rent increases in - loopnet · demographic snapshot residents average income 1 mile radius 1,736...

Walgreens Pharmacy #12528 Northern California

• ~18 Year NNN with extremely rare rent increases in primary term

• Rare 10% rental increase every ten years (in primary term and options)

• Hard corner location at signalized intersection with excellent visibility and access

• Lowe’s, Safeway, Staples and PETCO anchor the 273,000 square foot Amador Ridge regional shopping center, located just a half mile south

• True NNN lease with no management responsibilities

• Walgreens corporate, investment grade credit guarantees the rent

DeerfieldPartnersJohn GiordaniArt Griffith(888) [email protected]

Doug Finney(650) [email protected]

$12,316,000

5.29%Cap Rate

Rent Increases!Extremely Rare for Walgreens

Walgreens Pharmacy #12528 Sutter Creek, California

DeerfieldPartnersJohn Giordani • Art Griffith(888) 258-7605 • [email protected]

Doug Finney(650) 358-5250 • [email protected]

This is a rare opportunity for an investor to acquire a Walgreens drugstore property with rent increases scheduled in the lease.While99outof100Walgreens leasesareflat for the lifeof the lease, thislease has rent increases providing for appreciation of future value. See below for the scheduled rent increases.

Investment SummaryPrice $12,316,000

CAP Rate 5.29%Avg. Annual Income $651,625

Years Guaranteed ~ 18 years

Demographic Snapshot

Residents Average Income

1 Mile Radius 1,736 $64,982

3 Mile Radius 7,093 $62,159

5 Mile Radius 9,664 $66,045

Site Info & Neighboring RetailersThis Walgreens is located at the northwest corner of the signalized intersection of California State Routes 49 and104. The intersection sees average daily traffic of 23,900vehicles. The site is easily accessible via right-turn entrances frombothCaliforniaStateRoutes49and104.ThesiteisonlyonemilefromdowntownSutterCreek,andbenefitsfromtouristtrafficexitingthehighwaytoheadtodowntownSutterCreek.Chevron,ShellandUmpquaBankarelocatedintheimmediatevicinity,aswellasnumerouslocalandregionalretailers.Lowe’s, Safeway, Staples and PETCO anchor the 273,000 square foot Amador Ridge regional shopping center, located just a half mile south.




Complete Rent Schedule With Option Periods

Starts Ends YearsAnnual

NNN RentPercent Increase Return

Today - 2020 7/1/2017 6/30/2020 3 $585,000

2020 - 2030 7/1/2020 6/30/2030 10 $643,500 10.0% 5.22%

2030 - 2035 7/1/2030 6/30/2035 5 $707,850 10.0% 5.75%

Option 1 7/1/2035 6/30/2040 5 $707,850 0.0% 5.75%

Options 2 & 3 7/1/2040 6/30/2050 10 $778,635 10.0% 6.32%

Options 4 & 5 7/1/2050 6/30/2060 10 $856,499 10.0% 6.95%

Options 6 & 7 7/1/2060 6/30/2070 10 $942,148 10.0% 7.65%

Options 8 & 9 7/1/2070 6/30/2080 10 $1,036,363 10.0% 8.41%

Option 10 7/1/2080 6/30/2085 5 $1,140,000 10.0% 9.26%

Total NNN Rental Income $56,992,335

Average Annual Rent $840,182

Asking Price $12,316,000

NNN Rent Growth

Today - 2020

2020 - 2030

2030 - 2035

Option 1

Options 2 & 3

Options 4 & 5

Options 6 & 7

Options 8 & 9

Option 10 $1,140,000

$1,036,363

$942,148

$856,499

$778,635

$707,850

$707,850

$643,500

$585,000




About the Site & Neighboring RetailersThis Walgreens is located at the northwest corner of the signalized intersection of California State Routes 49and104.Theintersectionseesaveragedailytrafficof23,900vehicles.Thesiteiseasilyaccessibleviaright-turnentrancesfrombothCaliforniaStateRoutes49and104.ThesiteisonlyonemilefromdowntownSutter Creek, and benefits from tourist traffic exiting the highway to head to downtownSutter Creek.Chevron,ShellandUmpquaBankare located in the immediatevicinity,aswellasnumerous localandregionalretailers.




Amador Ridge Shopping CenterLowe’s, Safeway, Staples and PETCO anchor the 273,000 square foot Amador Ridge regional shopping center,locatedjustahalfmilesouthoftheWalgreensofferedforsale.Othertenantsintheshoppingcenterinclude:Starbucks,JackintheBox,Chipotle,BBVACompassBank,GameStop,RoundTablePizza,andmanyothers.AmadorRidgeistheonlyRegionalRetailcenterinAmadorCountyanddrawscustomersfroma35minutedrivetime.AmadorRidgehousesthelargestSafewayandonlyLowe’sintheGoldCountryregionoftheFoothills.




