Walgreens Pharmacy Lee, New Hampshire · 2010-03-22 · Walgreens Pharmacy Lee, New Hampshire •...

Walgreens Pharmacy Lee, New Hampshire

Just one hour north of downtown Boston•

On New Hampshire’s 2nd busiest traffic circle•

46,000 vehicles per day at site entrance•

3.8 miles west of University of New Hampshire•

Lease and rent started October 12, 2009•

Walgreens corporate guarantee (NYSE:WAG)•

New construction, 75 year NNN lease•

Zero management responsibilities•

$5,300,000

7.65%CAP Rate

File photo (store is under construction)

John GiordaniArthur Griffith(888) [email protected]



Investment Summary

Property Details

Lease Summary

About the Site

Price

CAP

Annual Income

Rent Increases

Debt

Location

City

State

Tenant

Rent Start Date

Rent Increases

Lease Term

Options

Landlord Responsibilities

The Town of Lee is located just west of the University of New Hampshire. The site is located on Route 4 and Route 125 at the famous Lee Traffic Circle, the State of New Hampshire’s 2nd busi-est traffic circle. Route 125 traffic count equal 16,100 vehicles per day (vpd) south of the circle and 23,700 vpd north of the circle (site entrance). Route 4 west of the circle carries 16,800 vpd and Route 4 east of the circle (site entrance) is 21,900 vpd. In essence, the site carries nearly 46,000 vpd by its entrances. Other national retailers on the circle include: McDonald’s, Wen-dy’s, Mobil, Dunkin’ Donuts, Market Basket, Radio Shack, Sunoco, Rite Aid and Movie Scene. Lot size is large due to the long driveway to Route 4.

Year Built

Bldg Size

Lot Size

$5,300,000

7.65%

$405,000

None

Buyer to obtain new debt at market. Please call to discuss options.

Route 4 and Route 125

Lee

Hew Hampshire

Walgreens (NYSE:WAG)

October 12, 2009

None

75 years

Starting in year 26 Tenant may terminate lease with 12 months notice.

None. True NNN with zero landlord responsibilities.

2009

14,480

6.17 acres



1 Mile 3 Mile 5 Mile

Population 1,098 6,362 23,965

Avg. HH Income $72,431 $78,537 $83,063

Demographics

Regional Map



Architectural Elevations



Site Plan



About Walgreens

Walgreens is the #1 pharmacy in America by any measure. Founded in 1909, and traded on the New York Stock Exchange (NYSE:WAG), Walgreens operates 6,443 stores in 49 states. Walgreens is widely regarded as the safest, most secure single-tenant NNN leased invest-ment property because of its strong balance sheet and market capitalization. For the fiscal year ended August 31, 2008:

Sales were over $59.03 billion•Profit was over $2.15 billion•Net worth was over $12.86 billion•



About Walgreens

Founded in 1901, Walgreens provides the most convenient access to consumer goods and services, and phar-macy, health and wellness services, in America. The company has recorded 34 consecutive years of record sales and earnings, a track record matched by only one other Fortune 500 company.

Walgreens is taking steps to ensure the company’s continued success in the face of a weakening economy. They are transforming into a more efficient and customer-focused company, both for drugstore customers and for patients and payors seeking quality pharmacy, health and wellness services that are accessible and affordable.

Managing through difficult economic timesThey are currently conducting a company-wide initiative to align their costs, culture and capabilities to our strategy and to the realities of the current economic environment. They are targeting approximately $1 billion in annual cost reductions by 2011 through more efficient processes, strategic sourcing and plans to reduce corpo-rate overhead and work throughout our stores.

In the pharmacy, they are working to fill prescriptions more efficiently. They’re in the early stages of rolling out a new initiative to transform – and advance – the practice of community pharmacy. Currently, they’ve focused on their Florida stores where they’ve moved tasks such as phone calls, prescription data entry and insurance verifi-cation from individual stores to more efficient central processing facilities.

