421 Gateway Dr NE
East Grand Forks, MN 56721

The subject property is a freestanding, 41,454-square foot building, occupied by Shopko Hometown. It is located in East Grand Forks, Minnesota. The property sits just off of Highway 2, the major east/west thoroughfare through the city. The property benefits from its close proximity to the local high school and Hugo’s Family Marketplace, the dominant local grocer. Shopko Hometown has minimal local competition within the city, and the nearest Shopko Hometown is 45 miles away. The tenant originally opened at this location as Pamida in 1989, signing a 20-year NNN lease. The store was remodeled in 2012 after Pamida merged with Shopko. The store now operates as a Shopko Hometown. The tenant recently executed an early lease renewal, bringing the remaining lease term to just under ten years. Their current rent rate is below average for Shopko, at just $3.95 per square foot. There is a rental increase of 10 percent in the next renewal option. Shopko is a $3 billion retailer that operates over 330 stores in 21 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. They provide quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities. The City of East Grand Forks sits on the Minnesota side of the Greater Grand Forks Metro Area, an MSA totaling more than 100,000 residents. The city is home to a diverse economy, with healthcare, manufacturing, education and retail, accounting for over half of the employment base. The city of East Grand Forks carries a population of roughly 8,700 residents.