walgreens · retail pharmacy usa, retail pharmacy international, and pharmaceutical wholesale. as...

Shaun RileySenior Managing [email protected](949) 221-1807R.E. License No 01165160

The information contained herein has been carefully compiled from sources we consider reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date. The proforma revenues and expenses set forth in this brochure do not constitute a representation, warranty, or guaranty of any of the numbers set forth herein or of any economic value attributable to the property or income that may be derived therefrom. Independent estimates of proforma revenues and expenses should be developed before any decision is made on whether to invest in the property.

18301 Von Karman Avenue, Suite 800Irvine, CA 92612Phone: (949) 221–1800Fax: (949) 221–1830www.farislee.com

WALGREENS750 E. 120TH AVENUE, NORTHGLENN, CO 80233

EXCLUSIVE BROKER:

Listed in cooperation with CO licensed broker: Hill and Homes, LLCCO Broker #282321

PRICING ANALYSIS || 13+

AREA OVERVIEW || 16+

PROPERTY OVERVIEW || 4+

STATEMENT OF CONFIDENTIALITY & DISCLAIMERFaris Lee Investments (“FLI”) has been engaged as the exclusive financial advisor to the Seller in connection with Seller’s solicitation of offers for the purchase of the property known as Walgreens, City of Northglenn, County of Adams, State of Colorado. Prospective purchasers are advised that as part of the solicitation process, Seller will be evaluating a number of factors including the current financial qualifications of the prospective purchaser. Seller expressly reserves the right in its sole and absolute discretion to evaluate the terms and conditions of any offer and to reject any offer without providing a reason therefore. Further, Seller reserves the right to terminate the solicitation process at any time prior to final execution of the Purchase Agreement.

The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property, and it is not to be used for any other purpose or made available to any other person without the express written consent of Seller or FLI. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by FLI from sources it deems reasonably reliable. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and qualified in their entirety by the actual document to which they relate.

No representation or warranty, expressed or implied, is made by the Seller, FLI, or any of their respective affiliates as to the accuracy or completeness of the information contained herein. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence, including engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property site or used in the construction or maintenance of the building at the Property site.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or FLI or any of their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

Prospective purchasers are not to construe the contents of this Offering Memorandum or any prior or subsequent communication from FLI or Seller or their affiliates or any of their respective officers, directors, shareholders, owners, employees, or agents as legal, tax, or other advice. Prior to submitting an offer, prospective purchasers should consult with their own legal counsel and personal and tax advisors to determine the consequences of an investment in the Property and arrive at an independent evaluation of such investment.

TABLE OF CONTENTS

Property Overview

INVESTMENT SUMMARY

Faris Lee Investments is pleased to offer for sale the fee simple interest (land & building) in a freestanding, single tenant, NNN leased, drive-thru Walgreens, located in Northglenn, CO. The tenant, Walgreens, has approximately 4-years remaining in the current base term and upon expiration has 8 (5-Year) Options through 2061. The store has consistently been a strong sales performer in an area with extremely limited competition as the nearest Rite-Aid is 3-miles away and there are no CVS free-standing drive thru stores in the state of Colorado.

LOCATION SUMMARY

The subject property is strategically located at the signalized, hard corner intersection of E. 120th Avenue and Washington Street (over 60,000 combined vehicles per day). E. 120th Avenue is a major east/west corridor that connects Northglenn with Interstate 25, the major north/south thoroughfare serving the Denver MSA. The subject property is located within close proximity to many national/credit tenants that includes Super Target, Sprouts, Michael’s, Albertson’s, Office Max, Dollar Tree, Big 5 Sporting Goods, Starbucks, Pizza Hut, McDonald’s & O’Reilly Autoparts. There are more than 293,000 permanent residents with an average household income higher than $83,000 within 5 miles of the subject property. Additionally, the trade area is supported by more than 73,000 daytime employees within a 5 mile radius.

PRICINGPrice: $6,210,000

Price/PSF: $429

Cap Rate: 6.35%

PROPERTY OVERVIEWWALGREENS [ 5 ]

INVESTMENT SUMMARY

PARCEL MAP

PROPERTY SPECIFICATIONSRentable Area: 14,490 SF

SF Land Area: 1.3 Acres

Address: 750 E. 120th Avenue, Northglenn, CO 80233

Year Built: 2001

Zoning: C-4 Commercial - Restricted Service Zone

Ownership: Fee Simple (Land & Building)

Guaranty: Walgreen Co. / Walgreens Boots Alliance

Tenant: Walgreens

Credit Rating: BBB

Access: There are two (2) access points, one (1) along E. 120th Avenue and one (1) along Washington Street.

