Walgreens - Portfolio · 2020-06-18 · Offering memOrandum Walgreens Absolute NNN Portfolio Walgreens - Portfolio 1438 N. Lewis Ave, Tulsa, OK 74110 1620 S. Gordon St, Alvin, TX

Walgreens Absolute NNN PortfolioOffering memOrandum

Walgreens - Portfolio

1438 N. Lewis Ave,Tulsa, OK 74110

1620 S. Gordon St,Alvin, TX 77511

1226 W. McDermott Dr,Allen, TX 75013

9500 Golf Course Rd,Albuquerque, NM 87114

4814 N. Sheridan Rd,Peoria, IL 61614

20266 N. Lake Pleasant Road,Peoria, AZ 85382

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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZAA0390892

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EXECUTIVE SUMMARY

■ 6 Walgreens locations with Absolute NNN Leases in Texas, Arizona, New Mexico, Arizona, and Illinois

■ Walgreens Corporate Guarantee (NYSE: WBA) – Investment Grade Tenant (S&P BBB)

■ Minimal Equity Requirement: Assumable Non Recourse Loan with 21% Equity Requirement - $5.3 Million down

■ All 6 Walgreens have identical lease expiration dates which match the loan maturity date

■ Stores are located on hard corner signalized intersections

■ Fee Simple Assets allowing for Depreciation

Investment HIgHlIgHtsInvestment OvervIewMarcus & Millichap is pleased to present a portfolio of six Walgreens located across five states comprising of a total of 87,085 square feet of retail on 10.86 acres of land. Walgreen Co. backs all six absolute NNN Leases which require no landlord responsibilities. Each lease has seven years remaining on the base term with 10 (five-year) extensions to renew. All leases have the same expiration dates and are all cross collateralized by a single non-recourse loan with a maturity date matching the expiration dates of the leases. An investor has the opportunity to purchase a NNN Portfolio of Walgreens backed credit properties with only 21 percent down payment. All six locations have very reasonable rents and are located at hard corner signalized intersections.

Walgreens, one of the nation’s largest drugstore chains, constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), the first global pharmacy-led, health, and wellbeing enterprise. More than eight million customers interact with Walgreens each day in communities across America, using the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice. Walgreens operates 8,100 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Walgreens digital business includes Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. Walgreens also manages more than 400 Healthcare Clinics and provider practice locations around the country. Walgreens Boots Alliance reported sales of $118.21 Billion in fiscal year 2017 and their credit ranking by Standard and Poor’s is BBB. 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.


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PRICING AND FINANCIAL ANALYSIS

FINANCIAL OveRvIeW

List Price $24,975,000Down Payment 21.3% / $5,325,000

Cap Rate 6.83%

Cash on Cash Return 7.54%

Current Annual Rent $1,705,616

Lease Type Absolute NNN

Type of Ownership Fee Simple

The OFFeRING

PROPeRTy ADDReSS PRICe CAP RATeCURReNT ANNUAL

ReNTCURReNT MONThLy

ReNTLeASe TyPe

LeASe COMM. DATe

LeASe eXP.DATe

2016 STORe SALeS

2017 STORe SALeS

2018 STORe SALeS

1226 W.McDermott Dr.vAllen, TX 75013

$2,980,084.9 6.829% $254,248 $21,187.33 Abs NNN 01/28/2002 01/31/2027 ~$1,880,000 ~$1,944,000 $1,877,587

1620 S. Gordon StAlvin, TX 77511

$2,980,084.9 6.829% $203,510 $16,959,17 Abs NNN 01/28/2002 01/31/2027 ~$3,270,000 ~$3,393,000 $3,294,163

9500 Golf Course Road NWAlbuquerque, NM 87114

$4,124,981.7 6.829% $281,695 $23,474.58 Abs NNN 01/28/2002 01/31/2027 ~$2,355,000 ~$2,364,000 $2,371,637

1438 N. Lewis AveTulsa, OK 74110

$3,681,886.1 6.829% $251,436 $20,953 Abs NNN 01/28/2002 01/31/2027 ~$1,813,000 ~$1,773,000 $1,632,758