Limited Drugstore CompetitionWithWalgreenspendingacquisitionof 50%ofRiteAid locations, investorsare lookingclosely at thecompetitivelandscapeineachlocalmarketpriortomakingpurchasedecisions.Inthiscase,aninvestorneednotworry.There is NO Rite Aid in the trade area.

TheclosestCVS/pharmacylocationis3.3milessouthonHighway49inJackson.

TheCVS/pharmacyinJacksonis:•NOTfreestanding•NOTonahardcorner•DOESNOThaveadrive-thrupharmacy

Property Details and Lease SummaryAddress 475CaliforniaStateRoute49,SutterCreek,CA95685

Year Built 2010Building Size 14,740 Square Feet

Lot Size 1.81acresTenant Walgreens (NASDAQ:WBA)

Rent Start Date June28,2010Lease End Date June30,2085

Options to Terminate Tenantmayterminateeveryfive(5)years,withsixmonthsnotice,afterthe300thmonth(June30,2035).




RegionalMap/AboutSutterCreekSutterCreekislocated45milessoutheastofSacramento,intheheartoftheSierraFoothillWineCountry.Awonderfulbalanceofoldandnew,today’sSutterCreekmaintainsitsGoldRushfacadewhilecateringtothewantsandneedsofvisitorsfromaroundtheworld.SutterCreekissteepedinhistorybeingbornoftheCaliforniaGoldRushandnurturedbythedeeprockgoldminesofthe19th&20thcenturies.Thetownofferstouristsmanyshopsandrestaurants,andtheareaisquicklybecomingknownforbeautifulscenery,excellentwines,anda richhistoricalexperience.Manyof theoriginalbrickbuildingsstillstand.LelandStanfordwasoneofSutterCreek’smostfamousresidents.




Photos of Neighboring Retailers




Site Plan




About Walgreens Boots AllianceWalgreensBootsAllianceisthefirstglobalpharmacy-led,healthandwellbeingenterpriseintheworld.Ourpurposeistohelppeopleacrosstheworldleadhealthierandhappierlives. Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots inDecember2014.Thistransactionbroughttogethertwoleadingcompanieswithiconicbrands,complementary geographic footprints, shared values and a heritage of trusted healthcare services throughpharmaceuticalwholesalingandcommunitypharmacycare,datingbackmorethan100years.

The Company, with a presence in more than 25 countries, employs over 370,000 people and is the largestretailpharmacy,healthanddailylivingdestinationintheUSAandEurope.

The Company’s size, scale, and expertise will help us to expand the supply, and address the rising cost of,prescriptiondrugsintheUSAandworldwide.

Byleveragingtheseadvantagesandopportunities,aswellasthefullbenefitofourbestpracticesandexpertise,WalgreensBootsAlliancewillbepositionedtocreatesubstantialincrementalefficiency,synergyandgrowthopportunities.

The creation of Walgreens Boots Alliance provides an opportunity to further accelerate the development of a fully integrated, global platform for the future to provide innovative ways to address health and wellnesschallenges.OurCompanyiswellpositionedtoexpandcustomerofferingsinexistingmarketsandbecomethehealthandwellbeingpartnerofchoiceinemergingmarkets.




Walgreens Boots Alliance -- Segment Structure

8

Walgreens Boots Alliance – Segment Structure

The largest retail pharmacy chain in Europe

A leading global pharmaceutical wholesaler

and distributor

A leading drugstore chain in the USA

The first global pharmacy-led, health and wellbeing enterprise in the world




Walgreens Boots Alliance -- Retail Pharmacy USA DivisionTheRetailPharmacyUSADivision’sprincipalretailpharmacybrandsareWalgreensandDuaneReade.Together,theyformthelargestdrugstorechainintheUSA.

As of August 31, 2016, this Division operated 8,175 retail drugstores in 50 states, the District of Columbia,PuertoRicoandtheUSVirginIslands.Approximately76%ofthepopulationoftheUSAliveswithinfivemilesofaWalgreens.

The company sells prescription and non-prescription drugs, as well as general merchandise, including householditems,convenienceandfreshfoods,personalcare,beautycare,photofinishingandcandy.They provide customers with convenient, omni-channel access to consumer goods and services, pharmacy,andhealthandwellnessservicesincommunitiesacrossAmerica.

Thecompany’swebsites,whichincludeWalgreens.comanddrugstore.com,receiveanaverageofapproximately60millionvisitspermonth.Integratedwithane-commerceplatform,theWalgreensmobileapplicationallowscustomerstorefillprescriptionsthroughscantechnology,receivetextmessagesalertingwhenarefillisdueandotherfront-endfunctionality,suchasphotoandshoppingfeatures.

