walgreens | 16+ year absolute nnn lease · 2017. 7. 15. · company operates online businesses that...

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved. Activity ID Y0090726.

OFFERING MEMORANDUM

Walgreens | 16+ Year Absolute NNN Lease3340 Canoe Creek Road, St. Cloud (Orlando MSA), FL 34772

Actual Site


INVESTMENT OVERVIEW

Marcus & Millichap is pleased to present this 14,611 square foot single tenant NNN Walgreens located in the Crosscreek Village shopping center on the southwest corner of Canoe Creek Road and Pine Tree Drive in St. Cloud, FL. The lease in place from 2008, when it was built, is a 75 year flat NNN lease with the tenants first option to terminate in approximately 16 years and then every 5 years thereafter. An absolute NNN lease, the tenant is responsible for all management, expenses, and condition of the property.

St. Cloud neighbors Kissimmee, FL and is in close proximity to Orlando and the renowned theme parks, Walt Disney World, Seaworld, and Universal Studios. Orlando is the 3rd largest city in Florida and is known as “The City Beautiful”.

This Walgreens shares its location with several known national retailers, such as Publix,WinnDixie, McDonalds, 7-Eleven, Subway, Taco Bell/KFC, Redbox, Exxon Mobil, Advanced Auto and more; along with many local retailers and restaurants. Among the standard convenient services, this Walgreens also has a drive-thru pharmacy, a beer & wine license, an on-site RedBox

rental kiosk, and an extra large parking lot.

HIGHLIGHTS• 16+ Years Remaining on an Absolute NNN Lease

• Walgreens (NASDAQ: WBA) Corporate Lease, “BBB” Rated by S&P

• Net Worth Over $30 Billion

• In a Publix Anchored Center on a High Traffic Signalized Corner Including McDonalds, Winn-Dixie, 7-Eleven, Exxon Mobile, Taco Bell

• The Only Shopping Destination in a Bedroom Community of South St. Cloud, Florida

• Pharmacy Drive-Thru, Beer & Wine, Redbox Kiosk

• No State Income TaxActual Site


FINANCIAL OVERVIEW

3340 C ano e Cre ek Ro ad, St . C loud (Orlando MSA) , FL 34772Offering Summary Lease Summary

Price: $6,350,000 Lease Commencement Date: September 1, 2008CAP Rate: 5.50% Lease Expiration Date: August 31, 2083

NOI: $349,000 Lease Term: 75 YearsPrice Per SqFt: $434.60 Term Remaining: 66 Years

Year Built: 2008 Percentage Rent: 2% Gross Sales (Excl. Food & Rx) + .5% Food & Rx Sales in Excess of Annual Rent*Lot Size: 1.9 Acres

Gross Leaseable Area: 14,611 SqFt Base Rent: $29,083.33Type of Ownership: Fee Simple Increases: None

Lease Guarantor: Corporate Guarantee Options to Terminate: August 2033, Every 5 Years ThereafterLease Type: Absolute NNN Right of First Refusal: 21 Days

*Subject to Exclusions

Actual Site

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved. Activity ID Y Y0090726.

AERIAL RETAIL MAP


MARKET OVERVIEW

St. Cloud, Florida is a rapidly growing city in Osceola County, approximately 26 miles southeast of Orlando, on the shore of East Lake Tohopekaliga. Founded in 1909, St. Cloud started as a retirement community for Civil War soldiers, which is how it became known as “Soldier City”. In 1911, the city became one of two incorportated cities in Osceola County. This Historic charm is maintained in the origins of the city.

Like many cities in Florida, St. Cloud is well-known for its excellent climate but also associated with its close proximity to Kissimmee and Orlando. Kissimmee is a destination for many vacationers looking to experience all that Central Florida has to offer; from airboat rides to Old Town tours to year-round golf and much more. Both St. Cloud and Kissimmee are a short drive from Orlando, Florida’s largest inland city, home to more than a dozen theme parks, and one of America’s busiest cities for conferences and conventions.

