New York real estate investors acquire portfolio of 79 Shopko locations

Acquisition includes stores in Sheboygan, Racine and Kenosha

A Shopko store. Photo credit:
A Shopko store. Photo credit:

Last updated on May 15th, 2019 at 04:47 pm

A pair of New York real estate investment firms have partnered to buy a portfolio of 79 current and soon-to-be former Shopko store properties, including 25 in the state and four in southeastern Wisconsin.

Photo credit:

Monarch Alternative Capital LP and Raider Hill Advisors last week announced the formation of Heartland Hill Properties, a new real estate platform made up of the former Shopko properties that altogether total 5.5 million square feet across 14 states.

The properties were all purchased from their previous owner, Spirit MTA REIT. Included in the portfolio are Shopko and Shopko Hometown retail locations that range in size from 17,000 square feet to 127,000 square feet, as well as the company’s headquarters and optical lab in Green Bay.

According to state records, the group acquired at least 14 Wisconsin locations as part of that portfolio acquisition. Those located in southeastern Wisconsin were:

  • 518 S. Taylor Drive, Sheboygan
  • 4801 Washington Ave., Racine
  • 5300 52nd St., Kenosha
  • 1771 W. Wisconsin Ave., Grafton

The Sheboygan property was purchased for $1.75 million, while the Kenosha location was sold for $2.75 million, according to state records.

Other properties that were acquired are located in Fond du Lac, Watertown, Beloit, Ashwaubenon, Lake Hallie, Kimberly, Monroe and Janesville, among other communities.

In January, Shopko filed for Chapter 11 bankruptcy protection, initially announcing it would close 107 stores, later climbing to 251 stores. But then in March, the retailer announced it would close all of its remaining stores by June.

A notice filed recently by Shopko with the state Department of Workforce Development stated the company would layoff an additional 1,715 workers as the company winds down its retail operations. The notice listed 39 Wisconsin store locations that will be affected beginning June 16, including optical store locations in Mequon and Waukesha.

Monarch is the primary investor in Heartland Hill Properties. Formed in 2002, it focuses primarily on opportunistic investing across distressed debt, special situations equity and real estate. Raider Hill has been retained as exclusive real estate advisor to oversee the execution of all leasing, redevelopment, asset management, and disposition activities of the portfolio.

“We are excited to lead the value maximization effort of the former Shopko portfolio by leveraging our advisory and operating platform,” Daniel Hurwitz, founder and chief executive officer of Raider Hills, said in a statement. “These assets provide an outstanding opportunity for retailer growth in historically successful but underserved markets.”

Representatives of Raider Hill and Monarch were not immediately available for comment.

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Alex Zank, former BizTimes Milwaukee reporter.

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