WALGREENS 36 HILLSIDE AVENUE HILLSIDE, NJ (NEW YORK CITY, MSA)

Transcription

1 WALGREENS 36 HILLSIDE AVENUE HILLSIDE, NJ (NEW YORK CITY, MSA)

2 LEAD AGENTS BOB HORVATH Executive Vice President MA Tel: (781) CT Tel: (203) PETER BUTLER Senior Associate Direct: (704) Mobile: (774) RETAIL TEAM SINGLE TENANT - NET LEASED HILLSIDE NEW JERSEY (NEW YORK CITY, MSA) TODD Executive Vice President Direct: (781) Mobile:(781) ttremblay@htretail.com AARON HUNTLEY Senior Associate Direct: (781) Mobile: (774) ahuntley@htretail.com MARK BROCKWELL Executive Vice President Direct: (305) Mobile: (203) mbrockwell@htretail.com JEREMY BLACK Senior Associate MA Tel: (781) NY Tel: (315) jblack@htretail.com 600 Market Street Suite 686 Lynnfield, MA Main: Fax: DAVID DWORKIN LLD Enterprises, LLC Broker of Record License No.: License No.: MATTHEW NADLER Senior Associate Direct: (781) Mobile: (339) mnadler@htretail.com BRIAN AHRENS Associate Direct: (781) Mobile: (617) bahrens@htretail.com RJ TULLER Associate Direct: (781) Mobile: (207) rtuller@htretail.com KEVIN DARLING Senior Financial Analyst Direct: (781) kdarling@horvathtremblay.com KYLE DANIELSON Associate Direct: (202) Mobile: (207) kdanielson@htretail.com JACK THOMPSON Associate Direct: (954) Mobile: (617) jthompson@htretail.com BRAD CANOVA Associate Direct: (781) Mobile: (508) bcanova@htretail.com LEIGH BARCAMONTE Marketing Director Direct: (781) lbarcamonte@horvathtremblay.com

3 EXECUTIVE SUMMARY We are pleased to present the opportunity to acquire the fee simple interest in a newly constructed, triple-net leased Walgreens retail store in Hillside, New Jersey. The Walgreens triple net (NNN), twenty-year lease commenced on October 29, 2016 and includes automatic one year renewals through October This is a relocation for Walgreens to a high visibility, corner location adjacent to the on/off ramp of Route 22 at Hillside Avenue in Hillside, New Jersey. The site is located in a high-density retail and residential location less than 1.5 miles from the Newark Expressway (I-78) and 3 miles from Newark International Airport. Additional notable retailers in the immediate area include CVS, Shop Rite Supermarket, Lowe s, Office Depot, Toys R Us, McDonald s, Wendy s, Burger King, Taco Bell, Dunkin Donuts, and three national car dealerships. Hillside Township is an immediate suburb of Newark, New Jersey and is part of the Greater New York Metropolitan Area which consists of over 20 million people in the most densely populated area of the United States. The new Hillsdale Walgreens location supports excellent local demographics and traffic counts - over 300,000 people live within a three mile radius of the property with an average household income of over $62,000. Additionally, an outstanding 71,500 vehicles pass the site along Route 22 on a daily basis. INVESTMENT HIGHLIGHTS EXCELLENT LEASE TERM REMAINING: Walgreens has over 18+ Years remaining on their original 20-Year lease term plus renewal options to extend the lease for up to 75 years. The Hillside Walgreens will be one of the last twenty-year lease terms as Walgreens will be exclusively executing 15-year leases going forward. INVESTMENT GRADE CREDIT: Walgreens is the largest retail pharmacy, health and beauty retailer in the USA and Europe. Walgreens has a market cap of $89.3 Billion and is investment grade rated by Moody s (Baa2) and S&P (BBB). STABLE, PREDICTABLE PASSIVE INCOME: The Walgreens lease is Absolute NNN as the Tenant is responsible for all CAM, Taxes, Utilities, Structure, Roof and Parking Lot repair and maintenance. NEW CONSTRUCTION: The newly constructed building was completed in September The subject Walgreens is a relocation from a nearby store with above average sales. STRATEGIC RE-LOCATION: This relocated store is located on a highly visible corner location on Hillsdale Avenue at the on/off ramp of Route 22. The property is located along a retail corridor in a high density residential area less than a mile from the Newark Expressway, 3 miles from Newark International Airport and 15 miles from downtown Manhattan. STRONG DEMOGRAPHICS: The Hillside Walgreens is located within the New York City MSA of over 20 million people. Over 300,000 people live within a 3 mile radius of the property with an average household income of $62,000. SUPERIOR TRAFFIC COUNTS: More than 71,500 vehicles pass the premises daily on Route 22. 3

