EXCLUSIVELY LISTED INVESTMENT OFFERING€¦ · Memorabilia and is located within the Yadkin Valley...

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

722 WEST INDEPENDENCE BOULEVARD | MOUNT AIRY, NC 27030

NORTH CAROLINA INVESTMENT OPPORTUNITY

Presented By:

Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com

JASON STUART PONGSRIKULManaging Principal

Direct: 619.297.0055 x [email protected]

NICK PRICESenior Vice President

Direct: 619.297.0055 x [email protected]

722 WEST INDEPENDENCE BOULEVARDMOUNT AIRY, NC 27030

Jason Stuart PongsrikulManaging Principal

Nick PriceSenior Vice President

Pharma Property Group www.pharmapropertygroup.com

Year Built: 2005Lot Size: 81,457 Square FeetBuilding Size: 13,552 Square Feet


Investment HighlightsSTABLE INCOMERental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade Fortune 500 Company with over 8,000 locations.

ABSOLUTE NET LEASE Drive-thru pharmacy with 8 years of primary lease term remaining on an absolute net lease with no landlord responsibilities whatsoever.

RARE RENT INCREASES The lease allows for rare rental increases starting on 2020 of five percent (5%)every five years in the initial term and options.

STRONG SALES The subject property is reporting strong sales of $8,270,539 as of August 2016.

WALGREEN COMMITTED TO LOCATIONWalgreens recently made improvements to the building. This store includes a rare multiple window drive-thru.

ASSUMABLE DEBTMust assume 30 year amortizing debt in place at 4.35% interest rate. Standard 1% assumption fee for qualified borrowers. Approximate 5% cash on cash return until 2020 when rent increases and cash on cash goes to ± 5.8% not including principle reduction. Please contact broker for more information.

RETAIL CORRIDORNational retail tenants in the area include: Walmart Lowe's Tractor Supply JC Penney Sonic

McDonald's Pizza Hut Staples KFC Burger King

Chick-fil-A Dunkin Donuts Cracker Barrel Arby's Dollar Tree

SUBJECT PROPERTY

WEST PINE STREET

- ±17,5

00 CPD





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: 8 YEARS REMAINING WITH 4 (5 YEAR) OPTIONS TO FOLLOW

Lease Commencement: SEPTEMBER 1, 2005

Next Option Begins: SEPTEMBER 1, 2025

PricingPrice: $5,703,000 CAP: 5.75% CAP Price Per SF: $420.82Monthly Income: $27,327.30Annual Income: $327,927.60Annual Income in 2020: $344,323.98

BuildingBuilding Square Footage: 13,552 Land Square Footage: 81,457Rent/Square Foot: $24.19Year Built: 2005

Location Overview

Mount Airy is best known as the inspiration for the fictional location of Mayberry, the subject town of the Andy Griffith show. Mount Airy is the largest

city in Surry County and is located in the northwest part of North Carolina.

MOUNT AIRY, NC

SUBJECT PROPERTY

Rent ScheduleTERM dates YEARS RENT

Inital Term 9/1/05 - 8/31/10 1-5 $297,040.00

Inital Term 9/1/10 - 8/31/15 6-10 $312,312.00

Inital Term 9/1/15 - 8/31/20 11-15 $327,927.60

Inital Term 9/1/20 - 8/31/25 16-20 $344,323.98

1st Option 9/1/25 - 8/31/30 21-25 $361,540.18

2nd Option 9/1/30 - 8/31/35 26-30 $379,617.19

3rd Option 9/1/35 - 8/31/40 31-35 $398,598.05

4th Option 9/1/40 - 8/31/45 36-40 $418.537.95





Property Photos

EAST INGRESS VIA WEST INDEPENDENCE BOULEVARD

SOUTH INGRESS VIA WEST PINE STREET

NORTH ENTRY DRIVE-WAY TO DRIVETHRU

WEST SIDE OF BUILDING WITH MULTIPLE WINDOW DRIVE-THRU

SUBJECT PROPERTY





SUBJECT PROPERTY

SUBJECT PROPERTY

Property Photos

WEST INDEPENDENCE (89) - ±10,000 CPD

WEST PINE STREET - ±19,000 CPD

SOUTH ANDY GRIFFITH PARKWAY - ±22,000 CPD






Area Description

SUBJECT PROPERTY

MOUNT AIRY COUNTRY CLUB

MOUNT AIRY HIGH SCHOOL

The subject property is located on the main retail corridor of Mount Airy at the crossroads of the two busiest thoroughfares, Highway 52 (±22,000 cars per day) and Highway 89 (19,000 cars per day). National retail tenants in the area include:

AREA DESCRIPTION

Walmart Supercenter

Staples

Tractor Supply, Co.

Dollar Tree

Dollar General

Ruby Tuesday

Burkes Outlet

Papa John's

Chili's Grill

Chick-fil-A

KFC

Burger King

Arby's

Auto Zone

Lowe's

Cracker Barrel

McDonald's

Lower's

Sonic

O'Reilly

Family Dollar

Advance Auto Parts

Wendy's

Food Lion

Pizza Hut

Hardee's

Dunkin Donuts





Area Description

MOUNT AIRY OVERVIEWMount Airy is a quaint, small town best known as the inspiration for the fictional location of Mayberry, the subject town of the Andy Griffith show. Mount Airy is the largest city in Surry County and is located in the northwest part of North Carolina.

With a current population of approximately 10,383, the city is located 35 miles northwest of Winston-Salem and approximately 98 miles north of Charlotte. Mount Airy also borders the Virginia state line and is in the foothills of the Blue Ridge Mountains. Mount Airy offers fine dining in its downtown shopping district featuring a myriad of national retailers and a number of museums to explore. They city’s annual festivals including Mayberry Days, Autumn Leaves Festival, and the Bluegrass & Fiddler's Convention attract visitors from across the country. The city is also home to the largest collection of Andy Griffith Memorabilia and is located within the Yadkin Valley Wine Region which is home to dozens of wineries.

