Net Leased Walgreens OFFERING MEMORANDUM - 1010 N. Military Trial Haverhill (Palm Beach), Florida 33409 - Ackerman & Co.
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
OFFERING MEMORANDUM
Net Leased Walgreens
1010 N. Military Trial
Haverhill (Palm Beach), Florida 33409
CONFIDENTIAL INFORMATION
INFORMATION NOT WARRANTED
This Offering Memorandum and any subsequent manner detrimental to the interest of Owner. Photocopy
evaluation material you may be provided (collectively or other duplication is strictly prohibited.
known as the “Offering Memorandum”) is intended
solely for your limited use in considering whether THE OFFERING MEMORANDUM SHALL NOT BE
to pursue negotiations to acquire Walgreens (the DEEMED TO REPRESENT THAT STATE OF AFFAIRS
“Property”) located in Palm Beach, Florida. The OF THE PROPERTY OR CONSTITUTE AN INDICATION
Property is being marketed for sale by Ackerman & Co. THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS
(“Broker”). OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF
PREPARATION OF THE OFFERING MEMORANDUM.
The Offering Memorandum contains brief, selected
information pertaining to the business and affairs of the The information provided in the Offering Memorandum
Property and has been prepared by Broker. It does not, has been gathered from sources that are deemed
however, purport to be all-inclusive or to contain all of reliable, but the Broker does not warrant or represent
the information that a prospective purchaser may desire. that the information is true or correct. Prospective
Broker makes no representation or warranty, express offerors are advised to verify information independently.
or implied, as to the accuracy or completeness of the The Offering Memorandum is not to be construed as an
Offering Memorandum or any of its contents, and no offer or as any part of a contract to sell the property.
legal liability is assumed to be implied with respect
thereto. Furthermore, the inclusion or exclusion in the Offering
Memorandum of information relating to asbestos or
By acknowledgment of your receipt of the Offering any other hazardous, toxic or dangerous chemical item,
Memorandum you agree that the Offering waste or substance (hereinafter collectively referred to
Memorandum and its contents are confidential, that as “Waste”) relating to the Property shall in no way be
you will hold and treat it in the strictest of confidence, construed as creating any warranties or representations,
that you will not directly or indirectly disclose, or permit expressed or implied by the Broker as to the existence
anyone else to disclose, the Offering Memorandum or nonexistence or nature of Waste in, under or on the
or its contents to any other person, firm, or entity Property, it may create significant legal and/or economic
(including, without limitation, any principal for whom obligations upon the Owner, lessee and/or other holders
you have been engaged), without prior written of interest in the Property or a part thereof and you are
authorization of Owner or Broker and that you will not hereby advised to obtain professional assistance such
use or permit to be used the Offering Memorandum as from a consultant, engineer and/or attorney prior to
or its contents to be copied or used in any fashion or taking an interest in the Property or a part thereof.
NET LEASED WALGREENS Table Of Contents
01 EXECUTIVE SUMMARY
Investment Summary
Location and Demographics
Property Aerials
Property Overview
02 TENANT OVERVIEW
Tenant Overview
Rent Roll
03 MARKET OVERVIEW
Competitive Property Map
Detailed Demographics
04 FINANCIAL OVERVIEW
Cash Flow Projections
CONTACTS
JASON POWELL, CCIM SEAN PATRICK BILL MITCHELL
Vice President, Investment Sales Vice President, Investment Sales Director
Ackerman & Co. Ackerman & Co. iCAP Realty Advisors
770.913.3952 770.913.3946 404.946.6919
jpowell@ackermanco.net spatrick@ackermanco.net wmitchell@icaprealty.com
01
EXECUTIVE SUMMARY
Investment Summary
Location and Demographics
Property Aerials
Property Overview
Net Leased Walgreens
01 Executive Summary NET LEASED WALGREENS 5
INVESTMENT SUMMARY
Ackerman & Co’s Retail Investment Sales Team is pleased to exclusively present for sale a NN-
leased Walgreens located in Haverhill (Palm Beach), Florida. The Walgreens property was built in
2001 and has over 9 years remaining on its initial lease term. The building totals 15,120 SF and
provides investors with long term stable cash flow.
In addition to the remaining 9 year initial term, Walgreens has 10 five-year outparcel of a Super Wal-Mart. With over 7 million passengers through
renewal options. This institutional quality asset is located in the affluent the airport a year, this is a unique location given the airport location and
market of Palm Beach. This asset is fee simple, and can be offered free total population in the market. This area is a stable market with 41,500
and clear of debt. VPD and such retailers as Dunkin Donuts, KFC, Wendy’s, and Wal-Mart.
In addition, the population in a 5 mile radius is 259,179 with an average
Investment Highlights: household income of $60,414.
