KLINK Walgreens - LoopNet

Offering Memorandum

Walgreens3608 South LaFountain Street, Kokomo, IN 46902

THE KLINK GROUP of Marcus & Millichap

Offering Memorandum

CONFIDENTIALITY AND DISCLAIMER

Marcus & Millichap hereby advises all prospective purchasersof Net Leased property as follows: The information containedin this Marketing Brochure has been obtained from sourceswe believe to be reliable. However, Marcus & Millichap hasnot and will not verify any of this information, nor has Marcus& Millichap conducted any investigation regarding thesematters. Marcus & Millichap makes no guarantee, warranty orrepresentation whatsoever about the accuracy orcompleteness of any information provided.

As the Buyer of a net leased property, it is the Buyer’sresponsibility to independently confirm the accuracy andcompleteness of all material information before completingany purchase. This Marketing Brochure is not a substitute foryour thorough due diligence investigation of this investmentopportunity. Marcus & Millichap expressly denies anyobligation to conduct a due diligence examination of thisProperty for Buyer.

Any projections, opinions, assumptions or estimates used inthis Marketing Brochure are for example only and do notrepresent the current or future performance of this property.The value of a net leased property to you depends on factorsthat should be evaluated by you and your tax, financial andlegal advisors.

Buyer and Buyer’s tax, financial, legal, and constructionadvisors should conduct a careful, independent investigationof any net leased property to determine to your satisfactionwith the suitability of the property for your needs.

Like all real estate investments, this investment carriessignificant risks. Buyer and Buyer’s legal and financial advisorsmust request and carefully review all legal and financialdocuments related to the property and tenant. While thetenant’s past performance at this or other locations is animportant consideration, it is not a guarantee of futuresuccess. Similarly, the lease rate for some properties,

including newly-constructed facilities or newly-acquiredlocations, may be set based on a tenant’s projected saleswith little or no record of actual performance, orcomparable rents for the area. Returns are not guaranteed;the tenant and any guarantors may fail to pay the leaserent or property taxes, or may fail to comply with othermaterial terms of the lease; cash flow may be interruptedin part or in whole due to market, economic,environmental or other conditions. Regardless of tenanthistory and lease guarantees, Buyer is responsible forconducting his/her own investigation of all mattersaffecting the intrinsic value of the property and the valueof any long-term lease, including the likelihood of locatinga replacement tenant if the current tenant should defaultor abandon the property, and the lease terms that Buyermay be able to negotiate with a potential replacementtenant considering the location of the property, andBuyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to releaseMarcus & Millichap Real Estate Investment Services andhold it harmless from any kind of claim, cost, expense, orliability arising out of your investigation and/or purchase ofthis net leased property.

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following MarketingBrochure is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it fromMarcus & Millichap and should not be made available toany other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has beenprepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information

contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not madeany investigation, and makes no warranty orrepresentation, with respect to the income or expenses forthe subject property, the future projected financialperformance of the property, the size and square footageof the property and improvements, the presence orabsence of contaminating substances, PCB’s or asbestos,the compliance with State and Federal regulations, thephysical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, orany tenant’s plans or intentions to continue its occupancyof the subject property. The information contained in thisMarketing Brochure has been obtained from sources webelieve to be reliable; however, Marcus & Millichap hasnot verified, and will not verify, any of the informationcontained herein, nor has Marcus & Millichap conductedany investigation regarding these matters and makes nowarranty or representation whatsoever regarding theaccuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verifyall of the information set forth herein.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT

FOR MORE DETAILS.

Executive Summary, Offering Summary

PRICE $5,233,333

CAP RATE 6.00%

PRICE PER SQUARE FOOT $361.17

GROSS LEASEABLE AREA 14,490 Square Feet

YEAR BUILT/RENOVATED 2002

LOT SIZE 1.44 Acres

TYPE OF OWNERSHIP Fee Simple

PARCEL NUMBER 34-10-18-101-028.000-002

TENANT Walgreens

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 © 2017 Marcus & Millichap. All rights reserved. ACT ID #: Z0260062

The OfferingMarcus & Millichap, as exclusive advisor, is pleased to present for sale Walgreens, a 14,490-square foot, corporate drug store located in Kokomo, Indiana. Built in 2002,this Walgreens sits on 1.44 acres of prime real estate along Indiana State Road 931, a major north and south retail thoroughfare that leads directly the city of Kokomo.

Overview

Annualized Operating Data

Lease Term Annual Rent

Current – October 2077 $314,000

Base Rent ($21.67/SF) $314,000

Lease Summary

TENANT TRADE NAME Walgreens

LEASE TERM 75 Years

GUARANTOR Walgreens, Co.