Infiscal2016,prescriptiondrugsaccountedfor67percentofsales,whileretailproductswere33percent.Overall,WBAfilledapproximately740.1millionprescriptionsinfiscal2016.

2nd Quarter 2017 Financial Performance – Retail Pharmacy USA




Walgreens Drugstores Nationwide by State




Walgreens Income Statements Trailing 5 Years




Demographics - 1 Mile Radius

Demographic and Income Profile475 State Highway 49, Sutter Creek, California, 95685 Prepared by EsriRing: 1 mile radius Latitude: 38.37953

Longitude: -120.80287

AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

2.5

2

1.5

1

0.5

0Population Households Families Owner HHs Median HH Income

20172022

Population by AgePopulation by Age

Perc

ent

16

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2017 Household Income 2017 Household Income

<$15K13.2%

$15K - $24K16.4%$25K - $34K

7.2%

$35K - $49K13.3%

$50K - $74K17.7%

$75K - $99K10.4%

$100K - $149K14.2%

$150K - $199K6.1%

$200K+1.6%

2017 Population by Race2017 Population by Race

Perc

ent

80

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+

2017 Percent Hispanic Origin: 12.0%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2017 and 2022.

July 19, 2017

©2017 Esri Page 2 of 6




Demographics - 1 Mile RadiusDemographic and Income Profile475 State Highway 49, Sutter Creek, California, 95685 Prepared by EsriRing: 1 mile radius Latitude: 38.37953


Summary Census 2010 2017 2022Population 1,685 1,763 1,848Households 820 861 901Families 476 496 519Average Household Size 2.04 2.04 2.04Owner Occupied Housing Units 465 473 490Renter Occupied Housing Units 355 388 411Median Age 49.7 53.1 55.1

Trends: 2017 - 2022 Annual Rate Area State NationalPopulation 0.95% 0.84% 0.83%Households 0.91% 0.77% 0.79%Families 0.91% 0.77% 0.71%Owner HHs 0.71% 0.67% 0.72%Median Household Income 0.64% 2.66% 2.12%

2017 2022 Households by Income Number Percent Number Percent

<$15,000 113 13.1% 112 12.4%$15,000 - $24,999 141 16.4% 136 15.1%$25,000 - $34,999 62 7.2% 58 6.4%$35,000 - $49,999 114 13.2% 130 14.4%$50,000 - $74,999 152 17.7% 162 18.0%$75,000 - $99,999 89 10.3% 87 9.7%$100,000 - $149,999 122 14.2% 130 14.4%$150,000 - $199,999 52 6.0% 67 7.4%$200,000+ 14 1.6% 19 2.1%

Median Household Income $49,912 $51,522Average Household Income $64,982 $71,850Per Capita Income $29,970 $33,058

Census 2010 2017 2022 Population by Age Number Percent Number Percent Number Percent

0 - 4 68 4.0% 65 3.7% 67 3.6%5 - 9 71 4.2% 67 3.8% 68 3.7%10 - 14 94 5.6% 78 4.4% 80 4.3%15 - 19 101 6.0% 83 4.7% 80 4.3%20 - 24 94 5.6% 89 5.0% 75 4.1%25 - 34 137 8.1% 175 9.9% 181 9.8%35 - 44 157 9.3% 146 8.3% 173 9.4%45 - 54 250 14.8% 224 12.7% 196 10.6%55 - 64 292 17.3% 302 17.1% 302 16.4%65 - 74 210 12.4% 285 16.2% 327 17.7%75 - 84 134 7.9% 156 8.8% 201 10.9%

85+ 79 4.7% 94 5.3% 97 5.3%Census 2010 2017 2022

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 1,511 89.7% 1,551 87.9% 1,608 87.0%Black Alone 6 0.4% 9 0.5% 10 0.5%American Indian Alone 26 1.5% 30 1.7% 33 1.8%Asian Alone 35 2.1% 46 2.6% 55 3.0%Pacific Islander Alone 4 0.2% 6 0.3% 6 0.3%Some Other Race Alone 46 2.7% 60 3.4% 67 3.6%Two or More Races 57 3.4% 62 3.5% 70 3.8%

Hispanic Origin (Any Race) 165 9.8% 211 12.0% 249 13.5%Data Note: Income is expressed in current dollars.


