Equity Streator-IL WAG OM - LoopNet...120 East Main Street, Streator, IL 61364 Location Overview Walgreens Streator is a city in LaSalle and Livingston counties in north central Illinois

For more information contact | Ted Dowding | Sr. Vice President | 858.999.7431 | [email protected]

EXCLUSIVELY LISTED INVESTMENT OFFERING

120 East Main Street, Streator, IL 61364Walgreens

Incredibly Low Rent-To-Sales Ratio of 2.3%Rare Opporunity To Acquire A Walgreens under $4,000,000with a long term corporately guaranteed lease.


120 East Main Street, Streator, IL 61364WalgreensO�ering Overview

STABLE INCOME Rental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade Fortune 500 Company with over 8,000 locations. Soon to be 14,000+ with the Rite Aid merger.

LEASE TERM REMAINING 11.5 Years Remaining on the Firm Term

MINIMAL LANDLORD RESPONSIBILITIES Landlord is responsible for roof/exterior structure; however, a new roof was installed in 2010 with a twenty year transferable warranty.

COMMITMENT TO LOCATION Tenant showed commitment to location by recently extending their lease early , committing to the site through November 2028.

LOW PRICE POINT AND RENT FACTOR Rare opportunity to purchase a Walgreens under the $4,000,000 price point. Walgreens is paying $13.74 a square foot which is well below their national average.

PRICE PER SQUARE FOOT At full asking subject property is o�ered at $238 a square foot.

STRONG HOSPITAL BASE Less than half a mile from the subject property lies the St. Mary’s Hospital, a general medical and surgical hospital with 98 beds.

SIGNALIZED CORNER WITH DRIVE-THRU PHARMACY Rare double drive-thru pharmacy located on the signalized corner of Park Street and East Main Street.

ONLY NATIONAL PHARMACY IN TOWN No other Walgreens, CVS or Rite Aid in all of Streator, Illinois with the closest Walgreens over 16 miles away and the closest CVS over 20 miles away. Only Place in town to �ll your prescriptions in an Aging Town.

120 East Main Street Streator, IL 61364

Year Built: 1994

Lot Size: 65,776 Square Feet

Building Size: 13,000 Square Feet

Investment Highlights

Equity is pleased to exclusively o�er for sale to quali�ed investors, the opportunity to purchase a 100% fee-simple interest in the Walgreens property located at 120 East Main Street in Streator, Illinois (the “Property”). The Property can be acquired at a low price point of $226.92 PSF which is extraordinarily rare for Walgreens assets currently in the marketplace.

The Property is fully leased by Walgreen Co. (WBA), operating under a lease with 11.5 years of remaining �rm term. Walgreens recently expressed its commitment to the site by executing a nearly 9.5-year lease extension. The term runs through May 31, 2063, with the option to terminate with 12 months’ notice starting November 2028, and every �ve (5) years thereafter.

Walgreens’ lease is NN with landlord responsibility limited to the maintenance and repair of all exterior items and structural portions of the building, as well as the replacement of parking areas. The Property received a new roof in 2010 that has a transferable 20 year warranty through 2030. Base rent is $178,750 annually, or $13.75 PSF, and is �at throughout the term.

Walgreen Co., a subsidiary of Walgreens Boots Alliance, Inc., (NASDAQ: WBA), had FY2014 (ended August 31, 2015) revenue of $103.44 billion and net income of $4.22 billion. As of November 30, 2015, the company had a net worth of $30.71 billion. Currently, Walgreen Co. holds a BBB/ Stable rating by Standard and Poor’s and has a market capitalization of $85.95 billion.

OMDM

11


120 East Main Street, Streator, IL 61364WalgreensLease Overview

Tenant

Landlord Income

Credit Rating

Lease Type

Lease Term

Next Option Begins

Walgreens (NYSE: WAG)

Corportate Guarantee

Investment Grade, BBB (S&P)

Double NetLandlord responsible for roof/exterior structure

11.5 Years Remaining Before Option Renewal Periods

November 2028

Lease Overview

Asking Price

Asking CAP Rate

Monthly Income

Annual Income

$2,950,000

6.10%

$14,895

$178,745

Pricing

Building Square Footage

Land Square Footage

Rent/Square Foot

Year Built

13,000

65,776

$13.75

1994 (New Roof in 2010)

Building

Roof is under a warranty that is transferable*

(Very Low For a Drug Store)

$2,885,000

6.20%

(NN)

Roof is under warranty and is transferable and renewable


120 East Main Street, Streator, IL 61364WalgreensSubject Property Retail Corridor

Drive-thru pharmacy located on the signalized corner of Park Street and East Main.

