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WalgreensSouth Boston, Virginia
Offering Memorandum
Representative Photo
Jason Powell, CCIM [email protected] +1 404.823.6754
Tyler Molleson [email protected] +1 404.823.6760
Max Van Dresser [email protected] +1 404.823.6377
In Association With:Zachary Harris VA Broker #0225216133
Offered Exclusively byConfidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.
Stan Johnson Company3340 Peachtree Road NE | Suite 650 Atlanta, Georgia 30326 404.823.6360
stanjohnsonco.com
Walgreens • South Boston, VA 3
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The OfferingStan Johnson Company is pleased to offer for sale to qualified investors a property with a free-standing building fully leased to and guaranteed by Walgreens. The subject property is located at 3220 Halifax Road, South Boston, VA. The Lease features an absolute NNN structure with zero landlord responsibilities and has approximately 16 years remaining in the primary term.
South Boston is located in Halifax County, VA near the North Carolina border. Within a three mile radius of the subject property the population is 10,541.
Walgreen Co. holds a BBB/Stable rating by Standard and Poor’s, and had FY2016 (ended August 31, 2016) revenue of $117.35 billion and net income of $4.17 billion
Investment HighlightsWorld Class Guaranty - Walgreens is a subsidiary of Walgreens Boots Alliance, Inc. (NASDAQ: WBA) which currently holds an investment grade rating of BBB by Standard & Poor’s.
Absolute NNN Lease - The property is on an absolute NNN lease with zero landlord responsibilities. This is a 100% passive investment. Long Term Remaining - The lease currently has approximateley 16 years remaining in the primary term.
Strategic Location - The subject property is located along a retail corridor consisting of many regional and national tenants. Surrounding retailers include: Walmart, Lowe’s Home Improvement, Dollar Tree, CVS Pharmacy, Applebee’s, & Pizza Hut.
Limited Competition - This is the only Walgreens location within the South Boston/Halifax area. The nearest Walgreens is approximately 36 miles away in Danville, VA.
Purchase Price: $6,063,332Cap Rate: 6.00%
Representative Photos
Walgreens • South Boston, VA 4
CENTERVILLE BAPTIST CHURCH
Property Address 3220 Halifax Road
City, State, Zip South Boston, VA 24592
Property Type Retail - Drugstore
Building Size +/- 14,820 SF
Land Area +/- 2.51 Acres
Year Built 2008
Construction Concrete Block, Brick Masonry
Parking 80 Spaces; 6.04/1,000 SF
Drive - Thru Yes - One Lane
County Halifax County
Parcel ID 8652
Encumbrances None, Delivered Free and Clear
NOI $363,799.92
Purchase Price $6,063,332
Cap Rate 6.00%
Pricing Overview
Property OverviewDEBBIE’S STAFFING SERVICES
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LIFA
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GAZETTE VIRGINIAN
Walgreens • South Boston, VA 5
Property Address 3220 Halifax Road
Tenant Walgreens
Guarantor Walgreens Boots Alliance (NYSE:WBA)
Lease Type Absolute NNN
Landlord Responsibilities None
Term Commencement 6/9/2008
Primary Term Expiration 6/30/2033
Term Remaining +/- 16 Years
Current Monthly Rent $30,316.66
Current Annual Rent $363,799.92
Current Rent PSF $24.55
Percentage Rent Yes
Rent Increases None - Flat Rent
Extension Options Fifty (50), One (1) Year Options
ROFR Yes - 30 Days
Years/Period Date Rent Rent PSF
Primary Term 6/9/08 - 6/30/33 $363,799.92 $24.55
Option 1 - 50 7/1/2033 - 6/30/2083 $363,799.92 $24.55
Lease Abstract
Representative Photos
Rent Schedule
Walgreens • South Boston, VA 6
Walgreens Boots Alliance (NASDAQ: WBA) is the first global pharmacy-led, health and wellbeing enterprise in the world. The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.
The company employs over 400,000 people and has a presence in more than 25 countries, making it the largest retail pharmacy, health and daily living destination in the USA and Europe. Additionally, Walgreens Boots Alliance is the world’s largest purchaser of prescription drugs and many other health and wellbeing products.
