WALGREENS RETAIL CONDOMINIUM 145 LITTLETON ROAD WESTFORD, MA RETAIL CONDOMINIUM

Transcription

1 WALGREENS RETAIL CONDOMINIUM 145 LITTLETON ROAD WESTFORD, MA RETAIL CONDOMINIUM

2 LEAD AGENTS: BOB HORVATH Executive Vice President MA Tel: (781) CT Tel: (203) TODD Executive Vice President Direct: (781) Mobile:(781) RETAIL TEAM: RETAIL CONDOMINIUM WESTFORD MASSACHUSETTS MARK BROCKWELL Executive Vice President Direct: (305) Mobile: (203) BLAKE BARBARISI Senior Associate Direct: (203) Mobile: (203) AARON HUNTLEY Senior Associate Direct: (781) Mobile: (774) JEREMY BLACK Senior Associate MA Tel: (781) NY Tel: (315) ADAM MANCINONE Senior Associate Direct: (203) Mobile: (203) BRIAN AHRENS Associate Direct: (781) Mobile: (617) Market Street Suite 686 Lynnfield, MA Main: Fax: PETER BUTLER Associate Direct: (704) Mobile: (774) MATTHEW NADLER Associate Direct: (781) Mobile: (339) KYLE DANIELSON Associate Direct: (202) Mobile: (207) JACK THOMPSON Associate Direct: (954) Mobile: (617) RJ TULLER Associate Direct: (978) Mobile: (207) KEVIN DARLING Senior Financial Analyst Direct: (781) Mobile: (617)

3 EXECUTIVE SUMMARY Horvath & Tremblay is pleased to exclusively market for sale the single tenant net leased Walgreens retail condominium located at 145 Littleton Road (Route 110) in Westford, Massachusetts (the Property ). The Property consists of a 1.06 acre lot and a 14,820 square foot free-standing building. Walgreens is publicly traded on the NASDAQ (WBA) with a market cap in excess of $93 Billion. The company is investment grade rated with a Standard & Poor's rating of BBB. Walgreens is one of the largest drugstore chains in the U.S., with more than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The lease, which commenced in 2006, has fourteen plus years remaining on the original lease term plus ten, five-year renewal options with fixed rent. The lease is fully guaranteed by Walgreens Corporate. The Property is located along a primary retail corridor at the intersection of Littleton Road (Route 110) and Nixon Road, in Westford, Massachusetts, 26 miles north of Boston. Littleton Road (Route 110) provides quick access to Interstate-495 less than 0.5 mile to the west and Route-2 less than 7 miles to the south. The retail location is easily accessible from the surrounding area and offers direct street frontage with good access and visibility in a high traffic retail corridor. Additional national retailers in the immediate area include: Whole Foods, Five Guys, Eastern Bank, Petco Animal Supplies, Marshalls, HomeGoods, Xfinity, Verizon Wireless, Burton's Grill, Market Basket, Panera Bread, Mobil, Rite Aid, Bank of America, Cumberland Farms, Chipotle, Starbucks, CVS Health, Sleepy's, Subway, D'Angelo, McDonald's, Santander Bank, British Beer Company, Dunkin' Donuts, and Chili's. INVESTMENT HIGHLIGHTS Asset: Single Tenant, Triple-Net, Retail Condominium Interest in a Free-Standing Walgreens Located in Westford, MA (25 Miles to Boston) Location: Highly Visible Location with Direct Street Frontage on the Area s Primary Retail Corridor Access: The Property is Located Between the Region s Primary Highways, I-495 to the West and Route-2 to the South Lease Term: 14+ Years Remaining on the Lease Term Plus Ten, 5-year Renewal Options with Fixed Rent Retail and Entertainment Destination: Other National Tenants in the Area Include - Whole Foods, Five Guys, Eastern Bank, Petco Animal Supplies, Marshalls, HomeGoods, Xfinity, Verizon Wireless, Burton's Grill, Market Basket, Panera Bread, Mobil, Rite Aid, Bank of America, Cumberland Farms, Chipotle, Starbucks, CVS Health, Sleepy's, Subway, D'Angelo, McDonald's, Santander Bank, British Beer Company, Dunkin' Donuts, and Chili's. 3 WALGREENS