Stable Cash Flow: This asset will provide a long-term, steady cash flow INVESTMENT SUMMARY
to ownership. As well, there are 10 five-year renewal options upon the
term’s expiration. Also, the rental income is free of state income tax in Square Footage: 15,120 SF
Florida. Occupancy: 100%
Offering Price: $4,807,000
Superior Credit Tenant: Walgreens originated in 1901 and presently
has 8,046 drugstores in the United States and Puerto Rico. In 2010, Debt Structure: Market (Property offered free and clear)
Walgreens reported $67,400,000,000 in gross sales, which is 6.4% Offering CAP Rate: 7.25%*
greater than calendar year 2009. Currently, Walgreens has a total of Initial Term Left: 9 years
244,000 employees and has an A rating from Standard & Poor’s. As of
February 2011, Walgreen Co. had a net worth in excess of $14.68 billion.
* Includes a $0.15/SF deduction for Cap Ex Reserves.
Mature Retail Submarket/Quality Demographics: The subject
Walgreens is located at 1010 North Military Trail in Haverhill (Palm Beach),
Fl, directly adjacent to the Palm Beach International Airport and an
01 Executive Summary NET LEASED WALGREENS 6
LOCATION AND DEMOGRAPHICS
The subject Walgreens, located in Haverhill (Palm
Beach), FL, was built in 2001 and is in excellent
physical condition. The drug store fronts North R d N
N Military Trl
og
Military Trial and Belvedere Road, and has two
Con
J
95
gress A
points of ingress / egress on the site. The site offers Okeechobee Blvd
ve
ample parking and good visibility off North Military 704
Trail. In 2011, total population within 5 miles was WALGREENS
1010 NORTH MILITARY TRAIL
Belvedere Rd
255,360 and average household income within the 5 HAVERHILL, FLORIDA 33409 Palm Beach
International Airport
Southern Blvd
miles was $55,513. 98
e
1
95
Florida’s Turnpik
809
441
DEMOGRAPHIC SUMMARY Forest H ill Blvd
1 MILE 3 MILES 5 MILES
Population 2011 11,795 97,054 255,360
Total Households 3,913 39,403 104,758
TRAFFIC COUNTS
Average Household Income $46,129 $48,058 $55,513
40,000 VEHICLES PER DAY ON N. MILITARY TRAIL
27,184 VEHICLES PER DAY ON BELVEDERE ROAD
Source: 2011 MPSI Systems Inc. d.b.a. DataMetrix®
01 Executive Summary NET LEASED WALGREENS 7
PROPERTY AERIAL
.
DAY R
S PE
CLE
V EHI
00
40,0
WALGREENS
1010 NORTH MILITARY TRAIL
HAVERHILL, FLORIDA 33409
Belvedere Road
R DAY.
27,184 VEHICLES PE
Palm Beach
ail
International Airport
ry Tr
r t h Milita
No
01 Executive Summary NET LEASED WALGREENS 8
PROPERTY AERIAL
.
DAY
PER
LES
EHIC
00 V
40,0
Trail
itary
h Mil
Nort
Belvedere R
oad
DAY.
27,184 VEHICLES PER
Palm Beach
International Airport
01 Executive Summary NET LEASED WALGREENS 9
PROPERTY OVERVIEW
Address: 1010 North Military Trail
Haverhill, FL 33409
County: Palm Beach
Municipality: City of Haverhill
Building Size: 15,120 Square Feet / One-story Building
Land Area 1.45 acres
Parcel ID: 00-42-43-25-31-001-0030
Year Built: 2001
Construction: Concrete/Block
Zoning: MUPD (Multiple Use Planned Development)
Signage: Pylon sign at the intersection of N. Military Trail and
Belvedere Road and two building-mounted signs
(one on each side)
Access: There are points of ingress/egress via N. Military Trail
and Belvedere Road
Store Number: 4080
Drive-through Yes
Pharmacy
Health Center No
Store Hours Monday - Sunday, 7 AM - 11 PM
01 Executive Summary NET LEASED WALGREENS 10
AREA MAP
65
Es
Holmes
ca
mb
Jackson
Santa Rosa Okaloosa
ia
Walton Washington Nassau
Gadsden
Hamilton
10
Leon Jefferson Madison
Calhoun
Bay Duval
Baker Jacksonville
Liberty Suwanee Columbia
Pensacola Wakulla
Taylor
Panama City Union
Gulf Clay
St.
