EXCLUSIVELY LISTED INVESTMENT OFFERING...BBB) investment grade Fortune 500 Company with over 8,000...
Transcript of 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
page 2Jason 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
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
LAMAR AVENUE - 23,957 cars per day
AIRWAYS BOULEVARD - 23,446 cars per day
SUBJECT PROPERTY
page 3Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
page 4Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
page 5Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
page 6Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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 7Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
page 8Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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.
page 9Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114
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
1489 AIRWAYS BOULEVARDMEMPHIS, TN 38114