4 TENANT OVERVIEW Key ratios and credit ratings Credit ratings Rating Agency Long-Term Debt Rating Commercial Paper Rating Outlook Fitch BBB F2 Stable Moody's Baa2 P-2 Under Review Standard & Poor's BBB A-2 Negative Key ratios Price & Volume Valuations Ratios Financial Strength Per Share Data Recent Price $ Price/Earnings (TTM) Quick Ratio (MRQ) 89, Earnings (TTM) $ Week High $ Price/Sales (TTM) 0.77 Current Ratio (MRQ) 1, Sales (TTM) $ Week Low $ Price/Book (MRQ) 2.99 LT Debt/Equity % (MRQ) 1, Book Value (MRQ) $ Average Vol (M) (RTMA) 3.80 Price/Cash Flow (TTM) Total Debt/Equity % (MRQ) Cash Flow (TTM) $ 5.55 Beta 0.84 Cash (MRQ) $ Dividend Information Mgmt Effectiveness Shared Related Items Profitabillity Yield % 1.80 Return on Equity (TTM) Market Cap. (M) $ 89, Gross Margin (TTM) % Annual Dividend $1.50 Return on Assets (TTM) 5.90 Shares Out (M) 1, EBIT Margin (TTM) % 5.10 Payout Ratio (TTM) % Return on Investments (TTM) 8.90 Float (M) Profit Margin (TTM) % WALGREENS

5 TENANT OVERVIEW STORE COUNT BY STATE Alabama 113 Alaska 12 Arizona 244 Arkansas 81 California 633 Colorado 159 Connecticut 92 Delaware 64 Florida 831 Georgia 203 Hawaii 20 Idaho 39 Illinois 598 Indiana 190 Iowa 70 Kansas 69 Kentucky 95 Louisiana 158 Maine 14 Maryland 85 Massachusetts 163 Michigan 228 Minnesota 152 Mississippi 76 Missouri 212 Montana 13 Nebraska 57 Nevada 82 New York 469 New Hampshire 31 New Jersey 197 New Mexico 72 North Dakota 1 North Carolina 268 Ohio 247 Oklahoma 114 Oregon 76 Pennsylvania 123 Puerto Rico 120 Rhode Island 25 South Carolina 114 South Dakota 14 Tennessee 252 Texas 713 U.S. Virgin Islands 1 Utah 48 Vermont 3 Virginia 140 Washington 135 Washington D.C. 8 West Virginia 16 Wisconsin 225 Wyoming 10 Total 8,175 About Walgreens Walgreens is one of the largest drugstore chains in the U.S., with more than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging the first global pharmacy-led, health and wellbeing enterprise. The combination brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through community pharmacy care and pharmaceutical wholesaling. Both companies have more than a century s worth of experience in customer and patient care. Walgreens is today part of the Retail Pharmacy USA division of Walgreens Boots Alliance. Walgreens mission is to be America s most-loved pharmacy-led health, well-being and beauty retailer. Its purpose is to champion everyone s right to be happy and healthy. Facts Prescriptions filled Walgreens filled 928 million prescriptions on a 30-day adjusted basis in fiscal Total number of Walgreens employees We employ over 245,000 people. Number of healthcare service providers We have more than 76,000 healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health-related professionals. Number of Balance Rewards members We have approximately 87 million Balance Rewards active members as of August Geography served As of August 2016, approximately 76% of the population of the USA lives within five miles of a Walgreens. 5 WALGREENS

6 FINANCIAL ANALYSIS FINANCIAL OVERVIEW 145 LITTLETON ROAD WESTFORD, MA PRICE: $7,076,923 LEASE TYPE: NNN NOI: $460,000 CAP RATE: 6.50% BUILDING SQUARE FOOTAGE: 14,820± LEASE COMMENCEMENT DATE: 12/28/2005 RENT COMMENCEMENT DATE: 01/01/2006 LEASE EXPIRATION DATE: 12/31/2031 LOT SIZE: 1.04± Acres INITIAL LEASE TERM: 25 Years TYPE OF OWNERSHIP: Fee Simple (Condominium Interest) TERM REMAINING ON LEASE: 14+ Years ROOF AND STRUCTURE: Tenant Responsible INCREASES: None LEASE GUARANTOR: Corporate Guarantee OPTIONS: (10) Five Year Renewal Options ANNUALIZED OPERATING DATA RENT INCREASES ANNUAL MONTHLY CURRENT - 12/31/2031 $460,000 $38,333 OPTION 1 (01/01/ /31/2036) $460,000 $38,333 OPTION 2 (01/01/ /31/2041) $460,000 $38,333 OPTION 3 (01/01/ /31/2046) $460,000 $38,333 OPTION 4 (01/01/ /31/2051) $460,000 $38,333 OPTION 5 (01/01/ /31/2056) $460,000 $38,333 OPTION 6 (01/01/ /31/2061) $460,000 $38,333 OPTION 7 (01/01/ /31/2066) $460,000 $38,333 OPTION 8 (01/01/ /31/2071) $460,000 $38,333 OPTION 9 (01/01/ /31/2076) $460,000 $38,333 OPTION 10 (01/01/ /31/2081) $460,000 $38,333 NET OPERATING INCOME $460,000 6 WALGREENS

