horvath tremblay walgreens 36 hillside avenue | … · 2018-03-15 · horvath tremblay & bob...
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&HORVATH TREMBLAY WALGREENS36 HILLSIDE AVENUE | HILLSIDE, NJ
(NEW YORK CITY, MSA)
600 Market Street – Suite 686Lynnfield, MA 01940Main: 781-776-4000Fax: 781-823-0245
www.horvathtremblay.com
DAVID DWORKINLLD Enterprises, LLC
Broker of Record License No.: 10991214807License No.: 10491203999
&HORVATH TREMBLAY
BOB HORVATHExecutive Vice PresidentMA Tel: (781) 776-4003CT Tel: (203) [email protected]
TODD TREMBLAY Executive Vice PresidentDirect: (781) 776-4001Mobile:(781) [email protected]
MARK BROCKWELLExecutive Vice PresidentDirect: (305) 749-5212Mobile: (203) [email protected]
JEREMY BLACK Senior Associate MA Tel: (781) 776-4005NY Tel: (315) [email protected]
MATTHEW NADLER Senior Associate Direct: (781) 776-4006Mobile: (339) [email protected]
AARON HUNTLEYSenior Associate Direct: (781) 776-4012Mobile: (774) [email protected]
LEIGH BARCAMONTEMarketing Director Direct: (781) 776-4008 [email protected]
KYLE DANIELSONAssociateDirect: (202) 847-4200Mobile: (207) 400-7551 [email protected]
JACK THOMPSON AssociateDirect: (954) 228-1601Mobile: (617) [email protected]
BRAD CANOVAAssociateDirect: (781) 776-4017Mobile: (508) [email protected]
RJ TULLERAssociateDirect: (781) 776-4013Mobile: (207) [email protected]
PETER BUTLER Senior AssociateDirect: (704) 585-8005Mobile: (774) 487-0065 [email protected]
BRIAN AHRENS Associate Direct: (781) 776-4010Mobile: (617) 285-0515 [email protected]
LEAD AGENTS
RETAIL TEAM
KEVIN DARLINGSenior Financial AnalystDirect: (781) [email protected]
SINGLE TENANT - NET LEASEDHILLSIDE | NEW JERSEY
(NEW YORK CITY, MSA)
&HORVATH TREMBLAYEXECUTIVE SUMMARY
3Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
INVESTMENT HIGHLIGHTS ■ EXCELLENT LEASE TERM REMAINING: Walgreens has over 18+ Years remaining on their
original 20-Year lease term plus renewal options to extend the lease for up to 75 years. The Hillside Walgreens will be one of the last twenty-year lease terms as Walgreens will be exclusively executing 15-year leases going forward.
■ INVESTMENT GRADE CREDIT: Walgreens is the largest retail pharmacy, health and beauty retailer in the USA and Europe. Walgreens has a market cap of $89.3 Billion and is investment grade rated by Moody’s (Baa2) and S&P (BBB).
■ STABLE, PREDICTABLE PASSIVE INCOME: The Walgreens’ lease is Absolute NNN as the Tenant is responsible for all CAM, Taxes, Utilities, Structure, Roof and Parking Lot repair and maintenance.
■ NEW CONSTRUCTION: The newly constructed building was completed in September 2016. The subject Walgreens is a relocation from a nearby store with above average sales.
■ STRATEGIC RE-LOCATION: This relocated store is located on a highly visible corner location on Hillsdale Avenue at the on/off ramp of Route 22. The property is located along a retail corridor in a high density residential area less than a mile from the Newark Expressway, 3 miles from Newark International Airport and 15 miles from downtown Manhattan.
■ STRONG DEMOGRAPHICS: The Hillside Walgreens is located within the New York City MSA of over 20 million people. Over 300,000 people live within a 3 mile radius of the property with an average household income of $62,000.
■ SUPERIOR TRAFFIC COUNTS: More than 71,500 vehicles pass the premises daily on Route 22.
We are pleased to present the opportunity to acquire the fee simple interest in a newly constructed, triple-net leased Walgreens retail store in Hillside, New Jersey. The Walgreens triple net (NNN), twenty-year lease commenced on October 29, 2016 and includes automatic one year renewals through October 2091.
This is a relocation for Walgreens to a high visibility, corner location adjacent to the on/off ramp of Route 22 at Hillside Avenue in Hillside, New Jersey. The site is located in a high-density retail and residential location less than 1.5 miles from the Newark Expressway (I-78) and 3 miles from Newark International Airport. Additional notable retailers in the immediate area include CVS, Shop Rite Supermarket, Lowe’s, Office Depot, Toys “R” Us, McDonald’s, Wendy’s, Burger King, Taco Bell, Dunkin Donuts, and three national car dealerships.
Hillside Township is an immediate suburb of Newark, New Jersey and is part of the Greater New York Metropolitan Area which consists of over 20 million people in the most densely populated area of the United States. The new Hillsdale Walgreens’ location supports excellent local demographics and traffic counts - over 300,000 people live within a three mile radius of the property with an average household income of over $62,000. Additionally, an outstanding 71,500 vehicles pass the site along Route 22 on a daily basis.
4Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
&HORVATH TREMBLAYFINANCIAL ANALYSIS
PRICE: $8,351,851
CAP RATE: 5.40%
NOI: $451,000
TENANT: Walgreens
GUARANTOR: Corporate
OWNERSHIP TYPE: Fee Simple
LOT SIZE: 1.01± Acres
GROSS LEASEABLE SF: 14,630± SF
YEAR BUILT / RENOVATED: 2016
LEASE TYPE: Absolute NNN
RENT COMMENCEMENT DATE: 10/29/2016
LEASE EXPIRATION DATE: 10/31/2036
LEASE TERM REMAINING: 18+ Years
RENEWAL OPTIONS: 55, 1-Year Automatic Options Thru Oct 2091
PURCHASE OPTION: Tenant ROFR
EXPENSE RESPONSIBLE
CAM Tenant
Insurance Tenant
Utilities Tenant
Taxes Tenant
Roof & Structural Tenant
Parking Lot Tenant
DEMOGRAPHICS 3 MILE 5 MILE 10 MILE
2017 Population 312,216 702,292 2,059,891
2017 Avg HH Income $60,849 $66,512 $89,006
2017 Med HH Income $43,152 $45,306 $63,388
Traffic Volume (US Hwy 22) 71,526 Vehicles per day
FINANCIAL OVERVIEWWALGREENS | 36 HILLSIDE AVENUE | HILLSIDE, NJ 07205
TENANT OVERVIEW &HORVATH TREMBLAY
5Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
Key ratios and credit ratings
Credit ratings
Rating AgencyLong-TermDebt Rating
CommercialPaper Rating
Outlook
Fitch BBB F2 Stable
Moody's Baa2 P-2 Under Review
Standard & Poor's BBB A-2 Negative
Key ratios
Price & Volume
Recent Price $ 83.10
52 Week High $ 88.00
52 Week Low $ 76.26
Average Vol (M) (RTMA) 3.80
Beta 0.84
Valuations Ratios
Price/Earnings (TTM) 21.30
Price/Sales (TTM) 0.77
Price/Book (MRQ) 2.99
Price/Cash Flow (TTM) 15.00
Shared Related Items
Market Cap. (M) $ 89,827.02
Shares Out (M) 1,080.95
Float (M) 932.13
Per Share Data
Earnings (TTM) $ 3.90
Sales (TTM) $ 107.39
Book Value (MRQ) $ 27.82
Cash Flow (TTM) $ 5.55
Cash (MRQ) $ 10.94
Dividend Information
Yield % 1.80
Annual Dividend $1.50
Payout Ratio (TTM) % 38.00
Mgmt Effectiveness
Return on Equity (TTM) 14.20
Return on Assets (TTM) 5.90
Return on Investments (TTM) 8.90
Financial Strength
Quick Ratio (MRQ) 89,827.02
Current Ratio (MRQ) 1,080.95
LT Debt/Equity % (MRQ) 1,080.95
Total Debt/Equity % (MRQ) 932.13
Profitabillity
Gross Margin (TTM) % 26.60
EBIT Margin (TTM) % 5.10
Profit Margin (TTM) % 3.70
TENANT OVERVIEW &HORVATH TREMBLAY
6Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
STORE COUNT BY STATE About Walgreens
Walgreens is one of the largest drugstore chains in the U.S., with more than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging 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. Walgreens is today part of the Retail Pharmacy USA division of Walgreens Boots Alliance.
Walgreens mission is to be America’s most-loved pharmacy-led health, well-being and beauty retailer. Its purpose is to champion everyone’s right to be happy and healthy.
Facts
Prescriptions filledWalgreens filled 928 million prescriptions on a 30-day adjusted basis in fiscal 2016.
Total number of Walgreens employeesWe employ over 245,000 people.
Number of healthcare service providersWe have more than 76,000 healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health-related professionals.
Number of Balance Rewards membersWe have approximately 87 million Balance Rewards active members as of August 2016.
