Net Leased Walgreensoffering memorandum
7455 West Peoria avenue Peoria, arizona 85345
(Phoenix, aZ mSa)
This Offering Memorandum and any subsequent
evaluation material you may be provided (collectively
known as the “Offering Memorandum”) is intended
solely for your limited use in considering whether
to pursue negotiations to acquire Walgreens (the
“Property”) located in Peoria, Arizona. The Property is
being marketed for sale by Ackerman & Co. (“Broker”).
The Offering Memorandum contains brief, selected
information pertaining to the business and affairs of the
Property and has been prepared by Broker. It does not,
however, purport to be all-inclusive or to contain all of
the information that a prospective purchaser may desire.
Broker makes no representation or warranty, express
or implied, as to the accuracy or completeness of the
Offering Memorandum or any of its contents, and no
legal liability is assumed to be implied with respect
thereto.
By acknowledgment of your receipt of the Offering
Memorandum you agree that the Offering
Memorandum and its contents are confidential, that
you will hold and treat it in the strictest of confidence,
that you will not directly or indirectly disclose, or permit
anyone else to disclose, the Offering Memorandum
or its contents to any other person, firm, or entity
(including, without limitation, any principal for whom
you have been engaged), without prior written
authorization of Owner or Broker and that you will not
use or permit to be used the Offering Memorandum
or its contents to be copied or used in any fashion or
manner detrimental to the interest of Owner. Photocopy
or other duplication is strictly prohibited.
THE OFFERING MEMORANDUM SHALL NOT BE
DEEMED TO REPRESENT THAT STATE OF AFFAIRS
OF THE PROPERTY OR CONSTITUTE AN INDICATION
THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS
OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF
PREPARATION OF THE OFFERING MEMORANDUM.
The information provided in the Offering Memorandum
has been gathered from sources that are deemed
reliable, but the Broker does not warrant or represent
that the information is true or correct. Prospective
offerors are advised to verify information independently.
The Offering Memorandum is not to be construed as an
offer or as any part of a contract to sell the property.
Furthermore, the inclusion or exclusion in the Offering
Memorandum of information relating to asbestos or
any other hazardous, toxic or dangerous chemical item,
waste or substance (hereinafter collectively referred to
as “Waste”) relating to the Property shall in no way be
construed as creating any warranties or representations,
expressed or implied by the Broker as to the existence
or nonexistence or nature of Waste in, under or on the
Property, it may create significant legal and/or economic
obligations upon the Owner, lessee and/or other holders
of interest in the Property or a part thereof and you are
hereby advised to obtain professional assistance such
as from a consultant, engineer and/or attorney prior to
taking an interest in the Property or a part thereof.
CONFIDENTIAL INFORMATIONINFORMATION NOT WARRANTED
01 eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview
02 TenanT oVerVieW Tenant overview rent roll Site Plan
03 marKeT oVerVieW Peoria, arizona Competitive Property Survey detailed demographics
04 finanCiaL oVerVieW financial Summary
ConTaCTS
JASON POWELL, CCIMVice President, Investment Sales
Ackerman & [email protected]
SEAN W. PATRICK Vice President, Investment Sales
Ackerman & [email protected]
Table Of ContentsNET LEAsED WALgREENs
Net Leased Walgreens
eXeCuTiVe SummarY investment Summary Location and demographics Property aerials Property overview
01
net leased walgreens 5
Square Footage: 14,420 Sf
Acreage: 2.09 aC
Offering Price: $3,246,560 ($225/Sf)
CAP Rate: 8.75%
Initial Term Expiration: 3/17/2017
In-place NOI: $284,074
Year Built: 1996
INVEsTMENT sUMMARY
In addition to the remaining five-year term, Walgreens has eight (8), five-year renewal options. This institutional-quality asset is located in the affluent market of the Phoenix, Arizona MsA. This asset is fee simple, and is being offered with free and clear of existing debt.