SURRY COUNTY OVERVIEWWith a current population of approximately 73,000, Surry County, North Carolina lies at the center of the East Coast, equadistant of New York and Miami. Interstates 77 and 74 dissect the county and provide easy access to Charlotte and Columbia to the south, or north into Virginia and on to Ohio. Residents can also quickly access Interstate 40, a major east -west highway which extends from Wilmington, North Carolina to Bakersfield, California.

Surry County has become a fertile ground for a booming vineyard and winery trade. The county is located within the Yadkin Valley Wine Region and is home to Shelton Vineyard which is one of the Southeast's largest vineyard estates. Other wineries of approximately 14 located within Surry County include Black Wolf Vineyards, Round Peak Vineyards, Rag Apple Lassie Vineyards and Stony Knoll Vineyards.

Mount Airy is also home to the Northern Hospital of Surry County, a general medical and surgical facility with 108 beds. The hospital produces annual revenues in excess of $122 million and is one of the area’s largest economic engines with over 500 employees. Survey data for the latest year available shows that 36,645 patients visited the hospital's emergency room and the hospital had approximately 3,703 admissions.

Surry County is also a popular destination for both outdoor enthusiasts and history buffs who can enjoy riding down the breathtaking Blue Ridge Parkway, hiking at Pilot Mountain State Park, canoeing on the Yadkin River and the county's large number of historic sites.





Company Summary*

Tenant HistoryWalgreens, headquarted in Deerfield, IL, is the largest drug retailing chain in the United States with more than 8,175 stores in all 50 states, the Disctrct of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens built out its national platform through its corporate real estate department heavily during the 1990’s continuing through the mid 2000’s. By 2012, Walgreens had opened its 8,000th store and later that year the company made a bold move by purchasing a 45% interest in Alliance Boots, a leading international pharmacy-led health and beauty group. Two years later, Walgreens 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(NASDAQ: WBA). This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance. The company sells prescription and non-prescription drugs and general merchandise including household products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for managing complex and chronic health conditions. In addition to these in-store offerings, the company operates digital businesses that include Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com, and VisionDirect.com.*Walgreens company information received from Walgreens investor relations.

tenant profileGuarantor: Walgreens Boots Alliance, Inc.Ownership: PublicStock Symbol (NASDAQ): WBACredit Rating (S&P): BBBBusiness: Retail PharmacyLocations: 8,175Annual Revenue: $117.35 BillionNet Worth: $29.88 BillionHeadquartrs: Deerfield, ILWebsite: www.walgreens.com

On Oct 27, 2015, Walgreens Boots Alliance entered into a merger agreement with Rite Aid Corporation (NYSE: RAD). The transaction is expected to close sometime in mid-2017, but is subject to Rite Aid stockholder approval, regulatory approvals and other customary closing conditions.





Locations by State

Alabama 113 Idaho 39 Mississippi 76 Oklahoma 114 West Virginia 16

Alaska 12 Illinois 598 Missouri 212 Oregon 76 Wisconsin 225

Arizona 244 Indiana 190 Montana 13 Pennsylvania 123 Wyoming 10

Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 120

California 633 Kansas 69 Nevada 82 South Carolina 114 US Virgin Islands 1

Colorado 159 Kentucky 95 New Hampshire 31 South Dakota 14

Connecticut 92 Louisiana 158 New Jersey 197 Tennessee 252

Delaware 64 Maine 14 New Mexico 72 Texas 713

Washington DC 8 Maryland 85 New York 469 Utah 48

Florida 831 Massachusetts 163 North Carolina 268 Vermont 3

Georgia 203 Michigan 228 North Dakota 1 Virginia 140

Hawaii 20 Minnesota 152 Ohio 247 Washington 135

*Nationwide locations as of August 31, 2016Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.

Total 8,175*





Demographic Snapshot | 2016

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. © 2017 Pharma Property Group.

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42.30

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Average Age

1,773

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925 M

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Total Households

$37,0

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$46,2

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$48,6

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iles

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Total Population

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Investment Property Recap

Lease OverviewTenant:Walgreens (NYSE: WAG)

Landlord Income: Corporate Guarantee

Credit Rating: Investment Grade, BBB (S&P)

Lease Type: Absolute Triple NET LeaseNo landlord responsibilities whatsoever.

Lease Term: 8 years remaining with4 (five year) options to follow

Next Option Begins: September 1, 2025

Year Built: 2005Total Lot Size: 81,457 Square FeetTotal Building Size: 13,552 Square Feet


SUBJECT PROPERTY

PricingPrice: $5,703,000

Total Monthly Income: $27,327.30

Total Annual Income: $327,927.60

Cap Rate: 5.75%

Total Annual Income in 2020: $344,323.98

SOUTH ANDY GRIFFITH PARKWAY - ±22,000 CPD


5328 Banks Street, Suite BSan Diego, CA 92110P 619.297.0055F 619.839.0828

www.pharmapropertygroup.com

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

722 WEST INDEPENDENCE BOULEVARD | MOUNT AIRY, NC 27030

Listed in Association withNC DRE Lic. 213712

JASON STUART PONGSRIKULManaging Principal

CA DRE Lic. 01918332Direct: 619-297-0055 x302

[email protected]

NICK PRICESenior Vice PresidentCA DRE Lic. 01773111

Direct: 619-297-0055 x303 [email protected]

http://www.pharmapropertygroup.com

EXCLUSIVELY LISTED INVESTMENT OFFERING€¦ · Memorabilia and is located within the Yadkin Valley...

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