Net Leased Walgreens Property
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This document provides an offering for the sale of a newly constructed Walgreens property located in Chicago, Illinois. The 13,650 square foot Walgreens was built in 2010 and has a 25 year lease with Walgreens, an investment grade tenant. The property is located in the Mount Greenwood neighborhood of Chicago and benefits from strong demographics and traffic counts of over 41,700 vehicles per day. The offering provides investment return scenarios and financial details of the sale.
Net Leased Walgreens Property
- 1. NET LEASED INVESTMENT OFFERING Walgreens 3220 W. 111th Street Chicago, IL CONFIDENTIAL OFFERING MEMORANDUM www.bouldergroup.com
- 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS 1) Confidentiality & Disclaimer 2) Executive Summary 3) Property Overview 4) Investment Return Scenarios 5) Site Plan 6) Aerial 7) Maps 8) Tenant Profile 9) Demographic Comparison Report 10) Location Overview 11) Contact Information www.bouldergroup.com
- 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure 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 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 not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure 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. www.bouldergroup.com
- 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARY The Boulder Group is pleased to exclusively market for sale a newly constructed Walgreens located in Chicago. This 13,650 square foot Walgreens was built in 2010 for a relocated Walgreens property. The property is located in the Mount Greenwood neighborhood, 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 Walgreen’s brick sign as well as a monument sign displaying the entryway into the Mount Greenwood neighborhood. Both 111th Street and Kedzie Avenue are primary thoroughfares within Chicago and allow a 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 to downtown 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 the oldest university in Illinois. Major retail anchors located in close proximity to the subject asset include Dominick’s, Jewel, and Kmart. The rental commencement date for the Walgreens was November 1, 2010 with a 25 year lease and ten 5-year renewal options. Walgreens’s annual rental payment is $485,000 and there are no landlord obligations in the lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $35 Billion. Walgreens is an investment grade company with a Standard & Poor’s rating of A+. Investment Highlights Investment grade tenant with a new long term lease Newly constructed property of a relocated Walgreens Property is located in Chicago Located on a hard corner benefited by a traffic signal Newly constructed property with high barriers to entry Four points of ingress-egress Irreplaceable location along two heavily trafficked Close proximity to Saint Xavier University - roadways in Chicago home to 5,000 students www.bouldergroup.com
- 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEW Price: $7,238,800 Cap Rate: 6.70% Net Operating Income: $485,000 Rental Escalations: None Renewal Options: Ten 5-Year Lease Commencement Date: November 1, 2010 Lease Expiration Date: October 31, 2035 Tenant: Walgreens Credit Rating: A+ Year Built 2010 Lease Type: NNN Rentable Square Feet: 13,650 Land Size: 1.44 acres www.bouldergroup.com
- 6. INVESTMENT RETURN SCENARIOS NET LEASED INVESTMENT OFFERING INVESTMENT RETURN SCENARIOS Fixed Loan Term 5-Years 10-Years 24-Years Fixed Interest rate 5.50% 5.75% 6.45% Amoritization 30 30 24 Loan To Value 70% 70% 70% Equity Requirement $2,172,000 $2,172,000 $2,172,000 Net Annual Cash Flow $139,789 $130,192 $76,377 Cash on Cash Return 6.44% 5.99% 3.52% Principal Reduction $381,991 $855,235 $5,066,600 Return on Equity 10.51% 9.93% 8.79% (Average over loan term) *The above are from sources deemed reliable, but we can not guarantee their accurarcy. Additionally, the terms are subject to change. www.bouldergroup.com
- 7. SITE PLAN NET LEASED INVESTMENT OFFERING SITE PLAN DRIVE THRU Monument Sign www.bouldergroup.com
- 8. AERIAL NET LEASED INVESTMENT OFFERING AERIAL St. Xavier University Ridge Country Club 41,700 VPD W 111th St Chicago High School Ag Science Marist High School W 115th St www.bouldergroup.com
- 9. MAPS NET LEASED INVESTMENT OFFERING MAPS SITE SITE www.bouldergroup.com
- 10. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILE Walgreens is engaged in retail drugstore business. As of November 2010, the Company operated 8,131 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 7,650 drugstores, 503 more than a year ago, including 291 stores acquired over the last 12 months. 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 700 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 January 2010, the Company announced that it has completed the acquisition of the assets of 12 Eaton Apothecary pharmacies. Website: www.walgreens.com Number of Locations: 8,131 Stock Symbol: WAG : NYSE Standard & Poors Rating: A+ Market Capitalization: $35 Billion www.bouldergroup.com
- 11. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORT Population 1-mile 3-mile 5-mile Total Population 20,422 161,844 478,218 Total Households 7,722 58,612 163,450 Income Median Household Income $51,003 $47,368 $42,899 Average Household Income $66,696 $63,595 $56,851 www.bouldergroup.com
- 12. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW The subject property is located in, Mount Greenwood, one of 77 well-defined Chicago community areas. It is a predominantly Irish-Catholic neighborhood on the Southwest Side of Chicago. It neighbors the Chicago neighborhoods of Beverly and Morgan Park to the east, the suburb of Evergreen Park to the north, the suburb of Oak Lawn to the west, and the suburbs of Merrionette Park and Alsip to the south. Mount Greenwood is about 14 miles (23 km) SW of the Downtown Chicago. Mount Greenwood became part of Chicago in 1927. It was not until 1936 that the Works Progress Administration finally laid sewage systems, and paved and lighted city streets. By the 1980s, Mount Greenwood was home to the last surviving farm in the city, which was developed as the Chicago High School for Agricultural Sciences at the southeast corner 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 Catholic elementary 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 Mother McAuley Liberal Arts High School) and a Catholic university (Saint Xavier University). Public grade schools in the area are Mt. Greenwood Elementary School and George F. Cassell Elementary School. Both are filled with neighborhood children. www.bouldergroup.com
- 13. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road | Suite 1801 Northbrook, IL 60062 Randy Blankstein Jimmy Goodman President Partner 847.562.0003 847.562.8500 rblank@bouldergroup.com jimmy@bouldergroup.com www.bouldergroup.com