Walgreens Pharmacy #9146 Sturgis, Michigan · Address 950 S Centerville Rd, Sturgis, MI 49091 Year...

Walgreens Pharmacy #9146 Sturgis, Michigan

• True NNN lease with ~10 years guaranteed rent

• No competition from CVS/pharmacy

• Higher yield opportunity with low rent and low price

• True hard corner location near Walmart Supercenter

• 15.6% of residents are seniors age 65 or older

• Preferred 5 year option structure

$4,329,000

7.00%CAP Rate

DeerfieldPartnersJohn GiordaniArtGriffith(888) [email protected]


DeerfieldPartnersJohn GiordaniArt GriffithCall: (888) 258-7605Email: [email protected]

ThisprototypicalfreestandingWalgreenswithdrive-thrusitsonatruehardcornerinthemiddleofaretailtradecorridorthatisanchoredbyaWalmartSupercenter,Meijergrocerysupercenter,andKrogergrocerystore.Othernationalretailersintradeareainclude:GameStop,Applebee’sGrill&Bar,GreatClips,DollarTree,O’ReillyAutoParts,Travelodge,BuffaloWildWings,KeyBank,FamilyDollar,TacoBell,Wendy’s,PizzaHut,KFC,McDonald’s,TractorSupplyCompany,BurgerKing.

Perhaps the most compelling aspect of this investment opportunity, is the lack of competition from CVS/pharmacy and the spacing relative to other Walgreens locations. The closest CVS is located 10 miles away in Lagrange, Indiana. The closest Walgreens is located 15 miles away in Three Rivers, Michigan.

TheRiteAidlocationintownislocated0.7milesnorthoftheWalgreens,butisreallyoutsidethemainretailtradecorridor.Assuch,we’dexpectWalgreenstoclosetheRiteAid locationandtransferprescriptionstothisWalgreens,boostingsalesandprofitabilityforthesubjectproperty.

InvestmentSummary

1Mile 3Mile 5Mile

Population 5,130 14,083 18,446Avg. HH Income $50,728 $56,204 $59,058

Price $4,329,000CAP Rate 7.00%

Annual Income $303,000Years Guaranteed ~ 10 years



PropertyDetailsandLeaseSummaryAddress 950SCentervilleRd,Sturgis,MI49091

Year Built 2005Building Size 14,820SquareFeet

Lot Size 1.56 acresTenant Walgreens(NASDAQ:WBA)

Rent Start Date January8,2005Lease End Date January31,2080

Termination Options Tenantmayterminateeveryfive(5)yearsasof1/31/2030,withatleasttwelve(12)monthspriorwrittennotice.

PrototypicalStorefront(withbusyparkinglot)



SitePlan/ALTASurvey



AboutWalgreensBootsAllianceWalgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise. The Company’s heritage of trusted healthcare services through community pharmacy care and pharmaceutical wholesaling dates back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 385,000* people. The Company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has more than 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s size, scale, and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the U.S. and worldwide.

Walgreens Boots Alliance is included in Fortune magazine’s 2018 list of the World’s Most Admired Companies. This is the 25th consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen Co., has been named to the list.

* As of 31 August 2017, using publicly available information for AmerisourceBergen.**For 12 months ending 31 August 2017, using publicly available information for AmerisourceBergen.



WalgreensIncomeStatementsTrailing5Years



WalgreensBootsAlliance--SegmentStructure

8

Walgreens Boots Alliance – Segment Structure

The largest retail pharmacy chain in Europe

A leading global pharmaceutical wholesaler

and distributor

A leading drugstore chain in the USA

The first global pharmacy-led, health and wellbeing enterprise in the world



WalgreensBootsAlliance--RetailPharmacyUSADivisionOur Retail Pharmacy USA Division’s principal retail pharmacy brands are Walgreens and Duane Reade. Together, they form one of the largest drugstore chains in the U.S., operating 8,100* drugstores in 50* states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. As of August 2017, approximately 76 percent of the population of the U.S. lives within five miles of a Walgreens or Duane Reade.

