenue, Su i te 840

Minneapo l i s , MN 55408Te l : (952) 852-9700Fax : (952) 852-9710L icense : 40206188

Maur ices and MGM Wine & Spir i ts

maurices and mgm wine & spirits - constant...

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