walgreens - matthews · 2019. 5. 16. · mark hulsey broker of record lic no. 40169559 exclusively...

Wa l g r e e n s 8 2 5 0 F l y i n g C l o u d D r i v e , E d e n P r a i r i e , M N 5 5 3 4 4

™O F F E R I N G M E M O R A N D U M

™

MARK HULSEYBROKER OF RECORDLic No. 40169559

E XC LU S I V E LY L I S T E D BY

National Drug Store Specialist

[email protected] (214) 692-2024MOB (310) 994-0262LIC # 01996741 (CA)

MAXX BAUMAN CHAD KURZSVP & National Director


™

C O N T E N T S

4 INVESTMENT OVERVIEW

6 FINANCIAL ANALYSIS

8 TENANT OVERVIEW

1 0 PROPERTY OVERVIEW

1 4 AREA OVERVIEW

4 | W a l g r e e n s

I N V E S T M E N T O V E R V I E W

O f f e r i n g M e m o r a n d u m | 5

I n v e s t m e n t H i g h l i g h t s

Property / Lease

• At l ist price, the buyer will recapture 95% of their initial investment throughout the base term of the lease

• Long Term Absolute NNN Lease – Perfect 1031 Up-Leg

• 2010 Construction Building

• Property equipped with a drive thru pharmacy designed to bolster pharmaceutical sales

Location

• Eden Prairie was voted #1 Place to Live in Minnesota in 2017

• Minneapolis – St. Paul is the 16th largest MSA in the country

• The Twin Cities are home to more than 3,800,000 residents

• Situated in the Regional Retail Hub - the property is immediately surrounded by more than 2,000,000 SF of retail

• Strategically situated between the intersection of Hwy 212 and Hwy 494 which sees 182,000 cars per day

• Over 63,000 residents call the city of Eden Prairie home

• Average HH Income over $104,000 in a 1 Mile Radius

Tenant

• Walgreens #17 of Fortune 500 Companies

• Investment Grade Credit tenant , S&P rated BBB

• Walgreens has a total revenue of $117.35B


F I N A N C I A L A N A L Y S I S


W a l g r e e n s8250 Fly ing Cloud Dr. Eden Prair ie, MN 55344

List Price .....................................................................................................................$6,818,181

CAP Rate - Current ........................................................................................................ 5.50%

Gross Leasable Area ........................................................................................... ± 14,580 SF

Lot Size ........................................................................................... ± 1.05 Acres (45,738 SF)

Year Built .............................................................................................................................. 2010

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current: $31,250 $375,000 $25.72 5.50%

Fifty, 1-Year Options: $31,250 $375,000 $25.72 5.50%

Tenant Summary

Tenant Trade Name Walgreens

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 25 Years

Lease Commencement Date 1/1/2009

Lease Expiration Date 12/31/2034

Term Remaining on Lease ± 18 Years

Options Fifty, 1-Year Options


T E N A N T O V E R V I E W


Company Name Walgreen Co.

Parent Company Trade Name Walgreens Boots Alliance, Inc. (NASDAQ: WBA)

Ownership Public

Revenue $117.35 B

Net Income $4.173 B

No. of Locations ± 8,300

No. of Employees ± 253,400

Headquartered Deerfield, Illinois

Website www.walgreens.com

Year Founded 1901

TENANT OVERVIEW

The nation’s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from competition. Recently, Walgreen Co. fully acquired Alliance Boots, Europe’s leading drug wholesaler, to create Walgreens Boots Alliance, of which it is a subsidiary.

WALGREENS HEALTH FOCUSWalgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and reducing customers’ shopping time, Walgreens has achieved placement in a league of its own as competition aims their focus on things such as convenience, design, or low prices.

MARKETING STRATEGYWalgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money.

