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E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G
Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com
1001 NORTH BERLIN ROAD | LINDENWOLD, NJ 08021
PHILADELPHIA MSA INVESTMENT OPPORTUNITY
Exclusively Listed By
JASON STUART PONGSRIKULMANAGING PRINCIPAL
Listed in conjunction with New Jersey Broker of Record
JAMES R. DAVIS LICENSE RB-8810475
page 2Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Property Overview
Investment Highlights
Year Built: 2010Lot Size: 49,658 Square FeetBuilding Size: 14,485 Square Feet
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
STABLE INCOMERental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade, Fortune 500 Company, with over 8,000 locations.
HIGH VISIBILITY AND TRAFFICKED LOCATIONDrive thru pharmacy and drugstore located at the northeast signalized intersection of White Horse Road and Berlin Road with traffic counts of approximately 50,981 vehicles per day and adjacent to the high speed transit Patco station.
ABSOLUTE NET LEASE WITH LONG TERM REMAININGThis lease has approximately 19 years remaining on the initial term with ten 5-year options to extend. The lease is an absolute net lease with no landlord responsibilities whatsoever.
INFILL NEW JERSEY REAL ESTATEExceptional New Jersey infill real estate, located just 16 miles east of downtown Philadelphia, Pennsylvania, and two hours from both Downtown Manhattan, New York and Baltimore, Maryland. RETAIL CORRIDORLindenwold's national retail tenants include Walmart, Lowe's, Home Depot, PetSmart, LA Fitness, Target, Ross Dress for Less, Panera Bread, Chick-fil-A, Applebees, Chipotle, Macy's, Sears, Office Depot, McDonalds, Smashburger, Dunkin Donuts, Aldi, and Dollar Tree.
Also nearby is Rowan University, a private medical school with approximately 1,000 members of faculty, staff, volunteers and students, and Kennedy University Hospital, an 181-bed, acute care facility.
SUBJECT PROPERTYKENNEDYMEDICAL CENTER
BERLIN ROAD -±22,033 VEHICLES PER DAY
WHITE HORSE ROAD -±20,015 CARS PER DAY24 Hour speedline stationto philadelphia
38,000 passangers daily13 million passangers annually
page 3Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Lease OverviewTenant:WALGREENS (NYSE: WAG)
Landlord Income: CORPORATE GUARANTEE
Credit Rating: INVESTMENT GRADE, BBB (S&P)
Lease Type: ABSOLUTE NET No landlord responsibilities whatsoever.
Lease Term: 19 YEARS REMAINING WITH 10 (5 YEAR) OPTIONS TO FOLLOW
Lease Commencement: SEPTEMBER 1, 2010
Next Option Begins: SEPTEMBER 1, 2035
Pricing
Building
Price: $9,019,417
Cap Rate: 5.15%
Price/Square Foot: $622.67
Monthly Income: $38,708
Annual Income: $464,500
Building Square Footage: 14,485
Land Square Footage: 49,658
Rent/Square Foot: $32.06
Year Built: 2010
Location Overview
Lindenwold is a borough in Camden
County, New Jersey, and the midpoint
between Downtown Manhattan and
Baltimore Maryland. Camden is the eight largest
city in New Jersey. Lindenwold is approximately
16 miles southeast of downtown Philadelphia,
Pennsylvania, the fifth-most populous city in the
United States and is part of the Delaware Valley,
a metropolitan area home to 7.2 million people
and the eighth-largest combined statistical area
in the United States.
LINDENWOLD, NJ
SUBJECT PROPERTY
page 4Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Retail Corridor
AREA DESCRIPTIONThe subject property is located approximately 16 miles southeast of downtown Philadelphia, Pennsylvania, and four miles southeast of the New Jersey Turnpike. Other nearby freeways include Interstate 295 and Highway 30. The property is surrounded by residential development with over 4,830 households with a total population of 12,014 residents and a median income of $59,315 within a one mile radius.
Lindenwold is home to one of only rapid transit systems in the country, the PATCO Speedline, a twenty-four hour station to Philadelphia PA. This high speed line carries approximately 38,000 passengers daily and over 13 million annually. Two blocks from the subject property is located Rowan University, a 36 acre campus private medical school with approximately 1000 members, including students, faculty, staff and volunteers. Next door to Rowan University, is Kennedy Memorial Hospital, an 181-bed acute care hospital with emergency services that received a $25 million renovation in 2010.
Lindenwold's national retail tenants include Walmart, Lowe's, Home Depot, PetSmart, LA Fitness, Target, Ross Dress for Less, Panera Bread, Chick-fil-A, Applebees, Chipotle, Office Depot, McDonalds, Smashburger, Dunkin Donuts, Aldi, and Dollar Tree. Retailers within the properties four-block area include Burger King, Wells Fargo Bank, Pep Boys Auto Parts, Ford, Checkers, and Payless Shoesource.
