Walgreens. crescent city, CA. Absolute NNN Lease with Substantial Remaining Term. 787 L Street, Crescent City, CA [

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1 Walgreens crescent city, CA Absolute NNN Lease with Substantial Remaining Term 787 L Street, Crescent City, CA [ ]

2 WALGREENS IS A FREE STANDING ABSOLUTE NNN LEASED INVESTMENT PROPERTY LOCATED IN CRESCENT CITY, CA. Investment Highlights PRICE: $7,310,000 CAP: 5.25% LEASABLE SF...±14,820 LAND AREA...±57,849 SF LEASE TYPE Absolute NNN LEASE TERM...18 Years Remaining Prior to Termination Options TERMINATION OPTION...Every Year After 9/30/2033 YEAR BUILT Located in northern California 15 miles south of the Oregon border, this location serves not only the population of Crescent City, but also the broader Del Norte (CA) and Curry (OR) counties. Along with being the Del Norte County Seat, Crescent City is the home to Pelican Bay State Prison and is also a popular destination for tourists seeking Southern Oregon and Northern California beaches, as well as Redwood State and National Parks. Walgreens (NYSE: WAG) has investment-grade BBB credit according to Standard & Poor's and the original 75 year lease has 68 years remaining, with termination options available after September of Walgreens is leased on an absolute NNN expense basis, whereby the tenant is responsible for all operating expenses, including roof and structure. This provides an excellent opportunity for a handsoff investor seeking an investment property with limited nearby competition. The Property is located on Highway 101, the major north/south highway on the West Coast. In most parts of California, Highway 101 is a limited-access freeway. However, traveling through Crescent City it is a five-lane divided commercial street, with Walgreens in the middle. The Property benefits from four ingress/egress points, providing excellent visibility and access for both north and southbound traffic. The Property also features a drive-thru pharmacy. PARKING...±64 Spaces (4.3/1,000SF) ADDRESS: 787 L Street, Crescent City, CA WALGREENS - CRESCENT CITY 2

3 Core Characteristics HIGH TRAFFICKED LOCATION LONG TERM ABSOLUTE NNN LEASE LONG TERM LEASE Walgreens has 68 years remaining on the initial term, with the first termination option available in 18 years. ABSOLUTE NNN Tenant is responsible for all maintenance and repairs, including replacement of roof, structure, HVAC, and parking. See lease abstract on page 9 for more information. EXCELLENT ACCESS The property is located between Highway 101 where it becomes a five-lane divided commercial street. Four ingress/egress points provide easy access for both northbound and southbound traffic. PROMINENT VISIBILITY Unlike its pharmacy competitors in the sub-market, Walgreens is prominently visible and easy to access from both Highway 101 North and South. Highway 101 carries approximately 30,000 vehicles per day near the Subject. INVESTMENT GRADE TENANT Walgreens is a publicly traded company (NYSE: WAG) with investment grade credit, rated BBB by Standard & Poor. BARRIERS TO ENTRY California s strict land use planning and building standards, and lack of developable land create significant barriers to entry in Crescent City. ECONOMIC STRENGTH Crescent City s regional economy benefits from stable government jobs related to Pelican Bay State Prison, the Redwood National and State Parks, College of the Redwoods, and the local school district. Tourism, commercial fishing, healthcare, and forestry are other strong regional industries. ADJACENT PADS The Developer/Owner also owns two pads to the northwest of the property to be developed with complimenting retail at a later date, but they are not a part of this offering. More information available upon request. WALGREENS - CRESCENT CITY 3

4 Surrounding Area Retail ADDITIONAL RETAIL Crescent City is the primary coastal city between Brookings, Oregon and Eureka, California. Its commercial center serves not only city residents and tourists, but also the inhabitants of Del Norte (CA) and Curry (OR) counties. AutoZone Big 5 Sports Denny s Dutch Brothers Coffee Goodyear Jack-in-the-Box Little Caesars Pizza O Reilly Auto Parts Payless Shoe Source Pizza King Shop Smart St. Vincent De Paul Subway Tri Counties Bank US Bank US Post Office Verizon Wireless NORTHCREST DR PARKWAY DR W WASHINGTON BLVD E WASHINGTON BLVD 101 Walgreens M ST S PEBBLE BEACH DR 9TH ST L ST 5TH ST 101 WALGREENS - CRESCENT CITY 4

