Ground Lease Walgreens for Sale

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

Walgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking Lot)))) 3136 West 553136 West 553136 West 553136 West 55thththth StreetStreetStreetStreet Chicago, IL 60629Chicago, IL 60629Chicago, IL 60629Chicago, IL 60629

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Aerial

Site Plan

Map

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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 not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER



The Boulder Group is pleased to exclusively offer for sale a rare Walgreens ground lease located in Chicago, Illinois. The subject property is an expanded portion of the existing Walgreens parking lot with 13 years of lease term remaining. The property is located less than ten miles southwest of downtown Chicago and three miles from Midway International Airport. The ground lease is located adjacent to the existing Walgreens building. The existing property is a strong performing store as evidenced by an extensive renovation to the property in 2011 and the need for additional parking at this location.

The adjacent Walgreens is located on 55th Street and Kedzie Avenue directly west of the ground leased parking lot. This Walgreens was built in 1999 and was extensively renovated in 2011 with $1 million worth of renovations performed on the property. This is a strong performing 24 Hour location for Walgreens. Walgreens is committed to this location as evidenced by ground leasing the additional parking lot longer than the primary duration of the building lease. The current parking lot has become overcrowded due to the Walgreens popularity, hence the expansion of the additional parking area.

The parking lot is located at the signalized intersection of heavily trafficked 55th Street and Kedzie Avenue. This intersection has average daily traffic volumes in excess of 53,000 vehicles. 55th Street also has direct full interchange with Interstate 90/94 (282,500 vehicles per day) and Interstate 55 (150,000 vehicles per day). 55th Street is the primary east-west thoroughfare in this neighborhood.

The new ground rent commences October 2012. Walgreens has an absolute net (NNN) ground lease until March 31, 2025 with thirty-five years of renewal options. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $25 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.

• Rare long term Walgreens ground lease

• Located in a dense infill area Chicago at a signalized intersection

• Low absolute dollar amount for a Walgreens property

• Walgreens performed $1 million dollars of renovations at this location in 2011

• Investment grade tenant (S&P: A)

• Long term ground lease with 13 years remaining

• No landlord responsibilities

• Average daily traffic counts over 53,000 at intersection of 55th & Kedzie

• Significant barriers to entry

• Over 870,000 people living within five miles of the property

• Strong performing Walgreens location

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $1,190,000

Cap Rate: 6.26%

Net Operating Income: $74,544

Rental Escalations: None

Lease Commencement Date: October 1, 2012

Lease Expiration Date: March 31, 2025

Tenant: Walgreens

Credit Rating: A

Lease Type: Ground Lease - NNN

Land Acreage: 10,890 square feet

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



AERIAL

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SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAP

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Website: www.walgreens.com

Number of Locations: 8,261

Stock Symbol: WAG : NYSE

Standard & Poor’s Rating: A

Market Capitalization: $25 Billion

Walgreens is engaged in retail drugstore business. As of November 30, 2011, the Company operated 8,261 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. The company also operates worksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health Systems subsidiary manages more than 715 in-store convenient care clinics and worksite health and wellness centers. The Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, household items, personal care, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers the choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, and through the Internet. In March 2011, Walgreens announced that it has completed the acquisition Drugstore.com.

TENANT PROFILE

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PopulationPopulationPopulationPopulation 1111----mi.mi.mi.mi. 3333----mimimimi 5555----mimimimi

Total Population 62,037 335,446 871,486 Total Households 14,470 90,864 256,792

IncomeIncomeIncomeIncome

Median Household Income $51,384 $48,175 $46,290 Average Household Income $59,058 $56,119 $54,974

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT

The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.

www.cityofchicago.com

Chicago Chicago Chicago Chicago is the most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most popul9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald's, MServices and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the world in terms of traffic movement.



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks

rs based on people, business environment, market access, infrastructure

is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald's, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the world in terms of traffic movement.

LOCATION OVERVIEW

metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks

rs based on people, business environment, market access, infrastructure

populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago

ated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune

otorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION

Ground Lease Walgreens for Sale

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