Tenant showed commitment to location by exercising their �rst option in 2013.

No other Walgreens, CVS or Rite Aid in all of Streator, Illinois with the closest Walgreens over 16 miles away and the closest CVS over 20 miles away.

Less than half a mile from the subject property lies the St. Mary’s Hospital, a general medical and surgical hospital with 98 beds.


120 East Main Street, Streator, IL 61364WalgreensProperty Photos

Subject Property Subject Property Facing SouthCentrue Bank On The Opposite Corner of Subject Property

Drive-Thru Pharmacy Signalized Corner of Park & Main StreeSubject Property West Parking Lot Facing Hickory & North Bloomington Street

STREATOR HIGH SCHOOL SOCCER

AND SOFTBALL FIELD

E. MORRELL STREET

E. BROADWAY STREET

E. KENT STREET

N. E

VER

ETT

STRE

ET

N. W

ASS

ON

STR

EET

S. V

ERM

ILLI

ON

STR

EET

E. BRIDGE STREET (5,484 VPD)

N. B

LOO

MIN

GTO

N S

TREE

T ( 9

,000

VPD

)

N. P

ARK

STR

EET

(9,8

72 V

PD)

BNSF

RAI

LWAY

E. MAIN STREET (6,700 VPD)

E. MORRELL STREET

E. BROADWAY STREET

N. J

EFFE

RSO

N S

TREE

TE. KENT STREET

STREATOR TOWNSHIP

HIGH SCHOOL

CITY PARK

E. HICKORY STREETE. HICKORY STREET

N. E

VER

ETT

STRE

ET

N. W

ASS

ON

STR

EET

S. V

ERM

ILLI

ON

STR

EET

E. BRIDGE STREET (5,484 VPD)

N. B

LOO

MIN

GTO

N S

TREE

T ( 9

,000

VPD

)

N. P

ARK

STR

EET

(9,8

72 V

PD)

VERMILLION RIVER

BNSF

RAI

LWAY

E. MAIN STREET (6,700 VPD)


W. Main Street (5,400 VPD)W. Main Street (5,400 VPD)

2015 Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Median Household Income Average Household Income 2020 Summary Population Households Families Average Household Size Owner Occupied Housing Units Renter Occupied Housing Units Median Age Median Household Income Average Household Income

1 mile8,8103,5652,201

2.462,3531,212

38.6$40,027$49,339

8,6043,4852,136

2.462,2831,202

39.0$44,694$54,935

3 miles17,835

7,4384,697

2.385,2552,183

41.8$41,011$52,230

17,4217,2834,566

2.375,1022,181

42.2$45,782$57,818

N. M

ark S

treet (

9,600 V

PD)

N. Bloom

ington S

treeT (

9,000 V

PD)

N. M

ark S

treet (

9,600 V

PD)

N. Bloom

ington S

treeT (

9,000 V

PD)

OSF Center for Health

Streator High SchoolSoccer & Softball Field

Streator High School

StreatorPublic Library

5 miles418,875

7,8494,988

2.395,5822,267

42.2$41,613$52,839

18,4657,6984,858

2.385,4332,264

42.6$46,557$58,517

WALGREENS120 E. MAIN STREET | STREATOR, IL 61364


120 East Main Street, Streator, IL 61364WalgreensDemographic Overview


120 East Main Street, Streator, IL 61364WalgreensSite Plan

N P

ark

St (9

,872

VPD

)

East Hickory St (8,770 VPD)

W Main St (6,903 VPD)

N B

loom

ingt

on S

t (9,

000

VPD

)

N

Tenant

Landlord Income

Credit Rating

Lease Type

Lease Term

Next Option Begins

Walgreens (NYSE: WAG)

Corportate Guarantee

Investment Grade, BBB (S&P)

Double NetLandlord responsible for roof/exterior structure

11.5 Years Remaining on the Firm Term before the option renewal periods

November 2028

Building Square Footage

Land Square Footage

Rent/Square Foot

Year Built

13,000

65,776

$13.75

1994


120 East Main Street, Streator, IL 61364WalgreensInvestment Property Recap

Lease Overview

Asking Price

$2,950,000

Asking CAP Rate:

6.10%

Monthly Income:

