OFFERING MEMORANDUMWalgreens, 475 West Finnie Flat Rd., Camp Verde, AZ

ACTUAL SITE

❖ $4,935,000 – 7.46% Cap Rate

❖ Over 15 Years Remain on Lease

❖ In Place Self Liquidating Loan - Coterminous With Lease Expiration

❖ $2,489,390 Down Payment

The information contained in this marketing brochure (“Materials”) isproprietary and confidential. It is intended to be reviewed only by theperson or entity receiving the Materials from TRG (“Agent”). The Materialsare intended to be used for the sole purpose of preliminary evaluation ofthe subject property/properties (“Property”) for potential purchase. TheMaterials have been prepared to provide unverified summary financial,property, and market information to a prospective purchaser to enable it toestablish a preliminary level of interest in potential purchase of theProperty. The Materials are not to be considered fact. The informationcontained in the Materials is not a substitute for thorough investigation ofthe financial, physical, and market conditions relating to the Property. Theinformation contained in the Materials has been obtained by Agent fromsources believed to be reliable; however, no representation or warranty ismade regarding the accuracy or completeness of the Materials. Agent makesno representation or warranty regarding the Property, including but notlimited to income, expenses, or financial performance (past, present, orfuture); size, square footage, condition, or quality of the land andimprovements; presence or absence of contaminating substances (PCB’s,asbestos, mold, etc.); compliance with laws and regulations (local, state, andfederal); or, financial condition or business prospects of any tenant (tenants’intentions regarding continued occupancy, payment of rent, etc). Aprospective purchaser must independently investigate and verify all of theinformation set forth in the Materials. A prospective purchaser is solelyresponsible for any and all costs and expenses incurred in reviewing theMaterials and/or investigating and evaluating the Property. By receiving theMaterials you are agreeing to the Confidentiality and Disclaimer set forthherein.

The Royston Group | 2

Offered Exclusively By:

Gregory A. Cortesegacortese@theroystongroup.comDirect Dial: 310.395.3551CA RE License #00757153

The Royston Group11661 San Vicente Blvd., Suite 707Los Angeles, CA 90049

DISCLAIMER

LocationLocated at 475 West Finnie Flat Road at the intersection of West

Finnie Flat Road and East Cliffs Parkway in Camp Verde, Arizona.

Directly across W. Finnie Flat Road is the 25-acre OutPost Mall

anchored by Bashas' market. This center features popular

retailers such as CVS, Starbucks and Domino's Pizza.

Lot Size

Approximately 2.5 acres.

Improvements

The improvements consist of a single-story retail building of

approximately 14,900 square feet built in 2009. There is parking

for 51 cars.

Lease

Leased to Walgreens on an ABSOLUTE TRIPLE NET LEASE

BASIS with an original lease term of 25 years expiring July 31,

2034. The tenant is responsible for taxes, insurance and

maintenance including the roof, walls and foundation. The rent

increases per the schedule. There are fifty 1-year options to

renew.

Existing Financing (Must Be Assumed)

The property is encumbered with a loan that must be assumed.

This loan is a fully amortizing, self-liquidating loan at a 6.590

percent interest rate with a monthly payment of $22,367.91. Theloan balance as of June 2020 will be $2,445,610.

Price: $4,935,000 (7.46% Cap)

The Royston Group | 3

Net Annual Income

8/1/2019 to 7/31/2029 $368,101.80 7.46%

8/1/2029 to 7/31/2039 $376,901.88 7.64%

8/1/2039 to 7/31/2049 $386,581.80 7.83%

8/1/2049 to 7/31/2059 $397,229.88 8.05%

8/1/2059 to 7/31/2069 $408,942.84 8.29%

8/1/2069 to 7/31/2079 $421,826.88 8.55%

8/1/2079 to 7/31/2084 $435,998.88 8.83%

Cash Flow AnalysisPrice: $4,935,000 Net Income: $368,101

Debt: $2,445,610 Debt Service: $268,415

Down: $2,489,390 Net Cash Flow: $99,686

Return 4.00%

Principal Reduction: $101,200

Total Return $200,886

TOTAL RETURN 8.07%

PROPERTY INFORMATION

Lease Year Rent Cap Rate

Net Annual Income

8/2019 to 8/2020 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $101,200.50 $200,886.58 8.07%

