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OFFERING MEMORANDUMWalgreens, 475 West Finnie Flat Rd., Camp Verde, AZ
ACTUAL SITE
❖ $4,935,000 – 7.46% Cap Rate
❖ Over 15 Years Remain on Lease
❖ In Place Self Liquidating Loan - Coterminous With Lease Expiration
❖ $2,489,390 Down Payment
The information contained in this marketing brochure (“Materials”) isproprietary and confidential. It is intended to be reviewed only by theperson or entity receiving the Materials from TRG (“Agent”). The Materialsare intended to be used for the sole purpose of preliminary evaluation ofthe subject property/properties (“Property”) for potential purchase. TheMaterials have been prepared to provide unverified summary financial,property, and market information to a prospective purchaser to enable it toestablish a preliminary level of interest in potential purchase of theProperty. The Materials are not to be considered fact. The informationcontained in the Materials is not a substitute for thorough investigation ofthe financial, physical, and market conditions relating to the Property. Theinformation contained in the Materials has been obtained by Agent fromsources believed to be reliable; however, no representation or warranty ismade regarding the accuracy or completeness of the Materials. Agent makesno representation or warranty regarding the Property, including but notlimited to income, expenses, or financial performance (past, present, orfuture); size, square footage, condition, or quality of the land andimprovements; presence or absence of contaminating substances (PCB’s,asbestos, mold, etc.); compliance with laws and regulations (local, state, andfederal); or, financial condition or business prospects of any tenant (tenants’intentions regarding continued occupancy, payment of rent, etc). Aprospective purchaser must independently investigate and verify all of theinformation set forth in the Materials. A prospective purchaser is solelyresponsible for any and all costs and expenses incurred in reviewing theMaterials and/or investigating and evaluating the Property. By receiving theMaterials you are agreeing to the Confidentiality and Disclaimer set forthherein.
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Offered Exclusively By:
Gregory A. [email protected] Dial: 310.395.3551CA RE License #00757153
The Royston Group11661 San Vicente Blvd., Suite 707Los Angeles, CA 90049
DISCLAIMER
LocationLocated at 475 West Finnie Flat Road at the intersection of West
Finnie Flat Road and East Cliffs Parkway in Camp Verde, Arizona.
Directly across W. Finnie Flat Road is the 25-acre OutPost Mall
anchored by Bashas' market. This center features popular
retailers such as CVS, Starbucks and Domino's Pizza.
Lot Size
Approximately 2.5 acres.
Improvements
The improvements consist of a single-story retail building of
approximately 14,900 square feet built in 2009. There is parking
for 51 cars.
Lease
Leased to Walgreens on an ABSOLUTE TRIPLE NET LEASE
BASIS with an original lease term of 25 years expiring July 31,
2034. The tenant is responsible for taxes, insurance and
maintenance including the roof, walls and foundation. The rent
increases per the schedule. There are fifty 1-year options to
renew.
Existing Financing (Must Be Assumed)
The property is encumbered with a loan that must be assumed.
This loan is a fully amortizing, self-liquidating loan at a 6.590
percent interest rate with a monthly payment of $22,367.91. Theloan balance as of June 2020 will be $2,445,610.
