WALGREENS - Constant...

8701 S CICERO AVENUE - HOMETOWN, ILLINOIS 60456

WALGREENSo f f e r i n g m e m o r a n d u m

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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. Activity ID: Y0330720 1


Investment Overv iew

• Single Tenant Net-Leased Walgreens Investment in Hometown, Illinois | 15 Miles Southwest of Chicago

• Corporate Guaranty | Walgreens Co | New York Stock Exchange (NYSE): WBA | Number 19 Fortune 500 (2016)

• Above Average Store Sales for the Past Four Years

• Highly Visible, Signalized, Hard Corner Intersection | West 87th Street and South Cicero Avenue | More Than 70,000 Vehicles Per Day

• Less Than Two Miles From Ford City Mall | Largest Enclosed Mall Outside of Downtown Chicago

• Less Than Two Miles From the Advocate Christ Medical Center | 684-Bed Hospital

• Three and a Half Miles South of Chicago Midway International Airport | Second-Largest Passenger Airport in the Chicago Metropolitan Area

• Strong Demographics | More than 570,000 People within the Five Mile Radius

• Additional tenants in the immediate trade area include: LA Fitness, Advance Auto Parts, McDonald’s, PNC Bank, Lowe’s, Costco, Domino’s, and Best Buy

Marcus & Millichap is pleased to present this 14,855 square foot Walgreens Pharmacy in Hometown, Illinois; which is approximately 15 miles southwest of Downtown Chicago. Walgreens has more than four years remaining on a double-net (NN) lease with eight, five-year renewal options. The tenant is responsible for all expenses associated with the asset with the exception of roof, structure, and parking lot repairs and replacements. The lease is guaranteed by Walgreen Co., the nation’s largest drugstore chain and ranked number 19 on Fortune 500 List.

This highly visible Walgreens is located on the signalized, hard-corner intersection of West 87th Street and South Cicero Avenue. More than 70,000 vehicles pass through the intersection each day. South Cicero Avenue, also known as Illinois Route 50, is a major north-south corridor through the Chicago metropolitan statistical area. Situated on a 1.15-acre lot, this Walgreens benefits from strong demographics in the five-mile radius: there are more than 570,000 residents. This asset also benefits from its proximity to the Advocate Christ Medical Center. This 684-bed hospital had 41,511 admissions; 12,176 inpatient surgeries; 9,900 outpatient surgeries; and 95,699 emergency room visits in 2015.

The subject property is ideally positioned less than two miles south from one the area’s largest retail centers, Ford City Mall, featuring more than 1,000,000 square feet of retail. This top performing Walgreens has above average store sales. Additionally, the asset is less than five miles south of Chicago Midway Airport, the second-largest passenger airport in the Chicago Metropolitan area.

Additional tenants in the immediate trade area include: LA Fitness, Advance Auto Parts, McDonald’s, PNC Bank, Lowe’s, Costco, Domino’s, and Best Buy.

FILE PHOTO



Financia l Overv iew

PRICE $6,466,666

CAP RATE 7.50%

NOI $485,000

PRICE PER SQUARE FOOT $435,32

RENT PER SQUARE FOOT $32.65

YEAR BUILT 2001

APPROXIMATE LOT SIZE .73 Acres

GROSS LEASEABLE AREA 14,855

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE Double Net

ROOF AND STRUCTURE Landlord Responsible

LEASE COMMENCEMENT DATE 11/1/2001

LEASE EXPIRATION DATE 10/31/2021

LEASE TERM 20 Years

TERM REMAINING 4+ Years

INCREASES Flat

OPTIONS TO RENEW Eight, Five-Year Options

FIRST RIGHT OF REFUSAL Yes

OPTIONS TO PURCHASE None

Offering Summary

Lease Summary

ACTUAL PROPERTY



Tenant Overv iew - WALGREENS

Founded in 1901, Walgreens Boots Alliance, Inc. is the nation’s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug products. By 1919 there were 20 stores, and in 1927 the Company went public. Three years later, the store count was well over 500. Today, Walgreen operates over 8,200 stores in all 50 states, DC, Puerto Rico and the U.S. Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

In December 2014, Walgreen acquired the remaining 55% of European retailer and wholesaler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Inc., headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc.