We sell prescription and non-prescription drugs, as well as general merchandise, including household items, convenience and fresh foods, personal care, beauty care, photofinishing and candy. We offer our products and services through drugstores, as well as through mail, telephone and online. We also provide specialty pharmacy and respiratory services, and operate retail clinics.

Our services help improve health outcomes for patients and manage costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Our stores sell branded and own brand general merchandise. In addition, Walgreens has approximately 400 in-store clinic locations throughout the U.S., some of which are operated by the Company and some of which are operated by health system partners.

Prescription drugs account for 69 percent† of sales, while retail products are 31 percent.

Overall, we filled approximately 764 million† prescriptions in fiscal 2017. Adjusted to 30-day equivalents, we filled approximately 990 million† prescriptions in fiscal 2017. Third party sales, where reimbursement is received from managed care organizations, government and private insurance, were approximately 98 percent† of prescription sales.

We utilize our extensive retail network as a channel to provide affordable quality health and wellness services to our customers and patients, as illustrated by our ability to play a significant role in providing flu vaccines and other immunizations.

We have more than 78,000* healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health related professionals. Through them we expect to continue to play a growing role in government and employer efforts to control escalating healthcare costs.

Our loyalty program, Balance® Rewards, is designed to reward our most valuable customers and encourage shopping in stores and online and allows customers the opportunity to earn points for purchasing select merchandise in addition to receiving special pricing on select products when shopping with a rewards card. Customers have the ability to instantly redeem rewards at our stores or through Walgreens.com. We had 88 million Balance® Rewards active members as of August 2017.

The Division’s strategy is designed to further transform our traditional drugstore by offering ultimate convenience, driving the best customer loyalty and delivering extraordinary customer and patient care. We seek to expand our product and service offerings across new channels and markets where, in addition to our stores, customers and patients can utilize our health system pharmacies, Walgreens.com, mobile applications and social media sites.



WalgreensDrugstoresNationwidebyState



Demographics-1MileRadius

Demographic and Income Profile950 S Centerville Rd, Sturgis, Michigan, 49091 Prepared by EsriRing: 1 mile radius Latitude: 41.78909

Longitude: -85.42825

AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2

0-0.2

Population Households Families Owner HHs Median HH Income

20172022

Population by AgePopulation by Age

Perc

ent

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2017 Household Income 2017 Household Income

<$15K16.7%

$15K - $24K15.2%

$25K - $34K14.4%

$35K - $49K18.0%

$50K - $74K17.3%

$75K - $99K9.3%

$100K - $149K5.6%

$150K - $199K0.9%

$200K+2.6%

2017 Population by Race2017 Population by Race

Perc

ent

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+

2017 Percent Hispanic Origin: 28.1%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022.

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©2018 Esri Page 2 of 6



Demographics-1MileRadiusDemographic and Income Profile950 S Centerville Rd, Sturgis, Michigan, 49091 Prepared by EsriRing: 1 mile radius Latitude: 41.78909


Summary Census 2010 2017 2022Population 5,110 5,130 5,162Households 1,948 1,950 1,961Families 1,223 1,200 1,197Average Household Size 2.61 2.62 2.62Owner Occupied Housing Units 1,018 978 966Renter Occupied Housing Units 930 971 995Median Age 31.8 32.9 33.6

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.12% 0.21% 0.83%Households 0.11% 0.23% 0.79%Families -0.05% 0.11% 0.71%Owner HHs -0.25% 0.22% 0.72%Median Household Income 0.64% 1.58% 2.12%

2017 2022 Households by Income Number Percent Number Percent

<$15,000 325 16.7% 331 16.9%$15,000 - $24,999 296 15.2% 283 14.4%$25,000 - $34,999 281 14.4% 265 13.5%$35,000 - $49,999 351 18.0% 335 17.1%$50,000 - $74,999 338 17.3% 351 17.9%$75,000 - $99,999 181 9.3% 194 9.9%$100,000 - $149,999 110 5.6% 126 6.4%$150,000 - $199,999 17 0.9% 22 1.1%$200,000+ 51 2.6% 54 2.8%

