WALGREENS LEASEHOLD INTEREST EXCLUSIVE NET-LEASE OFFERING MEMORANDUM

Transcription

1 WALGREENS LEASEHOLD INTEREST EXCLUSIVE NET-LEASE OFFERING MEMORANDUM EXCLUSIVELY LISTED BY: 138 SW Military Drive, San Antonio, Texas Edward A. Benton ed.benton@colliers.com

2 TABLE OF CONTENTS FINANCIAL OVERVIEW > Offering Terms TENANT OVERVIEW LOCATION OVERVIEW > Location Overview > Subject Property Photos > Aerial Map > Trade Area Aerial Map DEMOGRAPHICS

3 FINANCIAL OVERVIEW

4 OFFERING TERMS Purchase Price NOI CAP Rate $1,650,000 $162, % INVESTMENT SUMMARY Tenant Trade Name Walgreens Location 138 SW Military Dr., San Antonio, Texas Price $1,650,000 NOI $162,500 CAP Rate 9.85% Year Built 1999 Corporate/Franchisee Corporate Lease Type Double Net (NN) Roof & Structure Landlord Responsible Remaining Term Years Lease Commence June 11, 1999 Lease Expiration December 31, 2029 Rent Increases None Options Type of Ownership Six (6) Five-Year Options Leasehold Interest LOAN SYNOPSIS Walgreens Rent $23,125.00/month before ground rent Current Loan Balance $1,338,133 Rate 5.43% Monthly P&I $12, months Remaining Periods (self amortizing, pays off on 12/15/29) $3,500 (this is an additional lender Annual Trustee Fee expense paid each year to the trust on a bond-financed CTL loan) Recourse Non-recourse Amount Held in $75,000 Reserve Net Cash Flow After Debt Service $7,571 for next 3 years $7,028 for final 9 years FINANCIAL OVERVIEW *After 12/31/29 WAG can renew at the same rent. Ground rent will increase but loan would be paid off. On 1/15/20, P&I goes down to $11,706 to compensate for the increase in monthly ground rent from $9, to $10, There are also 2 more ground rent increases after the primary term of the WAG lease expires in 2029.

5 WALGREENS INTERIOR TENANT OVERVIEW

6 WALGREENS Walgreens is one of the largest drugstore chains in the U.S., with more than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens mission is to be America s most-loved pharmacy-led health, well-being and beauty retailer. Its purpose is to champion everyone s right to be happy and healthy. To achieve this mission and purpose, Walgreens is focusing on three core strategies to better serve customers: Offer ultimate convenience With stores located within five miles of approximately 76 percent of Americans, and with popular online offerings and an award-winning mobile app, Walgreens interacts with 10 million customers a day. Whether it is for a prescription, last-minute grocery or gift needs, photo prints or beauty products, Walgreens helps customers quickly get in and get what they want with ultimate convenience, often finding an unexpected shopping need to fill along the way. TENANT OVERVIEW Beyond the walls of its stores, customers get omni channel access to Walgreens service, both online and through one of the most popular and sophisticated mobile apps in retail shopping. Use your phone to scan-and-refill prescriptions, clip digital coupons or order prints of your selfie photos. Earn customer loyalty Approximately 87 million Walgreens customers are active members of its Balance Rewards loyalty program. They earn points not just by shopping but for healthy activities such as exercising and immunizations. Customers also save through the Walgreens Prescription Savings Club, offering member discounts on more than 8,000 brand and generic medications. Walgreens scope of pharmacy services includes retail, specialty, medical facility and mail service along with online and mobile services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Deliver extraordinary customer and patient care Walgreens pharmacists are playing a greater role in health care than ever before. In addition to offering pharmacy services, Walgreens provides convenient access to important health services such as health tests and immunizations recommended by the Centers for Disease Control and Prevention. These are available every day during pharmacy hours on a walk-in basis. Walgreens is rapidly expanding the number of stores that offer private health consultation rooms, one of several ways the company is enhancing the patient-pharmacist experience and improving patient access to expert care. Walgreens also offers convenient access to medical services through its Healthcare Clinic or other provider retail clinic services located in approximately 400 select Walgreens throughout the country. Healthcare Clinics are staffed by board-certified family nurse practitioners who are specially trained to diagnose and treat a wide variety of illnesses and chronic conditions, order diagnostic tests and provide preventive care. The Walgreens partnership with WebMD offers customers additional digital health resources.