Investment Highlights:
Above Market Yield/Not Encumbered by Debt: This investment offers the opportunity to purchase a net-leased property with an investment-grade tenant at a higher-than-market cap rate due to the current point within the initial lease term. In addition, an investor can purchase this asset free and clear of existing debt, thus providing the ability to obtain market debt and interest rates.
Mature Retail Submarket/Quality Demographics: The subject Walgreens is located at 7455 West Peoria Avenue in Peoria, Arizona. This area is well-known as a residential community located between sun City and glendale. The property is located just northeast of glendale where the Arizona Cardinals play in Cardinals stadium. This area is a maturing market with exposure in excess of 43,591 vehicles per day and home to retailers, such as Home Depot, AM/PM C-store and Circle K. In addition, the population within a three-mile radius is 124,329 and has an expected growth rate over the next five years of roughly 4.1%. The 2010 average household income for this three-mile population is $75,621.
Superior Credit Tenant: Walgreens originated in 1901 and presently has over 8,300 drugstores in the United states and Puerto Rico. In Fiscal year 2011, Walgreens reported $72.2 billion in gross sales, which is 7.1% greater than calendar year 2010. Currently, Walgreens has a total of 244,000 employees and has a BBB rating from standard & Poor’s.
INVESTMENT SUMMARY
The Ackerman & Co.’s retail investment sales team is pleased to exclusively present for sale a net- leased Walgreens located in Peoria, Arizona (Phoenix, AZ MSA). The property was built in 1996 and has just under five years remaining on its initial lease term. The building totals 14,420 square feet and provides investors with stable cash flow.
01 Executive Summary
net leased walgreens 6
10
17
17
101
101
60
60
GlendaleMunicipal
Airport
Peoria
GlendaleCardinalsStadium
Pheonix
W Peoria Ave
W Olive Ave
W Northern Ave
W Indian School Rd
W Glendale Ave
Papago Fwy
N 6
3rd
Ave
Bla
ck C
anyo
n Fw
y
N 6
7th
Ave
walgreens7455 W Peoria avenue Peoria, arizona 85345
DEMOgRAPHIC sUMMARY
1-MILE 3-MILES 5-MILES
Population 2010 19,059 124,329 351,265
Total Households 6,103 42,617 128,354
Average Household Income $72,351 $75,621 $68,544
The subject Walgreens, located in Peoria, Arizona was built in 1996 and is in excellent physical condition. The store fronts W Peoria Avenue andN 75th Avenue and has two points of ingress/egress on the site. The site offers ample parking.
In 2010, total population within three miles was 124,329 and average household income within the three miles was $75,621.
LOCATION AND DEMOGRAPHICS
01 Executive Summary
Source: 2011 MPSI Systems Inc. d.b.a. DataMetrix®
TraffiC CounTS
22,559 vEHICLES Per daY W Peoria aVenue 21,032 vEHICLES Per daY on n 75Th aVenue
43,591 TOTAL vEHICLES
net leased walgreens 7
Cholla hillsfamily & CosmetiC
dentistry
W Peoria Ave
N 7
5th
Ave
22,559 vEHICLES Per daY.
21,0
32 v
EHIC
LES
Per
da
Y.
walgreens7455 W Peoria avenue Peoria, arizona 85345
close-up aerial view of the site
01 Executive Summary
net leased walgreens 8
residentialresidential
Car wash
Cholla hillsfamily dentistry
sunCrest mini storage
R
W Peoria Ave
W Comet Ave
22,559 VehiCLeS Per daY.
