offering memorandum 15250 montanus drive culpeper,...
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OFFERING MEMORANDUM
W A L G R E E N S15250 MONTANUS DRIVECULPEPER, VA 22701
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AFFILIATED BUSINESS DISCLOSURE & CONFIDENTIALITY AGREEMENT
D. Andrew Ragsdale J.D.Senior Managing Director918.878.9535 [email protected]
Jerry HopkinsSenior Managing Director918.878.9536 [email protected]
Ken HedrickExecutive Managing Director918.878.9540 [email protected]
Mat AdlerManaging Director202.664.5912 [email protected] Virginia License #0225051130
OFFERED EXCLUSIVELY BY
Newmark Knight FrankNATIONAL NET LEASE PRACTICE GROUP
This Offering Memorandum has been prepared by NKF Capital Markets for use by a limited number of parties and has been obtained
from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or
representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been
developed by NKF, Owner and designated sources, are based upon assumptions relating to the general economy, competition,
and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by NKF or Owner
as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as
a promise or representation as to the future performance of the property. Although the information contained herein is believed to
be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise
independent due diligence in verifying all such information. Further, NKF, Owner and their employees disclaim any and all liability
for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any
other written or oral communication transmitted or made available to the recipient.
The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of
the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information
contained in the Offering Memorandum is solely the responsibility of the prospective purchaser. Additional information and an
opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.
Owner and NKF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers
regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal
commitment or obligations to any entity reviewing this Offering Memorandum or making an offer to purchase the property unless
and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered
and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources
available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat
it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any
of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or
not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization
of Owner or NKF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest
in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the
interest of Owner or NKF. If you have no interest in the property, please return the Offering Memorandum forthwith.
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THE OFFERING
Newmark Knight Frank (“NKF”) has been retained to exclusively offer the opportunity
to purchase the Walgreens Co. leased retail property located at 15250 MONTANUS
DRIVE CULPEPER, VA 22701.
The Subject Property is located in the heart of the Culpeper market, and amongst many other national credit tenant retailers, including Lowes, Wal-Mart, Target, Kohls, Aldi, Chick-fil-A, Starbucks, and Panera. The property is 100% Leased and Guaranteed by Walgreens Co., under a long term Absolute NNN Lease, with zero landlord responsibilities. There are 15+ years remaining of primary lease term, which is accompanied by fifty (50), one (1) year option periods.
INVESTMENT HIGHLIGHTS• Long Term Lease – 15+ Years of Remaining Primary Lease Term.
• 100% Absolute NNN Lease – The Subject Property Boasts a True Absolute NNN Lease, with Zero Landlord Responsibilities.
• Metro/Amtrak Serviced Market – Culpeper is served by DC Metro/Amtrak, increasing crucial accessibility to the Washington D.C. Metropolitan area, as well as the Amtrak Northeast Corridor route.
• High Growth Area & Demographics – the Culpeper market provides for a dense suburban demographic, with an expected population growth of 8% between now and 2020.
• Premier Retail Location – Walgreens benefits from a Premier Market Location, within the heart of the Culpeper primary retail corridor.
• Institutional Quality Construction – the subject property was Built to Suit Walgreens, including their prototypical masonry construction.
• Performing Unit, with Drive Thru – The Subject Property has strong sales, and provides consumers with convenient drive thru service.
PURCHASE PRICE $8,545,000
CAP RATE 5.50%
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LEASE ABSTRACTProperty Address 15250 Montanus Drive, Culpeper, VA 22701
Tenant Walgreen Corporation (S&P: BBB)
Effective Date October 18, 2007
Rent Commencement Date April 1, 2008
Annual Rent $470,000
Expiration Date March 31, 2033
Option Periods 50, 1 year options
Lease Type Absolute NNN Lease, with zero LL responsibilities
Right of First Refusal 10 day response period
Estoppel Yes, 30 day response period
Rentable Building Area 14,673 SF
Acreage 2.0215 Acres
Construction Type Masonry
Year Built 2008
RENT SCHEDULECurrent – March 31, 2018 $470,000
April 1, 2018 – March 31, 2019 $470,000
April 1, 2019 – March 31, 2020 $470,000
April 1, 2020 – March 31, 2021 $470,000
April 1, 2021 – March 31, 2022 $470,000
April 1, 2022 – March 31, 2023 $470,000
April 1, 2023 – March 31, 2024 $470,000
April 1, 2024 – March 31, 2025 $470,000
April 1, 2025 – March 31, 2026 $470,000
April 1, 2026 – March 31, 2027 $470,000
April 1, 2027 – March 31, 2028 $470,000
April 1, 2028 – March 31, 2029 $470,000
April 1, 2029 – March 31, 2030 $470,000
April 1, 2030 – March 31, 2031 $470,000
April 1, 2031 – March 31, 2032 $470,000
April 1, 2032 – March 31, 2033 $470,000
Option Periods – 50, 1 year options $470,000
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TENANT/CREDIT OVERVIEW
Walgreens Boots Alliance, Inc. is an American holding company headquartered in Deerfield, Illinois
that owns Walgreens, Boots and a number of pharmaceutical manufacturing, wholesale and distribution
companies. The company was formed on December 31, 2014 after Walgreens purchased the 55% stake
in Switzerland-based Alliance Boots that it did not already own. Walgreens had previously purchased
45% of the company in 2012 with an option to purchase the remaining shares within three years. The
combined business has operations in over 25 countries. Walgreens had formerly operated solely within
the United States and its territories, while Alliance Boots operated a more international business.