8/2020 to 8/2021 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $108,074.78 $207,760.86 7.85%

8/2021 to 8/2022 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $115,416.02 $215,102.10 8.13%

8/2022 to 8/2023 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $123,255.92 $222,942.00 8.43%

8/2023 to 8/2024 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $131,628.37 $231,314.45 8.74%

8/2024 to 8/2025 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $140,569.53 $240,255.61 9.08%

8/2025 to 8/2026 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $150,118.05 $249,804.13 9.44%

8/2026 to 8/2027 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $160,315.17 $260,001.25 9.83%

8/2027 to 8/2028 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $171,204.95 $270,891.03 10.24%

8/2028 to 8/2029 $368,101.00 $2,400.00 $365,701.00 $266,014.92 $99,686.08 $182,834.45 $282,520.53 10.68%

8/2029 to 8/2030 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $195,253.91 $303,739.99 11.48%

8/2030 to 8/2031 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $208,516.99 $317,003.07 11.98%

8/2031 to 8/2032 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $222,680.99 $331,167.07 12.52%

8/2032 to 8/2033 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $237,807.12 $346,293.20 13.09%

8/2033 to 8/2034 $376,901.00 $2,400.00 $374,501.00 $266,014.92 $108,486.08 $253,960.73 $362,446.81 13.70%

Complete amortization table available upon request

Debt Principal

Date Rent Service Fee Net Rent Service Cash Flow Reduction Total Return

CASHFLOW ANALYSIS

The Royston Group | 4

5

SITE PLAN

The Royston Group | 5

6

STORE INTERIOR

The Royston Group | 6

7

AREA TENANTS

The Royston Group | 7

Mid Valley Medical Center

West Finnie Flat Road

596 Home Sites

The Royston Group | 8

SITE PLAN

The Royston Group | 8

The Royston Group | 9

AREA INFORMATION

Camp Verde is located 86 miles north of Phoenix in YavapaiCounty. The climate is arid, the hot summer days are oftencooled by monsoons rains and the winters are mild. CampVerde’s valley floor is classified as Lower Sonoran Desert.However, because it is situated on the Verde River, CampVerde occupies a rare and enviable position amongArizona cities and towns.

The Town consists of fields of flat river-plain, traversed bythe Verde River (18 miles of river lies within the Townlimits) and its tributaries, with desert hills and mesas risingin the forefront of the distant mountains. Beyond theimmediate settlement, the land is public, mostlyadministered by the U.S. Forest Service.

10

AREA MAP

The Royston Group | 10

AERIAL MAP

The Royston Group | 11

West Finnie Flat Road – 11,945 Cars Per Day

596 Home Sites

Camp Verde Medical Center

Walgreens Boots Alliance, Inc. operates as a

pharmacy-led health and wellbeing company. It

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. It also provides specialty

pharmacy services; and manages in-store clinics.

As of August 31, 2018, this segment operated 9,560 retail

stores under the Walgreens and Duane Reade brands in the

United States; and 7 specialty pharmacies, as well as

approximately 400 in-store clinic locations.

REVENUES FYE 8-2018 $131 billion

FYE 8-2017 $118 billion

NET INCOME FYE 8-2018 $5.02 billion

FYE 8-2017 $4.07 billion

STOCKHOLDER EQUITY

FYE 8-2018 $26.0 billion

FYE 8-2017 $27.4 billion

TENANT INFORMATION

The Royston Group | 12

The Royston Group | 13

BUILDING EXTERIOR

Population Summary 1 mile 3 mile 5 mile

2010 Total Population 2,802 6,073 8,878

2019 Total Population 3,600 7,349 10,862

2024 Total Population Projected 3,967 7,974 11,778

2019 Average Household Income $47,905 $54,872 $55,967

2024 Average Household Income Projected $56,565 $63,438 $65,088

The Royston Group | 14

DEMOGRAPHICS

Income

475 West Finnie Flat Road, Camp Verde, AZ

2019 Population

10,8622019 Average Household Income

$55,967Median Home Value

$259,400

11661 San Vicente Blvd. Suite 707Los Angeles, CA 90049

Gregory A. Cortesegacortese@theroystongroup.comDirect Dial: 310.395.3551RE License #00757153

ACTUAL SITE