WALGREENS 792 West Main St Rochester, NY Rite Aid #00615 Rochester Walgreens Converted Store Click here to view drone video footage of the property! DRONE FOOTAGE AVAILABLE Click here to view drone photos of the property!
TABLE OF CONTENT 03 04 05 06 07 09 10 11 INVESTMENT HIGHLIGHTS PROPERTY PHOTOS PROPERTY AERIALS AMENITIES MAP AREA OVERVIEW DEMOGRAPHICS TENANT PROFILE CONTACT
INVESTMENT HIGHLIGHTS Expiration Date: March 25, 2027 Current Rent/Options: Current -3/25/27: $224,929.00 1ST: 3/26/27-3/25/32 @ $284,610.84 2ND: 3/26/32-3/25/37 @ $296,904.24 3RD: 3/26/37-3/25/42 @ 309,387.60 4TH: 3/26/42-3/25/47 @ 322,070.52 5TH: 3/26/47-3/25/52 @ 334,962.84 6TH: 3/26/52-2/25/56 @348,075.00 Leashold Rent: Current: 1/1/17-3/31/27 @ $74,042.00 1st: 4/1/27-3/31/32 @ $83,782.56 2nd: 4/1/32-3/31/37 @ $87,971.64 3rd: 4/1/42-3/31/42 @ $92,370.24 4th: 4/1/42-3/31/47 @ $96,988.80 5th: 4/1/47-3/31/52 @ $101,838.24 6th: 4/1/52-2/29/56 @ $106,930.20 Current NOI: $150,887 Lease Type: Net-Net Building Size: 11,050 Sq. Ft. Lot Size: 1.22 Acres Reported Store Sales: $4,351,732 after deducting exclusions Price: $1,950,000 - Cap Rate: 7.75% Highlights: Brand New 10 Year Lease Recently Written Walgreens Assumed Rite Aid- Full Walgreens Corporate Guarantee The Tenant, Rite Aid, has occupied this store since 1998, more than 18 years, demonstrating their commitment to this location. Store sales are reported, however have substantial exclusions. A whisper number is available from the listing agent. To the investors benefit, this offering provides a 100% depreciable asset, and a long term, coterminus lease. It should be noted that the low land rental rate gives excellent coverage and should the Rite Aid renew its first option at contract the rent will increase 13%. With the strength of this location' s store sales, this is a unique high yield opportunity. The Property is exceptionally well-located along Main Street, which averages more than 22,000 vehicles per day. The Tenant is situated upon a highly visible, accessible corner parcel with prominent frontage. The 11,325 sf Rite Aid store is across the street from Bull' s Head Plaza, an 85,600 square-foot Family-Dollar anchored center with other medical oriented services. The store is a mere two-tenths of a mile from St. Mary' s Hospital. Founded in 1857, St. Mary' s was the first hospital established in Rochester. This hospital has a 24 hour urgent care center which treats more than 22,000 patients annually, a dialysis center that performs over 13,000 treatments annually, and Unity Living Center, a 120-bed skilled nursing facility. Without question, this store directly benefits from the continuous traffic generated by the hospital. Aside from these two prominent facilities, there is limited retail in this submarket for essential goods and services making it a strong location for the tenant.
PROPERTY PHOTOS DOWNTOWN ROCHESTER 04
PROPERTY AERIALS DOWNTOWN ROCHESTER 04
AMENITIES MAP KEELER ST EXPY INNER LOOP GENESEE PEDIATRICS MONROE AVE GENESSEE RIVER MARINA AUTO STADIUM FRONTIER FIELD MAIN ST DOWNTOWN ROCHESTER ROCHESTER REGIONAL CHILI AVE 06
REGIONAL AREA OVERVIEW Rochester is a city on Lake Ontario, in New York State. Old industrial buildings cluster near the Genesee River s High Falls. A vast collection of toys and dolls forms the core of the Strong National Museum of Play. The George Eastman Museum, on the early- 1900s estate of the Kodak founder, has photography exhibits, film archives and gardens. Rochester Museum & Science Center has hands-on displays and a planetarium. Compared to other major metropolitan areas and against national averages, businesses in the Greater Rochester, NY region benefit from a highly competitive commercial real estate market. The region's outstanding infrastructure supports the diverse real estate available to service providers and manufacturers of all sizes. TRANSPORTATION Get in and out of the area by plane, train, car or even boat. Ground transportation is readily available and affordable. Traffic is rarely a problem; Rochester was listed as the shortest commute in America. Average travel time is about 15-20 minutes in and around the city and neighborhoods. The Greater Rochester International Airport is a comfortable and affordable way to travel. 2.3 miles to University of Rochester Blocks away from Interstate 490 Less than 2 miles to Interstate 390 7.3 miles away to Interstate 90 86 miles away from Niagra Falls 07
LOCAL DEMOGRAPHICS 312,329 POPULATION 140,843 HOUSEHOLDS 67,991 FAMILIES 2.28 AVERAGE HOUSEHOLD SIZE Greater Rochester is the third-largest metropolitan area in New York State. It includes six counties: Genesee, Livingston, Monroe, Ontario, Orleans, and Wayne. The City of Rochester is the 79th largest city in the U.S.A. Labor Force: 624,657 Employed: 597,590 (95.67%) Unemployed: 26,682 (4.27%) In Armed Forces: 385 Not In Labor Force: 371,836 34.5 MEDIAN AGE $38,348 MEDIAN HOUSEHOLD INCOME $56,810 AVERAGE HOUSEHOLD INCOME * STATISTICS FROM A 5 MILE RADIUS 09
TENANT PROFILE Walgreens is one of the largest drugstore chains. The poster-child of net lease properties, Walgreens has been a highly traded investment property given the low risks typically associated with these drugstore properties. Additionally, the drugstore sector remains stable given is non-discretionary merchandise offerings. On the real estate side of things, Walgreens demands premier hard corner locations greater than 1.00 acre. Generally, sites are 1.5-2.0 acres to fit their store prototypes of 14,500 square feet, however units can range from 10,800-15,000 square feet. To compete with rival CVS, Walgreens has generally been willing to pay premier rental rates to secure prime sites with a primary lease term of 25 years. The most significant lease variation from Walgreens of late has been the difference in their renewal options, previously requiring eight to ten renewal options of five years in length; they recently signed a number of leases that were 75 years in length, however after the 25th year Walgreens has an annual cancellation option, essentially creating 50 1-year renewal options. This small variation created significant concern for investors because at the end of the initial 25-year lease term, these assets will not be financeable. Walgreens is owned by the Walgreens Boots Alliance, Inc. This parent company is currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 countries. Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots in December 2014. 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. Walgreens had been in merger talks with Rite Aid since 2015. In June of 2017, the pharmacies announced the merger was off however Walgreens will acquire over 2,100 Rite Aid locations. Walgreens is a market leader in the US and has 8,175 retail stores which includes Walgreens and Duane Reade. Walgreens owns 15% of these retail locations and the rest are leased. Walgreens Boots Alliance stated that they will close about 200 less-profitable US Walgreens stores and open the same number of stores in new locations. The last closing will be no later than the end of 2017. WALGREENS WWW.WALGREENS.COM TICKER NYSE: WBA LOCATIONS 13,200 WORLDWIDE MARKET CP 66.97B CREDIT MOODY S BAA2 Representative Photo 10
CONTACT Silber Investment Properties www.silberinvestmentproperties.com