Adjusting our organic store growthWalgreens remains among the fastest growing retailers in the country, even with their planned slowdown of organic growth from the current 9 percent rate to a rate of between 2.5 and 3 percent by 2011. Slower growth offers two big positives: first, more time to develop their management ranks and focus on improving the cus-tomer experience; and second, greater flexibility to invest in opportunities that will strengthen their core retail base and deliver attractive returns to their shareholders.

Growing our health clinics and specialty pharmacy businessThey’re growing their health clinics and specialty pharmacy business to complement their drugstores. They now operate more than 680 health and wellness clinics in their stores and on employer worksites. Since acquiring two worksite health center companies last spring, they’ve integrated these services into their new Health and Wellness division, which plans to expand to 800 sites by the end of fiscal 2009. Their health centers on or near employer campuses offer diverse services including primary and acute care; wellness, pharmacy and disease management services; and health and fitness programming. Employers recognize the significant value and cost savings these centers can provide.

Both their retail health clinics and worksite facilities will position them as one of the nation’s foremost providers of health and wellness services. They are highly complementary to their retail pharmacies and increase aware-ness of their Walgreens brand.



Rankings & Ratings

Fortune magazine America’s Most Admired Companies published March 17, 2008Walgreens ranked fifth among food and drugstores and is listed for the 15th consecutive year.

Fortune magazine Global Most Admired Companies published March 17, 2008Walgreens ranked seventh among food and drugstores and No. 36 among the 50 most admired companies.

Fortune magazine 500 Largest U.S.-Based Companies published May 5, 2008Walgreens ranked 40th overall in revenue, third among food and drugstores.

Fortune magazine 40 Best Stocks To Retire On published June 23, 2008Walgreens made the list of recommended Bargain Growth stocks.

Fortune magazine Global 500 Largest Companies published July 21, 2008Walgreens ranked 125th overall in revenue.

Forbes Platinum 400 List published January 12, 2009Walgreens again made this list of the best performing big companies in the United States

Forbes Global 2000 published April 21, 2008Walgreens ranked 250th on this list of the 2000 largest public companies worldwide.

Moody’sWalgreens current rating is A2.

Standard and Poor’sWalgreens current rating is A+.



Stores Nationwide

Total Drugstores - 6,630Total Locations - 7,123*

Through Nov. 30, 2008

Includes 49 states, the District of Columbia and Puerto Rico

Alabama

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

90

234

53

515

144

76

63

771

167

2

28

541

191

63

58

83

130

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

7

45

140

211

121

63

179

10

52

69

27

112

55

463

135

1

235

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

Puerto Rico

Washington D.C.

95

59

100

24

88

14

233

619

37

2

91

110

7

213

8

95

1

Store Base (as of Dec. 31, 2008) Total locations: 7,131

Total drugstores: 6,636 in 49 states, the District of Columbia and Puerto Rico

Drugstores with drive-thru pharmacies: 5,749

Locations with one-hour photofinishing: 6,449

Locations open 24 hours: 1,604

*



Sales & Earnings

Walgreens has recorded 34 consecutive years of record sales and earnings.

Fiscal Year Ended Aug. 31

Fiscal Year

Fiscal Year Ended Aug. 31

2008

2007

2006

2005

2004

New Stores

Acquisitions

Closings

Net Store Openings

Total Stores

2008

2007

2006

2005

2004

Sales in Billions

2008

Earnings Per Share

$59.0

$53.8

$47.4

$42.2

$37.5

629

32

10

561

6,443

$2.17

$2.03

$1.72

$1.52

$1.31

Percent Increase

2007

Percent Increase

9.8%

13.4%

12.3%

12.5%

14.3%

501

120

85

536

5,997

6.9%

18.0%

13.2%

16.0%

15.8%

Earnings in Billions

2006

$2.16

$2.04

$1.75

$1.56

$1.35

475

95

94

476

5,461

Percent Increase

2005 2004

5.7%

16.6%

12.3%

15.5%

15.7%

436

4

68

372

4,985

429

14

82

361

4,613



Demographic Report -- 1 Mile RadiusDemographic and Income ProfileBattery Commercial

©2009 ESRI On-demand reports and maps from Business Analyst Online. Order at www.esri.com/bao or call 800-292-2224 10/27/2009 Page 2 of 2

Lat: 43.149471, Lon: -71.005... Latitude: 43.14947143.149471, -71.005537 Longitude: -71.005537

Site Type: Ring Radius: 1 Miles

Trends 2009-2014

Area State U.S.

