single tenant nnn walgreens property
DESCRIPTION
Single tenant triple net leased Walgreen's for saleTRANSCRIPT
NET LEASED INVESTMENT OFFERING
Walgreens3220 W. 111th Street
Chicago, IL
CONFIDENTIAL OFFERING MEMORANDUM
www.bouldergroup.com
NET LEASED INVESTMENT OFFERING
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TABLE OF CONTENTS
TABLE OF CONTENTS
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Confidentiality & Disclaimer
Executive Summary
Property Overview
Investment Return Scenarios
Site Plan
Aerial
Maps
Tenant Profile
Demographic Comparison Report
Location Overview
Contact Information
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CONFIDENTIALITY & DISCLAIMER
CONFIDENTIALITY & DISCLAIMER
The information contained in the following Marketing Brochure 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 Marketing Brochure 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, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of
any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in
this Marketing Brochure 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.
The Boulder Group is pleased to exclusively market for sale a newly constructed Walgreens located in Chicago. This 13,650 square foot Walgreens was built in 2010 for a relocated Walgreens property. The property is located in the Mount Greenwood neighborhood, which is one of seventy-seven Chicago communities and is less than fourteen miles from Downtown Chicago.
The property is located on northwest corner of 111th Street and Kedzie Avenue, which is benefitted by a traffic signal. Additionally, this intersection has a visible Walgreen’s brick sign as well as a monument sign displaying the entryway into the Mount Greenwood neighborhood. Both 111th Street and Kedzie Avenue are primary thoroughfares within Chicago and allow a steady flow of traffic into the Walgreens. There are approximately 41,700 vehicles passing the site daily. The subject property is conveniently located in between both a major Interstate and Tollway. Interstate 57 allows easy access to downtown Chicago, while the Tri-State Tollway (294) provides access to nearby Chicagoland neighborhoods and suburbs. One of the main attractions in Mount Greenwood is Saint Xavier University, which is home to over 5,000 students and is the oldest university in Illinois. Major retail anchors located in close proximity to the subject asset include Dominick’s, Jewel, and Kmart.
The rental commencement date for the Walgreens was November 1, 2010 with a 25 year lease and ten 5-year renewal options. Walgreens’s annual rental payment is $485,000 and there are no landlord obligations in the lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $35 Billion. Walgreens is an investment grade company with a Standard & Poor’s rating of A+.
Investment Highlights
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Investment grade tenant with a new long term leaseProperty is located in Chicago Newly constructed property with high barriers to entryIrreplaceable location along two heavily trafficked roadways in Chicago
Newly constructed property of a relocated WalgreensLocated on a hard corner benefited by a traffic signalFour points of ingress-egressClose proximity to Saint Xavier University - home to 5,000 students
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PROPERTY OVERVIEW
PROPERTY OVERVIEW
Price:
Cap Rate:
Net Operating Income:
Rental Escalations:
Renewal Options:
Lease Commencement Date:
Lease Expiration Date:
Tenant:
Credit Rating:
Year Built
Lease Type:
Rentable Square Feet:
Land Size:
$7,238,800
6.70%
$485,000
None
Ten 5-Year
November 1, 2010
October 31, 2035
Walgreens
A+
2010
NNN
13,650
1.44 acres
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INVESTMENT RETURN SCENARIOS
INVESTMENT RETURN SCENARIOS
Fixed Loan Term
Fixed Interest rate
Amoritization
Loan To Value
Equity Requirement
Net Annual Cash Flow
Cash on Cash Return
Principal Reduction
Return on Equity
(Average over loan term)
5-Years
5.50%
30
70%
$2,172,000
$139,789
6.44%
$381,991
10.51%
10-Years
5.75%
30
70%
$2,172,000
$130,192
5.99%
$855,235
9.93%
24-Years
6.45%
24
70%
$2,172,000
$76,377
3.52%
$5,066,600
8.79%
*The above are from sources deemed reliable, but we can not guarantee their accurarcy. Additionally, the terms are subject to change.
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SITE PLAN
SITE PLAN
Monument Sign
DR
IVE
THR
U
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AERIAL
AERIAL
W 111th St
W 115th St
41,700 VPD
Marist High School
St. Xavier University
Chicago High School Ag Science
Rid
ge
Co
un
try C
lub
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MAPS
MAPS
SITE
SITE
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TENANT PROFILE
TENANT PROFILE
Website:Number of Locations:Stock Symbol: Standard & Poors Rating:Market Capitalization:
www.walgreens.com8,131WAG : NYSEA+$35 Billion
Walgreens is engaged in retail drugstore business. As of November 2010, the Company operated 8,131 locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 7,650 drugstores, 503 more than a year ago, including 291 stores acquired over the last 12 months. 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 700 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 January 2010, the Company announced that it has completed the acquisition of the assets of 12 Eaton Apothecary pharmacies.
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DEMOGRAPHIC COMPARISON REPORT
DEMOGRAPHIC COMPARISON REPORT
Population
Total Population
Total Households
Income
Median Household Income
Average Household Income
1-mile
20,422
7,722
$51,003
$66,696
3-mile
161,844
58,612
$47,368
$63,595
5-mile
478,218
163,450
$42,899
$56,851
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LOCATION OVERVIEW
LOCATION OVERVIEW
Oak Lawn to the west, and the suburbs of Merrionette Park and Alsip to the south. Mount Greenwood is about 14 miles
(23 km) SW of the Downtown Chicago.
Mount Greenwood became part of Chicago in 1927. It was not until 1936 that the Works Progress Administration
finally laid sewage systems, and paved and lighted city streets. By the 1980s, Mount Greenwood was home to the last
surviving farm in the city, which was developed as the Chicago High School for Agricultural Sciences at the southeast
corner of 111th and Pulaski. Mount Greenwood is home to many Chicago Firefighters, Police Officers and Union
workers of Irish heritage.
Most of Mt. Greenwood's population is also Roman Catholic. Most students in the neighborhood attend Catholic
elementary schools and high schools. Mount Greenwood is home to two Catholic elementary schools (Queen of
Martyrs and St. Christina), three Catholic high schools (Brother Rice High School, Marist High School, and Mother
McAuley Liberal Arts High School) and a Catholic university (Saint Xavier University). Public grade schools in the area
are Mt. Greenwood Elementary School and George F. Cassell Elementary School. Both are filled with neighborhood
children.
The subject property is located in, Mount Greenwood,
one of 77 well-defined Chicago community areas. It is a
predominantly Irish-Catholic neighborhood on the
Southwest Side of Chicago. It neighbors the Chicago
neighborhoods of Beverly and Morgan Park to the east,
the suburb of Evergreen Park to the north, the suburb of
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CONTACT INFORMATION
CONTACT INFORMATION
666 Dundee Road Suite 1801Northbrook, IL 60062
|
Randy [email protected]
Jimmy [email protected]