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Net Lease Walgreens Miami


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Net Lease Walgreens Miami

  1. 1. NET LEASED INVESTMENT OFFERING Walgreens 15050 Biscayne Blvd.North Miami Beach, FL 33181 (Miami MSA) Be CONFIDENTIAL OFFERING MEMORANDUM
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Assumable Financing Overview5) Aerial6) Site Plan7) Map8) Tenant Profile9) Demographic Comparison Report10) Location Overview11) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located inNorth Miami Beach, Florida. The lease features a rare 11% rental escalation in the primary term of the lease as well as5% rental escalations every ten years after the primary term. The 14,550 square foot Walgreens was built in 2010 andbenefits from its location within a primary retail trade area of Miami. The trade area features Publix, Costco, Target andthe Lamborghini dealership adjacent to the property.The property is located along Biscayne Boulevard, a primary north-south thoroughfare with 52,000 vehicles passing thesite daily. There are curb cuts for ingress and egress along Biscayne Boulevard and 151st Street. The property ispositioned in a dense in-fill area with approximately 400,000 people living within five miles of the property. Adjacent tothe property is Lamborghini Miami and Prestige Imports, the nation’s top selling Audi dealership. Biscayne Commons, aPublix and PETCO anchored shopping center is located directly across the street from the property. Target and Costcoare the other regional retail attractions to the trade area. Florida International University-Biscayne Bay Campus (7,000students) is less than one and one-half miles from the property and this is the closest Walgreens to the campus.Additionally, directly east of the property is Biscayne Landing, a development site slated for 3,550 residential units,750,000 square feet of retail, 300 hotel rooms and 400,000 square feet of commercial space.Walgreens’s original lease term was for twenty-five years with fifty years of renewal options and the lease expires inFebruary 2035. The net operating income increases by 11% in March 2020 as well as 5% every ten years starting inMarch 2035. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a marketcapitalization of $27 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.INVESTMENT HIGHLIGHTS• Located in a dense infill area of Miami• Rare 11% rental escalation in the primary term of the lease and 5% escalations in each option period• Investment grade company with an S&P Rating of A• No landlord responsibilities• 52,000 vehicles per day pass the site daily along Biscayne Boulevard• Approximately 400,000 people living within five miles of the property• Over 22 years remaining on the primary term of the lease• Nearby retailers include Target, Costco, Publix and PETCO• Adjacent to Lamborghini Miami and the highest volume Audi dealership in the United States
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $10,912,500Cap Rate: 6.00%Net Operating Income:: NOI Escalation Date $ 654,750 $ 727,500 3/1/2020 $ 763,875 3/1/2035 (Option Period) $ 802,069 3/1/2045 (Option Period) $ 842,172 3/1/2055 (Option Period) $ 884,281 3/1/2065 (Option Period) $ 928,495 3/1/2075 (Option Period)Renewal Options: Fifty 1-YearLease Commencement Date: March 1, 2010Lease Expiration Date: February 28, 2035Tenant: WalgreensCredit Rating: AYear Built 2010Lease Type: NNNRentable Square Feet: 14,550 SFLand Size: 1.20 acresParking: 50 spacesFinancing: Assumable non-recourse financing in-place
  6. 6. ASSUMABLE FINANCING OVERVIEW NET LEASED INVESTMENT OFFERING ASSUMABLE FINANCING OVERVIEWThis Walgreens property is subject to existing non-recourse financing that must be assumed with the following terms: Original Loan Balance: $6,950,000 Loan Balance (September 2012): $6,814,178 Maturity Date: December 31, 2020 Interest Rate: 5.76% Amortization: 30 Year Loan to Value: 62% Equity Requirement: $4,106,216 Loan Balance at Maturity: $5,791,245 Assumption Fee: 1% Recourse: None
  10. 10. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEWalgreens is engaged in retail drugstore business. As of November 30, 2011, the Company operated 8,261locations in all 50 states, the District of Columbia, Puerto Rico and Guam. The company also operates worksitehealth centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health Systemssubsidiary manages more than 715 in-store convenient care clinics and worksite health and wellness centers. TheCompany’s drugstores are engaged in the retail sale of prescription and non-prescription drugs and generalmerchandise. General merchandise includes, among other things, household items, personal care, conveniencefoods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers the choice to haveprescriptions filled at the drugstore counter, as well as through the mail, by telephone, and through the Internet. InMarch 2011, Walgreens announced that it has completed the acquisition www.walgreens.comNumber of Locations: 8,261Stock Symbol: WAG : NYSEStandard & Poor’s Rating: AMarket Capitalization: $27 Billion
  11. 11. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mi. 3-mi. 5-miTotal Population 13,709 173,254 396,512Total Households 4,669 66,758 150,191IncomeMedian Household Income $32,437 $39,975 $41,944Average Household Income $41,802 $56,008 $58,171
  12. 12. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Miami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625. At the time of the 2010 U.S. Census, the Miami MSA had a population of 5,564,635 making the Miami metropolitan area is the most populous in Florida and in the Southeastern United States as well as the eighth-most populous in the United States. Miami is a major center and a leader in finance, commerce, culture, media, entertainment, the arts, and international trade. According to a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States, and the worlds fifth-richest city in terms of purchasing power. Downtown Miami and South Florida are home to the largest concentration of international banks in the United States, and is home to many large companies both nationally and internationally. Several large companies are headquartered in Miami, including Burger King, Celebrity Cruises, Carnival Corporation, Carnival Cruise Lines, Lennar, Norwegian Cruise Lines, Oceania Cruises, Perry Ellis International and Royal Caribbean Cruise Lines. Additionally, because of its proximity to Latin America, Miami serves as the headquarters of Latin American operations for more than 1,400 multinational corporations, including AIG, American Airlines, Cisco, Disney, Exxon, FedEx, Kraft Foods, LEO Pharma Americas, Microsoft, Yahoo, Oracle, SBC Communications, Sony, Symantec, Visa International, and Wal-Mart.Miami International Airport and the Port of Miami are among the nations busiest ports of entry, especially forcargo from South America and the Caribbean. As of 2011, the Port of Miami accounts for 176,000 jobs and hasan annual economic impact in Miami of $18 billion. It is the 11th-largest cargo container port in the UnitedStates. In 2010, a record 4.33 million passengers traveled through the Port of Miami. For more than twodecades, the Port of Miami, known as the "Cruise Capital of the World," has been the number one cruisepassenger port in the world, accommodating some of the worlds largest cruise ships and operations, and iscurrently the busiest in both passenger traffic and cruise lines.
  13. 13. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003