N 7
5th
Ave
21,0
32 v
EHIC
LES
PER
DA
Y.
walgreens7455 W Peoria avenue Peoria, arizona 85345
N 7
3rd
Ave
AERIAL VIEW CAPTURING ThE sITE AND sURROUNDING RETAIL
01 Executive Summary
net leased walgreens 9
PROPERTY OVERVIEW
address:7455 W. Peoria avenue Peoria, arizona 85345 (Phoenix mSa)
County: maricopa
municipality: City of Peoria
Building Size: 14,420 square feet/one-story building
Land area 2.09 acres
Year Built: 1996
Construction: Concrete block and stucco
Parking: approximately 72 spaces
Signage:monument sign along W. Peoria avenue and n. 75th avenue.
access:There are points of ingress/egress via W. Peoria avenue and n. 75th avenue
Store number: 4019
drive-thru: Yes
health Center: no
Store hours: monday - Sunday, 7 am - 10 Pm
01 Executive Summary
Net Leased Walgreens
TenanT oVerVieW Tenant overview rent roll Site Plan
02
net leased walgreens 11
TENANT SUMMARY
02 Tenant Overview
SiZeone-Story Building
SQuare fooTage14,420
LeaSe eXPiraTion2017
WaLgreenS
Founded in 1901, Walgreens currently operates over 8,000 drugstore chains across the United states and Puerto Rico. Walgreens is a national leader in providing prescription and non-prescription drugs and household consumer products. With an s&P credit rating of BBB, Walgreens is consistently regarded as one of the most financially sound organizations in the United states. Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to consistently outperform its competitors with regard to earnings per share, revenue growth, net income growth, and cash flow from operations. In 2010, Walgreens posted its unprecedented 36th straight year of record sales and earnings. In April of 2010, to increase their presence in New York City, the largest pharmacy market in the United states, Walgreens acquired longtime New York-Based pharmacy chain Duane Reade. The acquisition included 257 drug stores and two distribution centers. In June of 2011, Walgreens again showed their ability to innovate and expand their customer base by acquiring major online pharmacy provider Drugstore.com. Most analysts believe superior operations and customer service will allow Walgreens to continue their domination in the rapidly growing drugstore industry.
Walgreen CO (NYsE: WAg) s&P Rating: BBB Headquarters: Deerfield, IL UsA store Locations: 8,046Year Founded: 1901Employees: 244,0002011 Revenue: $72.2 B
www.walgreens.com
net leased walgreens 12
RENT ROLL
02 Tenant Overview
SuiTe TenanTSTarT daTe
eXPiraTion daTe
rSfannuaLiZed
renTmonThLY
renTreneWaL
TermreneWaL inCreaSe
CommenTS
1 Walgreens 3/17/1997 3/17/2017 14,420 $284,074 $23,673Eight (8) x five (5)
YearNone
NN Lease - Landlord is responsible for exterior structural maintenance and repairs.
Tenant has a right of first refusal to purchase the property
net leased walgreens 13
SITE PLAN
PEORIA AvE
75TH
Av
E
02 Tenant Overview
14,420 sF BUILDINg
DRIVE-THRU
72 PARKINg sPACEs
walgreens7455 W Peoria avenue Peoria, arizona 85345
Net Leased Walgreens
marKeT oVerVieW Peoria, arizona Competitive Property Survey detailed demographics
03
net leased walgreens 1503 Market Overviewpeoria, arizona
Peoria is the 4th largest city in Arizona, in terms of land area. The dynamic desert community comprised of more than 154,000 residents, is situated between Sun City and Glendale, and is located northwest of Phoenix. Peoria is located primarily in Maricopa County which is a major suburb of Phoenix. In July 2008, Money magazine listed Peoria in its “Top 100 Places to Live.”
growth of the Town
Founded by settlers from Peoria, Illinois in 1886, this onetime farming community is one of the nation’s fastest growing cities. Peoria’s population grew almost 42% from 2000 to 2010. In 2000, Peoria’s population was 108,498 and rose to 154,067 in 2010. The projected population for 2017 is 164,541. Officially incorporated in 1954, Peoria has grown from the original one-square-mile in Old Town Peoria to more than 176-square miles of beautiful sonoran desert in both Maricopa and Yavapai counties.
Peoria’s sports and schools
The seattle Mariners and the san Diego Padres conduct spring training at the Peoria sports Complex each February and March. Peoria is known for its school system, boasting a 93% high school graduation rate, with 20 elementary schools and 4 high schools within its city limits, all part of the Peoria Unified school District. The vision for the district is “every student, every day, prepared to meet tomorrow.”
