Letter: Cabela’s sale-lease good for all
To the Editor:
I’m writing this letter to provide some additional information regarding the Cabela’s article in the paper last week, as well as to highlight how that information shows a bright future for Mitchell.
As a real estate agent at Mitchell Realty, I learned of the Cabela’s property listing a few months ago. Initially, I feared this signaled another vacant building in Mitchell. However, I have learned certain facts that Mitchell residents might find interesting, each of which shows the enormous potential for our community.
First, after Bass Pro Shops bought Cabela’s, they sold the Mitchell property and signed a new 25-year lease. The lease includes numerous options to extend, as well as a corporate guarantee by Bass Pro Shops. While no one knows what will happen 25 years from now, Bass Pro Shops has made the decision to stay in Mitchell for a very long time.
Second, this Cabela’s store generates approximately $6 million of cash flow annually, which is nearly five times their rent - a phenomenal achievement for a retail store. On a related note, the Mitchell Culver’s is in the top-five percent of all Culver’s restaurants in terms of revenue. These data points are great examples of Mitchell’s tremendous location along I-90.
Third, the Cabela’s property is already under contract to be sold to a new buyer very soon. Any buyer capable of allocating $20 million is likely a savvy investor who would have conducted extensive due diligence on this location’s performance, Bass Pro Shop’s financials, and Mitchell’s economy. Apparently, this buyer liked what it saw, which is quite a stamp of approval.
Despite some recent challenges like flooding, difficult farming conditions, empty buildings, etc., Mitchell’s future is bright. As we approach the holiday season, we should be grateful for the positive attributes of our community: great schools (Mitchell School District, Mitchell Technical Institute and Dakota Wesleyan University), quality health care, ample recreational activities, popular tourist attractions, and a strong employment base.
These core drivers, along with the hard work of Mitchell residents, will drive Mitchell’s long-term success, as they have been doing for decades.
Brian Eliason, Broker Associate
Mitchell Realty, LLC, Mitchell