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walgreens1435 W TUNNEL BLVD | HOUMA, LA

OFFERING MEMORANDUM

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BREANNA RUSKASSOCIATE

Breanna.Rusk@matthews.comDIR (949) 873-0508MOB (714) 722-4110LIC # 01962063 (CA)

BILL PEDERSeNSENIOR ASSOCIATE

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831) 246-0646LIC # 01975700 (CA)

beau boxBROKER OF RECORD

DIR (225) 237-3343LIC # 18361 (L A)

exclusively listed by

™

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table of contents

04 | executive summary INVESTMENT HIGHLIGHTS

06 | financial overview

10 | tenant overview

16 | area overview

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• Nationally Recognized Tenant, Investment Grade Credit Lease is fully guaranteed by Walgreens Co. (S&P’s Rated BBB). Walgreens ranked #17 on the 2017 Fortune 500 list

• Absolute NNN Zero Landlord Responsibilities

• 2015 Renovation Prototype store format, with 10.5 years remaining in the initial term.

• The Only 24-hour drug store in Houma, LA

• Strong Performing Store Sales well above the national store sale average

• Internationally Recognized Medical Center less than three miles away from Terrebonne General Medical Center, a 321-bed award–winning facility with over 1,400 employees; the largest community hospital in Southeast Louisiana.

• Hard Corner Intersection Location S Hollywood Rd and W Tunnel Blvd (combined 71,800 VPD) with three entry points. One block from a 1,000+ student college preparatory Catholic high school.

• Strong Retail corridor with national tenants including Lowe’s, Bed Bath & Beyond, Home Depot, Marshalls, Petco, Target, Walmart, Wells Fargo, Starbucks, and Chick–fil–A.

• Completed Rite Aid Acquisition Walgreens recently received regulatory approval to acquire 1,932 Rite Aid stores for $4.38 billion. Walgreens will gain stores located primarily in northeastern and southern US. The acquisition of the additional stores is expected to help Walgreens achieve enhanced, sustainable growth while broadening their reach and provide greater access to convenient, affordable care in more local neighborhoods across the country.

INVESTMENT HIGHLIGHTS

24

10.5YEARS

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Walgreens1435 W Tunnel BlvdHouma, LA 70360List Price ...............................................................................................................................$6,400,000

CAP Rate - Current ....................................................................................................................... 6.25%Gross Leasable Area .............................................................................................................± 14,490 SF Lot Size ..................................................................................................................................± 1.40 Acres Year Built/Renovated ............................................................................................................. 2003/2015

TENANT SUMMARY

Tenant Trade Name Walgreens

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 25 Years

Rent Commencement Date 7/1/2003

Lease Expiration Date 6/30/2028

Term Remaining on Lease ± 10.53 Years

Increases Flat

Options Ten, 5-Year Options

ANNUALIZED OPERATING DATA

financial overview

Walgreens Monthly Rent Annual Rent Rent/SF Cap Rat

Current - 6/30/2028 $33,333 $400,000 $27.61 6.25%

Option 1 - 10 $33,333 $400,000 $27.61 6.25%

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lease abstract

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Tenant: Walgreen Louisiana Co., INC., a Louisiana Corporation

Guarantor: Walgreens Co.

Corporate Address: 200 Wilmot Rd MS #2002,Deerfield, IL 60015

Walgreens Store Number: 7095

Building Size: 14,490 SF

Date of Lease: December 12, 2001

Occupancy Date: May 1, 2003

Rent Commencement: July 1, 2003

Lease Commencement: July 1, 2003

Lease Expiration: June 30, 2028

Original Lease Term: Twenty-Five (25) years from rent commencement

Current Rent: $399,999.96

Renewal Options: Ten (10) extension periods of five (5) years each

Required Advance Notice of Exercise of Renewal Options: Six (6) months prior to the date this lease shall so terminate, but no notice shall be required to terminate this lease upon the expiration of the Term.

Real Estate Taxes: Tenant shall pay real estate taxes (including all special benefit taxes and special assignments) levied and assessed against the Leased Premises

Insurance: Tenant shall carry special form coverage insurance, Tenant shall also procure public liability and property damage insurance Tenant shall pay the Landlord shall be named as additional insured.

Utilities: Tenant to pay for all utilities

Tenant Assignment and Subletting: Tenant’s interest under this lease may be assigned and reassigned

Right of First Refusal: Tenant has the right of first refusal and must respond in thirty (30) days

LEASE ABSTRACT

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tenant overview

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Company Name Walgreen Co.