Improvements: There is approximately 14,490 SF of existing building area.

Parking: There are approximately 73 dedicated parking stalls on the owned parcel. The parking ratio is approximately 5.06 parking stalls per 1,000 SF of leasable area.

Traffic Counts (Costar 2014) Vehicles Per DayE. 120th Avenue: 36,600

Washington Street: 23,600

Intersection Total: 60,200

PARCEL ACRES SQUARE FEETR0129017 1.3 56,402


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CORPORATE GUARANTY BY INVESTMENT GRADE TENANT - WALGREENS (NYSE: WAG)Walgreens is the nation’s #1 drugstore chain operating more than 8,000 mostly freestanding Walgreens stores in all 50 US States, the District of Columbia, and Puerto Rico. Prescription drugs account for about two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics, and groceries.

» Company Type” Public (NYSE: WAG)

» Fiscal Year-End: August

» 2015 Employees: 245,000

» 2015 Revenue: $103.44 Billion

» 2015 Net Income: $4.22 Billion

» 2015 Assets: $68.78 Billion

» 2015 Equity: $30.86 Billion

» S&P Ranking: BBB

» Rankings: #19 in Fortune 500

EASE OF MANAGEMENT NNN LEASE / FEE SIMPLE OWNERSHIP » Minimal cost to maintain land or building

» Managment-free investment

» CAM, insurance and taxes are paid by Walgreens

» An investor has the potential for an enhanced after-tax return due to the ability to offset income through depreciation of the improvements.

LIMITED DRUG STORE COMPETITION WITHIN THE TRADE AREA » The nearest Rite-Aid is 3-miles away and there are no

freestanding drive-thru CVS stores in the state of Colorado.

» Substantially increases the likelihood Walgreens will renew the lease.

DRIVE-THRU BUILDING » This feature provides ease and convenience for customers

» On average, stores with drive-thrus have higher sales than stores without drive-thrus.

STRONG STORE SALES REPORTED BY WALGREENS » Walgreens reports above average sales at this location,

thereby helping to ensure the likelihood of a lease renewal at the end of the initial term (please contact listing agent for store sales).

» The strong sales figures confirm this location is the dominant drug store in the trade area.

» A well-performing tenant enhances the intrinsic value of the real estate.

LARGE MONUMENT SIGNAGE / EXCELLENT STREET FRONTAGE AT BUSY SIGNALIZED, HARD CORNER INTERSECTION WHICH HAS A TRAFFIC COUNT OF MORE THAN 60,000 VPD » The property features a large monument sign that fronts

Washington St. and E. 120th Avenue (over 60,000 combined vehicles per day)

» Washington St. and E. 120th Ave are main arterial roads that run through Northglenn, CO

» Convenient access via multiple entrance/exits points on E. 120th Ave. and Washington St.

AFFLUENT DEMOGRAPHICS IN AN IN-FILL LOCATION » More than 293,000 permanent residents with an annual

household income of approximately $83,000 and more than 73,000 total daytime employees within a 5-mile radius of the subject property.

» Provides Walgreens with a large customer base who has strong discretionary spending ability.

» Denver MSA is approximately 5-miles away and is home to approximately 650,000 people.

LOCATED JUST OFF INTERSTATE 25 » The subject property is located approximately 0.5 miles from

the major transit corridor of Interstate 25 with over 113,000 vehicles per day

» Interstate 25 connects Northglenn with the heart of Downtown Denver and all the surrounding communities outside of Denver/Northglenn

LOCATED WITHIN CLOSE PROXIMITY TO NATIONAL RETAILERS » The subject property is located within close proximity to

national tenants including: Super Target, Sprouts, Michael’s, Albertson’s, Office Max, Dollar Tree, Big 5 Sporting Goods, Pizza Hut & McDonald’s.

» Generates a high daytime population which creates increased foot traffic for Walgreens


INVESTMENT HIGHLIGHTS


AERIAL VIEW

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LOCATION MAP

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AERIAL VIEW

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PHOTOS

E. 120th Avenue

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Drive-Thru

Monument Sign

SITE PLAN NOT TO SCALE


SITE PLAN HIGH-TRAFFIC INTERSECTION

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Pricing Analysis

WALGREENS

Walgreens, the nation’s largest drugstore chain, constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (Nasdaq: WBA). More than 8 million customers interact with Walgreens each day in communities across America, using the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice. Walgreens operates 8,232 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Walgreens digital business includes Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. Walgreens also manages more than 400 Healthcare Clinic and provider practice locations around the country.

Company Type: SubsidiaryWebsite: www.walgreens.com

WALGREENS BOOTS ALLIANCE, INC.