20266 N. Lake Pleasant RdPeoria, AZ 85382

$3,837,999.7 6.829% $262,097 $21,841.42 Abs NNN 01/28/2002 01/31/2027 ~$1,710,000 ~$1,700,000 $1,510,873

4814 N. Sheridan RdPeoria, IL 61614

$6,628,056.8 6.829% $452,630 $37,719.17 Abs NNN 01/28/2002 01/31/2027 ~$2,944,000 ~$2,787,000 $2,730,652

$24,975,000 6.83% $1,705,616 $142,135


4


Assumable Financing Information

Original Loan Amount (11/01/2016) $21,000,000

Current Loan Amount as of August 2020 $19,650,000

Down Payment Required $5,325,000

Interest Rate 4.68%

Amortization Schedule 30 years

Balance at Maturity (01/06/2027) $16,800,000

Net Operating Income $1,705,616

Debt Service $1,303,939

Cash Flow After Debt Service $401,677

Cash on Cash Return 7.54%

Principal Reduction in First Year of Ownership $380,424

Total Return Including Principal Reduction $782,101

Total IRR 14.69%

*Acquisition at List Price

RESEARCH AbOUT

5This 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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap ZAA0390892

AbOUT WALGReeNSThe It would be impossible to tell the story of Walgreens drugstores without elling the story of Charles R Walgreen, Sr the man who started it all Walgreen’s drugstore was located in Barrett’s Hotel at Cottage Grove and Bowen Avenue on Chicago’s South Side. By every account, Walgreen succeeded brilliantly, simply by practicing what he preached and instituting what he felt were clearly needed innovations New, bright lights were installed to create a cheerful, warm ambiance in the store Each customer was personally greeted by Walgreen or his colleague, Arthur C Thorsen Aisles were widened, creating a spacious, airy, welcoming feeling - a far cry from the cramped interiors of other drugstores Generations of customers and employees hold fond memories of trips to the Walgreens soda fountain and prescriptions filled by the friendly local pharmacist. Most of all, they remember Walgreens, a welcome, dependable presence in countless neighborhoods across the country for more than 100 years. It is the Historical Foundation’s aim to build an understanding of early Walgreens store culture and to help educate the public about the role Walgreens played in the history of retail pharmacy. Walgreens is America’s leading provider of the most convenient access to consumer goods and services, and pharmacy, health and wellness services Walgreens stores provide patients with all of heir prescription needs in one place without sacrificing the safety, service or convenience of their nearby neighborhood drugstore.

Name Walgreens

Ownership Public

Stock Symbol WbA

Sales Volume $131.5 billion (2017)

Net Worth $33.4 billion

Board NySe

Tenant Corporate Store

HQ Deerfield, IL

Number of Locations 9,560+

Web Site www.walgreens.com

FOUNDED IN 1901


6


Walgreens 9500 GOLF COURSe RD, ALbUqUeRqUe, NeW MeXICO 87114

PROPeRTy DeTAILS

Lot Size 84,071 SF (1.93 Acres)

