Triple Net Walgreens Property

8/6/2019 Triple Net Walgreens Property

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NET LEASED INVESTMENT OFFE

Walgreens

3220 W. 111th StreetChicago, IL

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com


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NET LEASED INVESTMENT OFFERING


TABLE OF CONT

TABLE OF CONTENTS

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

11)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Investment Return Scenarios

Site Plan

Aerial

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information


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CONFIDENTIALITY & DISCL

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to bereviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entitywithout the written consent of The Boulder Group. This Marketing Brochure 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 notmade any investigation, and makes no warranty or representation, with respect to the income or expenses for the subjectproperty, the future projected financial performance of the property, the size and square footage of the property andimprovements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State andFederal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenants plans or intentions to continue its occupancy of the subject property. The information contained inthis Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has notverified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigationregarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.


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The Boulder Group is pleased to exclusively market for sale a newly constructed Walgreens located in Chicago. This 13,650square foot Walgreens was built in 2010 for a relocated Walgreens property. The property is located in the Mount Greenwoodneighborhood, which is one of seventy-seven Chicago communities and is less than fourteen miles from Downtown Chicago.

The property is located on northwest corner of 111th Street and Kedzie Avenue, which is benefitted by a traffic signal.Additionally, this intersection has a visible Walgreens brick sign as well as a monument sign displaying the entryway into theMount Greenwood neighborhood. Both 111th Street and Kedzie Avenue are primary thoroughfares within Chicago and allowa steady flow of traffic into the Walgreens. There are approximately 41,700 vehicles passing the site daily. The subject

property is conveniently located in between both a major Interstate and Tollway. Interstate 57 allows easy access todowntown Chicago, while the Tri-State Tollway (294) provides access to nearby Chicagoland neighborhoods and suburbs.One of the main attractions in Mount Greenwood is Saint Xavier University, which is home to over 5,000 students and is theoldest university in Illinois. Major retail anchors located in close proximity to the subject asset include Dominicks, Jewel, andKmart.

The rental commencement date for the Walgreens was November 1, 2010 with a 25 year lease and ten 5-year renewaloptions. Walgreenss annual rental payment is $485,000 and there are no landlord obligations in the lease. Walgreens is apublicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $35 Billion. Walgreens is aninvestment grade company with a Standard & Poors rating of A+.

Investment Highlights



EXECUTIVE SUM

EXECUTIVE SUMMARY

Investment grade tenant with a new long term leaseProperty is located in ChicagoNewly constructed property with high barriers to entryIrreplaceable location along two heavily traffickedroadways in Chicago

Newly constructed property of a relocated WalgreensLocated on a hard corner benefited by a traffic signalFour points of ingress-egressClose proximity to Saint Xavier University -home to 5,000 students


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PROPERTY OVERV

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Rental Escalations:

Renewal Options:Lease Commencement Date:

Lease Expiration Date:

Tenant:

Credit Rating:

Year Built

Lease Type:

Rentable Square Feet:Land Size:

$7,238,800

6.70%

$485,000

None

Ten 5-Year

November 1, 2010

October 31, 2035

Walgreens

A+

2010

NNN

13,6501.44 acres


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INVESTMENT RETURN SCEN

INVESTMENT RETURN SCENARIOS

Fixed Loan Term

Fixed Interest rate

Amoritization

Loan To Value

Equity Requirement

Net Annual Cash Flow

Cash on Cash Return

Principal Reduction

Return on Equity

(Average over loan term)

5-Years

5.50%

30

70%

$2,172,000

$139,789

6.44%

$381,991

10.51%

10-Years

5.75%

30

70%

$2,172,000

$130,192

5.99%

$855,235

9.93%

24-Years

6.45%

24

70%

$2,172,000

$76,377

3.52%

$5,066,600

8.79%

*The above are from sources deemed reliable, but we can not guarantee their accurarcy. Additionally, the terms are subject to change.


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SITE P

SITE PLAN

MonumentSign

DRIVE

T

RU


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AER

AERIAL

W 111th St

W 115th St

41,700 VPD

Marist High School

St. Xavier University

Chicago High SchoolAg Science

R i d

g e C o un

t r y C l u

b


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M

MAPS

SITE

SITE


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TENANT PRO

TENANT PROFILE

Website:Number of Locations:Stock Symbol:Standard & Poors Rating:Market Capitalization:

www.walgreens.com8,131WAG : NYSEA+$35 Billion

Walgreens is engaged in retail drugstore business. As of November 2010, the Company operated 8,131locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 7,650 drugstores, 503more than a year ago, including 291 stores acquired over the last 12 months. The company also operatesworksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care HealthSystems subsidiary manages more than 700 in-store convenient care clinics and worksite health and wellnesscenters. The Companys drugstores are engaged in the retail sale of prescription and non-prescription drugsand general merchandise. General merchandise includes, among other things, household items, personalcare, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customersthe choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, andthrough the Internet. In January 2010, the Company announced that it has completed the acquisition of theassets of 12 Eaton Apothecary pharmacies.


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DEMOGRAPHIC COMPARISON RE

DEMOGRAPHIC COMPARISON REPORT

Population

Total Population

Total Households

Income

Median Household Income

Average Household Income

1-mile

20,422

7,722

$51,003

$66,696

3-mile

161,844

58,612

$47,368

$63,595

5-mile

478,218

163,450

$42,899

$56,851


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LOCATION OVER

LOCATION OVERVIEW

Oak Lawn to the west, and the suburbs of Merrionette Park and Alsip to the south. Mount Greenwood is about 14 miles23 km) SW of the Downtown Chicago.

Mount Greenwood became part of Chicago in 1927. It was not until 1936 that the Works Progress Administrationnally laid sewage systems, and paved and lighted city streets. By the 1980s, Mount Greenwood was home to the lasturviving farm in the city, which was developed as the Chicago High School for Agricultural Sciences at the southeastorner of 111th and Pulaski. Mount Greenwood is home to many Chicago Firefighters, Police Officers and Union

workers of Irish heritage.

Most of Mt. Greenwood's population is also Roman Catholic. Most students in the neighborhood attend Catholiclementary schools and high schools. Mount Greenwood is home to two Catholic elementary schools (Queen of

Martyrs and St. Christina), three Catholic high schools (Brother Rice High School, Marist High School, and MotherMcAuley Liberal Arts High School) and a Catholic university (Saint Xavier University). Public grade schools in the areare Mt. Greenwood Elementary School and George F. Cassell Elementary School. Both are filled with neighborhoodhildren.

The subject property is located in, Mount Greenwood,one of 77 well-defined Chicago community areas. It is apredominantly Irish-Catholic neighborhood on theSouthwest Side of Chicago. It neighbors the Chicagoneighborhoods of Beverly and Morgan Park to the east,

the suburb of Evergreen Park to the north, the suburb of


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CONTACT INFORMA

CONTACT INFORMATION

666 Dundee Road Suite 1801Northbrook, IL 60062

|

Randy [email protected]

Jimmy GoodmanPartner847.562.8500

[email protected]

Triple Net Walgreens Property

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