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WalgreensMERIDIAN, IDAHO
ABSOLUTE NNN WALGREENS LOCATED ON PREEMINENT HARD CORNER
THE OFFERING provides the opportunity to acquire an Absolute NNN Walgreens, with 60+ years remaining on the primary term. Walgreens sits at the preeminent hard corner of two major daily-needs arterials and near freeway on-off ramps. The Property benefits from extremely strong surrounding demographics in the high-growth city of Meridian, a suburb of Boise with over 338,000 residents within a 15-minute drive, and was named the country’s fastest-growing city in 2018.
LEASEABLE SF14,820 SF
LAND AREA74,923 SF
LEASE TYPEAbsolute NNN
LEASE EXPIRATION9/30/2032*
YEAR BUILT2008
PARKING66 Spaces; 4.5/1,000 SF
Investment Summary
5.75%CAP
$7,300,000PRICE
*Lease extends until 9/30/2081; however, beginning 10/1/2032 and every five years thereafter Tenant may terminate the lease with 12 month’s prior notice, and at any point following 2052.
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Overview
INVESTMENT-GRADE CREDIT RATING (S&P: BBB).
ABSOLUTE NNN LEASE PROVIDES ZERO LANDLORD RESPONSIBILITIES.
FRONTAGE ON PROMINENT HARD CORNER NEAR I-84 ON-OFF RAMPS.
PART OF SIX PARCELS COMPRISING MERIDIAN PROMENADE, A DEVELOPING SHOPPING CENTER ATTRACTING INTEREST FROM SEVERAL NATIONAL BRANDS.
336 MULTIFAMILY UNITS WITHIN 1.5-MILES DIRECTLY NORTH AND SOUTH OF THE PROPERTY ALONG MERIDIAN ROAD.
BOISE NAMED THE COUNTRY’S FASTEST-GROWING CITY BY FORBES IN 2018.
Investment Highlights
About theTenant
NASDAQSubsidiary of the
Walgreens Boots Alliance
WBASTANDARD & POOR’S INVESTMENT GRADE
CREDIT RATING
BBB
2018 FORTUNE 500 RANKING
#19
FISCAL 2019 NET PROFITS
$4BFOUNDED
1901
LOCATIONS
9,500+
DRUGSTORE IN THE UNITED STATES
#1
Investment Highlights
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WALGREENS
37,000 VPD
116,500VPD
The Village at Meridian, located 1.5 miles north, has a brand new 166-unit senior living center under development.
84INTERSTATE 84INTERSTATE 84
S MERID
IAN
RDS M
ERIDIA
N RD
E OVERLAND RDE OVERLAND RD
STAPLETONSUBDIVISIONProposed 233 Single Family
Units 1 Mile South
17,000VPD
Site
LOCATED ON ONE OF SIX PARCELS IN DEVELOPING SHOPPING CENTER
Site
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TOTAL 1-MILE 3-MILES 5-MILES
Businesses 441 2,794 4,990
Employees 5,072 31,740 53,333
Population 8,149 61,334 168,659
KEY 1-MILE 3-MILES 5-MILES
BusinessSummary
PetcoVillage Cinema
MAJOR RETAILAlbertsons Big Lots Burger King Dick’s Sporting GoodsDutch Bros. Coffee Fred Meyer
Hobby Lobby Home Depot Jiffy Lube Kohl’s Lowe’s McDonald’s
O’Reilly Auto PartsPanda Express Starbucks Subway Walmart Supercenter WinCo
NEW DEVELOPMENTS Eagle View LandingGalaxy Events CenterJewel SubdivisionOld Town LoftsRolling Hills SubdivisionStapleton SubdivisionVertical View Climbing
Retailers & Daily Needs
WALGREENS
84
84
INTERSTATEINTERSTATE
N E
AGLE
RO
AD
N E
AGLE
RO
AD
S M
ERID
IAN
RD
S M
ERID
IAN
RD
E OVERLAND RDE OVERLAND RD
116,500VPD
17,000VPD
OLD TOWN LOFTS
103-Unit Mixed-Use Apartment
Building
STAPLETONSUBDIVISIONProposed 233 Single Family
Units
EAGLE VIEWLANDING
In Development52-Acre
Mixed-Use
ROLLING HILLS SUBDIVISION
& JEWEL SUBDIVISION
MOUTAINVIEW HIGH
SCHOOLPossible $8M
Expansion
NEW EVENT CENTER
$6M Recently
Completed
37,000 VPD
Growth in MeridianMeridian is a suburb of Boise, recognized as one of the fastest-growing city in the United States in 2019, with immense growth. The city’s population has roughly tripled since 2000, and experienced a 50% increase in the number of multifamily permits pulled in 2018 over 2017 – exceeding the number of permits pulled in any other city in Ada or Canyon Counties for the last three years in a row.
MAVERICK
RENAISSANCE HIGH
SCHOOL
VERTICAL VIEW
CLIMBING GYM
POTENTIAL
IDAHO STATE UNIVERSITY PHARMACY
WEST ADA SCHOOL DISTRICT
Retailers & Daily Needs
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S M
ERID
IAN
RD
OVERLAND RD 17,000VPD
37,000VPD
66 SPACES;4.5/1,000 SF
1.71ACRES
14,820LEASEABLE SF
Site Plan
SITE PLAN NOT TO SCALE
S M
ERID
IAN
RD
OVERLAND RD
Site Plan
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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
PRICE $7,300,000CAPITALIZATION RATE 5.75%
CASH FLOW SUMMARYSCHEDULED INCOME PER SFBase Rent for the Period of: 7/1/2020 - 6/30/2021 $28.34 $420,000Total Effective Gross Income (EGI) $28.34 $420,000
OPERATING EXPENSES PER SFCAMS NNNProperty Taxes NNNInsurance NNNTotal Operating Expenses NNN
NET OPERATING INCOME $420,000This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.
INVESTMENT-GRADE TENANT RATING
Financial Summary
10/1/2007 - 9/30/2032
14,820
MONTHLY BASE RENT % INCREASE ANNUAL
RENT PSF CAP RATE
1100//11//22000077 $$3355,,000000 $$442200,,000000 $$2288..3344 55..7755%%
DATE
**LLeeaassee NNootteessComments: Tenant's lease extends until 9/30/2081, with Tenant having five termination options every 5th year, starting in 2032 and ending in 2052, upon which Tenant may then terminate at anytime following 2052; Termination options require 12 months' notice. Tenant operates on an Absolute NNN Lease may pay annual percentage rent, based on the amount such percentage rent exceeds base rent; percentage rent is based on 2% of gross sales (excluding food/pharmacy) and .5% of gross sales of food and pharmacy, due within 45 days of each lease year.
WALGREENSLease Term:*
Size (SF):
RENT SUMMARY
RentRoll
Financial Summary
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Featured Photography
Featured Photography
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TENANT Walgreen Co. (Walgreens)BUILDING SF 14,820 SFLEASE TYPE Absolute NetLEASE DATE 10/1/2007EXPIRATION 9/30/2032*
*Lease extends through 9/30/2081 yet provides five termination options to tenant starting in year 2032 and every five years thereafter up until 2052, at which point Tenant may terminate at any time; options require 12 month’s prior notice.
Premise & Term
Rent
Maintenance &RepairTENANT’S OBLIGATIONSTenant is responsible for all structural / nonstructural and interior / exterior maintenance, repair, and replacement, including those pertaining to the building roof, structure, parking lot, and pylon sign. Roof to have a 15-year, no dollar limit roof manufacturer warranty covering labor & material.
LANDLORD’S OBLIGATIONS Landlord has zero responsibilities.
PERCENTAGE RENTIn addition to Base Rent, Tenant to pay annual percentage rent within 45 days of each lease year, based on 2% of gross sales (excluding food/pharmacy) and .5% of food/pharmacy items by the amount such Percentage Rent exceeds Base Rent; Percentage Rent never to be more than twice that of base rent.
Lease Abstract
CAMSTenant is directly responsible for all expenses pertaining to the underlying parcel and for direct reimbursement of CAMs for the greater center directly to Declarant.