Walgreens 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. As of August 31, 2015, The Retail Pharmacy USA segment operated 8,173 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. The Retail Pharmacy International segment operated 4,582 retail stores in the United Kingdom, Mexico, Chile, Thailand, Norway, the Republic of Ireland, the Netherlands, and Lithuania; and 637 optical practices in the United Kingdom. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

Company Type: Public (NYSE: WBA)2015 Employees: 245,0002015 Net Income: $4.22 Billion2015 Equity: $30.86 Billion

Fiscal Year End: August2015 Revenue: $103.44 Billion2015 Assets: $68.78 BillionS&P Ranking: BBBWebsite: www.walgreensbootsalliance.com

Annual$/SF

14,490 $32,863 $2.27 $394,361 $27.22 NNN 2/1/2001 1/31/2021@ $32,863 / month

8 (5-Year)

MonthlyRent$/SF

Current Monthly

Rent

CAM Recovery

Type

LeaseStart

LeaseExpires

CurrentAnnual

Rent

AnnualRent$/SF

IncreaseDate Increase Monthly

RentMonthly

$/SFAnnual

RentLease Options

Rental Increases

Fixed Rent

Size (SF)Tenant

Walgreen Co.

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.

PRICING ANALYSISWALGREENS [ 14 ]

RENT ROLL

TENANT SYNOPSIS

Financial Information Lease Type: NNNPrice: $6,210,000Price/SF: $429

Property SpecificationsRentable Area: 14,490 SFLand Area: 1.3 AcresYear Built: 2001Address: 750 E. 120th Avenue

Northglenn, CO 80233APN: 1719-02-2-09-032Tenant: Walgreen Co.

Estimated Operating Information In-Place Fixed Rent

Gross Potential Rent $394,361 $0Plus Recapture NNN NNN

Effective Gross Income $394,361 $0Less Expenses (NNN) (NNN)

Net Operating Income $394,361 $0

Cap Rate: 6.35% 0.00%

Tenant is responsible for taxes, insurance, HVAC, and CAM. Landlord is responsible for the structure, roof, exterior, and utility lines.

The above information has been obtained from sources we believe to be reliable, however we cannot accept responsibility for its correctness.


TRANSACTION SUMMARY

Area Overview

THE CITY OF NORTHGLENN

Northglenn is a suburban community located 7 miles north of Denver. The city encompasses 7.5 square miles, and is strategically located adjacent to Interstate 25, Colorado’s primary north/south transportation corridor, with interchanges at 104th Avenue and 120th Avenue and an overpass at Community Center Drive.

The overpass and interchanges provide access to Northglenn’s retail centers, government center, recreation center, and award-winning parks. With university branch campuses, community colleges and technical schools located in or nearby the city, there is a substantial supply of well-trained professional and technical employees available to the business community.

Northglenn began in 1959 as a planned community, and gained national recognition from LIFE magazine for its success in large-scale community development.

The city’s 35,789 residents enjoy small neighborhoods with easily accessible schools, convenient shopping centers, parks, lakes, open space and outdoor recreational facilities. The community elements are connected by the Greenway Trail network, consisting of 28 miles of off-street walking and biking paths. When fully developed, the network will include 30 miles of trails.

Northglenn’s public recreation center provides affordable indoor recreation for all ages, including a full-service gym, weight room, and pool and racquetball courts. The center also hosts cultural, educational and senior citizen functions in its adjoining theater auditorium and meeting rooms.

Since the incorporation of the city in 1969, Northglenn has grown and evolved into a well-balanced community that is an affordable and desirable place to live, work, and conduct business.

DOING BUSINESS IN NORTHGLENN

Northglenn has a healthy business mix throughout the city. An industrial park within the city, approximately 100 acres in size, provides an excellent location for a wide variety of businesses, including manufacturers, transportation services, warehousing, and auto services. The city has a strong retail sector, particularly in the Martketplace shopping center at 104th and I-25. Business incentives within the city include an Enterprise Zone, where state tax credits are available to businesses within a specified zone for expenses related to job creation, capital investment, training, and research and development. A variety of attractive redevelopment opportunities exist within the Northglenn Urban Renewal District, as well.

MAJOR EMPLOYERS # OF EMPLOYEES » Corporate Express

» City of Northglenn

» Ramada Plaza

» O’Meara Ford

» Lowe’s Home Improvement

ADAMS COUNTY

Located just east of Colorado’s Front Range of the Rocky Mountains, Adams County is one of six counties that surround the City and County of Denver and make up the Denver Metropolitan Area. The County, approximately eighteen miles wide and seventy-two miles long, encompasses 1,182 square miles. The County is the western edge of the Great Plains of northeastern Colorado and is topographically characterized by a series of wide valleys separated by gently rolling uplands. A number of growing municipalities make up the incorporated areas of the County: Commerce City, Northglenn, Federal Heights, Thornton, and portions of Aurora, Bennett, Brighton (the county seat), Westminster, Arvada, and Lochbuie. Adams County’s estimated population for 2015 is 490,066.


