Net Leased Walgreens Property

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NET LEASED INVESTMENT OFFERING Walgreens 3220 W. 111th Street Chicago, IL CONFIDENTIAL OFFERING MEMORANDUM www.bouldergroup.com

description

single tenant triple net leased Walgreen's investment property

Transcript of Net Leased Walgreens Property

Page 1: Net Leased Walgreens Property

NET LEASED INVESTMENT OFFERING

Walgreens3220 W. 111th Street

Chicago, IL

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com

Page 2: Net Leased Walgreens Property

NET LEASED INVESTMENT OFFERING

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TABLE OF CONTENTS

TABLE OF CONTENTS

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2)

3)

4)

5)

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7)

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10)

11)

Confidentiality & Disclaimer

Executive Summary

Property Overview

Investment Return Scenarios

Site Plan

Aerial

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

Page 3: Net Leased Walgreens Property

NET LEASED INVESTMENT OFFERING

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CONFIDENTIALITY & DISCLAIMER

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.

Page 4: Net Leased Walgreens Property

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

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

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

Page 5: Net Leased Walgreens Property

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PROPERTY OVERVIEW

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

13,650

1.44 acres

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INVESTMENT RETURN SCENARIOS

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 PLAN

SITE PLAN

Monument Sign

DR

IVE

THR

U

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AERIAL

AERIAL

W 111th St

W 115th St

41,700 VPD

Marist High School

St. Xavier University

Chicago High School Ag Science

Rid

ge

Co

un

try C

lub

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MAPS

MAPS

SITE

SITE

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TENANT PROFILE

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 8,131 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.

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DEMOGRAPHIC COMPARISON REPORT

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 OVERVIEW

LOCATION OVERVIEW

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.

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

Page 13: Net Leased Walgreens Property

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CONTACT INFORMATION

CONTACT INFORMATION

666 Dundee Road Suite 1801Northbrook, IL 60062

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Randy [email protected]

Jimmy [email protected]