Parent Company Trade Name Walgreens Boots Alliance, Inc. (NASDAQ: WBA)

Ownership Public

Revenue $76.39B

Net Income $1.93B

No. of Locations ± 8,300

No. of Employees ± 253,400

Headquartered Deerfield, Illinois

Website www.walgreens.com

Year Founded 1901

The nation’s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from the competition.

Walgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and reducing customers’ shopping time, Walgreens has achieved placement in a league of its own as the competition aims their focus on things such as convenience, design, or low prices.

Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money.

TENANT OVERVIEW WALGREENS HEALTH FOCUS MARKETING STRATEGY

WALGREENS OVERVIEW

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the offeringPROPERTY NAME WALGREENS

Property Address 1435 W Tunnel BlvdHouma, LA 70360

Assessor’s Parcel Number 15813

SITE DESCRIPTION

Number of Stories One

Year Built/Renovated 2003/2015

Gross Leasable Area (GLA) ± 14,490 SF

Lot Size ± 1.40 Acres (61,019 SF)

Type of Ownership NNN

Parking ± 60 Surface Spaces

Landscaping Professional

Topography Generally Level

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S Hollywood Rd ± 25,000 ADT

W T

unne

l Blv

d ±

46,0

00 A

DT

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Subject PropertyVandebilt

Catholic High School

Maison De Ville Nursing Home

Chateau Terrebonne Health Care

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Subject Property

Vandebilt Catholic High

SchoolMaison De Ville Nursing Home

Chateau Terrebonne Health Care

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demographicsPOPULATION 1 Mile 3 Mile 5 Mile

2023 Projection 8,842 48,858 72,623

2018 Estimate 8,609 47,689 71,314

2010 Census 8,228 45,875 69,607

POPULATION GROWTH 1 Mile 3 Mile 5 Mile

Growth 2018 - 2022 2.71% 2.45% 1.84%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile2023 Projection 3,424 19,286 27,807

2018 Estimate 3,320 18,702 27,107

2010 Census 3,137 17,669 25,934

HOUSEHOLD GROWTH 1 Mile 3 Mile 5 Mile

Growth 2018 - 2022 6.71% 5.47% 5.41%

INCOME 1 Mile 3 Mile 5 Mile2018 Est. Average Household Income $65,707.62 $69,700.70 $66,487.02

Houma, LAHouma is a great destination to experience everything Louisiana has to offer. The residents are full of life and know how to have a good time. From live music, world-famous cooking, and rich history; there is always something going on. Houma has miles of swamps and wetlands where people come from all over to fish, hunt, and explore. The community also puts on a two-week long Cajun Mardi Gras celebration where you can

experience first-hand the amazing entertainment, flavors, and music of the south!

Houma is the largest city in Terrebonne Parish and is only an hour outside of New Orleans. The most common industries in the area are in construction and mining. A majority of residents occupations are in production and sales.

area overview

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N e w O r l e a n s , L A Less than 40 minutes from Slidell, LA lies the city of New Orleans. For arts, culture, entertainment, music, food, history, and architecture, there is hardly a better place to live.

Situated on a bend of the Mississippi River, New Orleans has been the chief city of Louisiana and the Gulf of Mexico’s busiest northern port since the early 1700s. The New Orleans region also accounts for a significant portion of the nation’s oil refining and petrochemical production and serves as a white-collar corporate base for onshore and offshore petroleum and natural gas production. New Orleans is a center for higher learning, with over 50,000 students enrolled in the region’s eleven institutions.

A top-50 research university, Tulane University, is located in New Orleans ‘Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the healthcare industry and boasts a small, globally competitive manufacturing sector. The center city possesses a rapidly growing, entrepreneurial creative industries sector, and is renowned for its cultural tourism.

1st

For food in the USA

2nd

For culture in the USA

5th

in the USA for Business

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Virtually surrounded by water, the New Orleans metropolitan area is home to one of the busiest ports in the world and a center of maritime industry. The city is bordered by Lake Pontchartrain on the north, the Mississippi River along the southern edge, and bayous, lakes, and marshlands everywhere else.

Greater New Orleans is centered on the city of New Orleans, which possesses a rapidly growing, entrepreneurial creative industries sector and is renowned for its cultural tourism. Greater New Orleans, Inc. (GNO, Inc.) coordinates between Louisiana’s Department of Economic Development and the various parochial business development agencies regarding regional economic development. The Fortune 500 company Entergy has its headquarters in New Orleans. Other companies headquartered in the area include Globalstar, Smoothie King, and Intralox.

