WALGREENS | 1798 N. PARHAM ROAD | RICHMOND, VA 23229 FOR SALE

Stuart ScheinholtzTiburon Realty Advisors388 Market Street, Suite 1300San Francisco, CA  94111

(415) 889-5399 (415) 264-9541 stuart@tiburonrealtyadvisors.comDRE #00999171

REPRESENTATIVE IMAGE

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02

Disclaimer 3

Executive Summary 4

Investment Highlights 5

About the Property 6

Property Photos 7

Aerial Map 8

Subject Neighborhood 9

Area Map 10

Site Plan 11

Lease Summary 12

Loan Summary 13

Tenant Overview 14 - 15

About Richmond 16

Demographics 17

INDEX

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 Tiburon Realty Advisors and should not be made available to any other person or entity without the written consent of Tiburon Realty Advisors.

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 information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Tiburon Realty Advisors has not verified, and will not verify, any of the information contained herein, nor has Tiburon Realty Advisors 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.

DISCLAIMER

03

The price of the property is $6,325,099. This amount is equal to 18% over the debt balance of the assumable loan as of January 25, 2018.

Equity requirement is only $964,846. The balance of the purchase price will be paid through assumption of the existing debt.

Paydown readvance available. Loan offers paydown-readvance feature allowing investors to pull out cash on tax-free basis.

Investment grade tenant with long-term lease. Property ownership available with minimal downpayment and no landlord respresponsibilities.

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04

EXECUTIVE SUMMARY

Tiburon Realty Advisors is pleased to exclusively offer for sale a Walgreens pharmacy with zero cash flow debt financing. This debt is in-place, fully-amortizing and assumable. The price of the property is $6,325,099. The property is located in a busy residential neighborhood in Richmond, Virginia. Richmond is the State Capital of Virginia and its metro area is the third most populous in the State.

The subject property is leased to Walgreens through an absolute triple net lease which is 100% guaranteed by Walgreen Company. There are no Landlord responsibilities whatsoever. The lease has about 19 years remaining of firm term and the tenant’s first option to terminate is December 31, 2036. Such termination requires 12 months written notice. Each lease renewal option is for a period of five years.

ABSOLUTE NET LEASE The lease is absolute net with no landlord responsibilities whatsoever. The tenant is responsible for all taxes, insurance, maintenance, repair and operating costs associated with the property.

NATIONAL TENANT The property is leased by Walgreens Boots Alliance, Inc. (NASDAQ: WBA), an investment grade tenant (S&P: BBB/Stable) with 2016 annual revenues of approximately $117.4 Billion.

EXCELLENT SITE LOCATIONThe property is located at a prominent intersection surrounded by residential neighborhoods in a densely populated community. Walgreens is next door to the U.S. Post Office, McDonald’s and Aldi Grocery. It is a half-mile from Parham Plaza Shopping Center (WalMart), Regency Square Shopping Center and Ridge Shopping Center. There are nearly 94,000 residents located within three miles of the property.

INVESTMENTHIGHLIGHTS

INVESTMENT HIGHLIGHTS

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ZERO CASHFLOW STRUCTURE Zero cashflow structure with readily assumable, non-recourse loan currently in place. This structure is ideal for tax deferred 1031 exchange buyers or traditional investors seeking passive losses that might be used to offset income from other real estate investments. The paydown/readvance feature is available in the assumable loan, allowing a 1031 investor to easily match their debt & equity requirement with an option to extract additional equity through re-finance.

06

ABOUT THE PROPERTY

Price: $6,325,099 This includes assumption of the zero cashflow loan which has a balance of $5,360,253 as of 1/25/2018. Equity requirement equals $964,846.

Address: 1798 N. Parham Road, Richmond, VA 23229

County: Henrico, Virginia

Rentable Area: 14,962 SF

Land Area: 1.95 ac.

Year Built: 2011

Parking: There are approximately 75 parking spaces (72 regular & 3 handicapped-accessible)

Access: There are two access points, one along N. Parham Road and another from Three Chopt Road

Zoning: B-2C—Business District (Conditional)

Ownership: Fee simple (Land & Building)

Guaranty: Walgreen Co./ Walgreens Boots Alliance

Tenant: Walgreen Co.

INVESTMENTHIGHLIGHTS

07PROPERTY PHOTOS

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QUIOCASSIN RD

EASTRIDGE RD 27,678 VPD

THREE CHOPT RD 9,500 VPD

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09SUBJECT NEIGHBORHOODThe Walgreens located at 1798 N. Parham Road is in the West End neighborhood of Richmond. The property is about 12 miles northwest of downtown. There are many restaurants, businesses and shopping centers in this area. They are mostly clustered along or near the three major thoroughfares, including Parham Road, where the property is located, which runs north-south. (The others are Broad Street road and Patterson Avenue, which run east-west.) In addition to businesses, the West End is also home to the University of Richmond (over 4,000 students), the Country Club of Virginia (private golf club) and the Virginia Museum of Fine Arts (founded in 1936).

The subject property is located at the intersection of N. Parham Road & Three Chopt Road. There is a McDonald’s and Aldi Grocery Store next door. A branch of the U.S. Post Office is behind the property. This intersection has average traffic of about 30,000 vehicles/ day.