5 Area Intel & Demos 15-min 5, 10,15 & 30 MINUTE DRIVE TIME DEMOGRAPHICS POPULATION 5-Min 10-Min 15-Min 30-Min ,858 16,689 21,986 29, ,332 15,993 20,986 28, ,020 15,570 20,530 27, HOUSEHOLD INCOMES 5-Min 10-Min 15-Min 30-Min Median $29,560 $33,551 $35,144 $35,725 Average $41,877 $48,061 $49,832 $50, min WALGREENS CRESCENT CITY, CA Named for the crescent-shaped stretch of sandy beach south of the city, Crescent City is the county seat of Del Norte County and is located just 15 miles south of the Oregon-California border along Highway 101. The population of the Crescent City area is about 18,000 but also serves a wider regional population along with the many tourists who tour the Northern California Coast and Redwoods annually. The regional Redwood National and State Parks visitor center is located less than half a mile from Walgreens. Due to the richness of the local Pacific Ocean waters and the ease of access, Crescent City Harbor serves as home port for numerous commercial fishing vessels. The harbor is also home to multiple fishing and non-fishing related businesses and harbor government offices. Crescent City is also home to a satellite campus of College of the Redwoods, a two-year college based in Humbolt County. A few miles north of downtown is Pelican Bay State Prison (PBSP), with state employees and an annual budget approaching $200 million. Crescent City also benefits from non-stop commercial air service to Crescent City Airport (CEC) from Portland Oregon on PenAir (an Alaska Airlines partner), starting in September min WALGREENS - CRESCENT CITY 5

6 Pharmacy Intel Walgreens is only one of four pharmacies that serve Crescent City and the surrounding area. It is the only location that is prominently visible and provides direct access from traffic on both north and southbound Highway 101. Sutter Coast Hospital, the regional 49 bed acute care hospital serving both Del Norte (CA) and Curry (OR) counties, is located less than two miles away. << HWY 101 N >> REGIONAL PHARMACIES ABOUT WALMART AND SAFEWAY ALSO HAVE PHARMACIES NASDAQ WAG 2013 REVENUE $76.4 BILLION sutter Coast Hospital Founded in 1901, Walgreen Co. engages in the retail sale of prescription and nonprescription drugs and general merchandise, through its drugstore chain in the United States. General merchandise includes cosmetics, toiletries, household items, food, beverages, and photofinishing. In addition, the company provides pharmacy benefits management, mail service prescriptions, and other clinical services. Customer prescription purchases can be made at the drugstores, as well as through the mail, by telephone, and on the Internet. Walgreens is based in Deerfield, Illinois. WALGREENS BBB INVESTMENT GRADE STANDARD & POOR 8,215 ACROSS 50 STATES AND PUERTO RICO TOTAL LOCATIONS WALGREENS - CRESCENT CITY 6

7 Site Plan 101 Highway 101 North M Street 13,000 DAILY SITE PLAN KEY PARCEL OUTLINE: LAND AREA: ±57,849 SF BUILDING AREA: ±14,820 SF INGRESS/EGRESS: FUTURE COMMERCIAL DEVELOPMENT 8th Street 7th Street monument sign DRIVE THRU 101 Highway 101 South L Street 13,400 DAILY Site Plan Not To Scale WALGREENS - CRESCENT CITY 7

8 Financial Summary PRICE $7,310,000 Capitalization Rate: 5.25% NET OPERATING INCOME SUMMARY SCHEDULED INCOME Per SF Scheduled Rent: 9/1/2015 $25.88 $383,546 Equals: Effective Gross Income $25.88 $383,546 Less: OPERATING EXPENSES Per SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN - Equals: NET OPERATING INCOME $383,546 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. WALGREENS - CRESCENT CITY 8

9 Rent Roll TENANT INFO TERM RENT SUMMARY Tenant Name Size Date Monthly Rent PSF Annual Rent PSF Walgreens - Crescent City 14,820 7/1/2015 $31,962 $2.16 $383,546 $25.88 SW Corner of Hwy 101 & 8th Street Occupancy Date : 10/1/08 Lease Expiration : 9/30/83 Current Totals: 14,820 $31,962 $2.16 $383,546 $25.88 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. WALGREENS BETHEL - CRESCENT JUNCTION CITY 9

10 Walgreens: Lease Abstract PREMISES/TERM SQUARE FEET ±14,820 SF RENT COMMENCEMENT 10/01/2008 EXPIRATION 9/30/2083 (Option to terminate after 9/30/2033) RENT Minimum Fixed Base Rent Schedule 10/1/2008 9/30/2086 $31,962.17/mo Percentage rent equal to the natural breakpoint of 2% of gross sales (excluding food and prescription) and.5% of gross sales of food and prescription items (excluding Third Party Prescription Plans). In the event percentage rent exceeds fixed base rent, Tenant pays excess percentage rent to Landlord within forty-five (45) days after the end of each lease year. Total rent not to exceed twice the amount of fixed rent in any given year. MAINTENANCE Tenant is responsible for all maintenance and repair of the parking lot, roof and structure, common areas, HVAC, and building interior. RIGHT OF FIRST OPPORTUNITY In the event that Landlord elects to sell the Leased Premises, Tenant has a twenty one (21) day Right of First Opportunity to purchase. ASSIGNMENT AND SUBLETTING Tenant may discontinue operations at any time and assign and sublet their lease interest to a subsidiary, person, or corporation without landlord consent. TENANT TERMINATION RIGHTS Tenant shall have the right and option to terminate this Lease effective after the last day of the 25th year of the Term. If Tenant chooses to elect this option, Tenant shall notify Landlord with 12 months prior notice. WALGREENS - CRESCENT CITY 10

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