Walgreens Offering Memorandum - VEREIT
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Walgreens assumed the lease for this existing Rite Aid store
as part of the Walgreens - Rite Aid asset sale in 2018. This
location has a conversion date set for March 2020. The location
will undergo interior and exterior renovations to match the
Walgreens store concept and brand.
Representative Photo
Offering Memorandum
Walgreens
103 Ash Drive | Paris (Lexington), Kentucky
Confidentiality and Restricted Use Agreement
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for Offered Exclusively by
your consideration of the opportunity to acquire the commercial property described herein (the “Property”).
This COM may be used only as stated herein and shall not be used for any other purpose, or in any other
manner, without prior written authorization and consent of SJC.
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. Ryan Butler
This COM contains descriptive materials, financial information and other data compiled by SJC for the Managing Director
convenience of parties who may be interested in the Property. Such information is not all inclusive and is not rbutler@stanjohnsonco.com
represented to include all information that may be material to an evaluation of the acquisition opportunity
presented. SJC has not independently verified any of the information contained herein and makes no Brad Moulder
representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries Senior Director
and discussions of documentation and/or financial information contained herein are qualified in their bmoulder@stanjohnsonco.com
entirety by reference to the actual documents and/or financial statements, which upon request may be
made available. An interested party must conduct its own independent investigation and verification of any
information the party deems material to consideration of the opportunity, or otherwise appropriate, without Anne Perrault
reliance upon SJC. Director
aperrault@stanjohnsonco.com
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the
right to negotiate with any number of interested parties at any time. The Property is offered and sold by its Zach Snider
owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any Associate
customary warranties of title. zsnider@stanjohnsonco.com
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information Brandon Sherrill
you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in Analyst
any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce,
bsherrill@stanjohnsonco.com
and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon
request by SJC at any time, you will return and/or certify your complete destruction of all copies of this
COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, In Association With:
agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, Brad Pepin
officers, employees, representatives, agents and principals, from and with respect to any and all claims and KY Lic #246584
liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning
the Property; (5) you will not provide this COM or any of the Information to any other party unless you first
obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth
herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an Stan Johnson Company
adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including,
6120 South Yale Avenue | Suite 300
but not limited to, injunctive relief and specific performance, in connection with such a violation and shall
Tulsa, Oklahoma 74136
not be required to post a bond when obtaining such relief.
P: 918.494.2690
stanjohnsonco.comPurchase Price: $4,600,000 Investment Highlights
Cap Rate: 7.35% Investment Grade Tenant
Walgreens (NASDAQ: WBA; S&P: BBB/Stable) is the largest drugstore
chain in the U.S., reporting fiscal 2018 sales of more than $131.54 billion.
The Offering Walgreens continues to build a seamless customer experience through
its 9,560 drugstores and its digital businesses.
Store Converting to Walgreens Branding in March 2020
Stan Johnson Company is pleased to present to qualified investors the Rite Aid in Paris will undergo interior and exterior renovations to better
opportunity to acquire a 100% fee simple interest in the single tenant fit the Walgreens store concept and brand. The conversion date is set
drugstore (the “Property”) located in Paris, KY. for March, 2020 and this location shall operate fully as a Walgreens
going forward.
Built in 2007, this drugstore location occupies a 14,660 square foot building
Absolute NNN Lease with No Landlord Responsibility
on approximately 1.67 acres. The Tenant is under a twenty (20) year lease
Lease features no Landlord responsibilities for maintenance or repair of
with six (6), five (5) year options featuring 10% rental escalations, which is the Property throughout the term, making it truly a passive investment.
an extremely rare attribute for Walgreens properties. The lease is absolute
NNN and presents no Landlord responsibilities. The Tenant is required to Main Retail Corridor
pay for all expenses including taxes, insurance, roof, structure and parking The Property is adjacent to U.S. Route 68, a main thoroughfare in the
lot. This Rite Aid location was one of the select stores to be acquired by area, and is well-situated near Paris’ Main Street and Bourbon County
High School (843 students). The site is directly across the street from a
Walgreens in 2018, which speaks to the appeal and critical nature of this
Walmart Supercenter, with the next closest Walmart being in Lexington.
particular site. The store has a conversion date set for March 2020 and will
Other nearby tenants include O’Reilly Auto Parts, Tractor Supply
undergo interior and exterior renovations to match the Walgreens store
Company, McDonald’s, and Dollar Tree, among others.
concept and brand.
Rare Walgreens Extension Options with Escalations
The Property is located on U.S. Route 68, a main thoroughfare for the Lease features six (6), five (5) year options with rental escalations
area, and is well-positioned near Paris’ Main Street. This drugstore sits of 10% in select options, an extremely rare attribute for Walgreens
directly across the street from a Walmart Supercenter, with the next closest properties.
Walmart located in Lexington, KY. Other nearby national tenants include
Established Location and Loyal Customer Base
O’Reilly Auto Parts, Tractor Supply Company, McDonald’s, and Dollar Tree, Rite Aid has operated at this location since 2007 (12+ years), showing its
among others. established presence in the area and loyal customer base.
Walgreen Co. carries a BBB investment grade credit rating with Standard Signalized Corner Location
& Poor’s. Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is the second The Property sits on the corner of Ash Drive and U.S. Route 68, sharing
largest pharmacy-led health and wellbeing company in the United States a signalized intersection with Walmart.
now with over 18,500 locations. WBA generates over $131.54 billion in No Termination or Kick-out Clause
revenue, yielding it $5.02 billion in net income and maintains a $26 billion This lease presents no early termination or kick-out provisions.
net worth as of August 2018.
Walgreens • Paris, KY 3Lease Abstract Rent Schedule
Lease Lease Dates Rent
Term Years Start End Annual Monthly PSF Increase
Tenant: Walgreen Co.
1-10 7/11/2007 7/10/2017 $308,441 $25,703 21.04 -
Primary
Guarantor: Corporate Term
11-20 7/11/2017 1/31/2028 $339,285 $28,274 23.14 10%
Address: 103 Ash Dr, Paris, KY 40361
Option 1 21-25 2/1/2028 1/31/2033 $373,214 $31,101 25.46 10%
Year Built: 2007
Option 2 26-30 2/1/2033 1/31/2038 $373,214 $31,101 25.46 0%
Building Size (SF): 14,660
Option 3 31-35 2/1/2038 1/31/2043 $410,535 $34,211 28.00 10%
Land Area (AC): 1.67
Option 4 36-40 2/1/2043 1/31/2048 $410,535 $34,211 28.00 0%
Building Use: Retail
Option 5 41-45 2/1/2048 1/31/2053 $451,588 $37,632 30.80 10%
Term: 20 years
Option 6 46-50 2/1/2053 1/31/2058 $451,588 $37,632 30.80 0%
Lease Term Remaining: +/- 8 years
Rent Commencement: 7/11/2007
Rent Expiration: 1/31/2028
This location has a conversion date set for March 2020. The location
NOI: $339,285 will undergo interior and exterior renovations to match the Walgreens
store concept and brand.
Rent Increases: Increases in options
Renewal Options: Six (6), five (5) year options
Expenses: Absolute NNN
Taxes: Tenant
CAM: Tenant
Insurance: Tenant
Parking: Included in CAM
Utilities: Tenant
HVAC: Tenant
Roof: Tenant
Structure: Tenant
Representative Photo
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