Rentable Square Feet 15,120 SF

Price/SF $272.82

Year Built 2000

ReNT INCReASeS MONThLy ReNT ANNUAL ReNT

01/28/2002 - 01/31/2027 (CURRENT) $23,475 $281,695

01/28/2027 - 01/31/2032 (OPTION 1) $23,475 $281,695

01/28/2032 - 01/31/2037 (OPTION 2) $23,475 $281,695

01/28/2037 - 01/31/2042 (OPTION 3) $23,475 $281,695

01/28/2042 - 01/31/2047 (OPTION 4) $23,475 $281,695

01/28/2047 - 01/31/2052 (OPTION 5) $23,475 $281,695

01/28/2052 - 01/31/2057 (OPTION 6) $23,475 $281,695

01/28/2057 - 01/31/2062 (OPTION 7) $23,475 $281,695

01/28/2062 - 01/31/2067 (OPTION 8) $23,475 $281,695

01/28/2067 - 01/31/2072 (OPTION 9) $23,475 $281,695

01/28/2072 - 01/31/2077 (OPTION 10) $23,475 $281,695

base Rent ($18.63 /SF) $281,695

Net Operating Income $281,695.00

TOTAL ANNUAL ReTURN CAP 6.83% $281,695

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT

Tenant Trade Name Walgreens


Ownership Public

Guarantor Corporate Guarantee

Lease Type NNN

Lease Term 25 Years

Lease Commencement Date 01/28/2002

Rent Commencement Date 01/28/2002

Expiration Date of Base Term 01/31/2027

Increases None

Options 10 Five-Year Options

Term Remaining on Lease 7+ Years

Property Type Net Leased Drug Store

Landlord Responsibility None

Tenant Responsibility All

Right of First Refusal Yes

FINANCIAL OveRvIeW

List Price $4,124,981.7Down Payment 100% / $4,124,981.7

Cap Rate 6.83%


9500 Golf Course Rd, Albuquerque, NM 87114


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EXECUTIVE SUMMARY

■ Dense, Affluent Demographics: More than 78,000 People in a Three Mile Radius with Average Household Income Exceeding $95,000 Per Year

■ Exposure to More than 32,000 Vehicles Per Day

■ Strong Population Growth: One Mile Population has grown by more than 29% Since 2010 and expected to grow an additional 5% by 2024

■ Multiple Points of Ingress and Egress

■ Surrounded by Numerous national retailers including Sonic, Valvoline, Peter Piper Pizza, Church’s Chicken and Speedway

Investment HIgHlIgHtsInvestment OvervIewAlbuquerque is the largest city in New Mexico located along the Rio Grande in west-central New Mexico. Population here is over 550,000 Residents. Average Household income in Albuquerque is $84,108 and Albuquerque is home to Intel Corporation’s largest manufacturing facility. Albuquerque is a growing center for the high-tech industry and is also strong in the fields of nuclear research, banking and tourism.

Albuquerque is located at the intersection of two major interstate highways, and as such it is the major commercial, service and financial center for the state providing over half of the state’s economic activity.

Another strong component of Albuquerque is the University of New Mexico which has its main campus at downtown Albuquerque and several campuses throughout New Mexico with educational programs in 225 areas.

9500 Golf Course Rd, Albuquerque, NM 87114


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PROPeRTy PhOTOSRESEARCH 9500 Golf Course Rd, Albuquerque, NM 87114


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LOCAL STReeT AeRIALRESEARCH 9500 Golf Course Rd, Albuquerque, NM 87114

POPULATION PROFILeDEMOGRAPHICS 9500 Golf Course Rd, Albuquerque, NM 87114

1 Miles 3 Miles 5 MilesPOPULATION

2023 Projection 14,399 95,254 204,1372018 Estimate 13,030 82,239 180,9802010 Census 12,305 77,455 171,4952000 Census 9,452 49,345 121,676

INCOMEAverage $101,584 $92,817 $85,968Median $78,392 $70,295 $64,614Per Capita $38,485 $35,349 $33,860

HOUSEHOLDS2023 Projection 5,457 36,285 80,3842018 Estimate 4,936 31,229 70,7842010 Census 4,684 29,483 67,3262000 Census 3,421 18,282 46,338

HOUSING2018 $256,570 $230,868 $222,481

EMPLOYMENT2018 Daytime Population 8,267 56,576 141,062

2018 Unemployment 3.00% 5.47% 5.35%2018 Median Time Traveled 27 27 26

RACE & ETHNICITYWhite 75.62% 72.57% 72.34%Native American 0.09% 0.08% 0.08%African American 3.34% 3.24% 2.72%Asian/Pacific Islander 2.91% 2.38% 2.10%



11


Walgreens 20266 N. LAKe PLeASANT ROAD, PeORIA, ARIZONA 85382

PROPeRTy DeTAILS



Price/SF $275.82

Year Built 2000

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT



Ownership Public


Lease Type NNN

Lease Term 25 Years




Increases None






Right of First Refusal N/A

FINANCIAL OveRvIeW


Cap Rate 6.83%


20266 N. Lake Pleasant Road, Peoria, AZ 85382


01/28/2002 - 01/31/2027 (CURRENT) $21,841 $262,097

01/28/2027 - 01/31/2032 (OPTION 1) $21,841 $262,097

01/28/2032 - 01/31/2037 (OPTION 2) $21,841 $262,097

01/28/2037 - 01/31/2042 (OPTION 3) $21,841 $262,097

01/28/2042 - 01/31/2047 (OPTION 4) $21,841 $262,097

01/28/2047 - 01/31/2052 (OPTION 5) $21,841 $262,097

01/28/2052 - 01/31/2057 (OPTION 6) $21,841 $262,097

01/28/2057 - 01/31/2062 (OPTION 7) $21,841 $262,097

01/28/2062 - 01/31/2067 (OPTION 8) $21,841 $262,097

01/28/2067 - 01/31/2072 (OPTION 9) $21,841 $262,097

01/28/2072 - 01/31/2077 (OPTION 10) $21,841 $262,097

base Rent ($18.84 /SF) $262,097




13

EXECUTIVE SUMMARY

■ Dense and Affluent Population: Three Mile Population Exceeds 76,000 People with an Average Household Income Exceeding $76,000 Per Year

■ Explosive Population Growth: 1 Mile Population has increased by 20% from 2010 to 2019 and expected to grow an additional 9% by 2024

■ Hard Corner Signalized Intersection with Traffic Counts Exceeding 24,000 Vehicles Per Day

■ Surrounded by numerous national tenants including Basha’s, Nextcare Urgent Care, The UPS Store, Grease Monkey, and The UPS Store

Investment HIgHlIgHtsInvestment OvervIewPeoria is a booming city located in a suburb of Northwest, Phoenix. With a population of over 179,000 residents, it is known for its high quality of life and diverse workforce. Peoria is the 9th largest city in Arizona and is one of several cities that make up the greater Phoenix Metropolitan Area.

Peoria is known for its strong employment base in the Health Care Industry and the 185-acre Plaza del Rio Health care Campus makes its home there. It is the largest off-hospital campus medical center in Arizona. Major employers in Peoria include Walmart, Younger Brothers, Fry’s Food Stores, Brookdale Senior Living, Peoria Unified School District, and The City of Peoria. Peoria is also well known for its exciting Entertainment District located in the West Valley of the Phoenix Metropolitan Area.

20266 N. Lake Pleasant Road, Peoria, AZ 85382


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PROPeRTy PhOTOSRESEARCH 20266 N. Lake Pleasant Road, Peoria, AZ 85382


15

LOCAL STReeT AeRIALRESEARCH 20266 N. Lake Pleasant Road, Peoria, AZ 85382

POPULATION PROFILeDEMOGRAPHICS 20266 N. Lake Pleasant Road, Peoria, AZ 85382





HOUSING2018 $224,418 $222,283 $221,302






17


Walgreens 4814 N. SheRIDAN RD,, PeORIA, ILLINOIS 61614

PROPeRTy DeTAILS



Price/SF $438.36

Year Built 2000

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT



Ownership Public


Lease Type NNN

Lease Term 25 Years




Increases None







FINANCIAL OveRvIeW


Cap Rate 6.83%


4814 N. Sheridan Rd, Peoria, IL 61614


01/28/2002 - 01/31/2027 (CURRENT) $37,719 $452,630

01/28/2027 - 01/31/2032 (OPTION 1) $37,719 $452,630

01/28/2032 - 01/31/2037 (OPTION 2) $37,719 $452,630

01/28/2037 - 01/31/2042 (OPTION 3) $37,719 $452,630

01/28/2042 - 01/31/2047 (OPTION 4) $37,719 $452,630

01/28/2047 - 01/31/2052 (OPTION 5) $37,719 $452,630

01/28/2052 - 01/31/2057 (OPTION 6) $37,719 $452,630

01/28/2057 - 01/31/2062 (OPTION 7) $37,719 $452,630

01/28/2062 - 01/31/2067 (OPTION 8) $37,719 $452,630

01/28/2067 - 01/31/2072 (OPTION 9) $37,719 $452,630

01/28/2072 - 01/31/2077 (OPTION 10) $37,719 $452,630

base Rent ($29.94 /SF) $452,630




18

EXECUTIVE SUMMARY

■ Located minutes from UnityPoint Health Proctor, a 220 Bed Hospital and across the street from Notre Dame High School with 759 Students

■ Situated on a Hard Corner Signalized Intersection with Traffic Counts Exceeding 31,000 Vehicles Per Day

■ Five Minutes Away from Illinois Central College – Peoria Campus – with more than 13,000 Students

■ Very Strong Reported Store Sales

Investment HIgHlIgHtsInvestment OvervIewPeoria is city in Illinois located along the Illinois River and 165 Miles southwest of Chicago and 70 miles North of Springfield, the state capital of Illinois. With a growing population of over 120,000, Peoria is the 6th largest city in Illinois. Average Household Income in Peoria is $76,417.

