Single Tenant NNN Walgreens Property
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Single tenant triple net leased Walgreen's for sale

Single tenant triple net leased Walgreen's for sale

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Single Tenant NNN Walgreens Property Document Transcript

  • 1. NET LEASED INVESTMENT OFFERING Walgreens 3220 W. 111th Street Chicago, ILCONFIDENTIAL OFFERING MEMORANDUM www.bouldergroup.com
  • 2. TABLE OF CONTENTSNET LEASED INVESTMENT OFFERINGTABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Investment Return Scenarios5) Site Plan6) Aerial7) Maps8) Tenant Profile9) Demographic Comparison Report10) Location Overview11) Contact Information www.bouldergroup.com
  • 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entitywithout the written consent of The Boulder Group. 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. The Boulder Group has notmade any investigation, and makes no warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with State andFederal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects ofany tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained inthis Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has notverified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. www.bouldergroup.com
  • 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a newly constructed Walgreens located in Chicago. This 13,650square foot Walgreens was built in 2010 for a relocated Walgreens property. The property is located in the Mount Greenwoodneighborhood, which is one of seventy-seven Chicago communities and is less than fourteen miles from Downtown Chicago.The property is located on northwest corner of 111th Street and Kedzie Avenue, which is benefitted by a traffic signal.Additionally, this intersection has a visible Walgreen’s brick sign as well as a monument sign displaying the entryway into theMount Greenwood neighborhood. Both 111th Street and Kedzie Avenue are primary thoroughfares within Chicago and allowa steady flow of traffic into the Walgreens. There are approximately 41,700 vehicles passing the site daily. The subjectproperty is conveniently located in between both a major Interstate and Tollway. Interstate 57 allows easy access todowntown Chicago, while the Tri-State Tollway (294) provides access to nearby Chicagoland neighborhoods and suburbs.One of the main attractions in Mount Greenwood is Saint Xavier University, which is home to over 5,000 students and is theoldest university in Illinois. Major retail anchors located in close proximity to the subject asset include Dominick’s, Jewel, andKmart.The rental commencement date for the Walgreens was November 1, 2010 with a 25 year lease and ten 5-year renewaloptions. Walgreens’s annual rental payment is $485,000 and there are no landlord obligations in the lease. Walgreens is apublicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $35 Billion. Walgreens is aninvestment grade company with a Standard & Poor’s rating of A+.Investment Highlights Investment grade tenant with a new long term lease Newly constructed property of a relocated Walgreens Property is located in Chicago Located on a hard corner benefited by a traffic signal Newly constructed property with high barriers to entry Four points of ingress-egress Irreplaceable location along two heavily trafficked Close proximity to Saint Xavier University - roadways in Chicago home to 5,000 students www.bouldergroup.com
  • 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $7,238,800Cap Rate: 6.70%Net Operating Income: $485,000Rental Escalations: NoneRenewal Options: Ten 5-YearLease Commencement Date: November 1, 2010Lease Expiration Date: October 31, 2035Tenant: WalgreensCredit Rating: A+Year Built 2010Lease Type: NNNRentable Square Feet: 13,650Land Size: 1.44 acres www.bouldergroup.com
  • 6. INVESTMENT RETURN SCENARIOS NET LEASED INVESTMENT OFFERING INVESTMENT RETURN SCENARIOSFixed Loan Term 5-Years 10-Years 24-YearsFixed Interest rate 5.50% 5.75% 6.45%Amoritization 30 30 24Loan To Value 70% 70% 70%Equity Requirement $2,172,000 $2,172,000 $2,172,000Net Annual Cash Flow $139,789 $130,192 $76,377Cash on Cash Return 6.44% 5.99% 3.52%Principal Reduction $381,991 $855,235 $5,066,600Return on Equity 10.51% 9.93% 8.79%(Average over loan term)*The above are from sources deemed reliable, but we can not guarantee their accurarcy. Additionally, the terms are subject to change. www.bouldergroup.com
  • 7. SITE PLANNET LEASED INVESTMENT OFFERING SITE PLAN DRIVE THRU Monument Sign www.bouldergroup.com
  • 8. AERIAL NET LEASED INVESTMENT OFFERING AERIAL St. Xavier University Ridge Country Club 41,700 VPD W 111th St Chicago High School Ag ScienceMarist High School W 115th St www.bouldergroup.com
  • 9. MAPS NET LEASED INVESTMENT OFFERING MAPSSITE SITE www.bouldergroup.com
  • 10. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEWalgreens is engaged in retail drugstore business. As of November 2010, the Company operated 8,131locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 7,650 drugstores, 503more than a year ago, including 291 stores acquired over the last 12 months. The company also operatesworksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care HealthSystems subsidiary manages more than 700 in-store convenient care clinics and worksite health and wellnesscenters. The Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugsand general merchandise. General merchandise includes, among other things, household items, personalcare, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customersthe choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, andthrough the Internet. In January 2010, the Company announced that it has completed the acquisition of theassets of 12 Eaton Apothecary pharmacies.Website: www.walgreens.comNumber of Locations: 8,131Stock Symbol: WAG : NYSEStandard & Poors Rating: A+Market Capitalization: $35 Billion www.bouldergroup.com
  • 11. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mile 3-mile 5-mileTotal Population 20,422 161,844 478,218Total Households 7,722 58,612 163,450IncomeMedian Household Income $51,003 $47,368 $42,899Average Household Income $66,696 $63,595 $56,851 www.bouldergroup.com
  • 12. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW The subject property is located in, Mount Greenwood, one of 77 well-defined Chicago community areas. It is a predominantly Irish-Catholic neighborhood on the Southwest Side of Chicago. It neighbors the Chicago neighborhoods of Beverly and Morgan Park to the east, the suburb of Evergreen Park to the north, the suburb ofOak Lawn to the west, and the suburbs of Merrionette Park and Alsip to the south. Mount Greenwood is about 14 miles(23 km) SW of the Downtown Chicago.Mount Greenwood became part of Chicago in 1927. It was not until 1936 that the Works Progress Administrationfinally laid sewage systems, and paved and lighted city streets. By the 1980s, Mount Greenwood was home to the lastsurviving farm in the city, which was developed as the Chicago High School for Agricultural Sciences at the southeastcorner of 111th and Pulaski. Mount Greenwood is home to many Chicago Firefighters, Police Officers and Unionworkers of Irish heritage.Most of Mt. Greenwoods population is also Roman Catholic. Most students in the neighborhood attend Catholicelementary schools and high schools. Mount Greenwood is home to two Catholic elementary schools (Queen ofMartyrs and St. Christina), three Catholic high schools (Brother Rice High School, Marist High School, and MotherMcAuley Liberal Arts High School) and a Catholic university (Saint Xavier University). Public grade schools in the areaare Mt. Greenwood Elementary School and George F. Cassell Elementary School. Both are filled with neighborhoodchildren. www.bouldergroup.com
  • 13. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road | Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003 847.562.8500rblank@bouldergroup.com jimmy@bouldergroup.com www.bouldergroup.com