The surrounding area consists primarily of residences with several schools and prominent shopping centers nearby. The Henrico County Public Library, Tuckahoe Middle School and Douglas Southall Freeman High School are all within walking distance of Walgreens. Regency Square Mall, an 820,000 SF shopping center, is about a mile away. This property has recently been slated for a $30 million redevelopment. Other neighboring retailers include WalMart, Staples, Advance Auto Parts, Fresh Market, Panera Bread, BP Gasoline, Wells Fargo Bank and many more. Regency Square Mall

5 MIN DRIVE1.1 MILES

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9,500 VPD

SITE

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16 MIN TO DOWNTOWN RICHMOND

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Three Chopt RdWalgreens

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SITE PLAN

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LEASE SUMMARY

Tenant: Walgreen Company

Annual Rent: $445,002

Rent Commencement: December 28, 2011

Lease Expiration: December 31, 2036

Base Lease Term: 25 years

Base Term Remaining: 19 years

Lease Type: Absolute NNN

Landlord Responsibilities: None

Renewal Options: Ten 5-year options

Building Size: 14,962 SF

Lot Size: 1.95 ac.

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LOAN SUMMARY

Original Loan Balance: $6,240,689

Loan Commencement: December 28, 2011

Lender: Wells Fargo Bank

Current Loan Balance: $5,360,253 (as of 1/25/2018)

Interest Rate: 5.11%

Annual Payment: $442,602

Loan Maturity Date: December 25, 2036

Recourse: Financing is non-recourse to Borrower

Paydown Re-Advance: Borrower has the ability to utilize the paydown/readvance feature as provided in the existing debt

TENANT OVERVIEW

Walgreens (S&P: BBB) headquartered in Deerfield, IL, is the second largest drugstore chain in the U.S., with more than 8,100

stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. In addition, the company operates more

than 400 in-store and worksite health and wellness centers that offer immunizations, prevention and wellness programs, as well

as treatments for minor injuries, illnesses and skin conditions, which managing and monitoring ongoing health conditions.

Walgreens provides consumer goods, pharmacy and wellness services through its retail drugstores, direct mail, telephone and

online platforms. The company sells prescription and non-prescription drugs and general merchandise including household

products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact

lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for

managing complex and chronic health conditions.

14TENANT OVERVIEW

TENANT OVERVIEW15

TENANT OVERVIEW

WALGREENS CORPORATE SUMMARY

Type:

Industry:

Locations:

Employees:

Revenue:

Corporate Headquarters:

Credit Rating:

Public (NASDAQ: WBA)

Drug, Health & Beauty Stores

8,100

235,000+

$117.4 B (FY 2016)

Deerfield, IL

S&P: BBB; Moody’s Baa2

In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the first global pharmacy-led, health and wellbeing enterprise. The combination brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through community pharmacy care and pharmaceutical wholesaling. Both companies have more than a century’s worth of experience in customer and patient care. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance.

In fiscal year 2016, Walgreens filled 928 million prescriptions (including immunizations). With stores located within five-miles of approximately 76 percent of Americans, and through popular online offerings and its award-winning mobile app, Walgreens interacts with 10 million customers per day. In fiscal year 2016, Walgreens reported annual revenues of $117.4 billion, which equated to a 13.4% year-over-year increase in annual sales.

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Richmond is the capital of the Commonwealth of Virginia. It is the center of the Richmond Metropolitan Statistical Area (MSA) and the Greater Richmond Region. It was incorporated in 1742, and has been an independent city since 1871.

Richmond’s estimated population in 2016 was 223,170 (fourth highest in the State). The Richmond Metropolitan Area has a population of 1,260,029, making it the third-most populous metro in the State.

Richmond is located at the fall line of the James River, 44 miles (71 km) west of Williamsburg, 66 miles (106 km) east of Charlottesville, and 98 miles (158 km) south of Washington, D.C. Surrounded by Henrico and Chesterfield counties, the city is located at the intersections of Interstate 95 and Interstate 64, and encircled by Interstate 295 and Virginia State Route 288.

Richmond's economy is primarily driven by law, finance, and government, with federal, state, and local governmental agencies, as well as notable legal and banking firms, located in the downtown area. The city is home to both the United States Court of Appeals for the Fourth Circuit, one of 13 United States courts of appeals, and the Federal Reserve Bank of Richmond, one of 12 Federal Reserve Banks.

ABOUT RICHMOND

5 Miles

3 Miles

1 Mile

DEMOGRAPHICS17

2017 SUMMARY

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

2022 SUMMARY

Population

Households

Families

Average Household Size

Owner Occupied Housing Units

Renter Occupied Housing Units

Median Age

Median Household Income

Average Household Income

3 MILES

96,652

39,569

23,352

2.35

21,527

18,041

36.8

$64,569

$90,548

3 MILES

99,622

40,761

23,850

2.35

22,118

18,643

37.7

$71,047

$101,45

1 MILE

10,776

4,392

2,700

2.45

2,430

1,962

39.2

$53,176

$66,451

1 MILE

10,992

4,457

2,719

2.47

2,465

1,992

39.9

$55,658

$74,582

5 MILES

203,152

83,133

50,604

2.39

51,466

31,667

38.6

$71,515

$98,766

5 MILES

211,346

86,342

52,199

2.39

53,273

33,069

39.5

$78,241

$111,061