Peoria is a very strong manufacturing city with over 200 diverse manufacturing companies that produce 1,000 diverse products. Peoria is headquarters to earth-moving equipment makers Caterpillar and Hoerr Machinery, two of the largest companies of its kind in the United States. These companies ship out over $2 Billion in products annually.

Peoria is also known as an important livestock and grain exporting area. Peoria is located in a very fertile agricultural region of the country with corn and soybeans being the major crops grown here. Peoria is also home to rich bituminous coal fields which are estimated to hold reserves in coal that will last for over 150 more years for worldwide distribution.

4814 N. Sheridan Rd, Peoria, IL 61614


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PROPeRTy PhOTOSRESEARCH 4814 N. Sheridan Rd, Peoria, IL 61614


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LOCAL STReeT AeRIALRESEARCH 4814 N. Sheridan Rd, Peoria, IL 61614

POPULATION PROFILeDEMOGRAPHICS 4814 N. Sheridan Rd, Peoria, IL 61614





HOUSING2018 $148,262 $124,245 $126,885






22


Walgreens 1438 N. LeWIS AveNUe, TULSA, OKLAhOMA 74110

PROPeRTy DeTAILS



Price/SF $243.51

Year Built 1999

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT

FINANCIAL OveRvIeW


Cap Rate 6.83%


1438 N. Lewis Ave, Tulsa, OK 74110



Ownership Public


Lease Type NNN

Lease Term 25 Years




Increases None








01/28/2002 - 01/31/2027 (CURRENT) $20,953 $251,436

01/28/2027 - 01/31/2032 (OPTION 1) $20,953 $251,436

01/28/2032 - 01/31/2037 (OPTION 2) $20,953 $251,436

01/28/2037 - 01/31/2042 (OPTION 3) $20,953 $251,436

01/28/2042 - 01/31/2047 (OPTION 4) $20,953 $251,436

01/28/2047 - 01/31/2052 (OPTION 5) $20,953 $251,436

01/28/2052 - 01/31/2057 (OPTION 6) $20,953 $251,436

01/28/2057 - 01/31/2062 (OPTION 7) $20,953 $251,436

01/28/2062 - 01/31/2067 (OPTION 8) $20,953 $251,436

01/28/2067 - 01/31/2072 (OPTION 9) $20,953 $251,436

01/28/2072 - 01/31/2077 (OPTION 10) $20,953 $251,436

base Rent ($16.63 /SF) $251,436




23

EXECUTIVE SUMMARY

■ Hard Corner Signalized Intersection with Traffic Counts Exceeding 27,000 Vehicles Per Day

■ Strong Neighborhood location across the street from a Save a Lot Grocery Anchored Shopping Center

■ Dense Population: 3 Mile Radius has population exceeding 87,000 People with 5% projected growth by 2024

■ Average Household Income Exceeds $60,000 in a Five Mile Radius

Investment HIgHlIgHtsInvestment OvervIewTulsa is a city located in Northeastern Oklahoma on the Arkansas River and the 2nd largest city in Oklahoma. It is also the 47th most populous city in the U.S. with a population of over 420,000 residents. The Metropolitan area surrounding Tulsa has a population of 982,521 and Tulsa provides the area with commerce, transportation and financial services.

Tulsa encompasses the growing industries of aerospace, health care, energy, machinery, electrical equipment, transportation, distribution and logistics. Headquartered in Tulsa are Williams Companies, SemGroup, ONE Gas, Syntroleum, ONEOK, Laredo Petroleum, Samson resources, Helmerich & Payne, Magellan Midstream partners, WPX Energy and Excel Energy. Tulsa’s income level is 11 percent above the National Average and Tulsa is a great place to call home with a cost of living 4 percent below.

