4 2 0 0 C H E F M E N T E U R H I G H W A Y N E W O R L E A N S, L O U I S I A N A 7 0 1 2 6 WALGREEN S NEW ORLEANS, LA offering memorandum
INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this 13,500-square foot Walgreens in New Orleans, the largest city in Louisiana. Walgreens is operating under a double-net (NN) lease with landlord responsibilities limited to roof and structure. Walgreens has continuously demonstrated their commitment to the location by forgoing their first termination option and recently extending the lease an additional ten years. The lease has more than years remaining along with seven, fiveyear termination options. The lease is backed by a corporate guaranty from Walgreen Co, which was ranked number 17 on the Fortune 500 list as of June 2017. The company registered $117.3 billion across more than 8,200 locations in 2016. This asset is located at the signalized, hard corner intersection of Chef Menteur Highway and Press Drive. Chef Menteur Highway is a major thoroughfare in New Orleans, which sees more than 38,000 vehicles per day (VPD). Directly across the street is a brand-new construction $14 million Walmart Super Center. Walgreens is also nearby Interstate-, connecting Louisiana and Texas, which sees more than 137,938 vehicles per day (VPD). This Walgreens is also five miles from the 76,648-seat Mercedes-Benz Superdome, home of the New Orleans Saints. Walgreens benefits from a significant population increase. The population rose 23 percent since 20 and is projected to increase by 9 percent from 2017 to 2022. Additional retailers in the immediate vicinity include: Dollar Tree, Burger King, Dollar General, Family Dollar, Popeyes, McDonald s, Rally s, Raising Cane s, Taco Bell, Wendy s, Waffle House, Chase Bank, Domino s, and many more. 2 Additional retailers in the immediate vicinity include: DICK S Sporting Goods, PetSmart, Starbucks, Chick-fil-A, Ashley HomeStore, Target, CVS Pharmacy, Dollar Tree, Best Buy, Marshalls, and many more. 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
INVESTMENT HIGHLIGHTS Recently Extended Walgreens in New Orleans The Largest City in Louisiana Double-Net (NN) with More Than Years Remaining Landlord Responsibilities Limited to Roof and Structure Newly Renovated Roof and Parking Lot in 2018 Walgreens Demonstrated Commitment to Location Extended Base Term Twice Seven, Five-Year Termination Options Remain Signalized Hard Corner Intersection of Chef Menteur Highway and Press Drive Daily Traffic Counts Exceed 38,000 Vehicles Per Day (VPD) Strategically Located Nearby Interstate- Louisiana-Texas Connector Daily Traffic Counts Exceed 137,938 Vehicles Per Day (VPD) Subject Property Benefits from Increased Traffic Counts Brand New $14 Million Walmart Directly across the Street Walgreens is Less Than Five Miles from the Mercedes-Benz Superdome Home of the New Orleans Saints and Other Entertainment Events 76,648 Seats
FINANCIAL OVERVIEW 4200 CHEF MENTEUR HIGHWAY NEW ORLEANS, LOUISIANA PRICE $3,200,000 CAP RATE 6.72% NOI $215,000 PRICE PER SQUARE FOOT $237.04 RENT PER SQUARE FOOT $15.93 YEAR BUILT 1995 APPROXIMATE LOT SIZE 1.26 Acres GROSS LEASEABLE AREA 13,500 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Walgreen Co. 4 LEASE TYPE ROOF AND STRUCTURE Double (NN) Net Landlord Responsible 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
LEASE SUMMARY LEASE COMMENCEMENT DATE 4/1/1995 LEASE EXPIRATION DATE /31/2028 LEASE TERM 20 Years TERM REMAINING INCREASES Years None OPTIONS TO RENEW 7, 5-Year OPTIONS TO TERMINATE None OPTIONS TO PURCHASE None 5 FIRST RIGHT OF REFUSAL Yes 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
TENANT OVERVIEW Founded in 11, Walgreens Boots Alliance, Incorporated is the nation s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug products. By 1919 there were 20 stores, and in 1927 the Company went public. Three years later, the store count was well over 500. Today, Walgreen operates over 8,200 stores in all 50 states, DC, Puerto Rico and the United States Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include: Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. In December 2014, Walgreen acquired the remaining 55 Percent of European retailer and wholesaler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Incorporated; headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy United States of America Division of Walgreens Boots Alliance, Incorporated. Rite Aid said in March 2018 that it has transferred 1,651 of the 2,186 stores included in the deal with Illinois-based Walgreens, one of the country s largest pharmacy operators. The remaining stores are expected to be transferred by the spring. The store-sale deal was announced last summer following a failed attempt by Walgreens to buy Rite Aid outright. The original Walgreens-Rite Aid deal was unveiled in 2015 but came apart amid regulatory scrutiny. TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR TENANT PROFILE Walgreens Boots Alliance, Incorporated Public NUMBER OF LOCATIONS 8,175+ Corporate Store Corporate Guarantee SALES VOLUME $117.3-Billion (2016) NET WORTH $30.2-Billion (2016) RANK Number 17 on Fortune 500 (June 2017) 7 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
ABOUT NEW ORLEANS New Orleans, located at the mouth of the Mississippi River in southern Louisiana, is the largest city in the state. It s a city steeped in history, as rich as, its famous gumbo and crawfish etouffe. The city was founded in 1718 and named after the regent of France, Philippe II, duc d Orleans. The area was under French and Spanish rule until being sold to the United States by France as part of the Louisiana Purchase in 1803. The blending of French, Spanish, and African influences created the Creole Society and cuisine for which New Orleans is famous for. New Orleans has traditionally been known for having a nightlife second to none, housing bars and drinking establishments many of which are located on the famous Bourbon Street. Over the years, visitors to this area have grown accustomed to walking through the street with an alcoholic beverage in hand, sampling first rate jazz, blues, and other types of music through all hours of the night. Bourbon Street is rich with historic venues, social tales, and iconic buildings. The street dates back to 1798, when New Orleans was founded by Jean-Baptiste Le Moyne de Bienville. Also known as Rue Bourbon, this monumental street sits at the heart of the French Quarter extending 13 blocks from Canal Street to Esplanade Avenue. ProsperityNOLA is the first comprehensive development plan in New Orleans recent history. It is a catalyst for economic transformation, designed to ensure the city s vitality for its tri-centennial in 2018 and beyond. More than 200 stakeholders from business, government, education, philanthropy, and the broader economic development community came together to create ProsperityNOLA in 2012. Using a data-driven process, the initiative s Strategic Advisory Council selected to aggressively support five key economic clusters based on their strength and projected growth. The plan builds upon the city s economic cornerstones, its people, innate culture, locational advantages, and resolutely tackles challenges that hinder opportunities to create jobs and wealth for all New Orleans residents. 8 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Z0330940
11 5 MILE RADIUS 3 MILE RADIUS Camp Leroy Johnson 1 MILE 47 Seabrook 47 5 61 Elmwood han 48 Metairie Bridge City 61 6 New Orleans SITE 46 39 428 Arabi Chalmette 46 47 39 Meraux 18 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile 1 Mile 3 Mile 5 Mile an Gretna 46 39 2017 Average HH 2000 Population 16,186 147,785 309,5 2000 Households 6,089 55,7 118,661 $53,669 $47,742 $57,041 Income 20 Population,349 85,097 194,2 20 Households 3,985 34,788 80,041 2017 Population 12,060 6,582 239,117 2017 Households 4,629 43,307 98,949 2017 Median HH Income 2017 Per Capita Income $39,530 $31,733 $35,961 $20,600 $19,399 $23,604
MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this ing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This ing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this ing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this ing Brochure you agree to release Marcus & Millichap Real Estate Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.
WALGREEN S NEW ORLEANS, LA offering memorandum 4 2 0 0 C H E F M E N T E U R H I G H W A Y N E W O R L E A N S, L O U I S I A N A 7 0 1 2 6 BROKER OF RECORD: CHRIS SHAHEEN MARCUS & MILLICHAP LOUISIANA LICENSE: BROK.0095692662