Net Leased Walgreens OFFERING MEMORANDUM - ACTUAL PROPERTY - 9465 Highway 5 Douglasville (Atlanta MSA), GA 30135
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
ACTUAL PROPERTY
OFFERING MEMORANDUM
Net Leased Walgreens
9465 Highway 5
Douglasville (Atlanta MSA), GA 30135
Table of Contents
01 EXECUTIVE SUMMARY 03
MARKET OVERVIEW
Investment Summary Douglasville, Georgia
Location and Demographics Detailed Demographics
Property Aerials Competing Properties
Property Overview Sold Comparables
02 TENANT OVERVIEW 04 FINANCIAL OVERVIEW
Tenant Summary
Site Plan
Rent Roll
CONTACT
SEAN W. PATRICK, CCIM ACKERMAN & CO.
Vice President, Investment Sales 10 Glenlake Parkway
770.913.3946 South Tower, Suite 1000
spatrick@ackermanco.net 770.913.3900 | ackermanco.com
INFORMATION NOT WARRANTED
This Offering Memorandum and any subsequent evaluation material you may be THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT
provided (collectively known as the “Offering Memorandum”) is intended solely STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT
for your limited use in considering whether to pursue negotiations to acquire THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY
Walgreens (the “Property”) located in Douglasville (Atlanta MSA) Georgia. The SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.
Property is being marketed for sale by Ackerman & Co. (“Broker”).
The information provided in the Offering Memorandum has been gathered from
The Offering Memorandum contains brief, selected information pertaining to sources that are deemed reliable, but the Broker does not warrant or represent
the business and affairs of the Property and has been prepared by Broker. It that the information is true or correct. Prospective offerors are advised to verify
does not, however, purport to be all-inclusive or to contain all of the information information independently. The Offering Memorandum is not to be construed as
that a prospective purchaser may desire. Broker makes no representation or an offer or as any part of a contract to sell the property.
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 Furthermore, the inclusion or exclusion in the Offering Memorandum of
implied with respect thereto. information relating to asbestos or any other hazardous, toxic or dangerous
chemical item, waste or substance (hereinafter collectively referred to as “Waste”)
By acknowledgment of your receipt of the Offering Memorandum you agree that relating to the Property shall in no way be construed as creating any warranties
the Offering Memorandum and its contents are confidential, that you will hold or representations, expressed or implied by the Broker as to the existence or
and treat it in the strictest of confidence, that you will not directly or indirectly nonexistence or nature of Waste in, under or on the Property, it may create
disclose, or permit anyone else to disclose, the Offering Memorandum or its significant legal and/or economic obligations upon the Owner, lessee and/or
contents to any other person, firm, or entity (including, without limitation, any other holders of interest in the Property or a part thereof and you are hereby
principal for whom you have been engaged), without prior written authorization advised to obtain professional assistance such as from a consultant, engineer
of Owner or Broker and that you will not use or permit to be used the Offering and/or attorney prior to taking an interest in the Property or a part thereof.
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.
01
EXECUTIVE SUMMARY
Investment Summary
L ocation and Demographics
Property Aerials
Property Overview
Absolute Net-Leased Walgreens
01 Executive Summary Absolute Net-Leased Walgreens 5
Ackerman & Co’s Retail Investment Sales team is
pleased to exclusively present for sale an absolute
net-leased Walgreens located in Douglasville, GA
(Atlanta, GA MSA). The Walgreens property,
originally constructed in 2002, includes a 14,490
SF building on approximately 1.376 acres. The
offering provides stable cash flow for over 13
years from an investment-grade tenant; S&P:
BBB/Stable-rated tenant. This asset is fee simple,
9465 Highway 5
Douglasville (Atlanta MSA), GA 30135 and is being offered free and clear of debt.
INVESTMENT PROFILE The Walgreens store is located at a heavily traveled signalized intersection
in the strongest retail corridor in Douglasville. Located just south of I-20
Square Footage: 14,490 SF and Hwy 5 and down the street from Arbor Place Mall (1.2 million SF)
Acreage: 1.376 acres with more than 42,245 vehicles per day.
Offering Price: $5,900,000
In addition to outstanding proximity to the area hospital, the Walgreens
Price Per Square Foot: $407.18 property is located at the core of the area’s major retail corridor with
Debt Structure: Market (offered free & clear) national retailers such as:
Lease Structure: Absolute NNN Lowe’s Arby’s
Wal-Mart Firestone
Cap Rate: 5.90%
SunTrust Bank Wendy’s
Lease Expiration: 10/31/2027 McDonald’s Home Depot
Rental Rate: $24.00 PSF Best Buy Babies “R” Us
The Walgreens store features a drive-thru pharmacy and Healthcare Clinic.