7 & AERIAL PHOTOGRAPH HORVATH AY AD W AY W GH LE RO GH TT RO ON BL UE BL UE ST AR M ST AR EM M OR IA EM L OR HI IA L LI N TO AD ST HI BO 145 LITTLETON ROAD WESTFORD, MA 7 WALGREENS

8 & SITE PLAN HORVATH NIXON ROAD UN IT 1 UNIT 2 UNIT 3 LITTLETON ROAD 8 WALGREENS

9 AERIAL PHOTOGRAPH BLUE STAR MEMORIAL HIGHWAY BLUE STAR MEMORIAL HIGHWAY NIXON ROAD UNIT 1 UNIT 2 UNIT 3 LITTLETON ROAD 9 WALGREENS

10 REGIONAL MAP WALGREENS 145 LITTLETON ROAD - WESTFORD, MA PORTSMOUTH MANCHESTER NASHUA LOWELL BOSTON WORCESTER FRAMINGAHM 10 WALGREENS

11 PROPERTY PHOTOGRAPHS 11 WALGREENS

12 AREA TENANT PHOTOGRAPHS McDonald's 151 Littleton Road Whole Foods Market 160 Littleton Road CVS Health 174 Littleton Road Starbucks 174 Littleton Road 12 WALGREENS

13 AREA TENANT PHOTOGRAPHS Chipotle 174 Littleton Road Santander Bank 160 Littleton Road Dunkin' Donuts 160 Littleton Road Chili's 137 Littleton Road 13 WALGREENS

14 LOCATION OVERVIEW 1 MILE 3 MILES 5 MILES POPULATION 2021 Projection 2,104 25,423 76, Estimate 1,992 24,218 72, Census 1,769 22,321 65,721 The Town of Westford was incorporated on September 23, The Town is located to the west of Lowell and north of Concord almost to the New Hampshire border. Physically, Westford is a very beautiful town with rolling hills, lakes, and apple orchards. Originally Westford was noted for its farms and woolen mills, but today is mostly a bedroom community with an emphasis on high tech. Every year the Town has an Apple Blossom Festival in May with a parade and the crowning of an apple blossom queen and a Strawberry Festival in June featuring a wonderful craft fair and strawberry shortcake. The Town of Westford truly has something for everyone. Nashoba Valley, while being a full-service ski area offering lessons, rentals, skiing, and snowboarding is also host to numerous other activities, all of which make Nashoba Valley Boston's own year-round recreational facility. Nashoba Valley's snowtubing Park, which opened in 2001 is New England's largest snowtubing facility with four lifts, over 600 snowtubes and up to 16 lanes. The outlook Restaurant, the onsite restaurant and lounge, offers fine dining and catering year-round. Witch's Woods, New England's Premier Halloween Screampark and Haunted Hayride, operates in October with 4 attractions plus stage shows, the Jack-O-Lantern Jamboree and more. During the summer months, Nashoba offers a children's day camp, adult summer volleyball league, and a private swim club. HOUSEHOLDS 2021 Projection 747 9,115 28, Estimate 706 8,671 27, Census 624 7,960 24,477 INCOME 2016 Avg Household Income $162,563 $148,211 $135, Med Household Income $155,319 $128,429 $114, WALGREENS

15 RETAIL CONDOMINIUM WESTFORD MASSACHUSETTS 600 Market Street Suite 686 Lynnfield, MA Main: Fax: