Walgreens. 124 East North Street - KENDALLVILLE, INDIANA offering memorandum. Actual Property

Transcription

1 Walgreens offering memorandum

2 Investment Overview Marcus & Millichap is pleased to present this 4,820-square foot Walgreens in the town of Kendallville, Indiana. Located 22 miles north of Fort Wayne, this Walgreens has years remaining in the base term of an absolute-net lease with 0, five-year renewal options. The lease is guaranteed by Walgreens Company, the nation s largest drugstore chain that ranks #9 in the Fortune 500 (20). The subject property sits on East North Street, a busy retail corridor that is the main east-west thoroughfare through the town of Kendallville. Walgreens is on a signalized, hard-corner at the intersection with Main Street, the busiest intersection in town. In close proximity is a Kroger-anchored shopping center with Chase Bank and Dollar General as co-tenants. Additional major tenants in the vicinity include CVS, McDonald s, NAPA Auto Parts, Tractor Supply Company, O Reilly Auto Parts, Advance Auto Parts, Save-A-Lot, and many more. This Walgreens faces limited competition, as it is one of two freestanding pharmacies to serve the town of Kendallville. The next closest freestanding pharmacy is over 5 miles away. Walgreens in Kendallville, Indiana 22 Miles North of Fort Wayne There are Years Remaining in the Base Term of an Absolute-Net Lease Lease Features 0, Five-Year Renewal Options Limited Competition: One of Two Freestanding Pharmacies to Serve Kendallville Located on Corner of Main Street and East North Street, the Main East-West Thoroughfare Busiest Intersection in Town Lease Guaranty from Walgreens Company Standard & Poor (S&P) BBB Rating Ranks #9 in Fortune 500 Near Kroger Anchored Center Co-Tenants Include: Dollar General, Chase Bank, and Others Additional Major Tenants in the Vicinity Include: CVS, McDonald s, NAPA Auto Parts, Tractor Supply Company, O Reilly Auto Parts, Advance Auto Parts, Save-A-Lot, and Many More

3 Financial Overview Offering Summary PRICE $5,43,000 CAP RATE 5.85% NOI $38,000 PRICE PER SQUARE FOOT $3.80 RENT PER SQUARE FOOT $2.4 YEAR BUILT 2008 LOT SIZE.84 Acres GROSS LEASEABLE AREA 4,820 Square Feet TYPE OF OWNERSHIP Fee Simple LEASE GURANTOR Corporate Guarantee LEASE TYPE Absolute-Net ROOF AND STRUCTURE Tenant Responsible Lease Summary LEASE COMMENCEMENT DATE February, 2008 LEASE EXPIRATION DATE January, 2033 LEASE TERM 25 Years TERM REMAINING Years INCREASES Flat OPTIONS TO RENEW 0, 5-Year Options OPTIONS TO TERMINATE None OPTIONS TO PURCHASE None FIRST RIGHT OF REFUSAL Yes

4 Tenant Overview - Walgreens Founded in 90, Walgreens Boots Alliance, Incorporated. is the nation s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug products. By 99 there were 20 stores, and in 927 the Company went public. Three years later, the store count was well over 500. Today, Walgreen operates over 8,200 stores in all 50 states, DC, Puerto Rico and the United States Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. In December 204, Walgreen acquired the remaining 55 percent of European retailer and wholesaler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Incorporated, headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Incorporated. TENANT PROFILE TENANT TRADE NAME Walgreen Company OWNERSHIP Public TENANT Corporate Store LEASE GUARANTOR Corporate Guarantee NUMBER OF LOCATIONS 8,200+ HEADQUARTERED Deerfield, IL WEB SITE SALES VOLUME $03.4 Billion (205) NET WORTH $3.3 Billion (205) STOCK SYMBOL WBA BOARD NYSE CREDIT RATING BBB RATING AGENCY S&P RANK #9 in Fortune 500 (June 20) In October 205, Walgreens Boots Alliance announced an agreement to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of about $7.20 billion, including acquired net debt. The transaction is expected to close in the second half of calendar 20. Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies. Once the acquisition closes, Walgreens Boots Alliance plans to further transform Rite Aid s stores to better meet consumer needs.

