WALGREENS PHARMACY #19501 - LoopNet€¦ · Pharmacy #19501. With its Grand Opening on February 15, 2019, the subject property became the 188th purchased location re-branded and re-opened

Offering Memorandum

WALGREENS PHARMACY #19501WALGREENS PHARMACY #195015401 North Main Street • Cowpens, SC 293305401 North Main Street • Cowpens, SC 29330

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

WALGREENS PHARMACY #19501Cowpens, SCACT ID ZAA0290080

BOR: Ben YelmRegional Manager, Charleston, Lic.# 86628

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N E T L E A S E D D I S C L A I M E R

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

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OFFERING SUMMARY

Price $1,340,137

Net Operating Income $107,211

Capitalization Rate – Current 8%

Price / SF $133.96

Rent / SF $10.72

Lease Type NN

Gross Leasable Area 10,004 SF

Year Built / Renovated 1996

Lot Size 1.27 acre(s)

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EXECUTIVE SUMMARY

OFFERING SUMMARY

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FINANCING

Down Payment All Cash

Net Cash Flow 8.00% / $107,211

Cash on Cash Return 8.00%

Total Return 8.00% / $107,211

WALGREENS PHARMACY #19501

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OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES *

Diversco 5,249

ABM Onsite Services Inc 4,500

Lsc Communications 650

Auriga Polymers Inc 430

Michelin Retread Technologies 396

Southern Management 300

Elite Day Center 230

Baylock Water Treatment Plant 200

Mermet 155

Home Depot The 150

White Oak Estates 140

Smilemakers Inc 135

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2018 Estimate Pop 2,479 8,028 18,938

2010 Census Pop 2,351 7,705 18,171

2018 Estimate HH 998 3,193 7,662

2010 Census HH 935 3,037 7,297

Median HH Income $36,061 $37,997 $44,459

Per Capita Income $21,171 $20,259 $23,463

Average HH Income $52,154 $50,762 $57,748

* # of Employees based on 5 mile radius


OFFERING SUMMARY

§ Newly Acquired by Walgreens Boots Alliance

§ February 15, 2019, Walgreens Grand Opening

§ Purchase and Rebranding Represents a $5.1 Million Investment

§ Corporate Guaranteed Lease by Walgreens Boots Alliance, Inc

§ Single-Tenant, Triple-Net 'NNN' Leased Property

§ Net Operating Income of $107,211

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present this recently acquired and rebranded Walgreens single-tenant, net-leased drug store in the city of Cowpens, Spartanburg

County, South Carolina. The tenant is Walgreens Boots Alliance, Inc (NASDAQ: WBA), one of the nations largest retail drug store chains with over 9,500 stores located in

all 50 states, the District of Columbia, and the United States Virgin Islands.

The subject property, Walgreens Pharmacy #19501, was built-to-suit Rite Aid Corporation with rental payments commencing February 27, 1996. The property was triple-

net (NNN) leased to Rite Aid Corporation for 20 years with six five-year renewal options. The building is approximately 10,004 square feet with a land area of 1.27 acres.

Owner responsible for roof and outer walls.

The subject property is one of 1,932 locations Walgreens Boots Alliance purchased from Rite Aid Corporation in 2018 for $4.4 billion dollars. After spending $850 million

on integration costs including the closure of 750 other locations, another $500 million on re-branding and store improvements, and a further $288 million in anticipated

legal fees; Walgreens will have spent over $5.1 million to operate at each of the remaining 1,182 net new Walgreens locations including the subject property, Walgreens

Pharmacy #19501.

With its Grand Opening on February 15, 2019, the subject property became the 188th purchased location re-branded and re-opened as a full-fledged Walgreens

Pharmacy. Walgreens branding of the subject property represents an investment of over $5.1 million and shows its commitment to this location.

The price of the property is $1,340,137 at a 8.00 percent cap with an annual rent of $107,211.

INVESTMENT OVERVIEW

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CLOSE PROXIMITY TO:

5401 North Main Street, Cowpens, SC 29330

§ Recently Rebranded as Walgreens§ Standard & Poor's 'BBB' Tenant§ Little Competition§ Large Effective Service Area

Recently rebranded Walgreens Phamacy will continue to serve the Cowpens market.

LOCATION OVERVIEWTENANT SUMMARYPRICING AND VALUATION MATRIX

PROPERTY NAMEWALGREENS PHARMACY #19501

PRICING AND VALUATION MATRIX

PROPERTY NAME


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LOCATION OVERVIEW

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5401 North Main Street, Cowpens, SC 29330




PROPERTY NAME


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REGIONAL AND LOCAL MAP

AERIAL PHOTO


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PROPERTY PHOTO


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PROPERTY PHOTO


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PROPERTY SUMMARY

OFFERING SUMMARY

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NOTES

Walgreens has spent over $5.1 million to purchase and rebrand this location.


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OFFERING SUMMARY

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues to the benefit of our clients.

National platform operating

within the firm’s brokerage offices

$6.24 billion total national

volume in 2018

Access to more capital sources than any other firm in the industry

Optimum financing solutions to enhance value

Our ability to enhance buyer pool by expanding finance options

Our ability to enhance seller control

• Through buyer qualification support

• Our ability to manage buyers finance expectations

• Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings

• By relying on a world class set of debt/equity sources and presenting a tightly underwritten credit file

WHY MMCC?

