walgreens 3099 bethel road se port orchard,...

WALGREENS3099 Bethel Road SEPort Orchard, WA 98366

NET LEASE INVESTMENT OFFERING

TABLE OF CONTENTS

TABLE OF CONTENTS

II. Location Overview Photographs Aerial Site Plan Map

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

I. Executive Profile Executive Summary Investment Highlights Property Overview


DISCLAIMERSTATEMENT:

DISCLAIMER STATEMENT

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.


EXECUTIVESUMMARY:

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located in Port Orchard, Washington. The property is strategically located at the signalized intersection of two primary thoroughfares in the area. The Walgreens features a drive-thru and has excellent visibility and signage. Walgreens has successfully operated at this location since 2000 and has more than 10 years remaining on their primary lease term. The lease features eight 5-year renewal option periods. Walgreens is committed to this location as evidenced by their recent lease extension. Walgreens is the largest drug retailing chain in the United States and has over 8,175 locations in the United States.

The 14,820 square foot Walgreens is strategically positioned on the northeast corner of Bethel Road and Lund Avenue in the areas dominant retail corridor. This intersection experiences traffic counts in excess of over 33,500 vehicles per day. National retailers located in the area include Walmart Supercenter, Big Lots!, Safeway, O’Reilly Auto Parts, AutoZone, Sherwin-Williams, Starbucks and Staples. There are over 89,765 people living within a five mile radius of the property earning an average household income of over $68,250 per year.

Walgreens has over 10 years remaining on their lease which expires October 31, 2027 and features eight 5-year renewal option periods. Walgreens is publicly traded on the Nasdaq Stock Market (symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB.


INVESTMENT HIGHLIGHTS:

INVESTMENT HIGHLIGHTS

• Investment grade tenant (S&P: BBB)

• Long term lease with over 10 years remaining

• Long operating history at this location (since 2000) with an established customer base

• Committed to the location as evidenced by recent lease extension

• Positioned at the hard corner of a heavily trafficked signalized intersection

• Retailers located in the area include Walmart Supercenter, Big Lots!, Safeway, O’Reilly Auto Parts,

AutoZone, Sherwin-Williams, Starbucks and Staples

• Over 89,765 people live within five miles of the property

• Drive-thru pharmacy


PROPERTY OVERVIEW:

PROPERTY OVERVIEW


Price: $5,921,500

Cap Rate: 6.00%

Net Operating Income: $355,290

Renewal Options: Eight 5-Year

Lease Commencement Date: October 17, 2000

Lease Expiration Date: October 31, 2027

Tenant: Walgreens

Year Built: 2000

Lease Type: NN (Roof, Structure & Parking Lot Replacement)

Parking: 70 Spaces

Building Size: 14,820 SF

Land Size: 1.79 Acres


PHOTOGRAPHS


AERIAL


SITE PLAN

MAP


MAP


MAP

DEMOGRAPHICREPORT:

DEMOGRAPHIC REPORT

Population 1-Mile 3-Mile 5-Mile

Total Population 7,839 40,720 89,769

Total Households 3,084 14,096 34,804

Income 1-Mile 3-Mile 5-Mile

Median Household Income $51,774 $55,517 $54,326

Average Household Income $63,672 $68,705 $68,258


MARKET OVERVIEW

MARKETOVERVIEW:

Port Orchard, WashingtonPort Orchard is a city and the county seat of Kitsap County, Washington. Port Orchard is located on the Sinclair Inlet of the Puget Sound. It is located 13 miles due west of West Seattle and connected to Seattle and Vashon Island via the Washington State Ferries run to Southworth. It is named after Port Orchard, the strait that separates Bainbridge Island from the Kitsap Peninsula. Port Orchard has a population of more than 13,650 people.

The City of Port Orchard, originally the Town of Sidney, was incorporated in 1890. Port Orchard is lovely waterfront community. Its numerous marinas provide visitors and boat dwellers alike with convenient accommodations. The downtown corridor offers shopping, museums, entertainment, galleries and dining. Port Orchard has majestic view of the Olympic Mountains and the pride of military heritage just across the water at the Puget Sound Naval Shipyard.

www.cityofportorchard.us

MARKET OVERVIEW

MARKETOVERVIEW:

Seattle, WashingtonSeattle is a seaport city on the west coast of the United States and the seat of King County, Washington. Seattle is the largest city in both the state of Washington and the Pacific Northwest region of North America with a population of more than 704,350 people. Seattle was the fastest-growing city in the United States in 2016 with an annual growth rate of 3.1%. The city is situated on an isthmus between Puget Sound (an inlet of the Pacific Ocean) and Lake Washington, about 100 miles south of the Canada–United States border. A major gateway for trade with Asia, Seattle is the fourth-largest port in North America in terms of container handling.

Logging was Seattle’s first major industry, but by the late-19th century, the city had become a commercial and shipbuilding center as a gateway to Alaska during the Klondike Gold Rush. Growth after World War II was partially due to the local Boeing company, which established Seattle as a center for aircraft manufacturing. The Seattle area developed as a technology center beginning in the 1980s, with companies like Microsoft becoming established in the region. In 1994, Internet retailer Amazon was founded in Seattle. The stream of new software, biotechnology, and Internet companies led to an economic revival, which increased the city’s population by almost 50,000 between 1990 and 2000.

More than 15% of Seattle residents used one of the three public transit systems that serve the city, giving it the highest transit ridership of all major cities without heavy or light rail prior to the completion of Sound Transit’s Central Link line. The city has been described by Bert Sperling as the fourth most walkable U.S. city and by Walk Score as the sixth most walkable of the fifty largest U.S. cities. Seattle–Tacoma International Airport, locally known as Sea-Tac Airport and located just south in the neighboring city of SeaTac, is operated by the Port of Seattle and provides commercial air service to destinations throughout the world. Closer to downtown, Boeing Field is used for general aviation, cargo flights, and testing/delivery of Boeing airliners. Interstate 5 and State Route 99 (both limited-access highways), run uninterrupted through the city from north to south. State Route 99 runs through downtown Seattle on the Alaskan Way Viaduct.

Seattle has a noteworthy musical history. From 1918 to 1951, nearly two dozen jazz nightclubs existed along Jackson Street, from the current Chinatown/ International District, to the Central District. The jazz scene developed the early careers of Ray Charles, Quincy Jones, Ernestine Anderson, and others. Seattle is also the birthplace of rock musician Jimi Hendrix, origin of the bands Nirvana, Pearl Jam, Soundgarden, Alice in Chains and the alternative rock subgenre grunge.

WalgreensWalgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As of January 31, 2017, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacy locations, as well as managed approximately 400 Healthcare Clinics. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

The Walgreen Company is the largest drug retailing chain in the United States. The company is publicly traded on the NASDAQ (Symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB. In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN’s Sustainable Development Goals.

Website: www.walgreens.comNumber of Locations: 8,175Stock Symbol: WBA (NASDAQ)Standard & Poor’s Rating: BBBMarket Capitalization: $88 Billion

TENANT OVERVIEW

TENANT OVERVIEW:

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

Randy [email protected]

Jimmy [email protected]

walgreens 3099 bethel road se port orchard,...

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