01 Executive Summary Absolute Net-Leased Walgreens 6 INVESTMENT HIGHLIGHTS Signalized Hard Corner Location with Drive Thru: The subject Walgreens property is quality all-brick construction with a Drive Thru and Healthcare Clinic. It is the only Walgreens Drugstore within 3 miles. Ease of access and visibility will make this a strong drugstore location over time. Absolute Net Lease (NNN) Structure: Due to the absolute net lease structure, this allows for fully passive ownership. Under the terms of the lease, the tenant is responsible for all expenses on the leased premises. These responsibilities include, but not limited to, interior, exterior, roof and structure. Long Term Stable Cash Flow: This asset should provide steady cash flow to ownership over the remainder of the current initial lease term of over 13 years. In addition, there are ten (10), five (5) year tenant renewal options. Offered Free and Clear of Debt: With limited single tenant product in the market, this is a benefit for an investor looking for an all-cash deal or market debt with current low interest rates. Surrounded By National Retailers: Property is located in the strongest retail corridor west of Atlanta.
Cartersville
113
BARTOW
01 Executive Summary Absolute Net-Leased Walgreens
Alpharetta
7
LOCATION AND DEMOGRAPHICS
Kennesaw
The subject property, a net-leased Walgreens, located on Central
Perimeter
9465 Highway 5 in Douglasville (Atlanta MSA), GA, was
built in 2002 and is in great physical condition. In 2013, 400
total population within 5 miles was 79,289 and average Buckhead
household income within 5 miles was $67,802. Midtown 78
COBB Decatur
Downtown
Atlanta
DEKALB
DOUGLAS
DEMOGRAPHIC SUMMARY F U LT O N
1 MILE 3 MILES 5 MILES
Population 2013 5,425 36,464 79,289
Total Households 2,128 13,115 27,289
9465 HIGHWAY 5 675
Average Household Income $57,020 $65,394 $67,802 DOUGLASVILLE, GA 30135
Hartsfield
Jackson Airport
402
TRAFFIC COUNTS
Bright Star Rd
402
42,245 VEHICLES PER DAY Arbor Place
(COMBINED: DOUGLAS BLVD AND BILL ARP RD) Mall
Source: 2012 MPSI Systems Inc. d.b.a. DataMetrix®
d
Blv
las
p Rd
ug
402 Do
Ar
Bill
9465 HIGHWAY 5
DOUGLASVILLE, GA 30135
W Stewa
rt Mill Rd
5
01 Executive Summary Absolute Net-Leased Walgreens 8
PROPERTY AERIAL - CLOSE UP
VPD
14,954
D
AS BLV
DOUGL
27,291 VPD
Y 5)
BILL ARP RD (HW
01 Executive Summary Absolute Net-Leased Walgreens 9
PROPERTY AERIAL - SURROUNDING RETAIL
27,291 VPD
BILL ARP RD (HWY 5)
D OUGLAS BLVD
14,954 VPD
01 Executive Summary Absolute Net-Leased Walgreens 10
PROPERTY AERIAL - SURROUNDING RETAIL
27
,2
91
VP
D
STAR CO NN
BRIGHT
CHAPEL HILL R D
ARBOR PLACE MALL
D
LV
DOU GLAS B
BILL A
PD
RP
V
54
RD
,9
14
HW(
Y5
)
STEWART PK W Y01 Executive Summary Absolute Net-Leased Walgreens 11
PROPERTY OVERVIEW
Address: 9465 Hwy 5, Douglasville, GA 30135
Parcel ID: 234-00-00-142
County: Douglas County - City of Douglasville, GA
Metro Market: Atlanta MSA
Zoning: General Commercial (GC)
Building Size: 14,490 SF
Land Area: 1.376 acres
Year Built: 2002
Construction: Concrete block and brick
Parking: 57 parking spaces
Signage: Large dedicated pylon at the intersection of Hwy 5 and Douglas Blvd
There are three points of ingress/egress via Hwy 5 and Douglas Blvd
Access:
and cross access
Store Number: 6896
Drive-Thru: Yes
Pharmacy: Yes
Photo: Yes
Health Clinic: Yes
Open seven days a week
Store Hours :
8:00 AM - 10:00 PM
Pharmacy Hours: M-F, 7:00 AM - 12:00 AM
9465 Highway 5 Sat, 8:00 AM - 10:00 PM
Douglasville (Atlanta MSA), GA 30135 Sun, 8:00 AM - 8:00 PM02
TENANT OVERVIEW
Tenant Summary
Site Plan
Rent Roll
Absolute Net-Leased Walgreens02 Tenant Overview Absolute Net-Leased Walgreens 13
TENANT SUMMARY
WALGREENS
Founded in 1901, Walgreens is the largest drug retailing chain in the United States currently operates 8,678 drugstore
chains across the United States and Puerto Rico. In addition, Walgreens completed their purchase in 3,000+ store
European retail pharmacy giant Alliance Boots to expand their presence internationally. Walgreens is a national leader
SIZE
in providing prescription and non-prescription drugs and household consumer products. With an S&P credit rating
One-Story Building
of BBB, Walgreens is consistently regarded as one of the most financially sound organizations in the United States.
