EXCLUSIVELY LISTED INVESTMENT OFFERING...Over 47,000 residents call Brentwood home and it is...
Transcript of EXCLUSIVELY LISTED INVESTMENT OFFERING...Over 47,000 residents call Brentwood home and it is...
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 By
JASON STUART PONGSRIKULMANAGING PRINCIPAL
Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com
WALGREENS | 4520 BALFOUR ROAD, BRENTWOOD, CA 94513
RARE BAY AREA WALGREENS INVESTMENT OPPORTUNITY
page 2Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Property Overview
Investment Highlights
Year Built: 2003Lot Size: 91,693 Square FeetBuilding Size: 14,490 Square Feet
4520 BALFOUR ROADBRENTWOOD, CA 94513
STABLE INCOMERental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade Fortune 500 Company with approximately 8,173 drugstore locations nationwide.
ABOVE AVERAGE SALES VOLUMESStrong performing store with sales volumes well above the national average. Reported sales are $2,924,817.69 annually.
LEASE TERM REMAINING12 years and five months of primary lease term remaining before the ten (5 year) options to follow.
ABSOLUTE NET LEASEAbsolute net lease with no landlord responsibilities whatsoever.
AFFLUENT DEMOGRAPHICSThe area offers an above median household income of $88,106 in a one mile radius, $88,745 within a three mile radius, and $89,683 within a five mile radius. PART OF SAN FRANCISCO MSALocated in the San Francisco-Oakland-Hayward MSA encompassing approximately 4,656,132 residents. The combined statistical area of the region is the second-largest in California (after the Greater Los Angeles area) and the fifth-largest in the United States.
page 3Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Property Overview
SUBJECT PROPERTY
BALFOUR ROAD - 16,656 CARS PER DAY
WALNUT BOULEVARD - 10,200 CARS PER DAY
BRENTWOOD BOULEVARD -10,265 CARS PER DAY
SUBJECT PROPERTY
BALFOUR ROAD - 16,656 CARS PER DAYWALNUT BOULEVARD - 10,200 CARS PER DAY
BRENTWOOD BOULEVARD -10,265 CARS PER DAY
page 4Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Location Overview
Brentwood is a city in Contra Costa County, California, United States. It is located in the East Bay region of the San Francisco
Bay Area about 45 minutes Northeast of Oakland. Over 47,000 residents call Brentwood home and it is projected it will continue to experience tremendous growth. Brentwood enjoys over 50 parks, 15 schools K-12, a community college, hiking trails, and recreational facilities including 3 golf courses.
Lease OverviewTenant:WALGREENS (NYSE: WAG)
Landlord Income: CORPORATE GUARANTEE
Credit Rating: INVESTMENT GRADE, BBB (S&P)
Lease Type: ABSOLUTE TRIPLE NET No landlord responsibilities whatsoever.
Lease Term: 12 YEARS, 5 MONTHS REMAINING WITH50 YEARS IN OPTIONS TO FOLLOW
Lease Term Commencement: JULY 27, 2003
Next Option Begins: JULY 28, 2028
Pricing
Building
Price: $8,000,000
CAP Rate: 5.00%
Monthly Income: $33,333
Annual Income: $400,000
Building Square Footage: 14,490
Land Square Footage: 91,693
Rent/Square Foot: $27.60
Year Built: 2003
BRENTWOOD, CALIFORNIA
BRENTWOOD
SUBJECT PROPERTY
page 5Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Subject Property Retail Neighbors
AREA DESCRIPTIONSubject property is an outparcel within the Balfour Plaza, a 91,911 square foot shopping center located on the southeast signalized corner of Balfour Road and Walnut Boulevard with traffic counts exceeding 26,000 cars per day.
Directly across the street from a 62,441 square foot Food Maxx grocery anchored center with O'Reilly's, Starbucks, Jamba Juice, Subway, Great Clips, and Bank of the West all located within one block of the property.
SUBJECT PROPERTY
LIBERTYHIGH SCHOOL
BRENTWOOD BOULEVARD -10,265 CARS PER DAY
BALFO
UR RO
AD - 1
6,656
CARS
PER D
AYWALNUT BOULEVARD - 10,200 CARS PER DAY
GARINELEMENTARY SCHOOL
RESIDENTIALNEIGHBORHOODS
RESIDENTIALNEIGHBORHOODS
page 6Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Regional Aerial
REGIONAL AREA DESCRIPTIONThe subject property is bordered by the Round Valley Regional Preserve to the west and south, the Bay Area Delta to the north, and agricultural land to the east. California State Route 4 gives access to Brentwood and easy access to Interstates 5, 560 and 205. Brentwood is located 46 miles east of Oakland, 55 miles east of San Francisco, and 63 miles north of San Jose in the Bay Area of northern California.
BRENTWOOD
SUBJECT PROPERTY
46 miles
63 miles
55 miles
page 7Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Property Photos
SIGNALIZED INTERSECTION AT WALNUT BOULEVARD & BRENTWOOD BOULEVARD
DRIVE-THRU ACCESS FROM WALNUT BOULEVARD
page 8Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Property Photos
PARKING ON NORTH AND WEST OF THE BUILDING
PARKING ON SOUTH OF THE BUILDING
page 9Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
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.
page 10Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
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 113 Idaho 39 Mississippi 77 Oklahoma 116 West Virginia 16
Alaska 12 Illinois 593 Missouri 215 Oregon 77 Wisconsin 225
Arizona 244 Indiana 196 Montana 13 Pennsylvania 123 Wyoming 10
Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 121
California 629 Kansas 69 Nevada 84 South Carolina 113 US Virgin Islands 1
Colorado 158 Kentucky 93 New Hampshire 31 South Dakota 14
Connecticut 92 Louisiana 157 New Jersey 191 Tennessee 253
Delaware 64 Maine 14 New Mexico 72 Texas 715
Washington DC 7 Maryland 85 New York 470 Utah 47
Florida 840 Massachusetts 163 North Carolina 263 Vermont 3
Georgia 203 Michigan 225 North Dakota 1 Virginia 141
Hawaii 20 Minnesota 152 Ohio 246 Washington 134
*Nationwide locations as of August 31, 2015Note: Walgreens also operates specialty and institutional pharmacies. WalgreensTake Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.
Total 8,173*
page 11Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
35.20
36.60
35.40
3 Mile
s
1 Mile
5 Mile
s
Average Age13
,119
53,0
14
107,8
535 M
iles
3 Mile
s
1 Mile
2015 Total Population
4,261
17,31
6
33,58
25 M
iles
3 Mile
s
1 Mile
2015 Total Households
$88,1
06
$88,7
45
$89,6
83
3 Mile
s
1 Mile
5 Mile
s
Median Household Inc
Demographic Snapshot
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.
page 12Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
4520 BALFOUR ROADBRENTWOOD, CA 94513
Investment Property Recap
Lease Overview
PricingPrice: $8,000,000
Total Monthly Income: $33,333
Total Annual Income: $400,000
Tenant:Walgreens (NYSE: WAG)
Landlord Income: Corporate Guarantee
Credit Rating: Investment Grade, BBB (S&P)
Lease Type: Absolute NET LeaseNo landlord responsibilities whatsoever.
Lease Term: 12 years, 5 months remaining with10 (5 year) options to follow
Next Option Begins: July 28, 2028
Year Built: 2003Total Lot Size: 91,693 Square FeetTotal Building Size: 14,490 Square Feet
4520 BALFOUR ROADBRENTWOOD, CA 94513
Cap Rate: 5.00%
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
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
4520 BALFOUR ROADBRENTWOOD, CA 94513