SINGLE TENANT ABSOLUTE NNN INVESTMENT OPPORTUNITY ALEXANDER CITY ALABAMA
EXCLUSIVELY MARKETED BY BRITT RAYMOND FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 366 Madison Avenue, 5th Floor New York, NY 10017 DL: 929.229.2614 M: 704.517.4712 Britt.Raymond@srsre.com NY License No. 10401234463 KYLE FANT SENIOR ASSOCIATE SRS NATIONAL NET LEASE GROUP 366 Madison Avenue, 5th Floor New York, NY 10017 DL: 929.229.2613 M: 973.632.1386 Kyle.Fant@srsre.com NY License No. 10401281546 This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. Broker of Record: Martin Smith - AL License No. 000013399
5 7 12 14 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW PARCEL MAP AERIALS SITE PLAN LOCATION MAP AREA OVERVIEW CITY OVERVIEW DEMOGRAPHICS FINANCIALS RENT ROLL PRICING SUMMARY TENANT OVERVIEW
INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the rare opportunity to acquire the fee simple interest (land and building) in Walgreens, an absolute NNN leased, investment property with drive-thru located in Alexander City, Alabama. The tenant, Walgreens, has approximately 17 years remaining in the initial term, with 5 (5-year) option periods to extend. The lease is corporate guaranteed and is absolute NNN with zero landlord responsibilities. The subject site is located at the signalized, hard corner intersection of US Highway 280 and Rockford Highway (31,900 cars passing by daily) with excellent visibility and access on a corner site. The property is located in a strong retail corridor with nearby national/credit tenants that include Walmart, Winn Dixie, O Reilly Auto Parts, AutoZone, Dollar Tree, Dollar General, Harbor Freight Tools, Tractor Supply Company, and more, further increasing consumer traffic and crossover shopping to the trade area. The 5-mile trade area is supported by population of approximately 16,000 with an average household income of $48,000. OFFERING PRICING: $6,168,000 NET OPERATING INCOME: $351,573 CAP RATE: 5.70% GUARANTY: Corporate LEASE TYPE: Abs. NNN LANDLORD RESPONSIBILITIES: None PROPERTY SPECIFICATIONS RENTABLE AREA: LAND AREA: 14,550 SF 1.94 Acres PROPERTY ADDRESS: 3140 U.S. Highway 280, Alexander City, AL 35010 YEAR BUILT: 2013 PARCEL NUMBER: 05-08-33-3-001-014.0010 OWNERSHIP: Fee Simple (Land and Building) 5 / WALGREENS / ALEXANDER CITY, ALABAMA INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP
INVESTMENT HIGHLIGHTS 17 YEARS REMAINING INVESTMENT GRADE TENANT CORPORATE GUARANTEED 17 years remaining on initial term with 5 (5-year) options to extend Walgreens corporate guaranteed lease Invesment grade tenant (NYSE: WBA S&P: BBB) The subject location is located in a better position to serve the market in comparison to the neighboring Rite Aid ABSOLUTE NNN LEASE FEE SIMPLE OWNERSHIP PASSIVE INVESTMENT NO LANDLORD RESPONSIBILITIES Tenant pays for CAM, insurance, taxes, and maintains all aspects of the building Ideal, management-free investment for an out-of-state, passive investor No landlord responsibilities SIGNALIZED HARD CORNER INTERSECTION EXCELLENT VISIBILITY AND ACCESS DRIVE-THRU EQUIPPED The subject site is located at the signalized, hard corner intersection of US Highway 280 and Rockford Highway (31,900 cars passing by daily) The property has excellent visibility and access on a corner site with multiple points of ingress/egress Drive-thru feature provides ease and convenience for customers STRONG RETAIL CORRIDOR NEARBY NATIONAL/CREDIT TENANTS The property is located in a strong retail corridor with nearby national/credit tenants that include Walmart, Winn Dixie, O Reilly Auto Parts, AutoZone, Dollar Tree, Dollar General, Harbor Freight Tools, Tractor Supply Company, and more Increases consumer traffic and crossover shopping to the trade area STRONG DEMOGRAPHICS IN 5-MILE TRADE AREA More than 16,000 residents and 13,000 employees support the trade area Average household income of $48,000 6 / WALGREENS / ALEXANDER CITY, ALABAMA INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP
PROPERTY OVERVIEW ACCESS There are two (2) access points with one (1) access point along U.S. Highway 280 and one (1) along Rockford Highway/ State Highway 22. TRAFFIC COUNTS U.S. Highway 280:...23,900 Rockford Highway/ State Highway 22:...8,000 PARCEL Parcel Number: 05-08-33-3-001-014.0010 Acres: 1.94 Square Feet: 84,506 SF ZONING Commercial IMPROVEMENTS There is approximately 14,550 SF of existing building area. PARKING There are approximately 55 parking spaces on the owned parcel. The parking ratio is approximately 3.78 stalls per 1,000 SF of leasable area. YEAR BUILT 2013 PARCEL MAP 7 / WALGREENS / ALEXANDER CITY, ALABAMA PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP
23,900 CARS PER DAY 8,000 CARS PER DAY N
8,000 CARS PER DAY 23,900 CARS PER DAY N
WHO'S DINER ROCKFORD HWY. PYLON SIGN N
BIRMINGHAM ALEXANDER CITY 2017 ESTIMATED POPULATION 1 Mile... 1,925 3 Mile... 11,042 5 Mile... 16,594 2017 AVERAGE HOUSEHOLD INCOME 1 Mile...$48,506 3 Mile...$47,034 5 Mile...$48,236 2017 ESTIMATED TOTAL EMPLOYEES 1 Mile... 5,837 3 Mile... 12,149 5 Mile... 13,128 MONTGOMERY
AREA OVERVIEW OF ALEXANDER CITY, ALABAMA Alexander City, known to locals as Alex City, is a city in Tallapoosa County, Alabama, United States, with a population of some 14,364 as of July 1, 2017. It is known for Lake Martin with its 750 miles of wooded shoreline and 44,000 acres of water. Lake Martin stands on the Tallapoosa River and offers boating, swimming, fishing, golfing, and camping. Many neighborhoods and luxury homes are located on the lake. The city s economy was traditionally based on the textile industry, but in recent times its economic base has become more diversified as textile jobs have gone elsewhere. Russell Corporation, maker of Russell Athletic, Cross Creek, Jerzees, and Country Cottons apparel, was founded in 1902 and was the largest employer in the city until around 2012. On April 17, 2006, Russell Corporation was bought by Berkshire Hathaway/Fruit of the Loom for an estimated $600 million. Since about 1998, the number of workers employed by Russell Corporation in Alex City has been steadily declining. More than 6,500 jobs have been lost as most operations have moved offshore and management is now headquartered in Bowling Green, Kentucky. As of 2012, most of the manufacturing has been closed in Alex City and the majority of buildings are empty. Alexander City Public Schools are part of the Alexander City Schools district. Schools in the district include Jim Pearson Elementary School, Nathaniel H. Stephens Elementary School, William L. Radney Elementary School, Alexander City Middle School and Benjamin Russell High School. Dr. J. Darrell Cooper is the Superintendent of Schools. At Alexander City, one can enjoy boating, fishing, and swimming on Lake Martin. Alexander City Shopping Center and West End Shopping Center are located within the city and offer a world class shopping experience. The city is also home to several churches including the Wayside Baptist Church, Church of God of Prophecy, Macedonia Church, and Sunny Level Baptist Church. The Wind Creek State Park and Horseshoe Bend National Military Park are also worth visiting. T.C. Russell Field Airport (KALX), off U.S. Highway 280 adjacent to the Airport Industrial Park, is owned and maintained by the City of Alexander City.[18] KALX does not provide scheduled passenger services. The nearest major airports are Birmingham and Montgomery. Alexander City has no railway station. The nearest rail passenger services are provided at Anniston, which is served daily by Amtrak s The Crescent to Washington DC, Baltimore, Philadelphia and New York. Alexander City has no scheduled intercity bus service. There is a service provided by Arise Transportation that schedules one stop rides with a 24-hour advance notice. 12 / WALGREENS / ALEXANDER CITY, ALABAMA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
AREA OVERVIEW (CONTINUED) DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 1,925 11,042 16,594 2022 Projected Population 1,834 10,628 15,941 2010 Census Population 2,041 11,470 17,299 2017 Estimated Households 821 4,475 6,733 2022 Projected Households 781 4,310 6,478 2010 Census Households 872 4,639 6,994 2017 Estimated White 49.90% 55.00% 59.80% 2017 Estimated Black or African American 43.00% 38.30% 34.10% 2017 Estimated Asian or Pacific Islander 1.70% 1.00% 0.80% 2017 Estimated American Indian or Native Alaskan 0.40% 0.40% 0.30% 2017 Estimated Other Races 3.70% 4.10% 3.70% 2017 Estimated Hispanic 4.90% 5.30% 4.80% 2017 Estimated Average Household Income $48,506 $47,034 $48,236 2017 Estimated Median Household Income $33,432 $33,725 $34,585 2017 Estimated Per Capita Income $19,840 $19,311 $19,910 2017 Estimated Total Businesses 200 708 837 2017 Estimated Total Employees 5,837 12,149 13,128 13 / WALGREENS / ALEXANDER CITY, ALABAMA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP
RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Walgreens 14,550 2014 2034 Current - $29,298 $2.01 $351,573 $24.16 Absolute NNN 5 (5-Year) Corporate Guaranty FINANCIAL INFORMATION PROPERTY SPECIFICATIONS Price:...$6,168,000 Net Operating Income:...$351,573 Cap Rate:... 5.70% Lease Type:...Abs. NNN TENANT PROFILE WALGREENS Walgreens, one of the nation s largest drugstore chains, is included in the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the first global pharmacy-led, health and wellbeing enterprise. More than 8 million customers interact with Walgreens each day in communities across America, using the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice. Walgreens operates 8,173 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Walgreens digital business includes Walgreens.com, drugstore.com, Beauty.com and VisionDirect.com. More than 400 Walgreens stores offer Healthcare Clinic or other provider retail clinic services. Year Built:... 2013 Rentable Area:...14,550 SF Land Area:... 1.94 Acres Address:... 3140 U.S. Highway 280, Alexander City, AL 35010 Company Type:...Public (NASDAQ: WBA) 2016 Employees:... 247,000 2016 Revenue:... $117 Billion 2016 Net Income:... $4.14 Billion 2016 Assets:...$72.69 Billion 2016 Equity:...$29.88 Billion Ranking:...#19 in Fortune 500 14 / WALGREENS / ALEXANDER CITY, ALABAMA RENT ROLL / SRS NATIONAL NET LEASE GROUP
SRS GLOBAL STATS 800+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES 250+ BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA *STATISTICS ARE FOR 2016.