3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
Walgreens
ACTUAL PROPERTY
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
Investment Overv iew
• Walgreens With Above Average Sales in Louisville, Kentucky | The Most Populous City in Kentucky | More Than 200,000 People in Five Miles of this Asset
• Leasehold Interest with Three and a Half Years Remaining on Both Walgreen’s Lease and the Ground Lease
• Walgreen’s Lease Runs Coterminous with the Ground Lease | Both Leases Feature Eight, Five-Year Options with Rent Increases
• Corporate Guaranty | New York Stock Exchange (NYSE: WBA) | Standard & Poor’s (S&P): BBB- | #19 Fortune 500 (June 2016)
• Two Miles from Louisville International Airport | Seventh Busiest Cargo Airport in the World
• One Off Signalized, Hard Corner Intersection of Fern Valley Road & Preston Highway | 53,000 Vehicles per Day
• More Than 2.5-Milllion Square Feet of Retail in Less Than in Less Than Two Miles
• Other Retailers in the Vicinity Include: Sam’s Club, Home Depot, Kroger, PetSmart, AutoZone, LA Fitness, Dillard’s, J.C. Penny, Sears, and More.
Marcus & Millichap is pleased to present this above average performing Walgreens in Louisville, Kentucky’s most populous city. This offering is a leasehold interest with three and a half years remaining on both Walgreen’s lease and the ground lease. Walgreen’s lease runs coterminous with the ground lease, and both leases feature eight, five-year options with rent increases. Walgreens has 4 percent rent increases in the first, third, fifth, and seventh renewal options and the ground rent increases by 10 percent in first, third, fifth, and seventh renewal options. This lease has a corporate guaranty from Wal-green Co, a fortune 500 company that did $117-billion in sales in 2016. Walgreens is located one off the signalized, hard corner intersection of Fern Valley Road and Preston Highway, which sees more than 53,000 Vehicles per Day. This asset is also two miles from Louisville International Airport, the seventh busiest cargo airport in the world, and third busiest in the United States. In less than two miles from this as-set, there is more than two and a half million square feet of retail. Within five miles of this asset, there are more than 200,000 people and more than 84,000 households. Other retailers in the vicinity include: Sam’s Club, Home Depot, Kroger, PetSmart, Au-toZone, LA Fitness, Dillard’s, J.C. Penny, Sears, and More.
Actual Property
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
PRICE $2,600,000
CAP RATE 8.75%
NOI $227,500
PRICE PER SQUARE FOOT $171.96
RENT PER SQUARE FOOT $15.05
YEAR BUILT 2000
LOT SIZE 1.54 Acres
GROSS LEASEABLE AREA 15,120
TYPE OF OWNERSHIP Leasehold
LEASE GUARANTOR Corporate Guaranty
LEASE TYPE Double-Net (NN)
ROOF AND STRUCTURE Landlord Responsible
LEASE COMMENCEMENT DATE 9/1/2000
LEASE EXPIRATION DATE 8/31/2020
LEASE TERM 20 Years
TERM REMAINING 3.5 Years
INCREASES 4% in Options
OPTIONS TO RENEW 8, 5-Year Options
OPTIONS TO TERMINATE None
OPTIONS TO PURCHASE None
FIRST RIGHT OF REFUSAL Yes
Financia l Overv iew
Offer ing Summary
Lease Summary
Actual Property
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
Tenant Overview - Walgreens
Founded in 1901, Walgreens Boots Alliance, Incorporated is the nation’s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug prod-ucts. By 1919 there were 20 stores, and in 1927 the Company went public. Three years later, the store count was well over 500. Today, Walgreens operates over 8,200 stores in all 50 states, DC, Puerto Rico and the United States Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include: Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.
In December 2014, Walgreen acquired the remaining 55 percent of European retailer and whole-saler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Incorporated., headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy United States of America (USA) Division of Walgreens Boots Alliance, Incorporated.
In October 2015, Walgreens Boots Alliance announced an agree-ment to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enter-prise value of about $17.20 billion, including acquired net debt. The transaction is expected to close in the second half of calendar year 2017. Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies. Once the acqui-sition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to better meet consumer needs.