Population Households Families Owner HHs Median HH Income00.10.20.30.40.50.60.70.80.9

11.11.2

Annu

al R

ate

(in p

erce

nt)

Population by Age

2009 2014

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

2

4

6

8

10

12

14

16

18

20

Perc

ent

2009 Household Income 2009 Population by Race

$100K-$149K (16.4%)

$75K-99K (20.1%) $150-199K+ (2.0%)$200K+ (1.0%)

<$15K (5.5%)

$15K-$24K (6.4%)

$25K-34K (9.8%)$50K-74K (24.8%)

$35K-$49K (13.9%)

Perc

ent

WhiteBlack

Am. Ind.Asian

PacificOther

Two+

0

10

20

30

40

50

60

70

80

90

100

10.5

0.220.2

0.5

95.7

2009 Percent Hispanic Origin: 1.5%



Demographic Report -- 1 Mile RadiusDemographic and Income Profile

Battery Commercial




Summary 2000 2009 2014 Population 1,096 1,249 1,317 Households 420 486 514 Families 297 339 357 Average Household Size 2.61 2.57 2.56 Owner Occupied HUs 310 358 373 Renter Occupied HUs 110 127 142 Median Age 35.3 37.9 38.0

Trends: 2009-2014 Annual Rate Area State National Population 1.07% 0.36% 0.91% Households 1.13% 0.56% 0.94% Families 1.04% 0.35% 0.74% Owner HHs 0.82% 0.36% 1.19% Median Household Income 0.89% 0.81% 0.80%

2000 2009 2014Households by Income Number Percent Number Percent Number Percent < $15,000 36 8.8% 27 5.5% 28 5.4% $15,000 - $24,999 35 8.5% 31 6.4% 30 5.8% $25,000 - $34,999 48 11.7% 48 9.8% 47 9.1% $35,000 - $49,999 77 18.7% 68 13.9% 70 13.6% $50,000 - $74,999 94 22.9% 121 24.8% 121 23.5% $75,000 - $99,999 66 16.1% 98 20.1% 119 23.1% $100,000 - $149,999 47 11.4% 80 16.4% 83 16.1% $150,000 - $199,000 5 1.2% 10 2.0% 11 2.1% $200,000+ 3 0.7% 5 1.0% 6 1.2%

Median Household Income $51,881 $63,463 $66,339 Average Household Income $58,255 $69,855 $71,988 Per Capita Income $21,914 $26,683 $27,521

2000 2009 2014Population by Age Number Percent Number Percent Number Percent 0 - 4 75 6.8% 81 6.5% 82 6.2% 5 - 9 79 7.2% 81 6.5% 84 6.4% 10 - 14 105 9.6% 82 6.6% 88 6.7% 15 - 19 77 7.0% 83 6.7% 78 5.9% 20 - 24 64 5.8% 85 6.8% 76 5.8% 25 - 34 143 13.0% 168 13.5% 197 14.9% 35 - 44 226 20.6% 170 13.6% 169 12.8% 45 - 54 172 15.7% 232 18.6% 205 15.6% 55 - 64 86 7.8% 160 12.8% 196 14.9% 65 - 74 45 4.1% 68 5.4% 100 7.6% 75 - 84 20 1.8% 30 2.4% 34 2.6% 85+ 5 0.5% 8 0.6% 9 0.7%