Geography served As of August 2016, approximately 76% of the population of the USA lives within five miles of a Walgreens.
Alabama 113Alaska 12Arizona 244Arkansas 81California 633Colorado 159Connecticut 92Delaware 64Florida 831Georgia 203Hawaii 20Idaho 39Illinois 598Indiana 190Iowa 70Kansas 69Kentucky 95Louisiana 158Maine 14Maryland 85Massachusetts 163Michigan 228Minnesota 152Mississippi 76Missouri 212Montana 13Nebraska 57
Nevada 82New York 469New Hampshire 31New Jersey 197New Mexico 72North Dakota 1North Carolina 268Ohio 247Oklahoma 114Oregon 76Pennsylvania 123Puerto Rico 120Rhode Island 25South Carolina 114South Dakota 14Tennessee 252Texas 713U.S. Virgin Islands 1Utah 48Vermont 3Virginia 140Washington 135Washington D.C. 8West Virginia 16Wisconsin 225Wyoming 10 Total 8,175
&HORVATH TREMBLAYPROPERTY PHOTOGRAPHS
7Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
&HORVATH TREMBLAYAERIAL PHOTOGRAPH
8Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
36 HILLSIDE AVENUE | HILLSIDE, NJ
CONRAIL LEHIGH LINE
MORRIS AVENUE
NORTH BROAD STREET
&HORVATH TREMBLAYAERIAL PHOTOGRAPH
9Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
36 HILLSIDE AVENUE | HILLSIDE, NJ
NEWARKLIBERTY
INTERNATIONALAIRPORT
NEW YORKCITY
NEWYORK
NEW JERSEY
14.4 MILES TO NEW YORK CITY
&HORVATH TREMBLAYSITE PLAN
10Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
NIX
ON
ROA
D
HILLSIDE AVENUE
HILLD
ALE PLA
CE
71,500± VPD
&HORVATH TREMBLAYREGIONAL MAP
11Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
WALGREENS36 HILLSIDE AVENUE - HILLSIDE, NJ
HILLSIDE
NEW YORK
NEWARK LIBERTY INTERNATIONAL
AIRPORT
NEWARK LIBERTY INTERNATIONAL
AIRPORT
JERSEY CITYNEWARK
12Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC have been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than Horvath & Tremblay and David B Zacharia of DZ Net Lease Realty, LLC and we make no representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all references to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a buyer. Buyers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.
&HORVATH TREMBLAYLOCATION OVERVIEW
Hillside is a township in Union County, New Jersey, United States. Located 1 mile east of Union, New Jersey and 3 miles southwest of Newark, New Jersey. The town is located in the Newark metropolitan area. The township is governed by a mayor and a seven-member Township Council. Hillside was incorporated as a township on Aril 3, 1913, from portions of Union Township, based on the results of a referendum held on April 29, 1913. The township was named for the surrounding hills.
While in Hillside, travelers can visit the Liberty Hall Museum, the New Jersey Performing Arts Center, or even travel to New York to enjoy the city’s sights and attractions. The Hillside Free Public Library offers a great deal of information about the town’s history and culture. The Sanford Park and the Paul Korlesky Park offer amusement facilities for both adults and children.
Residents of Hillside can attend educational facilities at the nearby Kean University. Also, within a close range are a number of other colleges and universities like Seton Hall University, Rutgers University-Newark, the New Jersey Institute of Technology, Essex County College, the University of Medicine And Dentistry Of New Jersey and Union County College.
As of 2016, the Mayor of Hillside is Angela R. Garretson, whose term of office ends December 31, 2017.
3 MILES 5 MILES 10 MILES
POPULATION
2022 Projection 318,823 718,322 2,111,231
2017 Estimate 312,216 702,292 2,059,891
2010 Census 306,675 682,583 1,985,870
HOUSEHOLDS
2022 Projection 110,462 250,528 767,204
2017 Estimate 108,153 244,822 748,183
2010 Census 106,156 237,416 720,249
INCOME
2017 Avg Household Income $60,849 $66,512 $89,006
2017 Med Household Income $43,152 $45,306 $63,388
600 Market Street – Suite 686Lynnfield, MA 01940Main: 781-776-4000Fax: 781-823-0245
www.horvathtremblay.com
DAVID DWORKINLLD Enterprises, LLC
Broker of Record License No.: 10991214807License No.: 10491203999
&HORVATH TREMBLAY
SINGLE TENANT - NET LEASEDHILLSIDE | NEW JERSEY
(NEW YORK CITY, MSA)