1438 N. Lewis Ave, Tulsa, OK 74110


24

PROPeRTy PhOTOSRESEARCH 1438 N. Lewis Ave, Tulsa, OK 74110


25

LOCAL STReeT AeRIALRESEARCH 1438 N. Lewis Ave, Tulsa, OK 74110

POPULATION PROFILeDEMOGRAPHICS 1438 N. Lewis Ave, Tulsa, OK 74110





HOUSING2018 $51,164 $82,032 $104,673






27


Walgreens 1226 W. MCDeRMOTT DRIve, ALLeN, TeXAS 75013

PROPeRTy DeTAILS



Price/SF $267.75

Year Built 1999

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT

FINANCIAL OveRvIeW


Cap Rate 6.83%


1226 W. McDermott Dr., Allen TX 75013



Ownership Public


Lease Type NNN

Lease Term 25 Years




Increases None








01/28/2002 - 01/31/2027 (CURRENT) $21,187 $254,248

01/28/2027 - 01/31/2032 (OPTION 1) $21,187 $254,248

01/28/2032 - 01/31/2037 (OPTION 2) $21,187 $254,248

01/28/2037 - 01/31/2042 (OPTION 3) $21,187 $254,248

01/28/2042 - 01/31/2047 (OPTION 4) $21,187 $254,248

01/28/2047 - 01/31/2052 (OPTION 5) $21,187 $254,248

01/28/2052 - 01/31/2057 (OPTION 6) $21,187 $254,248

01/28/2057 - 01/31/2062 (OPTION 7) $21,187 $254,248

01/28/2062 - 01/31/2067 (OPTION 8) $21,187 $254,248

01/28/2067 - 01/31/2072 (OPTION 9) $21,187 $254,248

01/28/2072 - 01/31/2077 (OPTION 10) $21,187 $254,248

base Rent ($18.28 /SF) $254,248




28

EXECUTIVE SUMMARY

■ Dense and Affluent Demographics: 15,834 People in a One Mile Radius with Household Income Exceeding $132,000 Per Year

■ Explosive Population Growth: 1 and 3 Mile Populations have increased by 25% from 2010 to 2019 and are expected to grow another 13% by 2024

■ Hard Corner Signalized Intersection with Traffic Counts in Excess of 36,000 Vehicles Per Day

■ Located next to a Kroger Anchored Shopping Center and surrounded by numerous national retailers including 7-Eleven, Sonic, Chase, Regions Bank, Firestone and Pizza Hut

■ Texas is a No Income Tax State

Investment HIgHlIgHtsInvestment OvervIewAllen is a city 25 miles north of downtown Dallas located on U.S. 75 and the city encompasses 27 square miles. Allen is the 4th largest city in Collin County and one of the fastest growing cities in the nation. The population of Allen, Texas is over 99,882 residents with an Average household income of over $125,872 per year. Allen is located in a prime spot with direct access to The George Bush Tollway and the Sam Rayburn Tollway as well as The Metroplex, Love Field, and Dallas/Ft. Worth International Airport.

Popular tourist attractions in Allen include the Heritage Farmstead Museum, The Arbor Hills Nature Preserve with miles of trails and Lake Lavon with boating, swimming and camping.