7 DOWNTOWN SAN ANTONIO LOCATION OVERVIEW

8 LOCATION OVERVIEW Location Overview This Walgreens is located at 138 SW Military Dr., San Antonio, Texas. The subject property is less than 10 miles south of downtown San Antonio. Ranked the 7th largest city in America, San Antonio continues to grow as young professionals and businesses are taking notice of the abundant opportunity in San Antonio. The San Antonio MSA has grown by 11.75% between 2010 and 2016 and is predicted to increase an additional 8.12% by San Antonio is also projected to welcome 1.1 million new residents by 2040 and demographically represents what the US will look like in the future. San Antonio stands as Bexar County s largest city, accounting for almost 40% of the county s geographic area and about 75% of the county s estimated population. San Antonio encompasses a total geographic area of 467 square miles with a population density of 3,395 persons per square mile. LOCATION OVERVIEW San Antonio is the ideal environment for businesses of all sizes. Not only does the city boast a pro-business environment, decreasing costs through incentives and industrial policies, but San Antonio also offers a low-cost utility portfolio including renewable energy options. It maintains a skilled workforce bursting with vitality, built of professionals younger than the U.S. national average age. These key factors and so many more have provided uniquely beneficial circumstances for companies to include Petco, Oracle, Microsoft, Medtronic, HEB, Whataburger, Toyota Motor Manufacturing Texas and many more. Surrounding Retail + More

9 SUBJECT PROPERTY PHOTOS LOCATION OVERVIEW

10 LOCATION AERIAL OVERVIEW MAP SITE SW Military Dr. S Flores St. Roosevelt Ave.

11 SITE TRADE LOCATION AREA AERIAL OVERVIEW MAP

12 LOCATION DEMOGRAPHICS OVERVIEW

13 LOCATION DEMOGRAPHICS OVERVIEW POPULATION 1 - Mile 3 - Miles 5 - Miles Est , , ,341 Proj , , ,950 % Increase 2.1% 2.2% 2.2% 2017 AVERAGE HOUSEHOLD INCOME 1 - Mile 3 - Miles 5 - Miles Est $46,667 $43,680 $46,689 Proj $48,592 $45,383 $47,134 % Increase 3.4% 3.4% 3.3% TOP EMPLOYERS Employers # of Employees H-E-B 20,000 USAA 17,000 Cullen / Frost Bankers 3,982 Bill Miller BBQ 3,540 Population The estimated 2017 population within a 5 mile radius from the subject property is 281,341 with an estimated 88,539 households. The projected current population is made up of 48.9% males and 51.1% females. The median age is Household Income The estimated average household income within a one mile radius form this property for 2017 is $46,667 with an estimated 3.4% increase between now and The current per capita income is estimated at $15,273 and is expected to go up by 2.9% by Employment The estimated 2017 labor force within a 5 mile radius is made up of 214,311 people over age 16 with 8,914 businesses. 47% of the work force are white collar workers. The average travel time to work is 22.4 minutes.

14 Information About Brokerage Services Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords. REPRESENTATIVE PHOTO TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all other, including the broker s own interest; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. Colliers International Houston, Inc houston.info@colliers.com (713) Licensed Broker/Broker Firm Name or Primary Assumed Business Name License No. Phone A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner s agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent/ AS AGENT FOR BUYER/TENANT: The broker becomes the buyers/tenant s agent by agreeing to represent the buyer, usually though a written representation agreement. A buyer s agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker s obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinion and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: That the owner will accept a price less than the written asking price; That the buyer/tenant will pay a price greater than the price submitted in a written offer; and Any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. Gary Mabray gary.mabray@colliers.com (713) Designated Broker of Firm License No. Phone Patrick Duffy patrick.duffy@colliers.com (713) Licensed Supervisor of Sales Agent/Associate License No. Phone Edward Archer Benton ed.benton@colliers.com (713) Sales Agent/Associate s Name License No. Phone AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISHED: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposed. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Buyer/Tenant/Seller/Landlord Initials Date Colliers International 1233 West Loop South, Suite 900 Houston, TX Main Fax

15 limiting conditions CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of the Property at 138 SW Military Drive, San Antonio, Texas It has been prepared by Colliers International. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Colliers International. The material is based in part upon information supplied by the Seller and in part upon financial information obtained by Edward A. Benton from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness or this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum from Edward A. Benton, you agree: 1) The Offering Memorandum and its contents are confidential; 2) You will hold it and treat it in the strictest of confidence; and 3) You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Colliers International expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of 138 SW Military Drive, San Antonio, Texas or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. EXCLUSIVELY LISTED BY: This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved. Edward A. Benton Vice President ed.benton@colliers.com

16 exclusively listed EXCLUSIVELY LISTED BY: Edward A. Benton Vice President ed.benton@colliers.com