EXCLUSIVELY LISTED INVESTMENT OFFERING ATLANTA MSA INVESTMENT OPPORTUNITY DALLAS, GA 30132 Presented By: JASON STUART PONGSRIKUL Managing Principal x 302 CA DRE Lic. 01918332 NICK PRICE Senior Vice President x 303 np@pharmapropertygroup.com CA DRE Lic. 01773111 ANDREW KNIGHT Broker of Record Direct: 860.648.1600 necbinc@gmail.com GA DRE Lic. 365226 Pharma Property Group 5328 Banks Street, Suite B San Diego, CA 92110 619.297.0055 www.pharmapropertygroup.com
Year Built: 2007 Lot Size: 70,567 Square Feet Building Size: 14,820 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. ABSOLUTE NET LEASE Drive-thru pharmacy with 15 years and 7 months of primary lease term remaining on an absolute net lease and 50 years in options to renew with no landlord responsibilities whatsoever. ABOVE AVERAGE INCOME DEMOGRAPHICS The subject property is located in area of the Atlanta MSA with an above average household income. Average household income is $75,384 within a one mile radius, $77,553 within a three mile radius and $90,035 in a five mile radius. DRUGSTORE COMPETITION Aside from the subject property and the Rite Aid across the street, there are no other Walgreens, Rite Aids or CVS drugstores within a three and one half mile radius. TOP TEN MSA (ATLANTA) Subject property is located on the northwest quadrant of the Atlanta MSA about thirty-seven miles north of downtown Atlanta and thirty-four miles from the Atlanta International Airport. The Atlanta MSA has over 5,500,000 residents. MAIN AND MAIN LOCATION The subject property is located on the main retail corridor of Dallas, GA. National retail tenants close to the site include Publix Super Markets, Dollar General, Dominos, Little Caesars, Shell, Rite Aid, and Waffle House. FREE & CLEAR OF DEBT Property to be delivered free and clear of debt. Purchaser has the option to assume current interest only financing that is due January 2018 for a one point assumption fee. DALLAS ACWORTH HIGHWAY EAST PAULDING DRIVE LEARNING CENTER page 2
Lease Overview Tenant: WALGREENS (NYSE: WAG) Landlord Income: CORPORATE GUARANTEE Credit Rating: INVESTMENT GRADE, BBB (S&P) Lease Type: ABSOLUTE TRIPLE NET No landlord responsibilities whatsoever. Lease Term: 15 YEARS AND 7 MONTHS REMAINING WITH 50 YEARS IN OPTIONS TO FOLLOW Lease Commencement: OCTOBER 15, 2007 Pricing Price: $4,496,000 CAP: 6.25% CAP Price Per SF: $303.37 Monthly Income: $23,416 Annual Income: $281,000 Building Building Square Footage: 14,820 Land Square Footage: 70,567 Rent/Square Foot: $18.96 Year Built: 2007 Next Option Begins: OCTOBER 15, 2032 Location Overview DALLAS (ATLANTA MSA), Dallas is a city in and the county seat of Paulding County, Georgia, and is part of the Atlanta Metropolitan Area, located about 32 miles northwest of Atlanta. The Atlanta Metropolitan area is the most populous metro area in the state of Georgia and the ninth-largest in the United States with over 5.7 million residents. page 3
Retail Corridor LEARNING CENTER DALLAS ACWORTH HIGHWAY EAST PAULDING DRIVE DISCOVERY POINT CHILD DEVELOPMENT ANIMAL HOSPITAL AREA DESCRIPTION The subject property is located on the main retail corridor of Dallas, GA. National retail tenants close to the site include Publix Super Markets, Dollar General, Dominos, Little Caesars, Shell, Rite Aid, and Waffle House. Just 20 miles east of the subject property is the Dobbins Air Reserve Base, home to approximately 10,000 reserve troops from the Air Force, Army and Navy with over 50 different air crafts assigned to the different flying units. ATLANTA TOP TEN MSA (ATLANTA) Subject property is located on the northwest quadrant of the Atlanta MSA about thirty-seven miles north of downtown Atlanta and thirty-four miles from the Atlanta International Airport. The Atlanta MSA has over 5,500,000 residents. page 4
Property Photos LEARNING CENTER DALLAS ACWORTH HIGHWAY - 12,494 VEHICLES PER DAY SOUTH SIDE OF THE BUILDING WITH PARKING ANIMAL HOSPITAL DALLAS ACWORTH HIGHWAY - 12,494 VEHICLES PER DAY LEARNING CENTER NORTH SIDE OF THE BUILDING WITH DRIVE THROUGH page 5
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 $117.35 Billion $29.88 Billion Deerfield, IL www.walgreens.com 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 6
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 7
Demographic Snapshot 2016 Total Population Average Age 35.20 1 Mile 35.50 3 Miles 36.10 5 Miles Total Households $73,384 1 Mile $77,553 3 Miles $90,035 5 Miles 1,240 1 Mile 7,562 3 Miles 25,323 5 Miles 3,781 1 Mile 22,757 3 Miles 74,825 5 Miles Average Household Inc 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. 2017 Pharma Property Group. page 8
DALLAS ACWORTH HIGHWAY - 12,494 VEHICLES PER DAY Investment Property Recap Lease Overview Tenant: Walgreens (NYSE: WAG) Landlord Income: Corporate Guarantee Credit Rating: Investment Grade, BBB (S&P) Year Built: 2006 Total Lot Size: 70,567 Square Feet Total Building Size: 14,820 Square Feet Lease Type: Absolute Triple NET Lease No landlord responsibilities whatsoever. Lease Term: 15 years 7 months remaining with 50 years in options to follow Next Option Begins: November 1, 2032 Pricing Price: $4,496,000 Cap Rate: 6.25% Total Monthly Income: $23,416 Total Annual Income: $281,000 page 9
5328 Banks Street, Suite B San Diego, CA 92110 P 619.297.0055 F 619.839.0828 www.pharmapropertygroup.com Managing Principal x302 CA DRE Lic. #01918332 Nick Price Senior Vice President x303 np@pharmapropertygroup.com CA DRE Lic. #01773111 Listed in Association with Andrew Knight Broker of Record Direct: 860.648.1600 necbinc@gmail.com GA DRE Lic. 365226 EXCLUSIVELY LISTED INVESTMENT OFFERING