St. Cloud is ideal for the suburban community lifestyle. Some of the great attractions include the 2.5 miles of beautiful lakefronts and parks, continual development of planned communities, great schools and healthcare, and easy access to the Florida Turnpike and the coast.


TENANT OVERVIEWWalgreensTenant Profile

Tenant Trade Name: WalgreensOwnership: Public

Tenant: Corporate StoreLease Guarantor: Corporate Guarantor

Number of Locations: 8,175 (June 2017)Headquarters: Deerfield, IL

Website: www.walgreens.comSales Volume: $117.35 Billion (2016)

Net Worth: $30.28 Billion (2016)Stock Symbol: WBA

Board: NASDAQCredit Rating: BBB

Rating Agency: S&PRank: #17 in Fortune 500 (2017)

Founded in 1901, Walgreens is one of the nation’s largest drugstore chains. Charles R. Walgreen built the chain from a single drugstore in Chicago, IL. By 1919 there were 20 stores, and in 1927 the Company went public. In 1934, Walgreens was operating in 30 states and the store count was over 600. Today, Walgreens operates 8,175 stores in all 50 states, DC, Puerto Rico and the U.S. Virgin Islands; over 400 of those locations offer medical services through Healthcare Clinics. Additionally, the company operates online businesses that include walgreens.com, drugstore.com, beauty.com, skinstore.com, and visiondirect.com.

In December 2014, Walgreens acquired the remaining 55 percent of European retailer and wholesaler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Inc., headquartered in Chicago. The Walgreens chain now constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Incorporated.

The company includes nearly 13,000 retail pharmacies (or chemists in some parts of the world) in 10 countries, mostly the US and its territories and the UK, selling prescription and OTC drugs along with health and beauty products and general merchandise. The Alliance Boots part of the company also includes wholesale operations serving more than 200,000 pharmacies, hospitals, and clinics in a nearly 20 countries. Walgreens Alliance Boots will be buying 2,186 Rite Aid stores and 3 distribution centers to further their market strength, according to a press release, June 2017.

Actual Site


LOCATION

PINE TREE DR

CANOE CREEK RD

OLD CANOE CREEK RD

3340 CANOE CREEK RD

3340 CANOE CREEK RD

3340 CANOE CREEK RD


AREA OVERVIEW & DEMOGRAPHICS1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile

Population Households Household (HH) Incomes2000 Population 3,165 11,889 30,260 2000 Households 1,092 4,108 11,189 2016 Average HH Income $60,443 $61,763 $57,771

2010 Population 6,693 22,187 45,873 2010 Households 2,138 7,269 16,260 2016 Median HH Income $50,608 $51,524 $47,614

2016 Population 8,314 27,206 54,857 2016 Households 2,644 8,884 19,475 2016 Per Capita Income $19,297 $20,237 $20,683

2021 Population 9,854 31,867 61,982 2021 Households 3,127 10,388 21,980


CONFIDENTIALITY AND DISCLAIMERCONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate In-vestment Services of Florida, Inc. (“Marcus & Millichap”) and should not be made available to any other person or entity without the writ-ten consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or ab-sence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the im-provements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its oc-cupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Mil-lichap 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.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to in-dicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee infor-mation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE-TAILS.

NET LEASED DISCLAIMER

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regard-ing these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any pur-chase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any pro-jections, opinions, assumptions or estimates used in this Marketing Brochure are for ex-ample only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your sat-isfaction with the suitability of the property for your needs.Like all real estate invest-ments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other loca-tions is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-ac-quired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regard-less of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant consid-ering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.


KIRK FELICI

Florida Broker of RecordMarcus & Millichap real estate investMent services of florida, inc.

5201 Blue lagoon drive, suite 100, MiaMii, fl 33126

license: BK 672851

walgreens | 16+ year absolute nnn lease · 2017. 7. 15. · company operates online businesses that...

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