Walgreens. Absolute NNN Single Tenant - Bastrop, LA. Offering Memorandum. Beezie Landry

Transcription

1 Beezie Landry 109 Northpark Blvd., Ste. 300 Covington, LA Walgreens Absolute NNN Single Tenant - Offering Memorandum 1 information to the extent such purchaser/lessee deems necessary. Also subject to errors, omissions, changes in terms and conditions, prior sale, lease or withdrawal, without notice. 5/18

2 Table of Contents Executive Summary Investment Summary Investment Highlights Aerials Regional Map Financial Information Rent Roll Market Overview Area Overview Property Overview Demographics 2

3 EXECUTIVE SUMMARY Investment Summary Offering Stirling Properties is pleased to offer for sale a long-term, fee simple (land and building), absolute NNN Walgreens located in Bastrop, Louisiana. Walgreens is currently operating under a 25 year lease with approximately 13.5 years of remaining guaranteed lease term. Walgreens (NYSE: WBA) is a publicly traded company with an S&P credit rating of BBB. It is ranked #17 in the Fortune 500 (September 2017). Some 2017 financial highlights include Revenues of $ billion, Net Income of $4.078 billion, Assets of $ billion, and Equity of $ billion. Price: $3,999,000 NOI: $251,796 Cap Rate: 6.30% Property Detail Property Address: Land Area: Building Size: Year Completed 2006 Guaranty: Corporate 1930 East Madison Avenue Bastrop, La acres 14,820 square feet 3

4 EXECUTIVE SUMMARY Investment Highlights Investment Grade Tenant Walgreens operates over 8,175 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The company is also one of the largest global pharmaceutical wholesale and distribution networks, with more than 350 distribution centers delivering to more than 200,000 pharmacies, doctors, health centers and hospitals each year in 19 countries. The Company s drugstores are engaged in the retail sale of prescription and nonprescription drugs, as well as general merchandise. Walgreens utilizes several user friendly options to purchase and receive customer prescriptions, including by mail, telephone, and via internet. The Company Company Type: Public (NYSE:WBA) 2017 Revenue: $ Billion 2017 Net Income: $4.078 Billion 2017 Assets: $ Billion 2017 Equity: $ Billion S&P Rating: BBB Corporate Guaranty/Absolute NNN Lease No landlord responsibilities to maintain the land and/or building (including roof and structure). No landlord management. All expenses paid by tenant. Retail Corridor East Madison Avenue is the retail corridor for Bastrop and all of Morehouse Parish. Walgreens is surrounded by retailers that include Walmart Supercenter, Super 1 Foods, Tractor Supply, Dollar Tree, rue21, CATO, Fred s Super Dollar, Stage, Shoe Show, Hibbett Sports, Citi Trends, AutoZone, O Reilly Auto Parts, and Advance Auto Parts. Fast food restaurants located in the market include McDonald s, Wendy s, Pizza Hut, Taco Bell and Sonic as well as banks including Iberia Bank and Regions Bank. 4

5 EXECUTIVE SUMMARY Aerial Madison Plaza E Madison Ave 5

6 EXECUTIVE SUMMARY Aerial E Madison Ave 6

7 EXECUTIVE SUMMARY Regional Map 7

8 FINANCIAL INFORMATION Rent Roll Tenant Synopsis Since opening its first drugstore in 1901, Walgreens has grown into the nation s largest drugstore chain through unmatched customer service, relentless innovation and a nationwide store network on the best corners of America. Walgreens was founded by Charles R. Walgreen Sr. when he purchased the Chicago drugstore where he was the long time pharmacist. Walgreens puts emphasis on its social responsibility, ensuring that the company continuously gives back to the local community. The company also promotes environmental sustainability and diversity, both internally and externally. Each day, more than 8 million customers interact with Walgreens using the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice. In 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. Walgreens is today part of the Retail Pharmacy USA Division of Walgreens Boots Alliance. Square Monthly Annual CAM Recovery Lease Lease Lease Tenant Feet Rent Rent Type Start Expiration Options Walgreens 14,820 $20,983 $251,796 Absolute NNN 10/ /2031 Month-to-Month (Six Months Notice) All Options: $251,796 per year 8

9 MARKET OVERVIEW Area Overview State of Louisiana Louisiana is situated in the western south-central United States. It is bordered to the north by Arkansas, to the east by Mississippi, to the south by the Gulf of Mexico, and to the west by Texas. The largest city in Louisiana is New Orleans, famous for its French Creole architecture, cuisine, and annual celebrations and festivals including New Orleans Jazz & Heritage Festival and Mardi Gras. Tourism in Louisiana contributes approximately $7.8 billion to the economy annually along with more than 100,000 jobs. Area Overview Bastrop offers some of the best hunting, fishing, and outdoor adventure in the state; creating an irresistible allure for active sportsmen, and a busy hub for new businesses. The citizens in Bastrop are community-driven and work hard to make the community a better place to live, work, and play. History and culture meet progress in Bastrop, and the living is easy. Bastrop has played a role in many significant periods of United States history, from the Great Mississippi Flood to World War II. Many of these events are preserved in the cities Museums and Creative Art Centers, making it a great place to visit. The area economy is largely based on forestry, cotton farming, and rice farming. 9

10 MARKET OVERVIEW Property Overview Property Overview Location: Walgreens is located at the signalized intersection of East Madison Avenue (19,326 cars per day) and Holt Street. Other area retailers include Walmart Supercenter, Super 1 Foods, Tractor Supply, Dollar Tree, rue21, CATO, Fred s Super Dollar, Stage, Shoe Show, Hibbett Sports, Citi Trends, AutoZone, O Reilly Auto Parts, and Advance Auto Parts. Fast food restaurants located in the market include McDonald s, Wendy s, Pizza Hut, Taco Bell and Sonic as well as banks including Iberia Bank and Regions Bank. Zoning: None Access: Walgreens is ideally positioned at a signalized intersection, with two access points to East Madison Avenue. Parking: The property features approximately 77 parking spaces, including 4 handicap accessible spaces. *Area Retailers (Actual Photos) 10

11 MARKET OVERVIEW Demographics 1 mile 3 miles 5 miles 2017 Estimated Population 3,021 14,808 18, Projected Population 2,858 13,902 17, Census Population 3,204 15,887 20, Census Population 3,273 17,818 22,405 Projected Annual Growth 2017 to % -1.2% -1.3% Historical Annual Growth 2000 to % -1.0% -0.9% 2017 Median Age Estimated Households 1,239 5,811 7, Projected Households 1,267 5,896 7, Census Households 1,278 6,054 7, Census Households 1,303 6,518 8,189 Projected Annual Growth 2017 to % 0.3% 0.2% Historical Annual Growth 2000 to % -0.6% -0.6% 2017 Estimated White 51.7% 38.2% 42.1% 2017 Estimated Black or African American 45.0% 59.4% 55.5% 2017 Estimated Asian or Pacific Islander 0.9% 0.6% 0.6% 2017 Estimated American Indian or Native Alaskan 0.1% 0.1% 0.1% 2017 Estimated Other Races 2.3% 1.7% 1.7% 2017 Estimated Hispanic 1.4% 1.1% 1.1% 2017 Estimated Average Household Income $37,008 $37,738 $42, Estimated Median Household Income $24,831 $26,072 $28, Estimated Per Capita Income $15,724 $15,135 $16, Estimated Elementary (Grade Level 0 to 8) 5.7% 6.8% 6.5% 2017 Estimated Total Businesses Estimated Total Employees 1,778 6,883 7, Estimated Employee Population per Business Estimated Residential Population per Business