Price: $4,935,000 (7.46% Cap)
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Net Annual Income
8/1/2019 to 7/31/2029 $368,101.80 7.46%
8/1/2029 to 7/31/2039 $376,901.88 7.64%
8/1/2039 to 7/31/2049 $386,581.80 7.83%
8/1/2049 to 7/31/2059 $397,229.88 8.05%
8/1/2059 to 7/31/2069 $408,942.84 8.29%
8/1/2069 to 7/31/2079 $421,826.88 8.55%
8/1/2079 to 7/31/2084 $435,998.88 8.83%
Cash Flow AnalysisPrice: $4,935,000 Net Income: $368,101
Debt: $2,445,610 Debt Service: $268,415
Down: $2,489,390 Net Cash Flow: $99,686
Return 4.00%
Principal Reduction: $101,200
Total Return $200,886
TOTAL RETURN 8.07%
PROPERTY INFORMATION
Lease Year Rent Cap Rate
Net Annual Income
8/2019 to 8/2020 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $101,200.50 $200,886.58 8.07%
8/2020 to 8/2021 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $108,074.78 $207,760.86 7.85%
8/2021 to 8/2022 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $115,416.02 $215,102.10 8.13%
8/2022 to 8/2023 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $123,255.92 $222,942.00 8.43%
8/2023 to 8/2024 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $131,628.37 $231,314.45 8.74%
8/2024 to 8/2025 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $140,569.53 $240,255.61 9.08%
8/2025 to 8/2026 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $150,118.05 $249,804.13 9.44%
8/2026 to 8/2027 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $160,315.17 $260,001.25 9.83%
8/2027 to 8/2028 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $171,204.95 $270,891.03 10.24%
8/2028 to 8/2029 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $182,834.45 $282,520.53 10.68%
8/2029 to 8/2030 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $195,253.91 $303,739.99 11.48%
8/2030 to 8/2031 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $208,516.99 $317,003.07 11.98%
8/2031 to 8/2032 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $222,680.99 $331,167.07 12.52%
8/2032 to 8/2033 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $237,807.12 $346,293.20 13.09%
8/2033 to 8/2034 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $253,960.73 $362,446.81 13.70%
Complete amortization table available upon request
Debt Principal
Date Rent Service Fee Net Rent Service Cash Flow Reduction Total Return
CASHFLOW ANALYSIS
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SITE PLAN
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STORE INTERIOR
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AREA TENANTS
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Mid Valley Medical Center
West Finnie Flat Road
596 Home Sites
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SITE PLAN
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AREA INFORMATION
Camp Verde is located 86 miles north of Phoenix in YavapaiCounty. The climate is arid, the hot summer days are oftencooled by monsoons rains and the winters are mild. CampVerde’s valley floor is classified as Lower Sonoran Desert.However, because it is situated on the Verde River, CampVerde occupies a rare and enviable position amongArizona cities and towns.
The Town consists of fields of flat river-plain, traversed bythe Verde River (18 miles of river lies within the Townlimits) and its tributaries, with desert hills and mesas risingin the forefront of the distant mountains. Beyond theimmediate settlement, the land is public, mostlyadministered by the U.S. Forest Service.
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AREA MAP
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AERIAL MAP
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West Finnie Flat Road – 11,945 Cars Per Day
596 Home Sites
Camp Verde Medical Center
Walgreens Boots Alliance, Inc. operates as a
pharmacy-led health and wellbeing company. It
operates through three segments: Retail
Pharmacy USA, Retail Pharmacy International,
and Pharmaceutical Wholesale. The Retail
Pharmacy USA segment sells prescription drugs and an
assortment of general merchandise, including non-prescription
drugs, beauty products, photo finishing, seasonal merchandise,
greeting cards, and convenience foods through its retail
drugstores and convenient care clinics. It also provides specialty
pharmacy services; and manages in-store clinics.
As of August 31, 2018, this segment operated 9,560 retail
stores under the Walgreens and Duane Reade brands in the
United States; and 7 specialty pharmacies, as well as
approximately 400 in-store clinic locations.
REVENUES FYE 8-2018 $131 billion
FYE 8-2017 $118 billion
NET INCOME FYE 8-2018 $5.02 billion
FYE 8-2017 $4.07 billion
STOCKHOLDER EQUITY
FYE 8-2018 $26.0 billion
FYE 8-2017 $27.4 billion
TENANT INFORMATION
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BUILDING EXTERIOR
Population Summary 1 mile 3 mile 5 mile
2010 Total Population 2,802 6,073 8,878
2019 Total Population 3,600 7,349 10,862
2024 Total Population Projected 3,967 7,974 11,778
2019 Average Household Income $47,905 $54,872 $55,967
2024 Average Household Income Projected $56,565 $63,438 $65,088
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DEMOGRAPHICS
Income
475 West Finnie Flat Road, Camp Verde, AZ
2019 Population
10,8622019 Average Household Income
$55,967Median Home Value
$259,400
11661 San Vicente Blvd. Suite 707Los Angeles, CA 90049
Gregory A. [email protected] Dial: 310.395.3551RE License #00757153
ACTUAL SITE