Closed 1,678 debt and equity

financings in 2018

ACQUISITION FINANCING


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COMPARABLES MAP

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WALGREENS PHARMACY #19501(SUBJECT)

Walgreens

Walgreens

Walgreens

Walgreens - Allen, TX

Walgreens

Walgreens

SALES COMPARABLES

1

2

3

4

5

6

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PROPERTY NAME


SALES COMPARABLES

WalgreensPharmacy

#19501

Walgreens Walgreens-2 Walgreens-3 Walgreens -Allen, TX

Walgreens-4 Walgreens-50.0

0.9

1.8

2.7

3.6

4.5

5.4

6.3

7.2

8.1

9.0

Avg. 7.09%

Average Cap Rate

WalgreensPharmacy

#19501

Walgreens Walgreens-2 Walgreens-3 Walgreens -Allen, TX

Walgreens-4 Walgreens-5$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

Avg. $253.41

Average Price Per Square Foot

SALES COMPARABLES

SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

SUBJECT PROPERTY

Asking Price $1,340,137

Price/SF $133.96

CAP Rate 8%

GLA 10,004 SF


Year Built 1996

Lease Term Remaining 2.0 Years

WALGREENS PHARMACY #195015401 North Main Street, Cowpens, SC, 29330

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NOTESListed and Sold by Marcus & Millichap. Double-Net 'NN' Lease Property. NOI=$136,283. 4 years 5 months remaining lease term at sale

Close Of Escrow 2/20/2019

Sales Price $1,638,000

Price/SF $127.97

CAP Rate 8.32%

GLA 12,800 SF


Year Built 1992

Lease Term Remaining 4 Years

WALGREENS1701 East Paulding Road, Fort Wayne, IN, 46816

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NOTESListed and Sold by Marcus & Millichap. Double-Net 'NN' Lease. NOI=$200,000. 4 years 11 months remaining lease term at time of sale.



Price/SF $189.45

CAP Rate 6.8%

GLA 15,525 SF

Lot Size 2 acre(s)

Year Built 1995


WALGREENS3700 34th Street North, St Petersburg, FL, 33713

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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NOTESListed and Sold by Marcus & Millichap. Double-Net 'NN' Lease. NOI=$236,274. 5 years remaining lease term at time of sale.



Price/SF $280.47

CAP Rate 6.06%

GLA 13,905 SF


Year Built 1999


WALGREENS15650 San Pablo Avenue, San Pablo, CA, 94806

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NOTESListed and Sold by Marcus & Millichap. Triple-Net 'NNN' Lease. NOI=$334,719. 4 years 10 months remaining lease term at time of sale.



Price/SF $291.55

CAP Rate 7.97%

GLA 14,406 SF


Year Built 2003


WALGREENS - ALLEN, TX1819 East Bethany Drive, Allen, TX, 75002

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NOTESListed and Sold by Marcus & Millichap. Double-Net 'NN' Lease. NOI=$344,000. 4 years 8 months remaining lease term at time of sale.



Price/SF $404.50

CAP Rate 6.16%

GLA 13,807 SF


Year Built 1998


WALGREENS6328 Camp Bowie Boulevard, Fort Worth, TX, 76116

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


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SALES COMPARABLES

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NOTESListed and Sold by Marcus & Millichap. Double-Net 'NN' Lease. NOI=$227,472. 4 year 8 months remaining lease term at time of sale.



Price/SF $226.54

CAP Rate 7.22%

GLA 13,905 SF

Lot Size 0 acre(s)

Year Built 1997


WALGREENS 6551 Forest Hill Dr,ive Forest Hill, TX, 76140

MARKETING TEAM

Source: © 2015 Experian

PROPERTY NAME

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CREATED ON SEPTEMBER 25, 2019




PROPERTY NAME


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DEMOGRAPHICS

1 Miles 3 Miles 5 Miles

POPULATION2023 Projection 2,459 8,057 19,203

2018 Estimate 2,479 8,028 18,938

2010 Census 2,351 7,705 18,171

2000 Census 2,402 7,729 17,853

INCOME

Average $52,154 $50,762 $57,748

Median $36,061 $37,997 $44,459

Per Capita $21,171 $20,259 $23,463

HOUSEHOLDS

2023 Projection 998 3,239 7,906

2018 Estimate 998 3,193 7,662

2010 Census 935 3,037 7,297

2000 Census 962 3,019 6,987

HOUSING

2018 $103,958 $99,037 $113,495

EMPLOYMENT

2018 Daytime Population 2,351 5,907 15,582

2018 Unemployment 5.96% 5.21% 4.76%2018 Median Time Traveled 23 25 25

RACE & ETHNICITY

White 79.78% 82.34% 84.46%

Native American 0.00% 0.01% 0.04%

African American 15.21% 11.36% 10.21%

Asian/Pacific Islander 0.24% 0.43% 0.91%

www.MarcusMillichap.com

Benjamin Yelm

Mr

Charleston OfficeTel: (843) 952-2300Fax: (843) 952-2310

[email protected]

License: SC 86628

P R E S E N T E D B Y

Documents

WALGREENS PHARMACY #19501 - LoopNet€¦ · Pharmacy #19501. With its Grand Opening on February 15, 2019, the subject property became the 188th purchased location re-branded and re-opened