July 19, 2017








AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

2.5

2

1.5

1

0.5


20172022


Perc

ent

16

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K15.2%

$15K - $24K14.1%$25K - $34K

9.3%

$35K - $49K15.0%

$50K - $74K18.0%

$75K - $99K11.0%

$100K - $149K11.3%

$150K - $199K3.9%

$200K+2.4%


Perc

ent

80

70

60

50

40

30

20

10




July 19, 2017





Demographics - 3 Mile RadiusDemographic and Income Profile475 State Highway 49, Sutter Creek, California, 95685 Prepared by EsriRing: 3 mile radius Latitude: 38.37953


Summary Census 2010 2017 2022Population 7,078 7,093 7,280Households 3,169 3,190 3,267Families 1,889 1,898 1,944Average Household Size 2.17 2.18 2.19Owner Occupied Housing Units 1,857 1,839 1,886Renter Occupied Housing Units 1,312 1,351 1,381Median Age 48.0 50.5 51.8



<$15,000 485 15.2% 471 14.4%$15,000 - $24,999 450 14.1% 420 12.9%$25,000 - $34,999 296 9.3% 276 8.4%$35,000 - $49,999 477 15.0% 533 16.3%$50,000 - $74,999 574 18.0% 606 18.5%$75,000 - $99,999 350 11.0% 337 10.3%$100,000 - $149,999 359 11.3% 378 11.6%$150,000 - $199,999 123 3.9% 154 4.7%$200,000+ 76 2.4% 92 2.8%



0 - 4 329 4.6% 304 4.3% 306 4.2%5 - 9 342 4.8% 310 4.4% 308 4.2%10 - 14 387 5.5% 334 4.7% 342 4.7%15 - 19 428 6.0% 349 4.9% 340 4.7%20 - 24 362 5.1% 366 5.2% 306 4.2%25 - 34 678 9.6% 751 10.6% 753 10.3%35 - 44 718 10.1% 677 9.5% 755 10.4%45 - 54 995 14.1% 856 12.1% 798 11.0%55 - 64 1,155 16.3% 1,141 16.1% 1,101 15.1%65 - 74 803 11.3% 1,044 14.7% 1,157 15.9%75 - 84 537 7.6% 581 8.2% 739 10.1%

85+ 345 4.9% 380 5.4% 376 5.2%Census 2010 2017 2022


Hispanic Origin (Any Race) 745 10.5% 905 12.8% 1,036 14.2%Data Note: Income is expressed in current dollars.


July 19, 2017








AreaStateUSA

Trends 2017-2022Trends 2017-2022

Ann

ual R

ate

(in

perc

ent)

2.5

2

1.5

1

0.5


20172022


Perc

ent

16

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K13.8%

$15K - $24K12.3%

$25K - $34K9.7%

$35K - $49K14.5%

$50K - $74K18.6%

$75K - $99K11.8%

$100K - $149K12.0%

$150K - $199K4.5%

$200K+2.7%


Perc

ent

80

70

60

50

40

30

20

10




July 19, 2017








Summary Census 2010 2017 2022Population 9,646 9,664 9,894Households 4,277 4,290 4,381Families 2,631 2,634 2,689Average Household Size 2.20 2.21 2.22Owner Occupied Housing Units 2,681 2,646 2,699Renter Occupied Housing Units 1,596 1,644 1,682Median Age 48.9 51.4 52.5



<$15,000 593 13.8% 576 13.1%$15,000 - $24,999 529 12.3% 494 11.3%$25,000 - $34,999 415 9.7% 386 8.8%$35,000 - $49,999 622 14.5% 691 15.8%$50,000 - $74,999 797 18.6% 834 19.0%$75,000 - $99,999 508 11.8% 485 11.1%$100,000 - $149,999 515 12.0% 536 12.2%$150,000 - $199,999 194 4.5% 238 5.4%$200,000+ 118 2.8% 142 3.2%



0 - 4 427 4.4% 396 4.1% 400 4.0%5 - 9 464 4.8% 412 4.3% 409 4.1%10 - 14 517 5.4% 456 4.7% 459 4.6%15 - 19 579 6.0% 477 4.9% 467 4.7%20 - 24 458 4.7% 472 4.9% 398 4.0%25 - 34 895 9.3% 967 10.0% 970 9.8%35 - 44 959 9.9% 924 9.6% 1,030 10.4%45 - 54 1,379 14.3% 1,168 12.1% 1,090 11.0%55 - 64 1,666 17.3% 1,631 16.9% 1,545 15.6%65 - 74 1,137 11.8% 1,486 15.4% 1,645 16.6%75 - 84 727 7.5% 790 8.2% 998 10.1%

85+ 437 4.5% 484 5.0% 482 4.9%Census 2010 2017 2022


Hispanic Origin (Any Race) 971 10.1% 1,180 12.2% 1,353 13.7%Data Note: Income is expressed in current dollars.


July 19, 2017


rent increases in - loopnet · demographic snapshot residents average income 1 mile radius 1,736...

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