LEASE TYPE Triple Net

ROOF & STRUCTURE Tenant Responsibility

LEASE COMMENCEMENT July 01, 2002

LEASE EXPIRATION October 31, 2027

NEXT TERMINATION OPTION October 31, 2027

INCREASES None

SALES (Approx.) Contact Agent

RIGHT OF FIRST REFUSAL (ROFR) Yes (10 days)

Tenant has the right to terminate lease effective as of the last day of the 300th fullcalendar month of the lease term and every 60 months, thereafter. Tenant shall sendto Landlord a notice of termination 6 months prior to the date this Lease shallterminate.

Location Overview

Kokomo, Indiana, is the county seat of Howard County and located 35 miles due north of Indianapolis.

The city is home to the Kokomo Campus of Indiana University. Centered in the middle of the State of

Indiana geographically Kokomo is the 13th largest city in the state with nearly 67,000 residents.

Kokomo’s economy is centered around healthcare, technology and manufacturing with gross metro

product exceeding $4 billion annually and ranks in Top 50 for low cost of doing business within the US.

With these strong economic drivers, and the added benefit of being adjacent to one of the largest

hospital systems in the region this Walgreens provides an incoming investor the opportunity to purchase

a high performing store that has strong intrinsic real estate value in a major retail corridor.

Investment Highlights

• Strong Sales Performance: High volume store withconsistent sales numbers at subject site (ContactAgent)

• Prime Location: Situated on a signalized cornerintersection directly adjacent to Community HealthRegional Hospital which is a two hospital, threecampus system offering a full spectrum of inpatientand outpatient healthcare services

• Long-Term Lease: Nearly 10 years remaining offirm-term lease before tenant option periods.

• Dense Retail Corridor: Surrounded by nationalretailers along the main retail corridor of Kokomoincluding: Lowe’s, McDonalds, Starbucks,MedExpress, Jimmy Johns, Taco Bell, VerizonWireless, Walmart, Meijer, Olive Garden, PaneraBread, Chipotle, Target, Kroger

• Investment Grade National Tenant: Walgreens(NASDAQ: WBA) has an Investment Grade CreditRating BBB by Standard & Poor's - AnnualRevenues Exceed $104 Billion

• Zero Landlord Responsibilities | Absolute NNN:Tenant is responsible for all expenses related to thebuilding including common area maintenance,insurance and real estate taxes. Tenant is alsoresponsible for roof & structure.


Executive Summary, Location Overview







Executive Summary, Tenant Summary


Tenant Summary

TENANT Walgreens Boots Alliance, Inc.

OWNERSHIP Public

SALES VOLUME $103.44 Billion

NET WORTH $30.86 Billion

CREDIT RATING (S&P’s) BBB

TICKER SYMBOL (NASDAQ) WBA

NUMBER OF LOCATIONS 13,700+

HEADQUARTERS Deerfield, IL

WEBSITE www.walgreens.com

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company.The company operates through three segments: Retail Pharmacy USA, Retail PharmacyInternational, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sellsprescription drugs and an assortment of general merchandise, convenience foods, andmore through its retail drugstores and convenient care clinics. It also provides specialtypharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As ofAugust 31, 2016, this segment operated 8,175 retail stores under the Walgreens andDuane Reade brands in the United States; 7 specialty pharmacy locations; managedapproximately 400 Healthcare Clinics. The Retail Pharmacy International segment sellsprescription drugs; and health, beauty, toiletry, and other consumer products through itspharmacy-led health and beauty stores, as well as through boots.com andBootsWebMD.com. This segment operated 4,673 retail stores under the No7, BootsPharmaceuticals, Botanics, Liz Earle, Soap & Glory, and only at Boots brand names in theUnited Kingdom, Mexico, Chile, Thailand, Norway, the Republic of Ireland, theNetherlands, and Lithuania; and 636 optical practices in the United Kingdom. WalgreensBoots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

PROPERTY NAME

MARKETING TEAM

COLLEGE PARK PLAZA

DEMOGRAPHICS

Source: © 2016 Experian

Created on May 2017

11

Demographics, Kokomo, IN


Income

The current year average household income in your area is$60,256, compare this to the US average which is $81,217.

Population

In 2017, the population in your selected geography is 38,273. Thepopulation has changed by 0.47% since 2000. It is estimated thatthe population in your area will be 38,568.00 five years from now,which represents a change of 0.77% from the current year. Thecurrent population is 47.92% male and 52.08% female. Themedian age of the population in your area is 39.71, compare thisto the US average which is 37.83. The population density in yourarea is 1,351.47 people per square mile.

Households

There are currently 16,342 households in your selectedgeography. The number of households has changed by 0.25%since 2000. It is estimated that the number of households in yourarea will be 16,575 five years from now, which represents achange of 1.43% from the current year. The average householdsize in your area is 2.32 persons.