1 0 | W a l g r e e n s

P R O P E R T Y O V E R V I E W

N

T h e O f f e r i n gProperty Name Tenant Name

Property Address8250 Flying Cloud Drive Eden Prairie, MN 55344

Assessor’s Parcel Number 14-116-22-31-0051

O f f e r i n g M e m o r a n d u m | 1 1

Site Description

Number of Stories One

Year Built 2010

Gross Leasable Area (GLA) ± 14,580 SF

Lot Size ± 1.05 Acres (45,738 SF)

Type of Ownership Fee Simple

Parking ± 56 Surface Spaces

Parking Ratio 3.84 : 1,000 SF

Landscaping Professional

Topography Generally Level

1 2 | W a l g r e e n s

B i r d ’ s E y e


Te n a n t M a p

1 4 | W a l g r e e n s

A R E A O V E R V I E W


E D E N P R A I R I E , M NEden Prairie is located in Hennepin County, just 12 miles southwest of downtown Minneapolis Minnesota. Eden Prairie is a suburb that makes up the Minneapolis-Saint Paul Metropolitan area, this is the 15th largest metropolitan area in the United States. The town has made MONEYs best places list several times. It flourishes due to its self-sustaining economy, Eco-friendly homes, and several large employers in the area. Optum, C.H. Robinson, Starkey, and Supervalu all have their headquarters in Eden Prairie which contributes to the unemployment rate being as low as 3.6%.

Eden Prairie’s strategic location makes it greatly accessible by several forms of transportation. Interstate 494 and Highways 212, 62, 169 and 5 all converge in the heart of Eden Prairie. The Flying Cloud airport is commonly used for corporate and personal air travel. This ideal location makes it convenient for the 13-million guests per year that stay in the dozens of hotels and dine at the various award-winning restaurants that the town has to offer.

The town not only experiences economic prosperity but environmentally as well. The town is home to 37 parks, 17 lakes, and miles and miles of walking trails. The town focuses on keeping a balance between nature preservation along with industry.

D e m o g r a p h i c sPopulation 1 Mile 3 Mile 5 Mile

2022 Projection 9,914 57,109 153,591

2017 Estimate 9,193 54,491 146,947

2010 Census 8,066 50,753 137,684

Growth 2017 - 2022 7.84% 4.80% 4.52%

Growth 2010 - 2017 13.97% 7.37% 6.73%

Growth 2000 - 2010 44.04% 4.47% 3.09%

Households 1 Mile 3 Mile 5 Mile

2022 Projection 4,662 23,781 64,527

2017 Estimate 4,369 22,695 61,667

2010 Census 3,934 21,204 57,753

Growth 2017 - 2022 6.71% 4.79% 4.64%

Growth 2010 - 2017 11.06% 7.03% 6.78%

Income 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$104,677 $135,547 $129,946

M i n n e a p o l i s , M N

1 6 | W a l g r e e n s

Minneapolis is the larger of the Twin Cities, the largest city in the state of Minnesota. The Twin Cities, made up of Saint Paul and Minneapolis create the second-largest economic center in the Midwest, only behind Chicago. Minneapolis contains the fifth-highest concentration of Fortune 500 companies in the country.

The abundance of lakes create the beautiful park system that make residents proud to call this city home. The city has attractions for all types of people. From the nightlife scene in downtown, Craft brews and art exhibits in Northeast Minneapolis, the streets of the North Loop has Minnesota Twins fans parading to and from Target field, and Uptown accommodates various outdoor ventures along the lakes and trails. There is always something to do in the city of Minneapolis.


Fortune 500 Companies

UnitedHealth Group

Target

Best Buy

US Bank

3M

CHS

U.S. Bancorp

General Mills

Supervalu

Land O’Lakes

EcoLab

C.H. Robinson Worldwide

Ameriprise Financial

Xcel Energy

Hormel Foods

Thrivent Financial

Mosaic

St. Jude Medical

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Walgreens located at 8250 Flying Cloud Dr Eden Prairie, MN 55344. I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

™

E XC LU S I V E LY L I S T E D BY

Wa l g r e e n s8 2 5 0 F l y i n g C l o u d D r, E d e n P r a i r i e M N 5 5 3 4 4

O F F E R I N G M E M O R A N D U M

MARK HULSEYBROKER OF RECORDLic No. 40169559

National Drug Store Specialist


MAXX BAUMAN CHAD KURZSVP & National Director


walgreens - matthews · 2019. 5. 16. · mark hulsey broker of record lic no. 40169559 exclusively...

Documents