WALGREENS 5320 Clinton Highway Knoxville, TN 37912
TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerials Site Plan Map III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview
DISCLAIMER STATEMENT DISCLAIMER STATEMENT: The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.
EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located in Knoxville, Tennessee. The property is positioned on a hard, signalized corner of a heavily trafficked intersection. Walgreens has successfully operated at this location since 2000 and has more than 9 years remaining on their lease that features eight 5-year renewal option periods and a drive-thru. Walgreens is the largest drug retailing chain in the United States with more than 8,175 locations in the United States. The 14,112 square foot Walgreens is strategically positioned on the northeast corner of Clinton Highway and Merchant Drive. This intersection experiences traffic counts in excess of 51,565 vehicles per day. The property is located one-mile from Interstate 75 (81,300 VPD), Interstate 275 (61,490 VPD) and Interstate 640 (81,410 VPD) with full access interchange along both Clinton Highway and Merchant Drive. National retailers located in close proximity include Walmart Supercenter, Target, Kroger, Lowe s Home Improvement and a number of quick service restaurants. Knoxville is the third largest city in the state with an estimated population of more than 185,300 people. There are approximately 57,800 people living within a three mile radius of the property. Walgreens has over 9 years remaining on their lease which expires December 31, 2026 and features eight 5-year renewal option periods. Walgreens is publicly traded on the Nasdaq Stock Market (symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor s rating of BBB.
INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Investment grade tenant (S&P: BBB) Long term lease with over 9 years remaining Long operating history at this location (since 2000) with an established customer base Positioned at the hard corner of a signalized intersection (51,565 VPD) Easy access to Interstate 75, Interstate 275 and Interstate 640 Retailers located within close proximity include Walmart, Target, Lowe s Home Improvement and a number of national quick serve restaurants. More than 57,800 people live within three miles of the property Drive-thru pharmacy
PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $8,138,462 Cap Rate: 6.50% Net Operating Income: $529,000 Renewal Options: Eight 5-Year Lease Commencement Date: December 30, 2000 Lease Expiration Date: December 31, 2026 Tenant: Walgreens Year Built: 2000 Lease Type: Parking: Building Size: Land Size: NN (Roof, Structure & Parking Lot Replacement) 30 Spaces 14,112 SF 1.52 Acres
PHOTOGRAPHS
AERIAL
AERIAL
SITE PLAN
MAP
DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 7,500 57,801 154,975 Total Households 3,170 24,656 64,222 Income 1-Mile 3-Mile 5-Mile Median Household Income $37,806 $36,686 $37,803 Average Household Income $50,315 $47,754 $53,088
MARKET OVERVIEW MARKET OVERVIEW: Knoxville, Tennessee Knoxville is a city in Tennessee and the county seat of Knox County. The city had an estimated population of more than 185,300 people making it the state s third largest city. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area which has an estimated population of approximately 852,750 people. First settled in 1786, Knoxville was the first capital of Tennessee. Knoxville is the home of the flagship campus of the University of Tennessee, whose sports teams, called the Volunteers or Vols, are extremely popular in the surrounding area. Knoxville is also home to the Tennessee Supreme Court s courthouse for East Tennessee and the corporate headquarters of several national and regional companies. As one of the largest cities in the Appalachian region, Knoxville has positioned itself in recent years as a repository of Appalachian culture and is one of the gateways to the Great Smoky Mountains National Park. The Tennessee Valley Authority (TVA), the nation s largest public power provider, is a federally owned corporation headquartered in Knoxville. The largest publicly traded company based in Knoxville (in terms of revenue) is movie theater chain Regal Entertainment Group. Regal is the only Knoxville-based company listed in the Fortune 1000 (#724). The second largest publicly traded company in Knoxville is Scripps Networks Interactive, followed by the health care-staffing firm TeamHealth. The largest privately held company based in Knoxville is Pilot Flying J, the nation s largest truck stop chain and sixth largest private company. Knoxville is also home to the nation s fourth largest wholesale grocer, The H. T. Hackney Company and one of the nation s largest digital-centric advertising firms, Tombras Group. The two principal interstate highways serving Knoxville are Interstate 40, which connects the city to Asheville (directly) and Bristol (via I-81) to the east and Nashville to the west, and Interstate 75, which connects the city to Chattanooga to the south and Lexington to the north. Public transportation is provided by Knoxville Area Transit (KAT), which operates over 80 buses, road trolleys, and paratransit vehicles, and transports more than 3.6 million passengers per year. Knoxville is served by McGhee Tyson Airport. McGhee Tyson offers 8 major airlines serving 19 non-stop destinations, and averages 120 arrivals and departures per day. www.knoxvilletn.gov
TENANT OVERVIEW TENANT OVERVIEW: Walgreens Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As of January 31, 2017, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacy locations, as well as managed approximately 400 Healthcare Clinics. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois. The Walgreen Company is the largest drug retailing chain in the United States. The company is publicly traded on the NASDAQ (Symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor s rating of BBB. In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN s Sustainable Development Goals. Website: www.walgreens.com Number of Locations: 8,175 Stock Symbol: WBA (NASDAQ) Standard & Poor s Rating: BBB Market Capitalization: $88 Billion
Randy Blankstein President 847.562.0003 randy@bouldergroup.com Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com 3520 Lake Avenue, Suite 203 Wilmette, IL 60091 www.bouldergroup.com