1226 W. McDermott Dr., Allen TX 75013


29

PROPeRTy PhOTOSRESEARCH 1226 W. McDermott Dr., Allen TX 75013


30

LOCAL STReeT AeRIALRESEARCH 1226 W. McDermott Dr., Allen TX 75013

POPULATION PROFILeDEMOGRAPHICS 1226 W. McDermott Dr., Allen TX 75013





HOUSING2018 $343,687 $282,815 $268,246






32


Walgreens 1620 S. GORDON STReeT, ALvIN, TeXAS 77511

PROPeRTy DeTAILS



Price/SF $214.32

Year Built 1999

PROPeRTy ReNT DATA

Walgreens

LeASe AbSTRACT

FINANCIAL OveRvIeW


Cap Rate 6.83%


1620 S. Gordon St., Alvin TX 77511



Ownership Public


Lease Type NNN

Lease Term 25 Years




Increases None








01/28/2002 - 01/31/2027 (CURRENT) $16,959 $203,510

01/28/2027 - 01/31/2032 (OPTION 1) $16,959 $203,510

01/28/2032 - 01/31/2037 (OPTION 2) $16,959 $203,510

01/28/2037 - 01/31/2042 (OPTION 3) $16,959 $203,510

01/28/2042 - 01/31/2047 (OPTION 4) $16,959 $203,510

01/28/2047 - 01/31/2052 (OPTION 5) $16,959 $203,510

01/28/2052 - 01/31/2057 (OPTION 6) $16,959 $203,510

01/28/2057 - 01/31/2062 (OPTION 7) $16,959 $203,510

01/28/2062 - 01/31/2067 (OPTION 8) $16,959 $203,510

01/28/2067 - 01/31/2072 (OPTION 9) $16,959 $203,510

01/28/2072 - 01/31/2077 (OPTION 10) $16,959 $203,510

base Rent ($14.64 /SF) $203,510




33

EXECUTIVE SUMMARY

■ Affluent Houston Suburb with Strong 13% Projected Population Growth in a One Mile Radius

■ Average Household Income Exceeds $74,000 in a Five Mile Radius

■ Hard Corner Signalized Intersection with more than 22,000 Vehicles Per Day

■ Infill neighborhood location next to a HEB Supermarket and down the street from Alvin Community College (5,709 Students)

■ Texas is a No Income Tax State

Investment HIgHlIgHtsInvestment OvervIewAlvin is a city in Texas located in the Metropolitan Area of Houston-The Woodlands-Sugar Land and the Gulf Coast Region of Texas.

Places of interest in Alvin include the 1940 Air terminal Museum, The Brazoria County Museum and The Space Center in Houston. Other popular tourist areas include The Armand Bayou Nature Center, Galveston Island State park and Hermann Park. Located just minutes from Alvin is George Bush Intercontinental Airport, Alvin County Community College, San Jacinto College and the University of Houston.

Alvin is part of the Brazoria County in the State of Texas with a population of over 354,195 residents.

1620 S. Gordon St., Alvin TX 77511


34

PROPeRTy PhOTOSRESEARCH 1620 S. Gordon St., Alvin TX 77511


35

LOCAL STReeT AeRIALRESEARCH 1620 S. Gordon St., Alvin TX 77511

POPULATION PROFILeDEMOGRAPHICS 1620 S. Gordon St., Alvin TX 77511





HOUSING2018 $122,877 $143,725 $158,096





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.

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.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.

NET LEASE DISCLAIMER

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 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.

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

NON-ENDORSEMENT NOTICE

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


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.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.

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

SPECIAL COVID-19 NOTICE

exclusively listedExclusivEly listEd by:

OFFICES NATIONWIDEwww.marcusmillichap.com

GABRIEL BRITTI Senior Managing Director Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

RONNIE ISSENBERG Senior Managing Director Senior Director, National Retail GroupMIAMI OFFICEOffice: (786) [email protected]

Broker of record: Mark MccoyMarcus & Millichap reis300 ThrockMorTon sTreeTsuiTe 1500ForT WorTh, TX 76102Tel 817-932-6148license: 181981

Broker of record: ryan sarbinoFFMarcus & Millichap reis2398 easT caMelback roadsuiTe 300phoeniX, aZ 85016Tel (678) 687-6750license: br675146000

Broker of record: sTeven WeinsTockMarcus & Millichap reisone Mid-aMerica plaZasuiTe 200oakbrook Terrace, il 60181Tel 630-570-2250license: 471.011175

Broker of record: TiMoThy speckMarcus & Millichap reis oF nevada, inc.5001 spring valley road, suiTe 100Wdallas, TX 75244Tel: 972-755-5200license: 9002994

Broker of record: MaTTheW reevesMarcus & Millichap reis5600 eubank boulevard ne,suiTe 200albuquerque, nM 87111Tel: 505-445-6333license: 19583

Documents

Walgreens - Portfolio · 2020-06-18 · Offering memOrandum Walgreens Absolute NNN Portfolio Walgreens - Portfolio 1438 N. Lewis Ave, Tulsa, OK 74110 1620 S. Gordon St, Alvin, TX