EXCLUSIVELY LISTED INVESTMENT OFFERING

Transcription

1 EXCLUSIVELY LISTED INVESTMENT OFFERING MEMPHIS MSA INVESTMENT OPPORTUNITY 4028 GOODMAN ROAD HORN LAKE (MEMPHIS), MS Exclusively Listed By: In Association with: JASON STUART PONGSRIKUL Managing Principal x302 CA DRE Lic. # CHRIS BARRY Associate x305 CA DRE Lic. # GREGG POUNDERS Pounders & Associates Direct: MS DRE Lic. B Pharma Property Group 5328 Banks Street, Suite B San Diego, CA

2 Property Overview 4028 GOODMAN ROAD HORN LAKE (MEMPHIS), MS Year Built: 2001 Lot Size: 88,426 Square Feet Building Size: 14,490 Square Feet Investment Highlights STABLE INCOME Rental income guaranteed by Walgreens parent corporate (S&P BBB) investment grade Fortune 500 Company with over 8,000 locations. LEASE TERM REMAINING This location has nine (9) years and six (6) months of primary lease term remaining with eight (5-year) options to renew on a absolute net basis with no landlord responsibilities whatsoever. MEMPHIS MSA Horn Lake is located in the Memphis Metropolitan Statistical area just 18 miles south of Memphis, the largest city in the state of Tennessee. The subject property is about 11 miles southwest of the Memphis International Airport, home to the FedEx Express global hub and the busiest cargo airport in the united states with a passenger count of 3.75 million in STRONG RETAIL CORRIDOR The subject property is located next to a Walmart and is adjacent from a Kroger anchored shopping center which includes national retailers such as Pizza Hut, Taco Bell and Papa Murphy s. Other Retailers in the immediate area include Auto Zone, Family Dollar, Little Caesars, Dollar General, AT&T, Advanced Auto Parts, and Fred s Supermarket. CENTRAL THOROUGHFARE LOCATION This Walgreens is located on the main retail corridor of Horn Lake at the signalized northwest corner of Goodman Road (26,000 cars per day) and Horn Lake Road (9,455 cars per day). This corner is highly trafficked as It is the main thoroughfare leading to Interstate 55 located only four miles away with over 61,000 cars per day and Highway 51 with 18,000 cars per day. GOODMAN ROAD - 26,000 CARS PER DAY page 2

3 Lease Overview Tenant: WALGREENS (NYSE: WAG) Landlord Income: CORPORATE GUARANTEE Credit Rating: INVESTMENT GRADE, BBB (S&P) Lease Type: ABSOLUTE NET No landlord responsibilities whatsoever. Lease Term: 9 YEARS AND 6 MONTHS REMAINING WITH EIGHT (5 YEAR) OPTIONS TO FOLLOW Lease Commencement: OCTOBER 1, 2001 Pricing Price: $4,507,692 CAP: 6.50% CAP Price/Square Foot: $ Monthly Income: $24, Annual Income: $293,000 Building Building Square Footage: 14,490 Land Square Footage: 88,426 Rent/Square Foot: $20.22 Year Built: 2001 Next Option Begins: OCTOBER 1, 2026 Location Overview H orn Lake, Mississippi is located in the north west part of the state, in DeSoto County within the Memphis MSA, approximately four miles south of the Tennessee border and only 17 miles south of Memphis, TN. Memphis is the largest city in Tennessee and the 23rd largest city in America. Memphis is known as America's Distribution Center, serving multiple regions of the country. The city has one of the country's largest inland ports and is the national headquarters for the Fed Ex air-courier company. Health care and related activities such as medical education and biomedical research are Memphis's largest industries, bringing over $5 billion a year to the local economy. HORN LAKE, MISSISSIPPI page 3

4 Area Description MISSISSIPPI RIVER DOWNTOWN MEMPHIS 18 MILES FROM MEMPHIS INTERNATIONAL AIRPORT 11 MILES FROM BNSF RAILWAY TENNESSEE - MISSISSIPPI BORDER 18 miles to memphis BAPTIST MEMORIAL HOSPITAL DESOTO AREA OVERVIEW Horn Lake is located within the Memphis MSA just 18 miles south of Memphis, TN, the largest city in the state of Tennessee. Approximately 11 miles northeast of subject property is the Memphis International Airport home to the FedEx Express global hub, which processes many of the company s packages. As of 2015, Memphis International Airport had a passenger count of 3.75 million. The hospitals nearby include the Baptist Memorial Hospital Desoto, Memphis Children s Clinic and Desota Family Medical Center. SOUTHAVEN TOWNE CENTER Approximately 4 miles to the east lies the Southaven Towne Center, a 520,828 square foot center with tenants that include J.C.Penney, Dillard s, Bed Bath & Beyond, Pier 1 Imports, Zales The Diamond Store, GNC, Journeys, Gordmans, Ulta Beauty, HH Gregg, American Eagle Outfitters, Jo-Ann Fabric and Craft Stores, Payless ShoeSource, Men s Warehouse, Red Lobster, Logan s Roadhouse and Olive Garden. AREA OVERVIEW The area surrounding Southaven Towne Center has a large and diverse collection of retailers and restaurants that include Wal-Mart Supercenter, Target, Lowe s, Kroger, Best Buy, Home Depot, Kohl s, Desoto Towne Cinema, CVS, Sam s Club, Marshalls, Gap Factory, Old Navy, Petco, Five Guys Burgers & Fries, Outback Steakhouse, TGI Fridays, IHOP, Chili s, Buffalo Wild Wings, Sonic Drive-in, Starbucks and more. TANGER OUTLET SOUTHAVEN Two miles south of Southaven Town Center is the Tanger Outlet Southaven with tenants that include Nike Factory Store, Under Armour Factory House, Converse Factory Store, Sketchers Factory Outlet, Gap Outlet, Express Factory Outlet, Michael Kors, Tommy Hilfiger, Lucky Brand, Maurices, Charlotte Russe and rue21. page 4