Median Household Income $37,281 $38,481Average Household Income $50,728 $55,353Per Capita Income $19,226 $20,961

Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent

0 - 4 482 9.4% 452 8.8% 449 8.7%5 - 9 430 8.4% 432 8.4% 428 8.3%10 - 14 383 7.5% 396 7.7% 408 7.9%15 - 19 389 7.6% 330 6.4% 352 6.8%20 - 24 357 7.0% 344 6.7% 314 6.1%25 - 34 735 14.4% 765 14.9% 727 14.1%35 - 44 617 12.1% 613 11.9% 641 12.4%45 - 54 661 12.9% 583 11.4% 552 10.7%55 - 64 530 10.4% 575 11.2% 574 11.1%65 - 74 304 5.9% 385 7.5% 422 8.2%75 - 84 153 3.0% 182 3.5% 222 4.3%

85+ 71 1.4% 73 1.4% 73 1.4%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 4,055 79.4% 3,844 74.9% 3,646 70.6%Black Alone 79 1.5% 87 1.7% 93 1.8%American Indian Alone 25 0.5% 25 0.5% 27 0.5%Asian Alone 55 1.1% 60 1.2% 62 1.2%Pacific Islander Alone 0 0.0% 0 0.0% 0 0.0%Some Other Race Alone 714 14.0% 903 17.6% 1,103 21.4%Two or More Races 182 3.6% 211 4.1% 232 4.5%

Hispanic Origin (Any Race) 1,171 22.9% 1,442 28.1% 1,697 32.9%Data Note: Income is expressed in current dollars.


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AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2

0

Population Households Families Owner HHs Median HH Income

20172022


Perc

ent

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K15.9%

$15K - $24K13.1%

$25K - $34K12.5%

$35K - $49K17.1%

$50K - $74K19.9%

$75K - $99K9.4%

$100K - $149K7.2%

$150K - $199K2.1%

$200K+2.9%


Perc

ent

70

60

50

40

30

20

10




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Summary Census 2010 2017 2022Population 14,192 14,083 14,091Households 5,277 5,237 5,242Families 3,503 3,420 3,399Average Household Size 2.66 2.66 2.66Owner Occupied Housing Units 3,304 3,177 3,159Renter Occupied Housing Units 1,973 2,060 2,083Median Age 33.6 34.7 35.3

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.01% 0.21% 0.83%Households 0.02% 0.23% 0.79%Families -0.12% 0.11% 0.71%Owner HHs -0.11% 0.22% 0.72%Median Household Income 1.00% 1.58% 2.12%


<$15,000 831 15.9% 841 16.0%$15,000 - $24,999 684 13.1% 654 12.5%$25,000 - $34,999 656 12.5% 599 11.4%$35,000 - $49,999 895 17.1% 831 15.9%$50,000 - $74,999 1,043 19.9% 1,052 20.1%$75,000 - $99,999 493 9.4% 526 10.0%$100,000 - $149,999 377 7.2% 427 8.1%$150,000 - $199,999 108 2.1% 136 2.6%$200,000+ 150 2.9% 175 3.3%



0 - 4 1,246 8.8% 1,140 8.1% 1,120 7.9%5 - 9 1,154 8.1% 1,111 7.9% 1,104 7.8%10 - 14 1,055 7.4% 1,047 7.4% 1,077 7.6%15 - 19 1,041 7.3% 907 6.4% 959 6.8%20 - 24 906 6.4% 920 6.5% 830 5.9%25 - 34 1,944 13.7% 1,977 14.0% 1,893 13.4%35 - 44 1,683 11.9% 1,662 11.8% 1,740 12.3%45 - 54 1,844 13.0% 1,629 11.6% 1,525 10.8%55 - 64 1,467 10.3% 1,605 11.4% 1,623 11.5%65 - 74 888 6.3% 1,107 7.9% 1,212 8.6%75 - 84 596 4.2% 608 4.3% 676 4.8%

