walgreens offering memorandum - loopnet · 2018. 5. 24. · walgreens‘ omni-channel business...
TRANSCRIPT
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OFFERING MEMORANDUM
Walgreens NNN Leased Offering9009 N 67th Avenue| Glendale, AZ 85302
JDS Real Estate Services, Inc.
Representative Photo. Not Actual Property
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By accepting this Offering Memorandum, the party in possessionhereof agrees (i) to return it to Owner/Agent immediately uponrequest and (ii) that this Offering Memorandum and its contents areof a confidential nature and will be held and treated in strictconfidence. No portion of this Offering Memorandum may becopied or otherwise reproduced or disclosed to anyone without theprior written authorization of officer of Owner/Agent. Principals andreal estate brokers are prohibited from disseminating thisinformation without the specific written consent of an officer ofOwner/Agent.
This Offering Memorandum is subject to errors, omissions, changesor withdrawal without notice and does not constitute arecommendation or endorsement as to the value of the property asa reference and are based on assumptions proposed byOwner/Agent and their sources. Prospective purchasers shouldmake their own projections and reach their own conclusion ofvalue.
Certain portions of this Offering Memorandum merely summarizeor outline property information and are in no way intended to becomplete nor necessarily accurate descriptions. All prospectivepurchasers are to rely upon their own investigations and duediligence in the formation of their assessment of the condition ofthe property, including engineering and environmental inspections.All relevant documents are expected to be reviewed independentlyby any prospective purchaser.Neither Owner nor the Agent nor any of their respective officers,advisors, agents, or principals has made or will make any
representations or warranties, expressed or implied, as to theaccuracy or completeness of the Offering Memorandum or any ofthe contents, and no legal commitment or obligations shall arise byreason of the Offering Memorandum or the contents. Analysis andverification of the information contained in the OfferingMemorandum is solely the responsibility of the prospectivepurchaser.
Owner reserves the right to reject any or all expressions of interestor offers to purchase this property, as well as the right to terminatediscussions with any party at any time with our without notice.Owner shall have no legal commitment or obligation to anypurchase reviewing this Offering Memorandum or making an offerto purchase this property unless a written agreement for thepurchase of the property has been fully executed, delivered andapproved by Owner and any conditions to Owner’s obligationsthereunder have been satisfied or waived.
The terms and conditions set forth above apply to this OfferingMemorandum in its entirety.
CONFIDENTIALITY AGREEMENT
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1ABOUT THE INVESTMENT
INVESTMENT SUMMARY & HIGHLIGHTS
2TENANT OVERIVEWCREDIT OVERVIEW
OPERATIONS OVERVIEW
3ABOUT THE PROPERTY
PROPERTY OVERVIEW
4ABOUT THE LOCATIONLOCATION OVERVIEWCOLUMBIA MARKET
Walgreens| Glendale, AZ
TABLE OF CONTENTS
Walgreens NNN Leased Offering9009 N 67th Avenue| Glendale, AZ 85302
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9009 N 67th Avenue
Section 1 : About the Investment
Walgreens NNN| Glendale, AZ
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PROPERTY OVERVIEW
Purchase Price: $3,800,000 | Cap Rate: 7.09%JDS Real Estate Services is pleased to offer for
sale to qualified investors a single tenant
Walgreens in Glendale Arizona.
The property is leased to Walgreens with over 3
years remaining on the initial 20 year lease. The
lease calls for zero landlord obligations, making
this an ideal passive investment.
The corporate backed lease by the world’s
largest drug store by volume has no
responsibilities whatsoever for the landlord. The
roof, structure and parking lot are all
maintained, repaired and replicated by the
tenant.
The Lessee is Walgreens Company, the nation’s
largest drug store with approximately 10,200
stores. As of January 2018, the market valuation
of Walgreens exceeds $74B.
Absolute NNN Lease Structure
This lease represents a triple net lease investment, leaving zero Landlord responsibilities for maintenance
or repair of the Property throughout the term and option periods.
Financials and Creditworthiness of Tenant
Walgreen Co. holds a BBB/Stable rating by Standard and Poor’s and had FY2016 (ended August 31,
2016) revenue of $117.35 billion and net income of $4.17 billion.
Sustained Operating History
Walgreen Co. boasts a 115+ year operational history. Additionally, the Tenant has occupied the Property
for approximately 10 years.
Favorable Demographics
±417,000 people within a 5 mile radius, with expected population growth of 7.85% from 2017 through
2022.
Corner Location and Accessibility
The Property boasts a corner location of an intersection with great traffic counts, and easy accessibility.
Walgreens NNN| Glendale, AZ
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INVESTMENT OVERVIEW
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Walgreens NNN| Glendale, AZ
Remaining Term: 7 years
Expense: NNN (Owner Responsible for Roof and
Structure)
Sale Price: $3,800,000
CAP Rate: 7.09%
Building Size: 15,120
Price Per Square Foot: $251.32
Lot Size: 2.18 Acres
Year Built: 2001
Parking: 60 3.96/1,000 SF
Zoning: C-2 Phoenix
Parcel: 143-12-160J
Stories: 1
Tenant Name GLA Lease Start Lease End Annual rent Options
Walgreens 15,120 SF 6/1/2001 6/30/2021 $269,504 Tenant has 8 five year options
Tenant Rent Roll
Investment Overview
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Section 2 : About The Tenant
9009 N 67th Avenue Walgreens NNN| Glendale, AZ
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TENANT OVERVIEW
Walgreens, one of the nation's largest drugstore chains, is included in
the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc.