Walgreens Boots Alliance is organized into three segments: Retail Pharmacy USA, Retail Pharmacy International and Pharmaceutical Wholesale. Walgreens itself is organized under Retail Pharmacy USA along with Duane Reade, the most recognized drugstore chain in metropolitan New York that became part of the Walgreens family of companies in 2010.
As of August 31, 2016, the Retail Pharmacy USA division operated 8,175 drugstores across all 50 states, the District of Columbia, Puerto Rico and the US Virgin Islands, boasting a footprint that placed a store within 5 miles of approximately 76% of the U.S. population.
Walgreens Overview
Company Profile
Company Walgreens Boots Alliance
No. of Retail Locations 13,200 (as of 8/31/2016)
Credit Rating S&P: BBB
Stock Symbol WBA (NASDAQ)
Employees 400,000+
Website www.walgreensbootsalliance.com
Tenant Profile
Company Walgreens
No. of Retail Locations 8,175 (as of 8/31/2016)
Credit Rating S&P: BBB
Total Revenue $117.35 Billion (as of 8/31/2016)
Net Worth $29.88 Billion (as of 8/31/2016)
Year Founded 1901
Headquarters Deerfield, Illinois
Website www.walgreens.com
6.2 Million Customers Visit Walgreens Stores Daily
Fortune Magazine: Top 5 World’s Most Admired Companies (March 2015)
Forbes: 165th out of 2000 Largest Global Public Companies (May 2015)
Walgreens is the largest drugstore chain in the U.S., reporting fiscal 2016 (ended 8/31/2016) sales of more than $117.35 billion. Founded with a single store in Chicago in 1901, Walgreens today is continuing to build a seamless customer experience through its 8,175 drugstores and its digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.
Walgreens • South Boston, VA 7
South Boston, Virginia is centrally located in Halifax County on Virginia’s southern border. South Boston is a town full of history, character, and charm. With large urban areas: Richmond, Raleigh, Roanoke or Charlottesville, all within a two-hour drive South Boston provides the richness of small town life with the big city amenities close by. The town’s 8,500 residents enjoy living in a small town with the convenience of being strategically located between Lynchburg, VA (59 miles) and Durham, NC (60 miles).
Halifax County Virginia is bio centered and data driven. It is located in the center of a ring of Biotech manufacturers, research institutions, and super-computing power. Halifax is also headquarters to Mid-Atlantic Broadband, one of the fastest and most robust fiber optic systems in the U.S. Together these attributes provide the infrastructure and workforce required for data storage, computational bioinformatics, Genomics, Proteomics, Medical Research, and Medical-Device Manufacturing.
The property is located just over one mile from the Halifax Regional Hospital off of Halifax Road. In July 2013, after over 60 years of service, Halifax Regional Health System became part of Sentara Healthcare, one of the nation’s premier healthcare providers. Services at Sentara Halifax Regional Hospital include: cardiovascular services, emergency services, family birthing center, hospitalist program, imaging/radiology services, laboratory services, nephrology services, orthopedic services, rehabilitation services and surgical services.
Location Overview
Halifax County Courthouse
Historic South Boston
South Boston Town Hall
Walgreens • South Boston, VA 8
OLD HALIFAX ROAD
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HALIFAX COUNTY MIDDLE SCHOOL
HALIFAX COUNTY HIGH SCHOOL
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GREENS FOLLY GOLF COURSE
Demographics 3220 Halifax Road South Boston, VA
0 - 3 mi. 0 - 5 mi. 0 - 10 mi.
Population
2017 Population 10,813 14,144 23,350
Average Age 42.80 42.80 43.00
Households
2017 Total Households 4,459 5,885 9,739
Average Household Size 2.27 2.28 2.32
2017 Average HH Vehicle 2.00 2.00 2.00
2017 Average Household Income $48,486 $49,857 $50,610
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going beyond
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.
Stan Johnson Company3340 Peachtree Road NE | Suite 650 Atlanta, Georgia 30326 404.823.6360
stanjohnsonco.com
Jason Powell, CCIM Director [email protected] +1 404.823.6754 Tyler Molleson Associate [email protected] +1 404.823.6760
Max Van Dresser Analyst [email protected]+1 404.823.6377
In Association With:Zachary Harris VA Broker #0225216133
Offered Exclusively by