Franklin LaFayette
Bradford
Joh
ns
Gilchrist
Alachua
Putnam
Dixie
75
Flagler
Levy
Marlon
Volusia
Citrus Lake
4 Cape Canaveral
Sumter Seminole
Hernando
Orange
Pasco
95 WALGREENS
Hillsborough
Osceola 1010 NORTH MILITARY TRAIL
Pinellas
Polk
Brevard
HAVERHILL, FLORIDA 33409
St Petersburg
Indian
River
Manatee
Hardee
Ok be
ch
ee e
o
Sa
ras Highlands St. Lucie
Sarasota De Soto
ota
Martin
West Palm Beach
Glades
Charlotte
Palm Beach
75
Lee Hendry
Fort Lauderdale
Broward
Collier
Naples Miami
Monroe Dade
Key Largo02
TENANT OVERVIEW
Tenant Overview
Rent Roll
Net Leased Walgreens02 Tenant Overview NET LEASED WALGREENS 12
TENANT SUMMARY
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 A, Walgreens is consistently regarded as one of the most financially sound organizations in
SIZE the United States. Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to
One-Story Building 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
SQUARE FOOTAGE 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
15,120
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
LEASE EXPIRATION
will allow Walgreens to continue their domination in the rapidly growing drugstore industry.
2021
Walgreen CO (NYSE: WAG)
S&P Rating: A
Headquarters: Deerfield, IL USA
Store Locations: 8,046
Year Founded: 1901
Employees: 244,000
2010 Revenue: $67.42 B
www.walgreens.com02 Tenant Overview NET LEASED WALGREENS 13
RENT ROLL
START EXPIRATION ANNUALISED RENEWAL RENEWAL
SUITE TENANT RSF RATE/SF COMMENTS
DATE DATE RENT TERM INCREASE
Walgreens retains ten (10) x
five (5) year
1 Walgreens 05/07/2001 05/06/2021 15,120 $23.20 $350,784 5 Years $0.00
renewal options at their
current rental rate.03
MARKET OVERVIEW
Competitive Property Survey
Detailed Demographics
Net Leased Walgreens03 Market Overview NET LEASED WALGREENS 15
COMPETITIVE PROPERTY MAP (1 MILE)
95
Walgreens
110 Century Blvd.
Publix
N Military Trl
831 Village Blvd.
CVS
721 Village Blvd.
Walgreens
5028 Okeechobee Blvd. Winn Dixie
Okeechobee Blvd 4360 Okeechobee Blvd.
704
WALGREENS
1010 NORTH MILITARY TRAIL
HAVERHILL, FLORIDA 33409
Belvedere Rd Winn Dixie
2200 Palm Beach Lake Blvd.
Palm Beach
International
Southern Blvd
Airport
ike
98
rnp
1 Atlantic
Florida’s Tu
CVS 809 Ocean
245 S. Military Trl.
441
Walgreens 95
963 S. Military Trl.
S Military Trl
1-M
LEI
R
AD
US
I03 Market Overview NET LEASED WALGREENS 16 DETAILED DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2011 Population 11,795 97,054 255,360 2016 Projected Population 12,098 100,953 266,031 2000 Census Population 11,616 90,237 231,590 1990 Census Population 10,280 78,112 199,155 Growth 2000 - 2011 2.57% 4.02% 4.18% Growth 2011 - 2016 1.54% 7.55% 10.26% 2011 Median Age 31.13 37.59 38.76 Total Businesses 121 1,399 3,737 Total Employees 2,868 14,364 21,611 2011 Households 3,913 39,403 104,758 2016 Projected Households 3,964 40,944 109,031 2000 Census Households 4,001 37,326 96,580 1990 Census Households 3,870 33,283 85,400 Growth 2000 - 2011 -2.20% 5.56% 8.47% Growth 2011 - 2016 1.30% 3.91% 4.08% 2011 Average Household Size 3.01 2.38 2.36 2011 Median Household Income $36,119 $37,443 $39,976 2011 Average Household Income $46,129 $48,058 $55,513 2011 Per Capita Income $15,337 $19,996 $23,142 2011 Housing Units 3,913 39,403 104,758 2011 Owner Occupied Units 39.99% 54.48% 57.88% 2011 Renter Occupied Units 60.01% 45.52% 42.12%
04
FINANCIAL OVERVIEW
Cash Flow Projections
Net Leased Walgreens04 Financial Overview NET LEASED WALGREENS 18
CASH FLOW PROJECTIONS
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9
Gross Rental Income $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784
Expenses $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Net Operating Income $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784 $350,784
Cap Ex Reserves ($2,268) ($2,268) ($2,268) ($2,268) ($2,268) ($2,268) ($2,268) ($2,268) ($2,268)
Net Cash Flow b/t* $348,516 $348,516 $348,516 $348,516 $348,516 $348,516 $348,516 $348,516 $348,516
Cash On Cash Return b/t* 7.25% 7.25% 7.25% 7.25% 7.25% 7.25% 7.25% 7.25% 7.25%
General Property Notes
[*] This analysis includes a $.15/SF deduction for Cap Ex Reserves.
This property is being offered free and clear of existing debt.FOR MORE INFORMATION, PLEASE CONTACT: JASON POWELL, CCIM | Vice President, Investment Sales SEAN PATRICK | Vice President, Investment Sales 770.913.3952 jpowell@ackermanco.net 770.913.3946 spatrick@ackermanco.net © 2012 Ackerman & Co. All rights reserved.
You can also read