TENANT TRADE NAME WalgreensOWNERSHIP Public
TENANT Corporate Store
LEASE GUARANTOR Corporate Guarantee
NUMBER OF LOCATIONS 8,200+
HEADQUARTERED Deerfield, IL
WEB SITE www.walgreens.com
SALES VOLUME $117.4 Billion (2016)
NET WORTH $42.4 Billion (2016)
STOCK SYMBOL WBA
BOARD New York Stock Exchange
CREDIT RATING BBB-
RATING AGENCY Standard & Poor’s
RANK #19 in Fortune 500 (June 2016)
TENANT PROFILE
Actual Property
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
Aer ia l Overv iew
NORTH
24,400 VPD
24,400 VPD
28,700 V
PD
24,300 V
PD
24,600 VPD
Preston Hwy
Fern V
alley R
d
Outer L
oop
Shephersvi l le Rd
Preston Hwy
Interstate-65 / Dr. Martin Luthar King, Jr. Expy 131,900 VPD
3600 Fern Valley RdLouisville, KY 40219
LouisvilleInternational Airport
PROPERTY ADDRESS
JEFFERSON MALL
®
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
5 MILE
RA
DIU
S
3 MILE R
AD
IUS
1 MILE
SITE
31W
31W
150
150
150
150
31W
31W
6060
6064
64
65
65
65
64
1934
1931
1865
10651065
2052
1703
1703
1932
1932
1947
1947
1531
1531
1819
1319
1116
1020
1020
1526
2053
1934
111
111
111
211
907
841
841864
660
155
155864
155
148
11
11
61
61
264
264
264
265
265
265
265
Greenwood
Praririe Village
Orell
Penile
Heritage Creek
Parkwood
Hollyvilla
Brooks
Thixton
AshvilleSeatownville
Whitefield
Hopewell
Jeffersontown
Middletown
MiddletownEstates
Seneca Gardens
West Buechel
KnoppSpring Mill
Lynnview
ShivelyAudubon
Park
LouisvilleInternational
Airport
Hunter Hollow
Hillview
Pioneer Village
Louisville
Area Overview & Demographics
1-Mile 3-Mile 5-Mile
P o p u l a t i o n
2000 Population 10,274 54,274 191,090
2010 Population 10,256 54,564 200,202
2016 Population 10,529 56,408 203,692
2021 Population 10,787 57,861 208,283
1-Mile 3-Mile 5-Mile
H o u s e h o l d s
2000 Households 4,191 21,916 79,420
2010 Households 4,105 22,072 83,061
2016 Households 4,221 22,736 84,478
2021 Households 4,327 23,313 86,415
1-Mile 3-Mile 5-Mile
H o u s e h o l d ( H H ) I n c o m e s
2016 Average HH Income $45,552 $47,588 $57,413
2016 Median HH Income $32,695 $37,842 $44,199
2016 Per Capita Income $18,261 $19,181 $23,811
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438
3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219
Introduction to LouisvilleLouisville, Kentucky is the largest city in the state and the 16th largest in the country. Louisville has 90 attractions, 17,000 hotel rooms, and 2,500 restau-rants to satisfy visitors and residents alike. The city was founded in 1778 by George Rogers Clark and named after King Louis XVI. It lies on the Ohio River near the border with Indiana. The metro area is widely referred to as “Kentuckiana”, and residents of Louisville are known as Louisvillians. The city is best known for the Kentucky Derby, the most popular event in horse racing and known as the “most exciting two minutes in sports”.
Louisville CultureThe four most popular attractions Louisville has to offer are the Louisville Slugger Museum, with the world’s largest bat; the Louisville Science Center, Glassworks, a space housing works from 50 glass artists; and the Frazier Historical Arms Museum. The downtown area is alive with performing arts venues, such as the Kentucky Center, which hosts local and national theater programming. The East Market Street Neighborhood has become an attrac-tion due to its restaurants and art galleries. There are many charming neigh-borhoods in the city, including Old Louisville with its 19th-century charm.
Louisville Sports and LeisureThere are many spectator sports to enjoy in Louisville. The 13,000-seat Slugger Field is home to the Louisville Bats, the Cincinnati Red’s top minor league affiliate. The field is known as one of the best in minor league base-ball and the Bats have an impressive record. The University of Louisville’s men’s basketball team plays at Freedom Hall. Churchill Downs is the site of the Kentucky Derby, the most famous horse racing event in the country. The Valhalla Golf Club is located in Louisville and hosted the 1996 and 2000 PGA Championships. The city has one of the best skate parks in the country, the Louisville Extreme Park. High school sports enjoy a high degree of popu-larity in the city, with schools like Trinity, Saint Xavier, and Male winning an impressive number of titles.
Market Overview - Louisvi l le, Kentucky
Photo: Nicholas Henderson; CC BY 2.0
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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438