The city is the home to a Fortune 500 company: Entergy, a power generation utility and nuclear power plant operations specialist. Other companies either headquartered or with significant operations in New Orleans include Pan American Life Insurance, Pool Corp, Rolls-Royce, Newpark Resources, AT&T, TurboSquid, iSeatz, IBM, Navtech, Superior Energy Services, Textron Marine & Land Systems, McDermott International, Pellerin Milnor, Lockheed Martin, Imperial Trading, Laitram, Harrah’s Entertainment, Stewart Enterprises and Edison Chouest Offshore.

Tourism is another staple of the city’s economy. Perhaps more visible than any other sector, New Orleans’ tourist and convention industry is a $5.5 billion juggernaut that accounts for 40 percent of New Orleans’ tax revenues.

N e w O r l e a n s M S A

E co n o m i c Ov e r v i e w

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confidentiality disclaimer and agreement

This Offer ing Memorandum conta ins se lect informat ion perta in ing to the bus iness and af fa i rs of Walgreens located at 1435 W Tunnel Blvd, Houma, LA 70360 (“Property”) . It has been prepared by Matthews Rea l Estate Investment Serv ices . Th is Offer ing Memorandum may not be a l l- inc lus ive or conta in a l l of the informat ion a prospect ive purchaser may des i re . The informat ion conta ined in th is Offer ing Memorandum is conf ident ia l and furn ished so le ly for the purpose of a rev iew by a prospect ive purchaser of the Property. It i s not to be used for any other purpose or made ava i lab le to any other person wi thout the wr i t ten consent of Se l ler or Matthews Rea l Estate Investment Serv ices . The mater ia l i s based in part upon informat ion supp l ied by the Se l ler and in part upon f inanc ia l informat ion obta ined f rom sources i t deems re l iab le . Owner, nor the i r of f icers , employees , or agents makes any representat ion or warranty, express or impl ied , as to the accuracy or completeness of th is Offer ing Memorandum or any of i t s contents and no lega l l i ab i l i ty i s assumed or sha l l be impl ied w i th respect thereto . Prospect ive purchasers shou ld make the i r own pro ject ions and form the i r own conc lus ions w i thout re l iance upon the mater ia l conta ined here in and conduct the i r own due d i l igence.

By acknowledg ing your rece ipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l ho ld i t and t reat i t in the st r ictest of conf idence; and

3. You wi l l not , d i rect ly or ind i rect ly, d i sc lose or permit anyone e lse to d isc lose th is Offer ing Memorandum or i t s contents in any fash ion or manner detr imenta l to the interest of the Se l ler.

Owner and Matthews Rea l Estate Investment Serv ices express ly reserve the r ight , at the i r so le d i scret ion, to re ject any and a l l express ions of interest or of fers to purchase the Property and to terminate d iscuss ions w i th any person or ent i ty rev iewing th is Offer ing Memorandum or making an offer to purchase the Property un less and unt i l a wr i t ten agreement for the purchase and sa le of the Property has been fu l ly executed and de l i vered.

If you w ish not to pursue negot iat ions lead ing to the acqu is i t ion of the Property or in the future you d iscont inue such negot iat ions , then you agree to purge a l l mater ia l s re lat ing to th is Property inc lud ing th is Offer ing Memorandum.

A prospect ive purchaser ’ s so le and exc lus ive r ights w i th respect to th is prospect ive t ransact ion, the Property, or informat ion prov ided here in or in connect ion w i th the sa le of the Property sha l l be l imited to those express ly prov ided in an executed Purchase Agreement and sha l l be sub ject to the terms thereof . In no event sha l l a prospect ive purchaser have any other c la ims aga inst Se l ler or Matthews Rea l Estate Investment Serv ices or any of the i r a f f i l i a tes or any of the i r respect ive off icers , Directors , shareholders , owners , employees , or agents for any damages , l i ab i l i ty, or causes of act ion re lat ing to th is so l ic i tat ion process or the market ing or sa le of the Property.

Th is Offer ing Memorandum sha l l not be deemed to represent the state of af fa i rs of the Property or const i tute an ind icat ion that there has been no change in the state of af fa i rs of the Property s ince the date th is Offer ing Memorandum.

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2 2 | O f f e r i n g M e m o r a n d u m

beau boxBROKER OF RECORD

DIR (225) 237-3343LIC # 18361 (L A)

exclusively listed by

™

BREANNA RUSKASSOCIATE

Breanna.Rusk@matthews.comDIR (949) 873-0508MOB (714) 722-4110LIC # 01962063 (CA)

BILL PEDERSeNSENIOR ASSOCIATE

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831) 246-0646LIC # 01975700 (CA)