85+ 368 2.6% 370 2.6% 331 2.3%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 11,727 82.6% 11,088 78.7% 10,555 74.9%Black Alone 188 1.3% 198 1.4% 201 1.4%American Indian Alone 47 0.3% 45 0.3% 48 0.3%Asian Alone 128 0.9% 139 1.0% 144 1.0%Pacific Islander Alone 1 0.0% 1 0.0% 1 0.0%Some Other Race Alone 1,690 11.9% 2,133 15.1% 2,611 18.5%Two or More Races 411 2.9% 478 3.4% 531 3.8%



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AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2

0Population Households Families Owner HHs Median HH Income

20172022


Perc

ent

12

10

8

6

4

2

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K13.6%

$15K - $24K12.4%

$25K - $34K12.0%

$35K - $49K16.7%

$50K - $74K20.8% $75K - $99K

11.1%

$100K - $149K8.1%

$150K - $199K2.6%

$200K+2.6%


Perc

ent

80

70

60

50

40

30

20

10




June 19, 2018






Summary Census 2010 2017 2022Population 18,452 18,446 18,551Households 6,867 6,873 6,916Families 4,734 4,673 4,675Average Household Size 2.65 2.65 2.65Owner Occupied Housing Units 4,655 4,548 4,561Renter Occupied Housing Units 2,212 2,325 2,355Median Age 34.9 36.0 36.9

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.11% 0.21% 0.83%Households 0.12% 0.23% 0.79%Families 0.01% 0.11% 0.71%Owner HHs 0.06% 0.22% 0.72%Median Household Income 1.42% 1.58% 2.12%


<$15,000 933 13.6% 943 13.6%$15,000 - $24,999 855 12.4% 815 11.8%$25,000 - $34,999 824 12.0% 752 10.9%$35,000 - $49,999 1,148 16.7% 1,057 15.3%$50,000 - $74,999 1,431 20.8% 1,441 20.8%$75,000 - $99,999 766 11.1% 824 11.9%$100,000 - $149,999 556 8.1% 640 9.3%$150,000 - $199,999 177 2.6% 226 3.3%$200,000+ 182 2.6% 217 3.1%



0 - 4 1,535 8.3% 1,413 7.7% 1,390 7.5%5 - 9 1,462 7.9% 1,402 7.6% 1,390 7.5%10 - 14 1,373 7.4% 1,346 7.3% 1,390 7.5%15 - 19 1,385 7.5% 1,219 6.6% 1,291 7.0%20 - 24 1,106 6.0% 1,144 6.2% 1,024 5.5%25 - 34 2,391 13.0% 2,469 13.4% 2,359 12.7%35 - 44 2,163 11.7% 2,143 11.6% 2,263 12.2%45 - 54 2,508 13.6% 2,173 11.8% 2,031 10.9%55 - 64 2,064 11.2% 2,268 12.3% 2,264 12.2%65 - 74 1,263 6.8% 1,615 8.8% 1,782 9.6%75 - 84 774 4.2% 821 4.5% 963 5.2%

85+ 426 2.3% 433 2.3% 403 2.2%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 15,701 85.1% 15,088 81.8% 14,584 78.6%Black Alone 209 1.1% 226 1.2% 237 1.3%American Indian Alone 62 0.3% 61 0.3% 65 0.4%Asian Alone 164 0.9% 183 1.0% 196 1.1%Pacific Islander Alone 2 0.0% 2 0.0% 2 0.0%Some Other Race Alone 1,850 10.0% 2,337 12.7% 2,851 15.4%Two or More Races 464 2.5% 549 3.0% 616 3.3%



June 19, 2018


Walgreens Pharmacy #9146 Sturgis, Michigan · Address 950 S Centerville Rd, Sturgis, MI 49091 Year...

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