5 Property Photos STORE ENTRANCE AND PARKING AREAS GOODMAN ROAD - 26,000 CARS PER DAY NORTH DRIVEWAY AND DRIVE-THRU page 5

6 Property Photos GOODMAN ROAD - 26,000 CARS PER DAY GOODMAN ROAD - 26,000 CARS PER DAY page 6

7 Company Summary * Tenant History Walgreens, headquarted in Deerfield, IL, is the largest drug retailing chain in the United States with more than 8,175 stores in all 50 states, the Disctrct of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens built out its national platform through its corporate real estate department heavily during the 1990 s continuing through the mid 2000 s. By 2012, Walgreens had opened its 8,000th store and later that year the company made a bold move by purchasing a 45% interest in Alliance Boots, a leading international pharmacy-led health and beauty group. Two years later, Walgreens exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance(NASDAQ: WBA). This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance. The company sells prescription and non-prescription drugs and general merchandise including household products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for managing complex and chronic health conditions. In addition to these in-store offerings, the company operates digital businesses that include Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com, and VisionDirect.com. *Walgreens company information received from Walgreens investor relations. tenant profile Guarantor: Ownership: Stock Symbol (NASDAQ): Credit Rating (S&P): Business: Walgreens Boots Alliance, Inc. Public WBA BBB Locations: 8,175 Annual Revenue: Net Worth: Headquartrs: Website: Retail Pharmacy $ Billion $29.88 Billion Deerfield, IL On Oct 27, 2015, Walgreens Boots Alliance entered into a merger agreement with Rite Aid Corporation (NYSE: RAD). The transaction is expected to close sometime in mid-2017, but is subject to Rite Aid stockholder approval, regulatory approvals and other customary closing conditions. page 7

8 Locations by State Alabama 113 Idaho 39 Mississippi 76 Oklahoma 114 West Virginia 16 Alaska 12 Illinois 598 Missouri 212 Oregon 76 Wisconsin 225 Arizona 244 Indiana 190 Montana 13 Pennsylvania 123 Wyoming 10 Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 120 California 633 Kansas 69 Nevada 82 South Carolina 114 US Virgin Islands 1 Colorado 159 Kentucky 95 New Hampshire 31 South Dakota 14 Connecticut 92 Louisiana 158 New Jersey 197 Tennessee 252 Delaware 64 Maine 14 New Mexico 72 Texas 713 Washington DC 8 Maryland 85 New York 469 Utah 48 Florida 831 Massachusetts 163 North Carolina 268 Vermont 3 Georgia 203 Michigan 228 North Dakota 1 Virginia 140 Hawaii 20 Minnesota 152 Ohio 247 Washington 135 *Nationwide locations as of August 31, 2016 Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores. Total 8,175* page 8

9 Demographic Snapshot GOODMAN ROAD Total Population Average Age 10,158 1 Mile 37,839 3 Miles 101,712 5 Miles Mile Miles Miles Average Household Inc Total Households $55,674 1 Mile $56,238 3 Miles $53,880 5 Miles 3,465 1 Mile 13,129 3 Miles 36,811 5 Miles Disclaimer: 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. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate. Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems. By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies Pharma Property Group. page 9

10 GOODMAN ROAD - 26,000 CARS PER DAY Investment Property Recap Lease Overview Tenant: Walgreens (NYSE: WAG) Landlord Income: Corporate Guarantee Credit Rating: Investment Grade, BBB (S&P) 4028 GOODMAN ROAD HORN LAKE (MEMPHIS), MS Year Built: 2001 Total Lot Size: 88,426 Square Feet Total Building Size: 14,490 Square Feet Lease Type: Absolute Net Lease No landlord responsibilities whatsoever. Lease Term: 9 years and 6 months remaining with eight (5-year) options to follow Next Option Begins: October 1, 2026 Pricing Price: $4,507,692 Cap Rate: 6.50% Total Monthly Income: $24, Total Annual Income: $293,000 page 10

11 5328 Banks Street, Suite B San Diego, CA P F Exclusively listed by Jason Stuart Pongsrikul Managing Principal x302 jp@pharmapropertygroup.com CA DRE Lic. # Chris Barry Associate x305 cb@pharmapropertygroup.com CA DRE Lic. # In association with Gregg Pounders Pounders & Associates gpounders@poundersandassociates.com MS DRE Lic. B EXCLUSIVELY LISTED INVESTMENT OFFERING 4028 GOODMAN ROAD HORN LAKE (MEMPHIS), MS 38637