POPULATION gROWTH OF PEORIA, ARIzONA (2000-2017)
Rio Vista Community Center, Peoria, Arizona
TOTA
L PO
PULA
TIO
N IN
TH
OU
sAN
Ds
Source: Nielsen Demographics
2000 2010 2017
170,000
150,000
130,000
110,000
90,000
70,000
50,000
30,000
10,000
net leased walgreens 16
101
60
Agua Fria
Fwy
NW Grand Ave
W Cactus Rd
Thunderbird Rd
W Peoria Ave
W Olive Ave
N 5
1st A
ve
N 5
0th
Ave
N 6
7th
Ave
N 7
5th
Ave
N 8
3rd
Ave
Pheo
nix
Peoria
Walmart 6645 W Peoria aveglendale, aZ 85302
Walgreens9009 n 67th ave
glendale, aZ 85302
Walgreens 6739 W Cactus rdPeoria, aZ 85381
CVS 7530 W Cactus rd Peoria, aZ 85381
fry’s food Store7455 W Cactus rdPeoria, aZ 85381
1.5-mile radius
walgreens7455 W Peoria avenue Peoria, arizona 85345
03 Market OverviewCOMPETITIVE PROPERTY SURVEY (wIThIn a 1.5-MIlE RadIUS)
net leased walgreens 1703 Market Overview
demograPhiCS 1-miLe 3-miLeS 5-miLeS
2010 Population 19,059 124,329 351,268
2015 Projected Population 19,223 129,397 363,838
2000 Census Population 18,527 113,133 322,152
1990 Census Population 14,792 83,143 246,236
growth 2000 - 2010 -1.53% 1.18% 0.95%
growth 2010 - 2015 0.17% 0.8% 0.71%
2010 median age 33.0 33.9 36.4
Total employees 3,338 39,368 104,996
2010 households 6,103 42,617 128,354
2015 Projected households 6,155 44,163 132,254
2000 Census households 5,949 39,323 119,897
1990 Census households 4,774 29,335 94,640
growth 2000 - 2010 0.25% 0.79% 0.67%
growth 2010 - 2015 0.17% 0.72% 0.6%
2010 average household Size 3.09 2.89 2.71
2010 median household income $64,484 $63,939 $58,693
2010 average household income $72,351 $75,621 $68,544
2010 Per Capita income $23,612 $26,168 $25,225
2010 housing units 3,580 22,525 45,979
2010 owner occupied units 75.7% 64.8% 61.9%
2010 renter occupied units 17.8% 27.8% 28.8%
DETAILED DEMOGRAPHICS
Net Leased Walgreens
finanCiaL oVerVieW financial Summary
04
net leased walgreens 19
financial summary
04 Financial Overview
finanCiaL oVerVieW
sales Price $3,246,000
square Feet 14,420
Price Per square Feet $225.10
CAP Rate 8.75%
Financing Property is offered free and clear of existing debt
BuiLding informaTion
Address 7455 W Peoria Ave, Peoria, Az 85345 (Phoenix MsA)
Propety Type single-tenant retail
Year Built 1996
Parcel size 2.09 acres
Type of Ownership Fee simple
Recent Improvements Roof renovations in 2005
LeaSe deTaiLS
Commencement Date 3/17/1997
End Date 3/17/2017
Lease Term 20 years
Annual Rent $284,074
Rent Escalations (Current Term) None
Rent Per Month $23,672.83
Lease Type NN - Landlord is responsible for roof and structure
Options Eight (8) x five (5) year
Landlord Responsibilities Exterior maintenance and repairs
Rent Escalations (Options) Ordinary maintenance; HVAC, exterior painting, insurance (including fire and rent), utilities, and taxes
© 2012 Ackerman & Co. All rights reserved.
FOR MORE INFORMATION, PLEASE CONTACT:
JaSon PoWeLL, CCim | Vice President, investment Sales
770.913.3952 [email protected]
Sean W. PaTriCK | Vice President, investment Sales 770.913.3946 [email protected]