(NASDAQ: WBA), the first global pharmacy-led, health and wellbeing
enterprise.
The company was created through the combination of Walgreens and
Alliance Boots in December 2014. More than 8 million customers
interact with Walgreens each day in communities across America,
using the most convenient, multichannel access to consumer goods
and services and trusted, cost-effective pharmacy, health and wellness
services and advice.
Walgreens operates 8,175 drugstores with a presence in all 50 states,
the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
Walgreens‘ omni-channel business includes Walgreens.com and
VisionDirect.com. More than 400 Walgreens stores offer Healthcare
Clinic or other provider retail clinic services. Healthcare Clinics are
staffed by board-certified family nurse practitioners who are specially
trained to diagnose and treat a wide variety of illnesses and chronic
conditions, order diagnostic tests and provide preventive care. The
Walgreens partnership with WebMD offers customers additional digital
health resources.
Walgreens Boots Alliance's pending acquisition of Rite Aid
Corporation, which was announced October 27, 2015, is progressing
as planned. The company expects the acquisition will close in early
calendar 2017. Taking into account its current expectation of store
divestitures, Walgreens Boots Alliance continues to expect that it will
realize synergies from the acquisition in excess of $1 billion, to be fully
realized within three to four years of closing.
Walgreens NNN| Glendale, AZ
Tenant Overview
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Section 3 : About The Property
9009 N 67th Avenue Walgreens NNN| Glendale, AZ
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PROPERTY SITE PLAN Walgreens NNN| Glendale, AZ
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S
Subject Property
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Section 4 : About The Location
9009 N 67th Avenue Walgreens NNN| Glendale, AZ
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CITY OVERVIEW 9009 N 67th Avenue | Glendale AZ
Glendale is a city in Maricopa County, Arizona, located about nine
miles (14 km) northwest from Downtown Phoenix. According to the
2010 census, the population of the city is 226,721.
Glendale is the site of two major sports venues: University of Phoenix
Stadium and Gila River Arena. Both venues are part of the Glendale
Sports and Entertainment District development plan, meant to spur
growth in the sparsely inhabited Yucca district. Both venues are owned
by the City of Glendale.
As of the census of 2000, there were 218,812 people, 75,700 households,
and 54,352 families residing in the city. The population density was
3,929.5 people per square mile. There were 79,667 housing units at an
average density of 1,430.7 per square mile. The racial makeup of the
city was 75.54% White, 4.70% Black or African American, 1.45% Native
American, 2.74% Asian, 0.13% Pacific Islander, 11.97% from other races,
and 3.47% from two or more races. 24.84% of the population
were Hispanic or Latino of any race.
There were 75,700 households out of which 39.9% had children under
the age of 18 living with them, 53.5% were married couples living
together, 12.8% had a female householder with no husband present,
and 28.2% were non-families. 21.3% of all households were made up of
individuals and 5.8% had someone living alone who was 65 years of
age or older. The average household size was 2.85 and the average
family size was 3.33.
In the city the population was spread out with 30.1% under the age of
18, 10.8% from 18 to 24, 31.9% from 25 to 44, 19.9% from 45 to 64, and
7.4% who were 65 years of age or older. The median age was 31 years.
For every 100 females there were 99.6 males. For every 100 females age
18 and over, there were 97.1 males.
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PROPERTY DEMOGRAPHICS Walgreens NNN| Glendale, AZ
Radius 1 Mile 3 Mile 5 Mile
Population:
2022 Projection 21,145 170,965 449,929
2017 Estimate 19,553 158,464 417,183
2010 Census 17,641 145,130 383,002
Growth 2017-2022 8.14% 7.89% 7.85%
Growth 2010-2017 10.84% 9.19% 8.92%
Households:
2022 Projection 8,178 58,272 156,056
2017 Estimate 7,565 54,046 144,752
2010 Census 6,826 49,558 132,900
Growth 2017 - 2022 8.10% 7.82% 7.81%
Growth 2010 - 2017 10.83% 9.06% 8.92%
Owner Occupied 3,826 33,255 88,456
Renter Occupied 3,739 20,790 56,296
2017 Avg Household Income 45,228 59,807 57,589
2017 Med Household Income 35,460 47,167 45,097
2017 Households by Household Inc:
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EXCLUSIVELY PRESENTED BY:
Diana Shirek
AZ License Real Estate Broker # CO661892000
License #00877523
818.657.6516
833.466.6360 | DIRECT
JDS Real Estate Services, Inc.
100 Spectrum Center Drive, Suite 900
Irvine, CA 92618__________________________________________________
JDS Real Estate Services, Inc.