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NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING
Walgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking LotWalgreens Ground Lease (Parking Lot)))) 3136 West 553136 West 553136 West 553136 West 55thththth StreetStreetStreetStreet Chicago, IL 60629Chicago, IL 60629Chicago, IL 60629Chicago, IL 60629
NET LEASED INVESTMENT OFFERING
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Aerial
Site Plan
Map
Tenant Profile
Demographic Comparison Report
Location Overview
Contact Information
TABLE OF CONTENTS
TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
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The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.
CONFIDENTIALITY & DISCLAIMER
CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
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The Boulder Group is pleased to exclusively offer for sale a rare Walgreens ground lease located in Chicago, Illinois. The subject property is an expanded portion of the existing Walgreens parking lot with 13 years of lease term remaining. The property is located less than ten miles southwest of downtown Chicago and three miles from Midway International Airport. The ground lease is located adjacent to the existing Walgreens building. The existing property is a strong performing store as evidenced by an extensive renovation to the property in 2011 and the need for additional parking at this location.
The adjacent Walgreens is located on 55th Street and Kedzie Avenue directly west of the ground leased parking lot. This Walgreens was built in 1999 and was extensively renovated in 2011 with $1 million worth of renovations performed on the property. This is a strong performing 24 Hour location for Walgreens. Walgreens is committed to this location as evidenced by ground leasing the additional parking lot longer than the primary duration of the building lease. The current parking lot has become overcrowded due to the Walgreens popularity, hence the expansion of the additional parking area.
The parking lot is located at the signalized intersection of heavily trafficked 55th Street and Kedzie Avenue. This intersection has average daily traffic volumes in excess of 53,000 vehicles. 55th Street also has direct full interchange with Interstate 90/94 (282,500 vehicles per day) and Interstate 55 (150,000 vehicles per day). 55th Street is the primary east-west thoroughfare in this neighborhood.
The new ground rent commences October 2012. Walgreens has an absolute net (NNN) ground lease until March 31, 2025 with thirty-five years of renewal options. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $25 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.
• Rare long term Walgreens ground lease
• Located in a dense infill area Chicago at a signalized intersection
• Low absolute dollar amount for a Walgreens property
• Walgreens performed $1 million dollars of renovations at this location in 2011
• Investment grade tenant (S&P: A)
• Long term ground lease with 13 years remaining
• No landlord responsibilities
• Average daily traffic counts over 53,000 at intersection of 55th & Kedzie
• Significant barriers to entry
• Over 870,000 people living within five miles of the property
• Strong performing Walgreens location
INVESTMENT HIGHLIGHTS
EXECUTIVE SUMMARY
EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
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Price: $1,190,000
Cap Rate: 6.26%
Net Operating Income: $74,544
Rental Escalations: None
Lease Commencement Date: October 1, 2012
Lease Expiration Date: March 31, 2025
Tenant: Walgreens
Credit Rating: A
Lease Type: Ground Lease - NNN
Land Acreage: 10,890 square feet
PROPERTY OVERVIEW
PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW
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AERIAL
AERIALAERIALAERIALAERIAL
NET LEASED INVESTMENT OFFERING
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SITE PLANSITE PLANSITE PLANSITE PLAN
SITE PLAN
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MAP
MAPMAPMAPMAP
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Website: www.walgreens.com
Number of Locations: 8,261
Stock Symbol: WAG : NYSE
Standard & Poor’s Rating: A
Market Capitalization: $25 Billion
Walgreens is engaged in retail drugstore business. As of November 30, 2011, the Company operated 8,261 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. The company also operates worksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health Systems subsidiary manages more than 715 in-store convenient care clinics and worksite health and wellness centers. The Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugs and general merchandise. General merchandise includes, among other things, household items, personal care, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers the choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, and through the Internet. In March 2011, Walgreens announced that it has completed the acquisition Drugstore.com.
TENANT PROFILE
TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE
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PopulationPopulationPopulationPopulation 1111----mi.mi.mi.mi. 3333----mimimimi 5555----mimimimi
Total Population 62,037 335,446 871,486 Total Households 14,470 90,864 256,792
IncomeIncomeIncomeIncome
Median Household Income $51,384 $48,175 $46,290 Average Household Income $59,058 $56,119 $54,974
DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT
The metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness.
www.cityofchicago.com
Chicago Chicago Chicago Chicago is the most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most popul9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald's, MServices and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the world in terms of traffic movement.
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LOCATION OVERVIEW
LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW
metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks
rs based on people, business environment, market access, infrastructure
is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald's, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the world in terms of traffic movement.
LOCATION OVERVIEW
metro is also a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks
rs based on people, business environment, market access, infrastructure
populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago
ated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune
otorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O'Hare International Airport is the second busiest airport in the
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666 Dundee Road Suite 1801 Northbrook, IL 60062
Randy Blankstein President 847.562.0003 [email protected]
Jimmy Goodman Partner 847.562.8500 [email protected]
CONTACT INFORMATION
CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION