Walgreens 2366 Harding Hwy, Lima, OH 45804 OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Walgreens located at 2366 Harding Hwy Lima, OH 45804 ( Property ). It has been prepared by Matthews Real Estate Investment Services. 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 Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained 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 of 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 for the Property, 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 Matthews Real Estate Investment Services 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 the Property 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 Matthews Real Estate Investment Services 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. ii
TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview............................. 2 Financial Overview.............................. 3 Company Overview.............................. 4 PROPERTY DESCRIPTION Property Overview............................... 6 Bird s Eye.................................... 7 Tenant Map................................... 8 Regional Map.................................. 9 DEMOGRAPHICS Demographics Report............................. 11 City Overview................................. 12 PRESENTED BY Josh Bishop VP & Director License No. 01940394 O 214.692.2289 M 315.730.6228 josh.bishop@matthews.com Maxx Bauman National Drug Store Specialist License No. 01996741 O 214.692.2024 M 310.994.0262 maxx.bauman@matthews.com Laurence Bergman Broker of Record License No. 000348029 iii
Investment Overview INVESTMENT HIGHLIGHTS PROPERTY & LEASE DETAILS Ideal 1031 exchange property More than 12 years remaining on the initial 25 year lease Strong corporately guaranteed lease Absolute NNN - Zero landlord responsibility All brick construction with a drive-thru pharmacy located on a hard signalized corner LOCATION Traffic counts in excess of 29,000 VPD at the intersection of Harding Hwy & Roschman Ave Population of more than 60,000 residents within a 5-mile radius Property is located about 2.5 miles from Lima Memorial Hospital and less than 0.5 miles from the Allen County Fairgrounds Local national retailers include Walmart, Subway, Kmart, Sam s Club, Red Lobster, Panera Bread, Captain D s, Taco Bell, Wendy s, Applebee s, Texas Road House, Olive Garden, Tractor Supply, and many more TENANT Strong investment grade credit tenant, S&P rated BBB Walgreens has over 8,170 locations nationwide Walgreens ranks #19 on Forbes Fortune 500 vi
Financial Overview EXECUTIVE SUMMARY 2366 Harding Hwy Lima, OH 45804 List Price.............................. $4,670,000 Gross Leasable Area........................ 14,405 SF CAP Rate - Current.............................6.31% Year Built................................. 2004 Lot Size.........................±1.45 Acres (63,162 SF) ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent PSF Current - 2/28/2029 $24,583.33 $295,000.00 $20.36 10 (Ten) - 5 (Five) Year Options $24,583.33 $295,000.00 $20.36 TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Walgreens Fee Simple Corporate NNN Tenant Responsible 25 Years Rent Commencement Date February 2004 Lease Expiration Date 2/28/2029 Term Remaining on Lease Increases Options ± 12 Years None 10 (Ten) - 5 (Five) Year vii
Company Overview Property Name Walgreens Property Type Net Leased Drug Store Parent Company Trade Name Walgreens Boots Alliance, Inc. Ownership Public Credit Rating BBB Rating Agency Standard & Poor s Revenue $103.44 B Net Income $4.22 B Stock Symbol WBA Board NASDAQ No. of Locations ±8,173 No. of Employees (All) ±240,000 Headquartered Deerfield, Illinois Website www..walgreens.com Year Founded 1901 Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. The Retail Pharmacy International segment sells prescription drugs; and health, beauty, toiletry, and other consumer products through its pharmacy-led health and beauty stores, as well as through boots.com and BootsWebMD.com. It is also involved in optical practice and related contract manufacturing operations. The Pharmaceutical Wholesale segment engages in the wholesale and distribution of specialty and generic pharmaceuticals, health and beauty products, and home healthcare supplies and equipment, as well as provides services to pharmacies and other healthcare providers. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois. viii
Property Overview THE OFFERING Property Name............................ Walgreens Property Address..................... 2366 Harding Hwy Lima, OH 45804 Assessor s Parcel Number.............. 47-04-00-02-005.020 SITE DESCRIPTION Number of Stories............................. One Year Built................................. 2004 Gross Leasable Area (GLA).................... ±14,405 SF Lot Size........................ ±1.45 Acres (63,162 SF) Type of Ownership......................... Fee Simple Parking.......................... ±65 Surface Spaces Parking Ratio.......................... 4.49 : 1,000 SF Landscaping........................... Professional Topography........................... Generally Level CONSTRUCTION Foundation........................... Concrete Slab Exterior...................................Brick Parking Surface.............................Asphalt Roof..................................... Flat x PROPERTY DESCRIPTION
Bird s Eye Harding Hwy ± 20,000 ADT xi
Tenant Map xii PROPERTY DESCRIPTION
Regional Map xiii
Demographics Report Population 3-Mile 5-Mile 10-Mile 2021 Projection 22,648 55,199 92,296 2016 Estimate 23,047 55,591 92,720 2010 Census 23,980 56,746 94,085 2000 Census 26,417 59,592 96,331 Households 2021 Projection 9,072 21,239 35,789 2016 Estimate 9,186 21,347 35,864 2010 Census 9,467 21,684 36,195 2000 Census 10,470 22,736 36,407 Income $0 - $15,000 26.34% 20.22% 14.81% $15,000 - $24,999 17.44% 15.52% 12.56% $25,000 - $34,999 14.55% 13.85% 12.72% $35,000 - $49,999 16.32% 16.09% 15.65% $50,000 - $74,999 12.28% 15.89% 17.95% $75,000 - $99,999 6.97% 9.06% 11.84% $100,000 - $124,999 3.74% 5.36% 7.04% $125,000 - $149,999 1.36% 2.26% 3.24% $150,000 - $199,999 0.74% 1.00% 2.00% $200,000 - $249,999 0.15% 0.27% 0.81% $250,000 - $499,999 0.07% 0.31% 1.00% $500,000+ 0.05% 0.16% 0.40% 2016 Est. Average Household Income $38,623 $46,776 $58,672 2016 Est. Median Household Income $29,279 $35,385 $44,511 xv DEMOGRAPHICS
City Overview LIMA, OHIO Lima is a city located in northwestern Ohio along Interstate 75 a little more than an hour north of Dayton, the sixth largest city in Ohio. The city of Lima is the county seat of Allen County and part of the Rust Belt. The Ottawa River runs through the city. In addition to being a prominent regional medical center, Lima is home to the Procter and Gamble s Tide and Downy facility, the University of Northwestern Ohio, the Ohio State University, Lima Campus and the James A. Rhode State College. DAYTON, OHIO As the center of the fourth largest metropolitan area in Ohio, Dayton is among the top 100 metropolitan areas in both exports and export-related jobs. With a relatively diversified economy, the city of Dayton is where companies such as Reynolds and Reynolds, CareSource, DPL, LexisNexis, and Kettering Health Network have established their headquarters. In 2010, the City of Dayton and community leaders introduced the Greater Downtown Dayton Plan which focuses on job creation and retention, infrastructure improvements, housing recreation and collaboration. Additionally, the same year, Dayton was ranked as one of the best places in the U.S. for college graduates looking for a job. TOP EMPLOYERS - LIMA, OH 1. St. Rita s Medical Center 2. Lima Building Trades Council 3. Lima Memorial Health System 4. Metokote Corporation 5. Ford Motor Company 6. Dana Corporation 7. DTR Industries, Inc. 8. SpartanNash 9. University of Northwestern Ohio 10. Plumbers & Pipefitters Local Union xvi
Walgreens 2366 Harding Hwy, Lima, OH 45804 OFFERING MEMORANDUM Josh Bishop VP & Director License No. 01940394 O 214.692.2289 M 315.730.6228 josh.bishop@matthews.com Maxx Bauman National Drug Store Specialist License No. 01996741 O 214.692.2024 M 310.994.0262 maxx.bauman@matthews.com Laurence Bergman Broker of Record License No. 000348029 841 Apollo Street, Suite 150 El Segundo, CA 90245 www.matthews.com