net leased Walgreens prooper

1. NET LEASED INVESTMENT OFFERING
Walgreens
15050 Biscayne Blvd.
North Miami Beach, FL 33181 (Miami MSA)
Be
CONFIDENTIAL OFFERING MEMORANDUM
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2. TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) Confidentiality & Disclaimer
2) Executive Summary
3) Property Overview
4) Assumable Financing Overview
5) Aerial
6) Site Plan
7) Map
8) Tenant Profile
9) Demographic Comparison Report
10) Location Overview
11) Contact Information
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3. CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY
CONFIDENTIALITY & DISCLAIMER
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.
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4. EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property located in
North Miami Beach, Florida. The lease features a rare 11% rental escalation in the primary term of the lease as well as
5% rental escalations every ten years after the primary term. The 14,550 square foot Walgreens was built in 2010 and
benefits from its location within a primary retail trade area of Miami. The trade area features Publix, Costco, Target and
the Lamborghini dealership adjacent to the property.
The property is located along Biscayne Boulevard, a primary north-south thoroughfare with 52,000 vehicles passing the
site daily. There are curb cuts for ingress and egress along Biscayne Boulevard and 151st Street. The property is
positioned in a dense in-fill area with approximately 400,000 people living within five miles of the property. Adjacent to
the property is Lamborghini Miami and Prestige Imports, the nation’s top selling Audi dealership. Biscayne Commons, a
Publix and PETCO anchored shopping center is located directly across the street from the property. Target and Costco
are the other regional retail attractions to the trade area. Florida International University-Biscayne Bay Campus (7,000
students) is less than one and one-half miles from the property and this is the closest Walgreens to the campus.
Additionally, directly east of the property is Biscayne Landing, a development site slated for 3,550 residential units,
750,000 square feet of retail, 300 hotel rooms and 400,000 square feet of commercial space.
Walgreens’s original lease term was for twenty-five years with fifty years of renewal options and the lease expires in
February 2035. The net operating income increases by 11% in March 2020 as well as 5% every ten years starting in
March 2035. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market
capitalization of $27 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.
INVESTMENT HIGHLIGHTS
• Located in a dense infill area of Miami
• Rare 11% rental escalation in the primary term of the
lease and 5% escalations in each option period
• Investment grade company with an S&P Rating of A
• No landlord responsibilities
• 52,000 vehicles per day pass the site daily along
Biscayne Boulevard
• Approximately 400,000 people living within five miles of
the property
• Over 22 years remaining on the primary term of the
lease
• Nearby retailers include Target, Costco, Publix and
PETCO
• Adjacent to Lamborghini Miami and the highest volume
Audi dealership in the United States
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5. PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: $10,912,500
Cap Rate: 6.00%
Net Operating Income:: NOI Escalation Date
$ 654,750
$ 727,500 3/1/2020
$ 763,875 3/1/2035 (Option Period)
$ 802,069 3/1/2045 (Option Period)
$ 842,172 3/1/2055 (Option Period)
$ 884,281 3/1/2065 (Option Period)
$ 928,495 3/1/2075 (Option Period)
Renewal Options: Fifty 1-Year
Lease Commencement Date: March 1, 2010
Lease Expiration Date: February 28, 2035
Tenant: Walgreens
Credit Rating: A
Year Built 2010
Lease Type: NNN
Rentable Square Feet: 14,550 SF
Land Size: 1.20 acres
Parking: 50 spaces
Financing: Assumable non-recourse financing in-place
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6. ASSUMABLE FINANCING OVERVIEW
NET LEASED INVESTMENT OFFERING
ASSUMABLE FINANCING OVERVIEW
This Walgreens property is subject to existing non-recourse financing
that must be assumed with the following terms:
Original Loan Balance: $6,950,000
Loan Balance (September 2012): $6,814,178
Maturity Date: December 31, 2020
Interest Rate: 5.76%
Amortization: 30 Year
Loan to Value: 62%
Equity Requirement: $4,106,216
Loan Balance at Maturity: $5,791,245
Assumption Fee: 1%
Recourse: None
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7. AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
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8. SITE PLAN
NET LEASED INVESTMENT OFFERING
SITE PLAN
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9. MAP
NET LEASED INVESTMENT OFFERING
MAP
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10. TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
Walgreens is engaged in retail drugstore business. As of November 30, 2011, the Company operated 8,261
locations in all 50 states, the District of Columbia, Puerto Rico and Guam. The company also operates worksite
health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health Systems
subsidiary manages more than 715 in-store convenient care clinics and worksite health and wellness centers. The
Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugs and general
merchandise. General merchandise includes, among other things, household items, personal care, convenience
foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers the choice to have
prescriptions filled at the drugstore counter, as well as through the mail, by telephone, and through the Internet. In
March 2011, Walgreens announced that it has completed the acquisition Drugstore.com.
Website: www.walgreens.com
Number of Locations: 8,261
Stock Symbol: WAG : NYSE
Standard & Poor’s Rating: A
Market Capitalization: $27 Billion
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11. DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population 1-mi. 3-mi. 5-mi
Total Population 13,709 173,254 396,512
Total Households 4,669 66,758 150,191
Income
Median Household Income $32,437 $39,975 $41,944
Average Household Income $41,802 $56,008 $58,171
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12. LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Miami is a city located on the Atlantic coast in southeastern Florida and the county
seat of Miami-Dade County, the most populous county in Florida and the eighth-most
populous county in the United States with a population of 2,500,625. At the time of
the 2010 U.S. Census, the Miami MSA had a population of 5,564,635 making the
Miami metropolitan area is the most populous in Florida and in the Southeastern
United States as well as the eighth-most populous in the United States.
Miami is a major center and a leader in finance, commerce, culture, media,
entertainment, the arts, and international trade. According to a 2009 UBS study of 73
world cities, Miami was ranked as the richest city in the United States, and the
world's fifth-richest city in terms of purchasing power. Downtown Miami and South
Florida are home to the largest concentration of international banks in the United
States, and is home to many large companies both nationally and internationally.
Several large companies are headquartered in Miami, including Burger King,
Celebrity Cruises, Carnival Corporation, Carnival Cruise Lines, Lennar, Norwegian
Cruise Lines, Oceania Cruises, Perry Ellis International and Royal Caribbean Cruise
Lines. Additionally, because of its proximity to Latin America, Miami serves as the
headquarters of Latin American operations for more than 1,400 multinational
corporations, including AIG, American Airlines, Cisco, Disney, Exxon, FedEx, Kraft
Foods, LEO Pharma Americas, Microsoft, Yahoo, Oracle, SBC Communications, Sony,
Symantec, Visa International, and Wal-Mart.
Miami International Airport and the Port of Miami are among the nation's busiest ports of entry, especially for
cargo from South America and the Caribbean. As of 2011, the Port of Miami accounts for 176,000 jobs and has
an annual economic impact in Miami of $18 billion. It is the 11th-largest cargo container port in the United
States. In 2010, a record 4.33 million passengers traveled through the Port of Miami. For more than two
decades, the Port of Miami, known as the "Cruise Capital of the World," has been the number one cruise
passenger port in the world, accommodating some of the world's largest cruise ships and operations, and is
currently the busiest in both passenger traffic and cruise lines.
http://www.miamigov.com/home/
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13. CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road Suite 1801
Northbrook, IL 60062
Randy Blankstein Jimmy Goodman
President Partner
847.562.0003 847.562.8500
rblank@bouldergroup.com jimmy@bouldergroup.com
www.bouldergroup.com