In October 2015, Walgreens Boots Alliance announced an agreement to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of about $17.20 billion, including acquired net debt. The transaction is expected to close in the second half of 2017. Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies. Once the acquisition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to better meet consumer needs.

TENANT PROFILE

TENANT TRADE NAME Walgreen Co.

OWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 8,200+

HEADQUARTERED Deerfield, IL

WEB SITE www.walgreens.com

SALES VOLUME $117.3 Billion (2016)

NET WORTH $30.2 Billion (2016)

STOCK SYMBOL WBA

BOARD New York Stock Exchange (NYSE)

CREDIT RATING BBB

RATING AGENCY S&P

ACTUAL PROPERTY



Aer ia l Overv iew



Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 22,466 181,722 583,391

2010 Population 23,677 188,102 573,511

2016 Population 25,086 197,761 586,894

2021 Population 25,536 201,008 593,359


H o u s e h o l d s


H o u s e h o l d ( H H ) I n c o m e s

2000 Households 8,416 64,969 198,022

2010 Households 8,301 64,334 192,026

2016 Households 8,640 67,025 194,340

2021 Households 8,765 68,012 196,071 2016 Average HH Income $67,772 $72,667 $66,713

2016 Median HH Income $57,849 $60,386 $52,402

2016 Per Capita Income $23,342 $24,628 $22,091



Market Overview - Chicago, I l l inois

Photo: Paul Velgos

Organized in 1833, Chicago, also known as “the windy city,” is the third largest city in the United States with a population well over 2.5 million people. Chicago is also the largest inland city in the United States. It is located in northeast Illinois, on the southwestern banks of Lake Michigan. The Chicago metropolitan area has a population in excess of nine million people.

As one would expect from its proximity to Lake Michigan, Chicago boasts a plethora of water-related and outdoor leisure-time activities. In addition to its over 500 parks, the Chicago Parks District maintains over 30 beaches, 16 historic lagoons, nine lakefront harbors, ten bird and wildlife gardens, and thousands of special events, sports and entertaining programs.

Navy Pier, located on Lake Michigan, just east of Chicago’s downtown, has long been a Chicago landmark and is a focus for lakeside recreation. Navy Pier attractions include a unique collection of restaurants and shops in addition to excellent recreational and exhibition facilities.

Another major waterfront activity is the annual Chicago Air and Water Show. It is the largest free event of its kind in the country and happens late summer every year along the Chicago lakefront. The show is best viewed from North Avenue Beach.

A city the size of Chicago has just about everything to offer in the way of nightlife. For those interested in good food, Chicago is famous for excellent steaks and deep dish pizza. Dining options abound from family fare, to ethnic cuisine, to the latest in trendy restaurants. Some of Chicago’s most interesting dining can be found in the area of Randolph Street just west of Chicago’s Loop, as well as a stretch of the south Loop, and on the Magnificent Mile.

For those looking for the music and nightclub scene, a city the size of Chicago has just about everything to offer. Chicago is famous for blues and jazz, but offers just about every musical tradition. There are numerous nightclubs all over town, especially along Halsted Street, Lincoln Avenue, and Clark Street on the North Side, as well as Chicago’s famed “Gold Coast,” the neighborhood around the intersection of Rush and Division streets. Up-to-the-minute listings of happenings can be found in New City and The Reader, as well as the Friday editions of the Chicago Sun-Times and the Chicago Tribune.



Broker o f RecordSteven Weinstock

Oak Brook Ter race, IL 60181Te l : (630)570-2250

L icense: 471.011175

Walgreens

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