SQUARE FOOTAGE Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to consistently
14,490 outperform its competitors with regard to earnings per share, revenue growth, net income growth, and cash flow from
operations. In 2013, Walgreens posted its unprecedented 39th straight year of record sales and earnings.
LEASE EXPIRATION
2027 Walgreen Company (NYSE: WAG)
S&P Rating: BBB/stable
Headquarters: Deerfield, IL USA
Store Locations: 8,678 as of January 31, 2014
Year Founded: 1901
Employees: 244,000
Market Capitalization: $59.31B (8/20/2014)
Net Sales: $72.217B (Fiscal 2013)
www.walgreens.com02 Property Overview Absolute Net-Leased Walgreens 14 SITE PLAN
02 Tenant Overview Absolute Net-Leased Walgreens 15
RENT ROLL – as of August 2014
SUITE TENANT START EXPIRATION RSF ANNUAL MONTHLY PSF RENEWAL RENEWAL NOTES
DATE DATE RENT RENT RENT TERM INCREASE
Tenant retains Ten (10) x Five (5)
year options after the initial Twenty
1 Walgreens 11/1/2002 10/31/2027 14,490 $347,760 $28,980 $24.00 5 years None Five (25) year lease term.
RENEWAL OPTIONS
Option 1 $347,760
Option 2 $347,760
Option 3 $347,760
Option 4 $347,760
Option 5 $347,760
Option 6 $347,760
Option 7 $347,760
Option 8 $347,760
Option 9 $347,760
Option 10 $347,76003
MARKET OVERVIEW
Douglasville, Georgia
Demographics
Competing Properties
Sold Comparables
Absolute Net-Leased Walgreens03 Market Overview Absolute Net-Leased Walgreens 17
DOUGLASVILLE, GEORGIA
The City of Douglasville has thrived just 20 minutes west of
downtown Atlanta. The City is the 7th largest municipality in the
Atlanta MSA Market and the county seat of Douglas County. With
the slogan, “New Growth, Old Charm, Always Home” , it is a pro-
business community with average Household Income within 5 miles
of $67,802 expected to grow by over 3% through 2018.
The Hwy 5 and Chapel Hill Rd retail corridor was confirmed when the 1.2M square foot Arbor
Place Mall was opened in the fall of 1999 and has followed with just about every national
retailer. The other amenities in the area include the 2000 ac Sweetwater Creek State Park,
multiple public golf courses and Six Flags Over Georgia. Douglasville Courthouse
TOP TEN CORPORATE EMPLOYERS: METRO ATLANTA TOP TEN EMPLOYERS:
CITY OF DOUGLASVILLE & DOUGLAS COUNTY
Company Employment COMPANY EMPLOYMENT LOCATION
Delta Airlines 22,257 Silver Line Building Products 1,200 Douglas County
AT&T 21,915 Douglas County Gvmt. 875 City of Douglasville
Emory University and Emory Healthcare 21,000
American Red Cross 450 City of Douglasville
Cox Enterprises 13,583
APL Logistics 400 Douglas County
United Parcel Service (UPS) 10,745
WellStar Douglas Hospital 313 City of Douglasville
WellStar Health System 10,112
Benton Georgia 300 City of Douglasville
SunTrust Banks 7,700
Staples Customer Fulfillment 258 City of Douglasville
Lockheed Martin Aeronautics 7,531
Medline Industries 250 City of Douglasville
IBM Corporation 7,500
Douglasville Government 243 Douglas County
Georgia Institute of Technology 7,342