SUBJECT PROPERTY
page 5Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Property Photos
SOUTH AND WEST BUILDING AND PARKING VIEW
NORTH AND EAST BUILDING WITH DRIVE THRU
BERLIN ROAD -±22,033 VEHICLES PER DAY
WHITE HORSE ROAD -±20,015 CARS PER DAYBERLIN ROAD -±22,033 VEHICLES PER DAY
KENNEDYMEDICAL CENTER
page 6Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Property Photos
BERLIN ROAD -±22,033 VEHICLES PER DAY
WHITE HORSE ROAD -±20,015 CARS PER DAY
WHITE HORSE PIKE -±28,948 CARS PER DAY
SUBJECT PROPERTY
WHITE HORSE ROAD -±20,015 CARS PER DAY
WHITE HORSE PIKE -±28,948 CARS PER DAY
BERLIN ROAD -±22,033 VEHICLES PER DAY
KENNEDYMEDICAL CENTER
FIREDEPARTMENT
page 7Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Property Overview
BERLIN ROAD -±22,033 VEHICLES PER DAY
AERIAL SITE PLAN
WHITE HORSE ROAD -±20,015 CARS PER DAY
page 8Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Company Summary*
Tenant HistoryWalgreens 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 1990’s continuing through around 2008. By 2007, Walgreens 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 the debt it incurred during the purchase; however, Walgreens remains investment grade and property values have not been adversely affected by the lower credit rating. Walgreens stock price has actually more than doubled since its acquisition of Alliance Boots.
Notable Acquisitions In 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.
page 9Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Locations by State
WA139
OR77
CA646
NV84
ID40
MT14
WY11
UT48
AZ250 NM
69
CO160
ND1
SD14
NE60
KS70
OK117
TX712 LA
154
AR83
MO219
IA70
MN154
IL610
MS78
AL115
FL861
US VIRGIN ISLANDS1
PR120
GA204
SC110
NC263
VA141
DC6
MD89
DE65
NJ191
CT95
RI26
MA168
VT3
NH32
WV17
PA131
NY486
ME15
AK8
HI19
TN254
KY98
OH250
WI228
IN201
MN232
Alabama 113 Idaho 39 Mississippi 77 Oklahoma 116 West Virginia 16
Alaska 12 Illinois 593 Missouri 215 Oregon 77 Wisconsin 225
Arizona 244 Indiana 196 Montana 13 Pennsylvania 123 Wyoming 10
Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 121
California 629 Kansas 69 Nevada 84 South Carolina 113 US Virgin Islands 1
Colorado 158 Kentucky 93 New Hampshire 31 South Dakota 14
Connecticut 92 Louisiana 157 New Jersey 191 Tennessee 253
Delaware 64 Maine 14 New Mexico 72 Texas 715
Washington DC 7 Maryland 85 New York 470 Utah 47
Florida 840 Massachusetts 163 North Carolina 263 Vermont 3
Georgia 203 Michigan 225 North Dakota 1 Virginia 141
Hawaii 20 Minnesota 152 Ohio 246 Washington 134
*Nationwide locations as of August 31, 2015Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.
Total 8,173*
page 10Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Demographic Snapshot | 2016 Estimate
Disclaimer: 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, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.
Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.
By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2016 Pharma Property Group.
39.80
39.60
40.0
0
3 Mile
s
1 Mile
5 Mile
s
Average Age12
,014
90,0
58
223,6
205 M
iles
3 Mile
s
1 Mile
Total Population
4,849
36,0
46
86,39
35 M
iles
3 Mile
s
1 Mile
Total Households
$59,3
15
$60,
138
$70,
960
3 Mile
s
1 Mile
5 Mile
s
Median Household Inc
page 11Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Investment Property Recap
Lease Overview
PricingPrice: $9,019,417
Total Monthly Income: $38,708
Total Annual Income: $464,500
Tenant:Walgreens (NYSE: WAG)
Landlord Income: Corporate Guarantee
Credit Rating: Investment Grade, BBB (S&P)
Lease Type: Absolute NET LeaseNo landlord responsibilities whatsoever.
Lease Term: 19 years remaining with10 (five year) options to follow
Next Option Begins: September 1, 2035
Year Built: 2010Total Lot Size: 49,658 Square FeetTotal Building Size: 14,485 Square Feet
1001 NORTH BERLIN ROADLINDENWOLD, NJ 08021
Cap Rate: 5.15%
5328 Banks Street, Suite BSan Diego, CA 92110P 619.297.0055F 619.839.0828
www.pharmapropertygroup.com
E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G
1001 NORTH BERLIN ROAD | LINDENWOLD, NJ 08021
Jason Stuart PongsrikulManaging Principal
Direct: 619.297.0055 [email protected]
CA DRE Lic. #01918332
Listed in conjunction with New Jersey Broker of Record
James R. DavisLicense RB-8810475