The Walgreen Company (simply Walgreens) is an American company which operates as the
second-largest pharmacy store chain in the United States behind CVS Health. It specializes in filling
prescriptions, health and wellness products, health information, and photo services. As of August 31,
2016, the company operated 8,175 stores in all 50 states, the District of Columbia, Puerto Rico, and
the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office
is in the Chicago suburb of Deerfield, Illinois.
Trade Name Walgreens
Industry Drug Store/Retail
Founded 1901
Headquarters Deerfield, IL
2017 Revenues $117 Billion
2017 Net Income $4.17 Billion
2017 Net Worth $22.88 Billion
Credit Summary
LOCATION OVERVIEW
Culpeper, Virginia is located in the Central Virginia region and is an hour
south of Washington D.C. and 40 minutes north of Charlottesville. Rapid
population growth in Culpeper is fueled by the proximity to Washington D.C.
and Charlottesville and the beauty of the Blue Ridge Mountains. The County of
Culpeper was one of the fastest growing counties in the state experiencing over
36% population growth from 2000 to 2010 and is projected to grow an additional
18% by 2020. Among its many attributes, Culpeper boasts a skilled and educated
workforce, exceptional real estate values, abundant and reliable power, robust
fiber optics and an outstanding quality of life. These advantages attract innovative
corporations and government entities to the Culpeper area.
Washington, D.C., formally the District of Columbia and commonly referred to as
“Washington”, “the District”, or simply “D.C.”, is the capital of the United States.
Washington had an estimated population of 681,170 as of July 2016. Commuters
from the surrounding Maryland and Virginia suburbs raise the city’s population to
more than one million during the workweek. The Washington metropolitan area,
of which the District is the principal city, has a population of over 6 million, the
sixth-largest metropolitan statistical area in the country. Washington has a growing,
diversified economy with an increasing percentage of professional and business
service jobs.[The gross product of the Washington Metropolitan Area was $435
billion in 2014, making it the sixth-largest metropolitan economy in the United States.
The Packard Campus of the National Audio-Visual Conservation Center is located on 45-acres near Culpeper, Virginia, and 75 miles southwest of Washington, DC near the foothills of the Blue Ridge Mountains. The campus is built into the side of Mount Pony, the highest slope in Culpeper County, and features an adaptive reuse and expansion of a previously existing underground Federal Reserve Bank facility. It was created through a unique partnership between the Packard Humanities Institute, the United States Congress, the Library of Congress and the Architect of the Capitol.
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10.00'5.00'
75' B
RL
0.47' CLR
0.62' CLR
SITE SURVEY
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LOCATION AERIAL
N
MONTANNUS DR
MONTANNUS DR
JAMES MADISON HWY (ROUTE 15/29)
IRA HOFFM
AN LN
ROCKY KNOLL
BR
AD
FOR
D R
D
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1 Mile Ring 5 Mile Ring 10 Mile Ring
POPULATION 2000 Total Population 2,135 16,884 30,970
2010 Total Population 3,640 25,434 42,047
2016 Total Population 3,972 27,331 44,825
2021 Total Population 4,288 28,933 47,179
HOUSEHOLDS2000 Total Households 755 6,531 11,062
2010 Total Households 1,158 9,133 14,652
2016 Total Households 1,215 9,407 15,127
2021 Total Households 1,324 10,049 16,088
POPULATION2000 to 2010 Population Change 70.5% 50.6% 35.8%
2000 to 2016 Population Change 86.0% 61.9% 44.7%
2010 to 2021 Population Change 17.8% 13.8% 12.2%
2016 to 2021 Population Change 8.0% 5.9% 5.3%
HOUSEHOLD2000 to 2010 Household Change 53.4% 39.8% 32.5%
2000 to 2016 Household Change 60.9% 44.0% 36.7%
2010 to 2021 Household Change 14.3% 10.0% 9.8%
2016 to 2021 Household Change 9.0% 6.8% 6.4%
2016 RACEWhite alone 54.3% 67.2% 72.4%
Black or African American alone 22.5% 18.4% 16.4%
American Indian and Alaska Native alone 1.3% .5% .5%
Asian alone 3.3% 1.9% 1.4%
Native Hawaiian and OPI alone .0% .1% .1%
Some Other Race alone 13.2% 7.5% 5.5%
Two or More Races 5.4% 4.3% 3.7%
2016 INCOMEPer Capita Income $24,010 $25,764 $27,299
Household Income: Median $63,220 $59,216 $63,894
Household Income: Average $77,049 $74,210 $78,623
AVERAGE HOUSEHOLD SIZE 3.2 2.9 2.9
DEMOGRAPHICS
Old Executive Eisenhower Office Building – The White House
D. Andrew Ragsdale J.D. Senior Managing Director918.878.9535 [email protected]
Jerry HopkinsSenior Managing Director918.878.9536 [email protected]
Ken HedrickExecutive Managing Director918.878.9540 [email protected]
Mat AdlerManaging [email protected]
NATIONAL NET LEASE PRACTICE GROUP