2000 2009 2014Race and Ethnicity Number Percent Number Percent Number Percent White Alone 1,060 96.7% 1,194 95.7% 1,249 94.8% Black Alone 5 0.5% 6 0.5% 7 0.5% American Indian Alone 2 0.2% 3 0.2% 3 0.2% Asian Alone 13 1.2% 25 2.0% 35 2.7% Pacific Islander Alone 2 0.2% 2 0.2% 3 0.2% Some Other Race Alone 4 0.4% 6 0.5% 7 0.5% Two or More Races 10 0.9% 12 1.0% 13 1.0% Hispanic Origin (Any Race) 12 1.1% 19 1.5% 23 1.7%Data Note: Income is expressed in current dollars.Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2009 and 2014.



Demographic Report -- 3 Mile RadiusDemographic and Income ProfileBattery Commercial




Trends 2009-2014

Area State U.S.


11.11.2

Annu

al R

ate

(in p

erce

nt)

Population by Age

2009 2014

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

2

4

6

8

10

12

14

16

18

20

Perc

ent


$100K-$149K (17.4%)

$150-199K+ (3.3%)$200K+ (2.1%)$75K-99K (19.7%)

<$15K (5.5%)

$15K-$24K (5.4%)

$25K-34K (8.8%)

$50K-74K (24.8%)$35K-$49K (13.0%)

Perc

ent

WhiteBlack

Am. Ind.Asian

PacificOther

Two+

0

10

20

30

40

50

60

70

80

90

100

1.10.5

0.22.10.2

0.5

95.4





Battery Commercial




Summary 2000 2009 2014 Population 5,513 6,275 6,613 Households 2,051 2,362 2,499 Families 1,480 1,682 1,770 Average Household Size 2.66 2.63 2.62 Owner Occupied HUs 1,558 1,791 1,859 Renter Occupied HUs 493 570 640 Median Age 35.5 38.0 37.9


2000 2009 2014Households by Income Number Percent Number Percent Number Percent < $15,000 167 8.2% 129 5.5% 134 5.4% $15,000 - $24,999 172 8.5% 128 5.4% 124 5.0% $25,000 - $34,999 222 10.9% 209 8.8% 203 8.1% $35,000 - $49,999 368 18.1% 307 13.0% 312 12.5% $50,000 - $74,999 469 23.1% 585 24.8% 579 23.2% $75,000 - $99,999 346 17.0% 466 19.7% 566 22.6% $100,000 - $149,999 226 11.1% 411 17.4% 436 17.4% $150,000 - $199,000 41 2.0% 79 3.3% 90 3.6% $200,000+ 22 1.1% 49 2.1% 56 2.2%


2000 2009 2014Population by Age Number Percent Number Percent Number Percent 0 - 4 347 6.3% 382 6.1% 393 5.9% 5 - 9 428 7.8% 391 6.2% 413 6.2% 10 - 14 519 9.4% 407 6.5% 430 6.5% 15 - 19 421 7.6% 476 7.6% 423 6.4% 20 - 24 318 5.8% 440 7.0% 421 6.4% 25 - 34 666 12.1% 812 12.9% 977 14.8% 35 - 44 1,128 20.5% 831 13.2% 841 12.7% 45 - 54 880 16.0% 1,160 18.5% 1,015 15.3% 55 - 64 436 7.9% 811 12.9% 952 14.4% 65 - 74 232 4.2% 352 5.6% 513 7.8% 75 - 84 109 2.0% 162 2.6% 182 2.8% 85+ 28 0.5% 49 0.8% 53 0.8%

2000 2009 2014Race and Ethnicity Number Percent Number Percent Number Percent White Alone 5,320 96.5% 5,987 95.4% 6,255 94.6% Black Alone 23 0.4% 31 0.5% 36 0.5% American Indian Alone 11 0.2% 15 0.2% 16 0.2% Asian Alone 70 1.3% 132 2.1% 181 2.7% Pacific Islander Alone 10 0.2% 11 0.2% 12 0.2% Some Other Race Alone 21 0.4% 30 0.5% 36 0.5% Two or More Races 57 1.0% 69 1.1% 76 1.1% Hispanic Origin (Any Race) 58 1.1% 91 1.5% 117 1.8%Data Note: Income is expressed in current dollars.Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2009 and 2014.