Seasons 4 225 Douglas County03 Market Overview Absolute Net-Leased Walgreens 18 DOUGLASVILLE, GA DEMOGRAPHICS DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2013 Population 5,425 36,464 79,289 2018 Projected Population 5,469 37,310 81,047 2010 Census Population 5,430 36,128 78,604 2000 Census Population 4,572 27,216 58,814 Growth 2000 - 2013 18.69% 33.68% 34.52% Growth 2013 - 2018 .81% 2.32% 2.22% 2013 Median Age 35.0 36.1 35.7 2013 Households 2,128 13,115 27,289 2018 Projected Households 2,168 13,433 27,889 2010 Census Households 2,110 12,972 27,021 2000 Census Households 1,740 9,672 20,296 Growth 2000 - 2010 21.27% 34.12% 33.14% Growth 2010 - 2013 .87% 1.10% .99% Growth 2013 - 2018 1.87% 2.43% 2.20% 2013 Average Household Size 2.41 2.70 2.86 2013 Housing Units 2,128 13,115 27,289 2013 Owner Occupied Units 44.17% 63.30% 72.24% 2013 Renter Occupied Units 55.83% 36.70% 27.76% Sources: Claritas, Market + Main, Inc., U.S. Census Bureau
03 Market Overview Absolute Net-Leased Walgreens 19
WALMART PHARMACY
7001 CONCOURSE PKWY
COMPETING PROPERTIES WITHIN 3 MILES DOUGLASVILLE, GA 30134
0.15 MILES
402
Chapel H il l
Bright Star Rd
9465 HIGHWAY 5 402
DOUGLASVILLE, GA 30135
Arbor Place
SAM’S CLUB PHARMACY
Mall
Rd
6995 CONCOURSE PKWY
DOUGLASVILLE, GA 30134
d 0.15 MILES
Blv
las p Rd
oug
402 D
RITE AID - FREESTANDING
Ar
2981 CHAPEL HILL RD
Bill
DOUGLASVILLE, GA 30135
2.5 MILES
KROGER PHARMACY
W Stewa 3251 HWY 5
rt Mill Rd DOUGLASVILLE, GA 30135
0.5 MILES
5
PUBLIX PHARMACY
3316 HWY 5
DOUGLASVILLE, GA 30135
RITE AID - FREESTANDING 0.6 MILES
3687 HWY 5
DOUGLASVILLE, GA 30135
1.2 MILES
US
DI
RA
d
Stewart Mill R
ILE
CVS - FREESTANDING
-
M
3674 HWY 5
DOUGLASVILLE, GA 30135 2.5
1.2 MILES
Ce
nt
r
al
C h urch Rd03 Market Overview Absolute Net-Leased Walgreens 20
SOLD COMPARABLES
1 2 3
841 S. Main St 2050 Government St 780 Glynn St
Graham, NC 27253 Mobile, AL Fayetteville, GA
Total SF 13,824 Total SF 15,820 Total SF 14,668
Sales Price $4,290,000 Sales Price $6,065,573 Sales Price $6,239,500
($310.33 PSF) ($383.41 PSF) ($425.38 PSF)
Built 2004 Built 2003 Built 2002
Sold 6.7.2013 Sold 2.26.2014 Sold 2.18.2014
Parking 57 Parking 62 Parking 54
Surface Spaces Surface Spaces Surface Spaces
1
Land 1.18 Acres Land 2.07 Acres Land 2.45 Acres
3
204
FINANCIAL OVERVIEW
Absolute Net-Leased Walgreens04 Financial Overview Absolute Net-Leased Walgreens 22
FINANCIAL OVERVIEW LEASE DETAILS
Sales Price $5,900,000 Commencement Date 11/1/2002
Square Feet 14,490 End Date 10/31/2077
Price Per SF $407 Initial Lease Term 25 Years
Cap Rate 5.90% Annual Rent $347,760
Financing Market Rent Escalations (Current Term) None
Rent Per Month $28,980
Lease Type Absolute NNN
BUILDING INFORMATION
Options Ten (10) x Five (5)
9465 Highway 5,
Address Option Rental Increases None
Douglasville, GA
Propety Type Single-Tenant Retail Landlord Responsibilities None
Year Built 2002
Parcel Size 1.376 Acres
Type of Ownership Fee SimpleFOR MORE INFORMATION, PLEASE CONTACT: SEAN W. PATRICK, CCIM Vice President, Investment Sales 770.913.3946 | spatrick@ackermanco.net © 2014 Ackerman & Co. All rights reserved.
You can also read