Employment

In 2017, there are 23,307 employees in your selected area, thisis also known as the daytime population. The 2000 Censusrevealed that 47.88% of employees are employed in white-collaroccupations in this geography, and 52.14% are employed inblue-collar occupations. In 2017, unemployment in this area is5.62%. In 2000, the average time traveled to work was 20.00minutes.

Race and Ethnicity

The current year racial makeup of your selected area is asfollows: 85.09% White, 8.45% Black, 0.03% Native American and1.55% Asian/Pacific Islander. Compare these to US averageswhich are: 70.42% White, 12.85% Black, 0.19% Native Americanand 5.53% Asian/Pacific Islander. People of Hispanic origin arecounted independently of race.

People of Hispanic origin make up 3.71% of the current yearpopulation in your selected area. Compare this to the USaverage of 17.88%.

Housing

The median housing value in your area was $99,427 in 2017,compare this to the US average of $193,953. In 2000, there were10,591 owner occupied housing units in your area and therewere 5,712 renter occupied housing units in your area. Themedian rent at the time was $454.

PROPERTY NAME

MARKETING TEAM

COLLEGE PARK PLAZA

Source: © 2016 Experian

DEMOGRAPHICS

12

Demographics, Kokomo, IN


Created on February 2018

POPULATION 1 Miles 3 Miles 5 Miles

2022 Projection

Total Population 7,510 38,568 66,382

2017 Estimate


2010 Census


2000 Census


Current Daytime Population

2017 Estimate 8,879 48,630 76,203

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2022 Projection

Total Households 3,434 16,575 28,149

2017 Estimate


Average (Mean) Household Size 2.20 2.32 2.34

2010 Census


2000 Census


Occupied Units

2022 Projection 3,434 16,575 28,149

2017 Estimate 3,584 18,518 31,826

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2017 Estimate

$150,000 or More 4.03% 3.91% 3.90%

$100,000 - $149,000 9.48% 11.61% 11.46%

$75,000 - $99,999 10.02% 12.52% 12.41%

$50,000 - $74,999 20.18% 19.16% 19.18%

$35,000 - $49,999 15.02% 14.09% 13.72%

Under $35,000 41.29% 38.69% 39.31%

Average Household Income $56,404 $60,256 $60,077

HOUSEHOLDS BY

EXPENDITURE1 Miles 3 Miles 5 Miles

Total Average Household Retail Expenditure

$55,674 $60,106 $60,325

Consumer Expenditure Top 10 Categories

Housing $14,784 $15,823 $15,793

Transportation $10,456 $11,131 $11,063

Shelter $8,487 $9,032 $8,998

Food $6,015 $6,417 $6,418

Personal Insurance and Pensions $4,678 $5,364 $5,333

Health Care $4,171 $4,622 $4,667

Utilities $3,223 $3,448 $3,461

Entertainment $2,390 $2,619 $2,618

Household Furnishings and Equipment

$1,548 $1,686 $1,677

Apparel $1,315 $1,439 $1,441

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2017 Estimate Total Population 7,213 38,273 66,373

Under 20 26.46% 25.19% 24.81%

20 to 34 Years 22.34% 19.39% 18.58%

35 to 39 Years 5.41% 5.74% 5.74%

40 to 49 Years 10.63% 11.64% 11.89%

50 to 64 Years 17.15% 19.96% 20.60%

Age 65+ 18.01% 18.05% 18.37%

Median Age 36.05 39.71 40.75

Population 25+ by Education Level

2017 Estimate Population Age 25+ 4,745 26,134 45,729

Elementary (0-8) 2.05% 3.18% 3.59%

Some High School (9-11) 6.26% 7.53% 8.56%

High School Graduate (12) 27.93% 35.57% 37.24%

Some College (13-15) 29.12% 24.82% 23.54%

Associate Degree Only 7.55% 7.47% 7.53%

Bachelors Degree Only 17.06% 13.57% 12.42%

Graduate Degree 9.92% 7.63% 6.82%

Offering Memorandum

Walgreens3608 South LaFountain Street, Kokomo, IN 46902

THE KLINK GROUP of Marcus & Millichap

EXCLUSIVELY LISTED BY:

Jordan KlinkFirst Vice President of Investments

Senior Director, Net Leased Properties Group

Indianapolis Office

P (317) 218-5316

[email protected]

Nicholas Weaver | Eric Hillenbrand | Benjamin Sullivan | Jason Dean | Richard Niewiadomski

David KlinkAssociate

Member, National Retail Group

Indianapolis Office

P (317) 218 - 5324

[email protected]

Documents

KLINK Walgreens - LoopNet