Battery Commercial




Trends 2009-2014

Area State U.S.


11.11.2

Annu

al R

ate

(in p

erce

nt)

Population by Age

2009 2014

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+02468

10121416182022

Perc

ent


$100K-$149K (15.6%)$150-199K+ (5.0%)

$200K+ (4.2%)$75K-99K (17.3%)

<$15K (8.6%)

$15K-$24K (7.5%)

$50K-74K (22.4%) $25K-34K (8.2%)

$35K-$49K (11.1%)

Perc

ent

WhiteBlack

Am. Ind.Asian

PacificOther

Two+

0

10

20

30

40

50

60

70

80

90

100

10.4

0.13.60.3

0.7

93.9





Battery Commercial




Summary 2000 2009 2014 Population 21,586 24,108 24,853 Households 6,131 6,903 7,210 Families 4,023 4,536 4,732 Average Household Size 2.76 2.74 2.72 Owner Occupied HUs 4,250 4,877 5,039 Renter Occupied HUs 1,881 2,026 2,171 Median Age 24.0 24.4 24.8


2000 2009 2014Households by Income Number Percent Number Percent Number Percent < $15,000 755 12.3% 595 8.6% 598 8.3% $15,000 - $24,999 590 9.6% 518 7.5% 489 6.8% $25,000 - $34,999 606 9.9% 568 8.2% 549 7.6% $35,000 - $49,999 935 15.2% 765 11.1% 770 10.7% $50,000 - $74,999 1,257 20.4% 1,546 22.4% 1,523 21.1% $75,000 - $99,999 997 16.2% 1,197 17.3% 1,442 20.0% $100,000 - $149,999 665 10.8% 1,077 15.6% 1,132 15.7% $150,000 - $199,000 206 3.3% 347 5.0% 384 5.3% $200,000+ 141 2.3% 289 4.2% 324 4.5%


2000 2009 2014Population by Age Number Percent Number Percent Number Percent 0 - 4 915 4.2% 992 4.1% 1,007 4.1% 5 - 9 1,155 5.4% 1,081 4.5% 1,117 4.5% 10 - 14 1,328 6.2% 1,166 4.8% 1,211 4.9% 15 - 19 3,795 17.6% 4,279 17.8% 4,169 16.8% 20 - 24 4,549 21.1% 5,106 21.2% 5,120 20.6% 25 - 34 1,858 8.6% 2,006 8.3% 2,302 9.3% 35 - 44 2,947 13.7% 2,354 9.8% 2,300 9.3% 45 - 54 2,394 11.1% 3,109 12.9% 2,817 11.3% 55 - 64 1,273 5.9% 2,164 9.0% 2,508 10.1% 65 - 74 777 3.6% 1,052 4.4% 1,438 5.8% 75 - 84 465 2.2% 600 2.5% 644 2.6% 85+ 130 0.6% 198 0.8% 219 0.9%

2000 2009 2014Race and Ethnicity Number Percent Number Percent Number Percent White Alone 20,614 95.5% 22,626 93.9% 23,049 92.7% Black Alone 130 0.6% 173 0.7% 192 0.8% American Indian Alone 50 0.2% 65 0.3% 69 0.3% Asian Alone 487 2.3% 875 3.6% 1,144 4.6% Pacific Islander Alone 25 0.1% 33 0.1% 35 0.1% Some Other Race Alone 72 0.3% 97 0.4% 112 0.5% Two or More Races 208 1.0% 239 1.0% 250 1.0% Hispanic Origin (Any Race) 241 1.1% 373 1.5% 458 1.8%Data Note: Income is expressed in current dollars.Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2009 and 2014.

Walgreens Pharmacy Lee, New Hampshire · 2010-03-22 · Walgreens Pharmacy Lee, New Hampshire •...

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