5 A er i al O verview 2 4 E a s t No r t h S tr e e t - KEN DALLVI LLE, I NDI ANA BUICK Nort h St/ Rout e Rd 3 So ut h Li m Main S t a Parkview Noble Hospital No WALGREENS rt h 24 E North St Kendallville, IN 4755 St /R ou te Noble County Fair and Kendalville Event Center Strand Theatre Kraft Foods Plant NORTH East Noble High School Cole Center Family YMCA

6 Area Overview & Demographics 33 Benton Syracuse 3 Millersburg 5 Ligonier Enchanted South Park Hills Cromwell Emma Topeka Kimmell 20 Cosperville LaGrange Albion 9 Witmer Manor Plato Wolcottville Rome City Brimfield 0 MILE RADIUS Woodruff MILE RADIUS 3 MILE Brushy Prairie 3 Elmira Stroh Gravel Beach Wayne Center Kendallville SITE 327 Helmer 327 Flint 4 20 Salem Center Fairfield Center Corunna Angola Pleasant Lake Steubenville Ashley Waterloo 427 Moore Clarks Landing Hamilton 20 Butler Metz Alvarado 427 Artic Stafford Center Edon 49 Edgerton swego 3 North Webster Barbee 5 33 Wolflake Ormas 09 Etna 9 Bakertown Burr Oak Green Center Merriam 33 Avilla 8 Auburn Garrett Butler Center 205 Laotto 9 57 Ari 8 Orangeville Concord St Joe Spencerville Hicksville 3-Mile 5-Mile 0-Mile Population 2000 Population 2,03 5,528 39,0 200 Population 2,535 5,523 39,78 20 Population 2,897 5,94 40, Population 3,08,050 40,955 3-Mile 5-Mile 0-Mile Households 2000 Households 4,938,022 4, Households 4,955,090 5, Households 5,094,24 5, Households 5,4,294 5,703 3-Mile 5-Mile 0-Mile Household (HH) Incomes 20 Average HH Income $5,235 $58,54 $59,4 20 Median HH Income $44,79 $4,75 $49, Per Capita Income $22,2 $22,97 $22,850

7 Market Overview Located in Noble county, Kendallville, Indiana, is 22 miles North of Fort Wayne, Indiana (center to center) and 89 miles West of Toledo, Ohio. The city has a population of 9, residents. Kendallville History Kendallville is located in Noble county, which was formed in 83, out of the LaGrange county. Noble county was named in honor of Noah Noble, who served as the Governor of Indiana from the year 83 to 837. Kendallville was named after Amos Kendall, the postmaster general of the city. NEIGHBORING CVS PHARMACY Kendallville and Nearby Attractions Mid - America Windmill Museum Chain O Lakes State Park Garrett Historical Museum Gene Stratton - Porter State Historic Site Steuben county Park Auburn - Cord - Duesenberg Museum Things To Do In Kendallville Kendallville is home to the Mid - America Windmill Museum. The Auburn - Cord - Duesenberg Museum, Gene Stratton - Porter State Historic Site, and Menno - Hof are close by. The Chain O Lakes State Park, Steuben County Park, and Pokagon State Park offer facilities for hiking, boating, swimming, and camping; these parks also have trails and picnic areas. The local celebrations of Apple Festival, Tri-State Bluegrass Festival, and Noble County Community Fair are held yearly. Kendallville Transportation The closest airport to the city is the Fort Wayne International Airport. NEIGHBORING RETAIL STRIP NEIGHBORING WENDY S Kendallville Higher Education Indiana University - Purdue University - Fort Wayne, Kellogg Community College, and Western Michigan University provide classes for higher studies. NEIGHBORING KROGER