$14,895

Annual Income:

$178,745

120 East Main Street, Streator, IL 61364

2,885,000

2

Tenant History Walgreens is the largest drug retailing chain in the United States and has grown primarily through organic growth versus how its largest competitor, CVS, has grown through chain acquisitions. Walgreens built out its national platform through its corporate real estate department heavily during the 90’s continuing through around 2008. By 2007, Walgreen had opened its 6,000th store and by 2009 they became the only national pharmacy to operate in 50 states including Puerto Rico. In 2012, Walgreens made a bold move by purchasing a 45% interest in Alliance Boots and subsequently in 2014 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. After the initial acquisition in 2012, Walgreens credit rating was lowered from A down to BBB due to debt it incurred during the purchase; however, Walgreens remains investment grade and property values have not been adversely a�ected by the lower credit rating. Walgreens stock price has actually more than doubled since its acquisition of Alliance Boots.

Notable AcquisitionsIn 2010, Walgreens announced its largest acquisition ever of Duane Reade for $1.075 billion and established an irreplaceable footprint in the New York metropolitan area. In 2011, Walgreens made a move to purchase Drugstore.com to establish an online presence.

In 2012, Walgreens purchased a mid-south drugstore chain operating under USA Drug, Super D Drug, Mays Drug, Med-X and Drug Warehouse banners which had 144 locations collectively throughout Arkansas, Kansas, Mississippi, Missouri, New Jersey, Oklahoma and Tennessee.

Walgreens most recent acquisition was in September 2013 for Kerr Drug’s who operated 76 drugstores throughout North Carolina.

*Walgreens company information received from Walgreens investor relations.


120 East Main Street, Streator, IL 61364WalgreensWalgreens Company Summary


120 East Main Street, Streator, IL 61364WalgreensWalgreens Locations by State


120 East Main Street, Streator, IL 61364WalgreensWalgreens Locations by State

Alabama 115 Idaho 40 Mississippi 78 Oklahoma 117 West Virginia 17

Alaska 8 Illinois 610 Missouri 219 Oregon 77 Wisconsin 228

Arizona 250 Indiana 201 Montana 14 Pennsylvania 131 Wyoming 11

Arkansas 83 Iowa 70 Nebraska 60 Rhode Island 26 Puerto Rico 120

California 646 Kansas 70 Nevada 84 South Carolina 110 US Virgin Islands 1

Colorado 160 Kentucky 98 New Hampshire 32 South Dakota 14 Connecticut 95

Louisiana 154 New Jersey 191 Tennessee 254 Delaware 65 Maine 15

New Mexico 69 Texas 712 Washington DC 6 Maryland 89 New York 486

Utah 48 Florida 861 Massachusetts 168 North Carolina 263 Vermont 3

Georgia 204 Michigan 232 North Dakota 1 Virginia 141 Hawaii 19

Minnesota 154 Ohio 250 Washington 139


120 East Main Street, Streator, IL 61364WalgreensLocation Overview

Streator is a city in LaSalle and Livingston counties in north central Illinois. Situated on the Vermillion River, the city is 80 miles southwest of Chicago, positioned between Interstate 39, Interstate 55 and Interstate 80. As of the 2010 census, the population was 13,710.

Streator o�ers residents many enjoyable aspects of rural life: afairly compact, walkable downtown; solid schools; quaint parks;a�ordable housing; and a tradition of making quality products,particularly, glass bottles. High-grade silica, the main ingredientin glass, was in abundance in the Streator region and at onetime, the city held the title of “Glass Manufacturing Capital of theWorld”. Glass manufacturing retains a strong presence in the citytoday, however, agriculture and related agri-business, along withthe service sector, are now the primary contributors to Streator’seconomy.

In 2007, Streator and the North Central Illinois Council ofGovernments �nalized the Streator Comprehensive Plan, layingthe foundation for civic, transportation, housing, commercialand recreational initiatives in the city through 2027. Numerousprojects proposed are currently underway as o�cials look toguide development within Streator and create a thriving andsustainable future.

Location

Streator

Employment Pro�le

Vactor Manufacturing 590

Streator Results 480

DSI 390

Streator Elementary School District 296

U.S. Foods 240

EMPLOYER # OF EMPLOYEES

Documents

Equity Streator-IL WAG OM - LoopNet...120 East Main Street, Streator, IL 61364 Location Overview Walgreens Streator is a city in LaSalle and Livingston counties in north central Illinois