4 FINANCIAL ANALYSIS FINANCIAL OVERVIEW WALGREENS 36 HILLSIDE AVENUE HILLSIDE, NJ PRICE: $8,351,851 CAP RATE: 5.40% NOI: $451,000 TENANT: GUARANTOR: OWNERSHIP TYPE: LOT SIZE: GROSS LEASEABLE SF: Walgreens Corporate Fee Simple 1.01± Acres 14,630± SF YEAR BUILT / RENOVATED: 2016 LEASE TYPE: Absolute NNN RENT COMMENCEMENT DATE: 10/29/2016 LEASE EXPIRATION DATE: 10/31/2036 LEASE TERM REMAINING: 18+ Years RENEWAL OPTIONS: 55, 1-Year Automatic Options Thru Oct 2091 PURCHASE OPTION: Tenant ROFR EXPENSE CAM Insurance Utilities Taxes Roof & Structural Parking Lot RESPONSIBLE Tenant Tenant Tenant Tenant Tenant Tenant DEMOGRAPHICS 3 MILE 5 MILE 10 MILE 2017 Population 312, ,292 2,059, Avg HH Income $60,849 $66,512 $89, Med HH Income $43,152 $45,306 $63,388 Traffic Volume (US Hwy 22) 71,526 Vehicles per day 4

5 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) %

6 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. 6

7 PROPERTY PHOTOGRAPHS 7

8 & AERIAL PHOTOGRAPH HORVATH M VEN SA I R OR UE CO NR AI LL E HI GH LIN E 36 HILLSIDE AVENUE HILLSIDE, NJ NO RT H BR OA D ST RE ET 8

9 & AERIAL PHOTOGRAPH HORVATH NEW YORK CITY NEW YOR K NEW JER SEY MI LES TO NE W Y K OR CIT Y NEWARK LIBERTY INTERNATIONAL AIRPORT 36 HILLSIDE AVENUE HILLSIDE, NJ 9

10 & SITE PLAN HORVATH HILLSIDE AVENUE NIXON ROAD HILLDALE PLACE 71,500 ± VPD 10

11 REGIONAL MAP WALGREENS 36 HILLSIDE AVENUE - HILLSIDE, NJ NEWARK LIBERTY INTERNATIONAL AIRPORT NEWARK JERSEY CITY NEW YORK HILLSIDE NEWARK LIBERTY INTERNATIONAL AIRPORT 11

12 LOCATION OVERVIEW Hillside is a township in Union County, New Jersey, United States. Located 1 mile east of Union, New Jersey and 3 miles southwest of Newark, New Jersey. The town is located in the Newark metropolitan area. The township is governed by a mayor and a seven-member Township Council. Hillside was incorporated as a township on Aril 3, 1913, from portions of Union Township, based on the results of a referendum held on April 29, The township was named for the surrounding hills. While in Hillside, travelers can visit the Liberty Hall Museum, the New Jersey Performing Arts Center, or even travel to New York to enjoy the city s sights and attractions. The Hillside Free Public Library offers a great deal of information about the town s history and culture. The Sanford Park and the Paul Korlesky Park offer amusement facilities for both adults and children. Residents of Hillside can attend educational facilities at the nearby Kean University. Also, within a close range are a number of other colleges and universities like Seton Hall University, Rutgers University-Newark, the New Jersey Institute of Technology, Essex County College, the University of Medicine And Dentistry Of New Jersey and Union County College. As of 2016, the Mayor of Hillside is Angela R. Garretson, whose term of office ends December 31, MILES 5 MILES 10 MILES POPULATION 2022 Projection 318, ,322 2,111, Estimate 312, ,292 2,059, Census 306, ,583 1,985,870 HOUSEHOLDS 2022 Projection 110, , , Estimate 108, , , Census 106, , ,249 INCOME 2017 Avg Household Income $60,849 $66,512 $89, Med Household Income $43,152 $45,306 $63,388 12

13 SINGLE TENANT - NET LEASED HILLSIDE NEW JERSEY (NEW YORK CITY, MSA) 600 Market Street Suite 686 Lynnfield, MA Main: Fax: DAVID DWORKIN LLD Enterprises, LLC Broker of Record License No.: License No.: