Net Lease Walgreens Miami

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

WalgreensWalgreensWalgreensWalgreens 15050 Biscayne Blvd.15050 Biscayne Blvd.15050 Biscayne Blvd.15050 Biscayne Blvd.

North Miami BNorth Miami BNorth Miami BNorth Miami Beeeeach, FL 33181ach, FL 33181ach, FL 33181ach, FL 33181 ((((MiamiMiamiMiamiMiami MSA)MSA)MSA)MSA)

CONFIDENTIAL OFFERING MEMORANDUM

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Assumable Financing 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



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



The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located in North Miami Beach, Florida. The lease features a rare 11% rental escalation in the primary term of the lease as well as 5% rental escalations every ten years after the primary term. The 14,550 square foot Walgreens was built in 2010 and benefits from its location within a primary retail trade area of Miami. The trade area features Publix, Costco, Target and the Lamborghini dealership adjacent to the property.

The property is located along Biscayne Boulevard, a primary north-south thoroughfare with 52,000 vehicles passing the site daily. There are curb cuts for ingress and egress along Biscayne Boulevard and 151st Street. The property is positioned in a dense in-fill area with approximately 400,000 people living within five miles of the property. Adjacent to the property is Lamborghini Miami and Prestige Imports, the nation’s top selling Audi dealership. Biscayne Commons, a Publix and PETCO anchored shopping center is located directly across the street from the property. Target and Costco are the other regional retail attractions to the trade area. Florida International University-Biscayne Bay Campus (7,000 students) is less than one and one-half miles from the property and this is the closest Walgreens to the campus. Additionally, directly east of the property is Biscayne Landing, a development site slated for 3,550 residential units, 750,000 square feet of retail, 300 hotel rooms and 400,000 square feet of commercial space.

Walgreens’s original lease term was for twenty-five years with fifty years of renewal options and the lease expires in February 2035. The net operating income increases by 11% in March 2020 as well as 5% every ten years starting in March 2035. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $27 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.

• Located in a dense infill area of Miami

• Rare 11% rental escalation in the primary term of the lease and 5% escalations in each option period

• Investment grade company with an S&P Rating of A

• No landlord responsibilities

• 52,000 vehicles per day pass the site daily along Biscayne Boulevard

• Approximately 400,000 people living within five miles of the property

• Over 22 years remaining on the primary term of the lease

• Nearby retailers include Target, Costco, Publix and PETCO

• Adjacent to Lamborghini Miami and the highest volume Audi dealership in the United States

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $10,912,500

Cap Rate: 6.00%

Net Operating Income:: NOI Escalation Date

$ 654,750

$ 727,500 3/1/2020

$ 763,875 3/1/2035 (Option Period)

$ 802,069 3/1/2045 (Option Period)

$ 842,172 3/1/2055 (Option Period)

$ 884,281 3/1/2065 (Option Period)

$ 928,495 3/1/2075 (Option Period)

Renewal Options: Fifty 1-Year

Lease Commencement Date: March 1, 2010

Lease Expiration Date: February 28, 2035

Tenant: Walgreens

Credit Rating: A

Year Built 2010

Lease Type: NNN

Rentable Square Feet: 14,550 SF

Land Size: 1.20 acres

Parking: 50 spaces

Financing: Assumable non-recourse financing in-place

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



This Walgreens property is subject to existing non-recourse financing

that must be assumed with the following terms:

Original Loan Balance: $6,950,000

Loan Balance (September 2012): $6,814,178

Maturity Date: December 31, 2020

Interest Rate: 5.76%

Amortization: 30 Year

Loan to Value: 62%

Equity Requirement: $4,106,216

Loan Balance at Maturity: $5,791,245

Assumption Fee: 1%

Recourse: None

ASSUMABLE FINANCING OVERVIEW

ASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEW



AERIAL

AERIALAERIALAERIALAERIAL



SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAPMAPMAPMAP

MAP



Website: www.walgreens.com

Number of Locations: 8,261

Stock Symbol: WAG : NYSE

Standard & Poor’s Rating: A

Market Capitalization: $27 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



PopulationPopulationPopulationPopulation 1111----mi.mi.mi.mi. 3333----mi.mi.mi.mi. 5555----mimimimi

Total Population 13,709 173,254 396,512 Total Households 4,669 66,758 150,191

IncomeIncomeIncomeIncome

Median Household Income $32,437 $39,975 $41,944 Average Household Income $41,802 $56,008 $58,171

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

Miami International Airport and the Port of Miami are among the nation's busiest ports of entry, especially for cargo from South America and the Caribbean. As of 2011, the Port of Miami accounts for 176,000 jobs and has an annual economic impact in Miami of $18 billion. It is the 11th-largest cargo container port in the United States. In 2010, a record 4.33 million passengers traveled through the Port of Miami. For more than two decades, the Port of Miami, known as the "Cruise Capital of the World," has been the number one cruise passenger port in the world, accommodating some of the world's largest cruise ships and operations, and is currently the busiest in both passenger traffic and cruise lines.

http://www.miamigov.com/home/

MiamiMiamiMiamiMiami is a city located on the Atlantic coast in southeastern Florida and the county seat of Miami-Dade County, the most populous county in Florida and the eighth-most populous county in the United States with a population of 2,500,625. At the time of the 2010 U.S. Census, the Miami MSA had a population of 5,564,635 making the Miami metropolitan area is the most populous in Florida and in the Southeastern United States as well as the eighth-most populous in the United States.

Miami is a major center and a leader in finance, commerce, culture, media, entertainment, the arts, and international trade. According to a 2009 UBS study of 73 world cities, Miami was ranked as the richest city in the United States, and the world's fifth-richest city in terms of purchasing power. Downtown Miami and South Florida are home to the largest concentration of international banks in the United States, and is home to many large companies both nationally and internationally.

Several large companies are headquartered in Miami, including Burger King, Celebrity Cruises, Carnival Corporation, Carnival Cruise Lines, Lennar, Norwegian Cruise Lines, Oceania Cruises, Perry Ellis International and Royal Caribbean Cruise Lines. Additionally, because of its proximity to Latin America, Miami serves as the headquarters of Latin American operations for more than 1,400 multinational corporations, including AIG, American Airlines, Cisco, Disney, Exxon, FedEx, Kraft Foods, LEO Pharma Americas, Microsoft, Yahoo, Oracle, SBC Communications, Sony, Symantec, Visa International, and Wal-Mart.



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

Real Estate

Net Lease Walgreens Miami