AREA OVERVIEW

ECONOMY:

Adams County will be one of the fastest growing county in Colorado for the next 20 years according to forecasts by the Denver Regional Council of Governments. Almost half the employment growth in the metro region will be in Adams County and the urban core. Statewide, Colorado is benefiting from five projects with budgets that exceed one billion dollars each. Four of these projects impact Adams County – Denver International Airport, E-470 beltway, Fitzsimons, and FasTracks. These projects and projected growth will ensure prosperity for Adams County businesses and residents for years to come.

Increasing population, real property construction including; new homes and additional retail establishments, have contributed to local economic growth. Retail sales, up nearly 8.5% or nearly $44.6 million, were lifted in part by growth in Adams County’s population.

A GREAT BUSINESS VALUE

Adams County offers the advantage of a metro location with value-priced land, labor and cost of doing business.

Property – The abundance of industrial and commercial properties ready for development creates attractive real estate prices in Adams County, including a full variety of zoning for light manufacturing, high tech research and development, industrial production and office-based business.

Labor – Adams County has a very affordable cost of labor.

Taxes – Competitive tax rates and incentives for business.

Housing – From starter to executive homes, Adams County offers a variety of housing stock in suburban and rural settings.

DENVER INTERNATIONAL AIRPORT (DIA)

Denver International Airport (DIA) is the fifth busiest airport in the North America and the 10th busiest worldwide. It is the only major airport to be constructed in the United States

in the last 25 years. Direct air service is provided to more than 140 national and international destinations, including 19 international locations including destinations in Europe, Canada, Mexico, and Central America.

MAJOR EMPLOYERS # OF EMPLOYEES » University of Colorado Hospital 5860

» Children’s Hospital 5740

» United Parcel Service 2420

» Sturgeon Electric 1570

» Centura St Anthony Hospital North 890

» HealthOne: North Suburban Medical Center 880

» Steven Roberts Original Desserts 770

» Shamrock Foods 720

» McKesson 680

» Platte Valley Medical Center 670


AREA OVERVIEW (CONT.)

DESCRIPTION (WWW.ROL3.SITESUSA.COM) 5 MILE3 MILE1 MILE 10 MILE1 MILE 3 MILES 5 MILES 10 MILES

2016 Estimated Population 17,391 132,622 293,675 670,314

2021 Projected Population 18,809 143,225 318,519 728,228

2010 Census Population 16,069 124,882 273,334 612,472


Projected Annual Growth 2016 to 2021 1.6% 1.6% 1.7% 1.7%

Historical Annual Growth 2000 to 2016 1.9% 2.0% 2.5% 2.2%

2016 Median Age 32.8 34.8 34.5 35.2

2016 Estimated Households 7,219 48,439 104,609 242,011

2021 Projected Households 7,636 51,416 111,912 259,208

2010 Census Households 6,817 46,544 98,832 224,425




2016 Estimated White 75.4% 78.6% 77.3% 77.6%

2016 Estimated Black or African American 3.0% 2.2% 2.0% 2.0%

2016 Estimated Asian or Pacific Islander 3.7% 5.5% 5.4% 4.6%

2016 Estimated American Indian or Native Alaskan 1.4% 1.0% 1.0% 1.1%

2016 Estimated Other Races 16.4% 12.7% 14.3% 14.7%

2016 Estimated Hispanic 28.9% 24.7% 29.3% 30.5%

2016 Estimated Average Household Income $51,874 $82,437 $83,780 $82,792

2016 Estimated Median Household Income $49,558 $74,316 $74,676 $73,190

2016 Estimated Per Capita Income $21,575 $30,134 $29,860 $29,944

2016 Estimated Total Businesses 738 3,721 7,540 23,999

2016 Estimated Total Employees 8,904 36,070 73,644 267,195

2016 Estimated Employee Population per Business 12.1 9.7 9.8 11.1

2016 Estimated Residential Population per Business 23.6 35.6 38.9 27.9

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©2014, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 04/2013, TIGER Geography

1 MILE 3 MILES 5 MILES 10 MILES







2016 Median Age 32.8 34.8 34.5 35.2







2016 Estimated White 75.4% 78.6% 77.3% 77.6%













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DEMOGRAPHICS

walgreens · retail pharmacy usa, retail pharmacy international, and pharmaceutical wholesale. as...

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