net lease walgreens miami
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net leased Walgreens prooperTRANSCRIPT
www.bouldergroup.com
NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING
WalgreensWalgreensWalgreensWalgreens 15050 Biscayne Blvd.15050 Biscayne Blvd.15050 Biscayne Blvd.15050 Biscayne Blvd.
North Miami BNorth Miami BNorth Miami BNorth Miami Beeeeach, FL 33181ach, FL 33181ach, FL 33181ach, FL 33181 ((((MiamiMiamiMiamiMiami MSA)MSA)MSA)MSA)
CONFIDENTIAL OFFERING MEMORANDUM
NET LEASED INVESTMENT OFFERING
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Assumable Financing Overview
Aerial
Site Plan
Map
Tenant Profile
Demographic Comparison Report
Location Overview
Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
CONFIDENTIALITY & DISCLAIMER
CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located in North Miami Beach, Florida. The lease features a rare 11% rental escalation in the primary term of the lease as well as 5% rental escalations every ten years after the primary term. The 14,550 square foot Walgreens was built in 2010 and benefits from its location within a primary retail trade area of Miami. The trade area features Publix, Costco, Target and the Lamborghini dealership adjacent to the property.
The property is located along Biscayne Boulevard, a primary north-south thoroughfare with 52,000 vehicles passing the site daily. There are curb cuts for ingress and egress along Biscayne Boulevard and 151st Street. The property is positioned in a dense in-fill area with approximately 400,000 people living within five miles of the property. Adjacent to the property is Lamborghini Miami and Prestige Imports, the nation’s top selling Audi dealership. Biscayne Commons, a Publix and PETCO anchored shopping center is located directly across the street from the property. Target and Costco are the other regional retail attractions to the trade area. Florida International University-Biscayne Bay Campus (7,000 students) is less than one and one-half miles from the property and this is the closest Walgreens to the campus. Additionally, directly east of the property is Biscayne Landing, a development site slated for 3,550 residential units, 750,000 square feet of retail, 300 hotel rooms and 400,000 square feet of commercial space.
Walgreens’s original lease term was for twenty-five years with fifty years of renewal options and the lease expires in February 2035. The net operating income increases by 11% in March 2020 as well as 5% every ten years starting in March 2035. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $27 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.
• Located in a dense infill area of Miami
• Rare 11% rental escalation in the primary term of the lease and 5% escalations in each option period
• Investment grade company with an S&P Rating of A
• No landlord responsibilities
• 52,000 vehicles per day pass the site daily along Biscayne Boulevard
• Approximately 400,000 people living within five miles of the property
• Over 22 years remaining on the primary term of the lease
• Nearby retailers include Target, Costco, Publix and PETCO
• Adjacent to Lamborghini Miami and the highest volume Audi dealership in the United States
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY
EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
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Price: $10,912,500
Cap Rate: 6.00%
Net Operating Income:: NOI Escalation Date
$ 654,750
$ 727,500 3/1/2020
$ 763,875 3/1/2035 (Option Period)
$ 802,069 3/1/2045 (Option Period)
$ 842,172 3/1/2055 (Option Period)
$ 884,281 3/1/2065 (Option Period)
$ 928,495 3/1/2075 (Option Period)
Renewal Options: Fifty 1-Year
Lease Commencement Date: March 1, 2010
Lease Expiration Date: February 28, 2035
Tenant: Walgreens
Credit Rating: A
Year Built 2010
Lease Type: NNN
Rentable Square Feet: 14,550 SF
Land Size: 1.20 acres
Parking: 50 spaces
Financing: Assumable non-recourse financing in-place
PROPERTY OVERVIEW
PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
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This Walgreens property is subject to existing non-recourse financing
that must be assumed with the following terms:
Original Loan Balance: $6,950,000
Loan Balance (September 2012): $6,814,178
Maturity Date: December 31, 2020
Interest Rate: 5.76%
Amortization: 30 Year
Loan to Value: 62%
Equity Requirement: $4,106,216
Loan Balance at Maturity: $5,791,245
Assumption Fee: 1%
Recourse: None
ASSUMABLE FINANCING OVERVIEW
ASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEW
NET LEASED INVESTMENT OFFERING
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AERIAL
AERIALAERIALAERIALAERIAL
NET LEASED INVESTMENT OFFERING
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SITE PLANSITE PLANSITE PLANSITE PLAN
SITE PLAN
NET LEASED INVESTMENT OFFERING
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MAPMAPMAPMAP
MAP
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Website: www.walgreens.com
Number of Locations: 8,261
Stock Symbol: WAG : NYSE
Standard & Poor’s Rating: A
Market Capitalization: $27 Billion
Walgreens is engaged in retail drugstore business. As of November 30, 2011, the Company operated 8,261 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. The company also operates worksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health Systems subsidiary manages more than 715 in-store convenient care clinics and worksite health and wellness centers. The Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, household items, personal care, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers the choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, and through the Internet. In March 2011, Walgreens announced that it has completed the acquisition Drugstore.com.
TENANT PROFILE
TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE
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PopulationPopulationPopulationPopulation 1111----mi.mi.mi.mi. 3333----mi.mi.mi.mi. 5555----mimimimi
Total Population 13,709 173,254 396,512 Total Households 4,669 66,758 150,191
IncomeIncomeIncomeIncome
Median Household Income $32,437 $39,975 $41,944 Average Household Income $41,802 $56,008 $58,171
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT
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LOCATION OVERVIEW
LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW
Miami International Airport and the Port of Miami are among the nation's busiest ports of entry, especially for cargo from South America and the Caribbean. As of 2011, the Port of Miami accounts for 176,000 jobs and has an annual economic impact in Miami of $18 billion. It is the 11th-largest cargo container port in the United States. In 2010, a record 4.33 million passengers traveled through the Port of Miami. For more than two decades, the Port of Miami, known as the "Cruise Capital of the World," has been the number one cruise passenger port in the world, accommodating some of the world's largest cruise ships and operations, and is currently the busiest in both passenger traffic and cruise lines.
http://www.miamigov.com/home/
MiamiMiamiMiamiMiami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625. At the time of the 2010 U.S. Census, the Miami MSA had a population of 5,564,635 making the Miami metropolitan area is the most populous in Florida and in the Southeastern United States as well as the eighth-most populous in the United States.
Miami is a major center and a leader in finance, commerce, culture, media, entertainment, the arts, and international trade. According to a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States, and the world's fifth-richest city in terms of purchasing power. Downtown Miami and South Florida are home to the largest concentration of international banks in the United States, and is home to many large companies both nationally and internationally.
Several large companies are headquartered in Miami, including Burger King, Celebrity Cruises, Carnival Corporation, Carnival Cruise Lines, Lennar, Norwegian Cruise Lines, Oceania Cruises, Perry Ellis International and Royal Caribbean Cruise Lines. Additionally, because of its proximity to Latin America, Miami serves as the headquarters of Latin American operations for more than 1,400 multinational corporations, including AIG, American Airlines, Cisco, Disney, Exxon, FedEx, Kraft Foods, LEO Pharma Americas, Microsoft, Yahoo, Oracle, SBC Communications, Sony, Symantec, Visa International, and Wal-Mart.
NET LEASED INVESTMENT OFFERING
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666 Dundee Road Suite 1801 Northbrook, IL 60062
Randy Blankstein President 847.562.0003 [email protected]
Jimmy Goodman Partner 847.562.8500 [email protected]
CONTACT INFORMATION
CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION