EXCLUSIVELY LISTED INVESTMENT OFFERING...BBB) investment grade Fortune 500 Company with over 8,000...

E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N GWALGREENS | 1489 AIRWAYS BOULEVARD | MEMPHIS, TN 38114

RESIDENTIALCOMMUNITIES

RESIDENTIALCOMMUNITIES

LIBERTY BOWLMEMORIAL STADIUMMID-SOUTH

COLISEUM

Exclusively Listed By

JASON STUART PONGSRIKUL AND LUCAS PECKHAM

Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com

Jason Stuart PongsrikulManaging Principal, Pharma Property Group

Direct: [email protected]

1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114

STABLE INCOMERental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade Fortune 500 Company with over 8,000 locations. RECENT LEASE EXTENSIONTenant recently exercised the first five year option to extend on this double net lease where landlord is responsible for roof and structure. Roof was recently replaced. CELL PHONE TOWERThere is a possibility to purchase the cell phone tower adjacent to the subject property for an additional income of $1,155 per month. The cell tower site lease ends in 2020 and includes nine additional 5-year extensions with 5% rental increases each extension.

RETAIL CORRIDORThe subject property is located next to a Kroger Grocery Store. Surrounding national tenants in the immediate area include McDonald's, KFC, Dollar General, Popeye's Louisiana Kitchen, Advanced Auto Parts, Auto Zone, Cricket, Burger King, O'Reilly Auto Parts, and Checkers.

TRADE AREAThere is no other nationally anchored shopping center within a 5 miles radius of the subject property. The trade area demographics within this five mile radius consists of a population of 256,613 residents and 103,444 households.

MAJOR EMPLOYERSMajor employers in the area include Federal Express Corporation with 30,000 local employees, Memphis City Schools with 16,000 employees, the US Government (including Memphis VA Medical Center) with 14,800 employees.

Property Overview

Investment Highlights

Year Built: 1996Lot Size: 119,790 Square FeetBuilding Size: 13,712 Square Feet


LAMAR AVENUE - 23,957 cars per day

AIRWAYS BOULEVARD - 23,446 cars per day

SUBJECT PROPERTY




Location Overview

M emphis is located on the southwest corner

of Tennessee within Shelby County, the core

county of the Memphis MSA. Memphis is the

largest city in Tennessee and the 23rd largest city in America.

Memphis is known as “America's Distribution Center,” serving

the northeast, southeast, and southwest regions of the country.

The city has one of the country's largest inland ports and is

the national headquarters for the Fed Ex air-courier company.

Health care and related activities such as medical education

and biomedical research are Memphis's largest industries,

bringing over $5 billion a year to the local economy.

Lease OverviewTenant:WALGREENS (NYSE: WAG)

Landlord Income: CORPORATE GUARANTEE

Credit Rating: INVESTMENT GRADE, BBB (S&P)

Lease Type: DOUBLE NET Landlord is responsible for roof and structure.Roof was replaced November 2011 and carries a fifteen year warranty.

Lease Term: 5 YEARS REMAINING WITH50 YEARS IN OPTIONS TO FOLLOW

Next Option Begins: NOVEMBER 1, 2021

Pricing

Building

Price: $2,475,000

CAP Rate: 6.75%

Monthly Income: $13,921

Annual Income: $167,062

Building Square Footage: 13,712

Land Square Footage: 119,790

Rent/Square Foot: $12.18

Year Built: 1996

MEMPHIS, TN

SUBJECT PROPERTY




Subject Property Retail Neighbors

AREA DESCRIPTION

The subject property is located at the signalized corner of Airways Boulevard and Lamar Avenue (with an approximate traffic count of 47,000 cars per day) in the suburb of Castalia Heights of Memphis, Tennessee, just five miles east of the Mississippi River. The Liberty Bowl Memorial Stadium lies 1.5 miles north home of the University of Memphis Tigers, whose campus is only 4 miles from the subject property, has approximately 20,585 students enrolled and 2,800 employees. Four miles south is the Memphis International Airport is a civil-military airport and is home to the FedEx Express global hub and remains the busiest cargo airport in the United States with over 3.75 million passenger count in 2014.

MISSISSIPPI RIVER

downtownmemphis

SUBJECT PROPERTY




Property Photos

SUBJECT PROPERTY DRIVE-THRU PHARMACY

AIRWAYS BLVD. & LAMAR AVE. INTERSECTION STORE ENTRANCE

SOUTH PARKING NORTH PARKING

KROGER STORE ON THE SAME BLOCK AUTO ZONE ACROSS THE STREET




Company Summary*

Tenant HistoryWalgreens is the largest drug retailing chain in the United States and has grown primarily through organic growth versus how its largest competitor, CVS, has grown through chain acquisitions. Walgreens built out its national platform through its corporate real estate department heavily during the 90’s continuing through around 2008. By 2007, Walgreens had opened its 6,000th store and by 2009 they became the only national pharmacy to operate in 50 states including Puerto Rico.In 2012, Walgreens made a bold move by purchasing a 45% interest in Alliance Boots and subsequently in 2014 exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance. After the initial acquisition in 2012, Walgreens credit rating was lowered from A down to BBB due to debt it incurred during the purchase; however, Walgreens remains investment grade and property values have not been adversely affected by the lower credit rating. Walgreens stock price has actually more than doubled since its acquisition of Alliance Boots.

Notable Acquisitions In 2010, Walgreens announced its largest acquisition ever of Duane Reade for $1.075 billion and established an irreplaceable footprint in the New York metropolitan area. In 2011, Walgreens made a move to purchase Drugstore.com to establish an online presence.

In 2012, Walgreens purchased a mid-south drugstore chain operating under USA Drug, Super D Drug, Mays Drug, Med-X and Drug Warehouse banners which had 144 locations collectively throughout Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee.

Walgreens most recent acquisition was in September 2013 for Kerr Drug’s who operated 76 drugstores throughout North Carolina.

*Walgreens company information received from Walgreens investor relations.




Locations by State

WA139

OR77

CA646

NV84

ID40

MT14

WY11

UT48

AZ250 NM

69

CO160

ND1

SD14

NE60

KS70

OK117

TX712 LA

154

AR83

MO219

IA70

MN154

IL610

MS78

AL115

FL861

US VIRGIN ISLANDS1

PR120

GA204

SC110

NC263

VA141

DC6

MD89

DE65

NJ191

CT95

RI26

MA168

VT3

NH32

WV17

PA131

NY486

ME15

AK8

HI19

TN254

KY98

OH250

WI228

IN201

MN232

Alabama 115 Idaho 40 Mississippi 78 Oklahoma 117 West Virginia 17

Alaska 8 Illinois 610 Missouri 219 Oregon 77 Wisconsin 228

Arizona 250 Indiana 201 Montana 14 Pennsylvania 131 Wyoming 11

Arkansas 83 Iowa 70 Nebraska 60 Rhode Island 26 Puerto Rico 120

California 646 Kansas 70 Nevada 84 South Carolina 110 US Virgin Islands 1

Colorado 160 Kentucky 98 New Hampshire 32 South Dakota 14

Connecticut 95 Louisiana 154 New Jersey 191 Tennessee 254

Delaware 65 Maine 15 New Mexico 69 Texas 712

Washington DC 6 Maryland 89 New York 486 Utah 48

Florida 861 Massachusetts 168 North Carolina 263 Vermont 3

Georgia 204 Michigan 232 North Dakota 1 Virginia 141

Hawaii 19 Minnesota 154 Ohio 250 Washington 139

Total 8309




Demographic Snapshot

38.40 37.10

36.70

3 Mile

s

1 Mile

5 Mile

s

Average Age14,

223

102,7

69

256,6

135 M

iles

3 Mile

s

1 Mile

2015 Total Population

5,695

42,67

9

103,4

445 M

iles

3 Mile

s

1 Mile

2015 Total Households

$23,1

41

$28,8

29

$29,4

07

3 Mile

s

1 Mile

5 Mile

s

Median Household Inc

Disclaimer: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.

Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.

By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2016 Pharma Property Group.




Investment Property Recap

Lease Overview

PricingPrice: $2,475,000

CAP Rate: 6.75%

Total Monthly Income: $13,921

Total Annual Income: $167,062

Tenant:Walgreens (NYSE: WAG)

Landlord Income: Corporate Guarantee

Credit Rating: Investment Grade, BBB (S&P)

Lease Type: Double NET LeaseLandlord responsible for roof/structure. Roof recently replaced.

Lease Term: 5 Years remaining with10 (5 year) options to follow

Next Option Begins: 2021

Year Built: 1996Total Lot Size: 119,790 Square FeetTotal Building Size: 13,712 Square Feet


LAMAR AVENUE AIRWAYS BOULEVARD

SUBJECT PROPERTY

5328 Banks Street, Suite BSan Diego, CA 92110P 619.297.0055F 619.839.0828

www.pharmapropertygroup.com

Jason Stuart PongsrikulManaging Principal

D 619-297-0055 [email protected]

CA DRE Lic. #01918332

Lucas PeckhamD 619-297-0055 x304

[email protected] DRE Lic. #01979529

Listed in Association with:TN DRE Lic. # 00257397

E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G


EXCLUSIVELY LISTED INVESTMENT OFFERING...BBB) investment grade Fortune 500 Company with over 8,000...

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