TAXESTenant pays Property Taxes directly to assessor.
INSURANCETenant to carry general liability and property insurance policies, and is required to carry special form coverage insuring the Building and any improvements up until the last day of the 300th month (9/30/2032); Tenant may self-insure so long as net worth exceeds $100M and their credit-rating is at least BBB+.
UTILITIESTenant pays all utilities directly.
Expenses
LeaseProvisionsEXCLUSIVE USE Landlord may not lease or sell land under ownership’s direct or indirect control to those operating with a competing use (operation of a drug store, pharmacy, medical lab, sale of health/ beauty aids, photo mart, or gift cards), to land adjacent to the property or within 500 feet. Contact Capital Pacific for more information on exclusives and exceptions.
SALES REPORTINGTenant to provide an annual statement of gross sales to Landlord within 45 days following each lease year.
TERMINATION RIGHTTenant may terminate the lease effective as of the last days of the 300th, 360th, 420th, 480th, and 540th full calendar months of the term (9/30/2032, 9/30/2037, 9/30/2042, 9/30/2047, 9/30/2052). Notice to terminate is required at lease 12 months prior to the dates listed.
ROFRTenant to have 21 days to decide to purchase the premises upon receipt of a bonafide offer Landlord wishes to accept.
Lease Abstract
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Q: DOES WALGREENS REPORT SALES?
A: Yes, Walgreens is required to provide annual gross sales to Landlord within 45 days following each lease year, as required per their percentage rent clause.
Q&A
Questions & Answers
Q: ARE THERE CC&RS OVERSEEING MERIDIAN PROMENADE?
A: Yes, The CC&Rs permit and disallow uses typical of those at a Class A retail center, and permit the non-exclusive right for pedestrian and vehicular traffic over and across all parcels, including cross-easement parking. Each parcel owner is responsible for maintenance and upkeep of their own parcel and the declarant is responsible for the maintenance and upkeep of the center signs and permanent access easement which may be billed to parcel owners.
Questions & Answers
PAGE 21
Boise, Idaho MSA
BOISE IS THE CAPITAL AND MOST POPULOUS CITY of the state of Idaho, as well as the county seat of Ada County. Located on the Boise River, it anchors the Boise City-Nampa metropolitan area and is the largest city between Salt Lake City, Utah and Portland, Oregon. The Boise metropolitan area is home to approximately 616,500 people and is the most populous metropolitan area in Idaho, containing the state’s three largest cities; Boise, Nampa, and Meridian.
Boise is the Fastest Growing City in the U.S. PER FORBES IN 2018
Location
BOISE IS THE HEADQUARTERS FOR several major companies, such as Boise Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries are headquartered in Boise or have large manufacturing facilities present. The state government is also one of the city’s largest employers.
CorporateHeadquarters
93,000NEW JOBS IN IDAHOreplacing 60,000 lost during the recession
80%POPULATION GROWTH SINCE 2000
2nd
HIGHEST HOME APPRECIATION YEAR-OVER-YEAR IN THE U.S. 2018
MERIDIAN is the third largest city in Idaho and is considered the state’s fastest-growing city and among the fastest-growing cities in the United States.
Meridian,Idaho
Location
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13.5 MILES23 MINS
Nampa,Idaho
10.9 MILES14 MINS
Boise, Idaho
Distanceto
Demographics
KEY 5 MINS 10 MINS 15 MINS
POPULATION
5 MINS 10 MINS 15 MINS
2010 8,966 69,828 253,692
2019 14,286 89,269 314,781
2024 16,588 100,936 351,692
2019 HH INCOME
5 MINS 10 MINS 15 MINS
Average $108,926 $89,003 $78,169
Median $87,230 $69,998 $59,547
DriveTime
ADA COUNTY POPULATION (ESTIMATED)
469,966
Demographics
PAGE 25
Contact Us
SEAN [email protected]: 503.675.8378
KEVIN [email protected]: 503.675.7726
SEAN [email protected]: 206.693.3352
MICHAEL [email protected]: 503.675.8381
PETER [email protected]: 503.607.0197
We’d love to hearfrom you.
The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC.
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