WALGREENS 2310 WEST PATAPSCO AVENUE, BALTIMORE, MD BRANDON MICHAELS GROUP

Transcription

1 WALGREENS 2310 WEST PATAPSCO AVENUE, BALTIMORE, MD BRANDON MICHAELS GROUP

2 INVESTMENT ADVISORS: BRANDON MICHAELS First Vice President Investments Director, National Retail Group Tel: (818) License: CA # Table of Contents 1 Executive Summary BRANDON MICHAELS GROUP 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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap Tenant Overview Financial Analysis Sales Comparables 2 3

3 Executive Summary Investment Highlights Marcus & Millichap has been selected to exclusively market for sale the Walgreens located at 2310 West Patapsco Avenue in Baltimore, Maryland. This is an opportunity to purchase an existing prototype store in a densely populated area. Walgreens was built in 2002 with an initial 20-year lease that expires on January 31, 2022, with eight, five year options. The store is a 15,120 square foot prototype, which is the large format for Walgreens. The property is located just West of the busy signalized intersection of Patapsco Avenue and Hollins Ferry Road. The parcel is 2.16 acres. The lease structure is Double Net with the landlord being responsible for roof and structure. The property is located in the Southwest area of Baltimore known as Lakeland, Maryland. It is an infill, high density market with a population of over 134,000 in the three-mile ring. The area is surrounded by major highways and has great access to Interstate-95, Interstate-695, and Interstate-295. There is a lack of pharmacies in the immediate market as the next closest national drugstore is a CVS/Pharmacy that is 1.2 miles away. Walgreens is located next to the Hollinswood Shopping Centr which includes major national retailers like Subway, LA Mart, Dollar Tree, Dollar General, Sonic Drive-In, and Advance Auto Parts. PROPERTY INFORMATION Property Address Price $3,370,000 Current NOI $373,000 Cap Rate 10.00% Building SF Total Land Size LEASE INFORMATION 2310 West Patapsco Avenue, Baltimore, MD ,120 SF Year Built 2002 Property Type Tenant 94,089 SF (2.16 AC) Single-Tenant Retail Walgreens, Inc. Lease Start Date 2/1/2002 Lease Expiration Date 1/31/2022 Original Lease Term Remaining Lease Term Rent Increases Options Lease Type Roof and Structure 20 years 5 years Fixed Eight, five year options NN Landlord Responsible INVESTMENT GRADE WALGREENS TENANT Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Investment Grade Tenant - BBB rating by Standard & Poor s Corporate Gurantee Nasdaq: WBA Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry of Fortune magazine s 2017 list of the World s Most Admired Companies. Large prototype location with a drive-thru pharmacy Large parcel acres DENSE BALTIMORE LOCATION ADJACENT TO NATIONAL RETAILERS Walgreens is located adjacent to major national retailers including Subway, Dollar Tree, Sonic Drive-In, Advance Auto Parks, Popeyes Louisiana Kitchen, Dollar General, and LA Mart Located just west of the northwest signalized corner of W. Patapsco Avenue and Hollins Ferry Road Dense location with a population of 134,000 in a three-mile radius Traffic counts in excess of 40,000 vehicles per day at intersection Close to the Baltimore-Washington Parkway (295) which travels directly into Downtown Baltimore The next closest pharmacy and drugstore is CVS, which is 1.2 miles away Store Sales Available Upon Request 4 5 PROPERTY OVERVIEW

4 Tenant Overview 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. In addition, Walgreens is one of the world s largest purchasers of prescription drugs and many other health and wellbeing products. Its portfolio now includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty products brands such as No7, Botanics, Liz Earle and Soap & Glory. TENANT OVERVIEW Tenant Trade Name Ownership Tenant Walgreens Public Number of Locations 8,126 Corporate Store Sales Volume $116,081,000 Lease Guarantor Credit Rating A-2 Rating Agency Stock Symbol Board Headquartered Website Walgreens Boots Alliance Standard & Poor s WBA Nasdaq Deerfield, IL WALGREENS BOOTS ALLIANCE Through Walgreen s strategic partnership with Alliance Boots, Walgreens Boots Alliance is now a global leader in pharmacy-led, health and well-being retail, and together have over 13,200 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. In addition, Walgreens Boots Alliance is one of the world s largest purchasers of prescription drugs and many other health and well-being products. The company s size, scale, and expertise help to expand the supply and address the rising cost of prescription drugs in the USA and worldwide. WALGREENS BOOTS ALLIANCE AT A GLANCE Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry of Fortune magazine s 2017 list of the World s Most Admired Companies. This is the 24th consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen Co., have been named to the list. Unmatched supply chain and procurement expertise, offering customers innovative solutions and optimal efficiencies A portfolio of retail and business brands, including Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as global health and beauty product brands, such as No7, Botanics, Liz Earle, and Soap & Glory A unique platform for growth in developed and emerging markets 6 7 PROPERTY OVERVIEW

5 Walgreens LEASE INFORMATION Property Address Building SF Total Land Size 2310 West Patapsco Avenue, Baltimore, MD ,120 SF 94,089 SF Year Built 2002 Property Type Single-Tenant Retail Tenant Walgreens Lease Start Date 2/1/2002 Lease Expiration Date 1/31/2022 Rent Increases Fixed Options Eight, five year options Lease Type NN Roof and Structure Landlord Responsible Lease Term 20 years Options to Renew Eight, five year options Options to Terminate Yes Options to Purchase No First Right of Refusal Yes FINANCIAL ANALYSIS Annualized Operating Data 2/1/2002-1/31/2022 (Monthly Income) $31,083 Net Operating Income $373,000 Pricing Price $3,730,000 Price/SF (Bldg) $ Current NOI $373,000 CAP Rate 10.00% W PATAPSCO AVENUE HOLLINS FERRY ROAD 8 9

6 Aerial Map WEST BALTIMORE HOLLINS FERRY RD 2310 West Patapsco Avenue, Baltimore LAKELAND ELEMENTARY MIDDLE SCHOOL CHERRY HILL LANSDOWNE ROAD LANSDOWNE MIDDLE SCHOOL W. PATAPSCO AVENUE HOLLINSWOOD SHOPPING CENTER BALTIMORE WASHINGTON PARKWAY 295 PATAPSCO VILLAGE SHOPPING CENTER 10 11

7 Area Overview Area Overview BALTIMORE, MARYLAND LAKELAND Lakeland is a neighborhood in South Baltimore, Maryland. Baltimore is the largest city in the U.S. state of Maryland, and the 29thmost populous city in the country. It was established by the Constitution of Maryland and is not part of any county; thus, it is the largest independent city in the United States, with a population of 621,849 as of As of 2016, the population of the Baltimore metropolitan area was estimated to be just under 2.8 million making it the 21st largest metropolitan area in the country. Population: 4,551 Area: square miles MEDIAN HOUSEHOLD INCOME IN 2015 Lakeland: $46,233 Founded in 1729, Baltimore is the second-largest seaport in the Mid- Atlantic Baltimore's Inner Harbor was once the second leading port of entry for immigrants to the United States and a major manufacturing center. After a decline in major manufacturing, industrialization and rail transportation, Baltimore shifted to a service-oriented economy, with the Johns Hopkins Hospital (founded 1889), and Johns Hopkins University (founded 1876), now the city's top two employers. With hundreds of identified districts, Baltimore has been dubbed "a city of neighborhoods". Famous residents have included the writers Edgar Allan Poe, Edith Hamilton, Frederick Douglass, and H.L. Mencken; jazz musician James "Eubie" Blake; singer Billie Holiday; actor and filmmaker John Waters; and baseball player Babe Ruth. In the War of 1812, Francis Scott Key wrote The Star-Spangled Banner, later the American national anthem, in Baltimore. Baltimore has more public monuments per capita than any other city in the country and is home to some of the earliest National Register historic districts in the nation, including Fell's Point (1969), Federal Hill (1970) and Mount Vernon Place (1971). More than 65,000 properties, or roughly one in three buildings in the city, are listed on the National Register, more than any other city in the nation. DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2014 Population 19, , , Households 6,961 54, , Average Household Size Daytime Population 4,435 76, , Owner Occupied Housing Units 42.15% 46.48% 43.73% 2014 Renter Occupied Housing Units 57.85% 53.52% 56.27% 2014 Vacant 7.07% 14.81% 15.91% 2014 Median Household Income $38,840 $41,098 $39, Per Capita Income $17,562 $23,481 $24, Average Household Income $48,431 $58,867 $59,381 Baltimore: POPULATION DENSITY Lakeland: Baltimore: PERCENTAGE OF FAMILY HOUSEHOLDS Lakeland: Baltimore: MEDIAN RENT IN 2015 Lakeland: Baltimore: 40.1% $808 $925 $44,165 8,195 people per square mile 7,696 people per square mile 59.8% 12 13

8 Sales Comparables Sales Comparables 1 Walgreens 9621 Belair Road, Nottingham, MD Close of Escrow: 1/25/2017 Year Built: 2001 Gross Leasable Area (GLA): 14,712 Sale Price: $5,440, CAP Rate: 7.00% Price / SF (GLA): $ Lot Size: 74,052 3 Walgreens 5657 Baltimore National Pike, Catonsville, MD Close of Escrow: 2/19/2016 Year Built: 2005 Gross Leasable Area (GLA): 14,820 Sale Price: $8,650, CAP Rate: 6.00% Price / SF (GLA): $ Lot Size: 98,881 2 Walgreens 939 York Road, Towson, MD Close of Escrow: 6/21/2016 Year Built: 2012 Gross Leasable Area (GLA): 12,360 Sale Price: $12,100, CAP Rate: 5.66% Price / SF (GLA): $ Lot Size: 32,117 4 Walgreens 25 High Street, Waldorf MD Close of Escrow: 12/2/2015 Year Built: 2005 Gross Leasable Area (GLA): 14,490 Sale Price: $6,225, Price / SF (GLA): $ Lot Size: 57,

9 Sales Comparables Sales Comparables 9.00% 8.00% 8.00% % 7.00% % 5.66% 6.00% 6.22% 4 Legend Belair Road, Nottingham York Road, Towson Baltimore National Pike, Catonsville 4 25 High Street, Waldorf Subject Property 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 9621 Belair Road, Nottingham, MD York Road, Towson, MD Baltimore National Pike, Catonsville, MD Average Subject Property 16 17

10 BRANDON MICHAELS GROUP BRANDON MICHAELS First Vice President Investments Director, National Retail Group Tel: (818) License: CA #