Walgreens Anchored Center - Constant Contactfiles.constantcontact.com/011cb4c9501/9674076c-b59f-4378-8908-ec7f... · Walgreens Anchored Center ... snacks outlet with more than 7,300

2450 Memorial Highway - DALLAS, PENNSYLVANIA 18612

Walgreens Anchored Center

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o f f e r i n g m e m o r a n d u m

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 © 2016 Marcus & Millichap. Activity ID#: Y0330616 1


Investment Overv iew

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• Walgreens Anchored Shopping Center Featuring: Dunkin’ Donuts, Verizon Wireless, Northeastern Eye Institute, and Shanghai Chinese Restaurant | 100 Percent Occupied

• Walgreens | Absolute Net Lease with More Than 15 Years Remaining | Zero Landlord Responsibilities

• Strip Center has Minimal Landlord Responsibilities | Tenants Operating Under Net Leases Reimbursing for Real Estate Taxes, CAM, and Insurance

• Dunkin’s Donuts and Northeast Eye Institute Demonstrate Commitment to Location | Both Tenants Exercised First Renewal Options Early

• Signalized Intersection of Memorial Highway/Route 415 and Tunkhannock Highway/Route 309 | More Than 29,000 Vehicles Per Day

• More Than 65 Percent of Shopping Center Backed by Corporate Guaranty from Walgreens | New York Stock Exchange: WBA | Standard & Poor (S&P): BBB- | Number 19 in Fortune 500 (June 2016)

• In Close Proximity to Four Schools | Misericordia University, Dallas Elementary, Middle, and High Schools | More than 5,300 Combined Enrollment

• Strong Demographics | Average Household Income is Greater Than $89,000 in Three Miles from this Asset

• Other Major Tenants in the Vicinity Include: CVS, Weis Markets, PNC Bank, Citizens Bank, UPS Store, Wendy’s, M&T Bank, NAPA Auto Parts, USPS, and More

Marcus and Millichap is please to present this 100 percent occupied 24,220-square foot shopping center in Dallas, Pennsylvania; which is approximately 30 miles southwest of Scranton. The center is anchored by a 15,820-square foot, free standing Walgreens. Walgreens has more than 15 years remaining on an absolute net lease with zero landlord responsibilities. Dunkin’ Donuts, Verizon Wireless, Northeastern Eye Institute, and Shanghai Restaurant are operating under double-net (NN) leases, where tenants reimburse for real estate taxes, CAM, and insurance; landlord is responsible for roof and structure. Verizon Wireless and Northeast Eye Institute are backed by corporate guarantees. Shanghai Restaurant has a strong personal guaranty. The subject property is well located at the signalized intersection of Memorial Highway-Route 415 and Tunkhannock Highway-Route 309. The traffic counts on Memorial Highway exceed 29,000 vehicles per day. Other major tenants in the vicinity include: CVS, Weis Markets, PNC Bank, Citizens Bank, UPS Store, Wendy’s, M&T Bank, NAPA Auto Parts, USPS, and more.The three-mile radius surrounding the asset features strong demographics, with an average household income of over $89,000. The asset is in close proximity to Misericordia University, as well as Dallas Elementary, Middle, and High Schools, with a combined enrollment of over 5,300 students.



Financia l Overv iew

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TENANT PROFILES

TENANT GLA% OF GLA

LEASE COMMENCE

LEASE EXPIRE

ANNUAL RENT

RENT/SFRENT

INCREASE DATENEW RENT OPTIONS

LEASE TYPE

WALGREENS 15,820 65.32% 9/2/2007 9/30/2032 $395,000 $24.97 - - 10, 5-YEAR NNN

DUNKIN' DONUTS 2,000 8.26% 11/1/2007 10/31/2022 $42,000 $21.00 11/1/2022 $56,080.00 1, 5-YEAR NN

VERIZON WIRELESS 1,600 6.61% 3/1/2015 2/28/2018 $24,000 $15.00 9/1/2017 - - NN

NORTHEASTERN EYE INSTITUTE

3,200 13.21% 8/1/2008 7/31/2018 $63,200 $19.75 8/1/2018 $72,800.00 1, 5-YEAR NN

SHANGHAI RESTAURANT 1,600 6.61% 2/5/2017 1/31/2026 $17,600 $11.00 9/1/2019 $18,656.04 2, 3-YEAR NN

TOTAL VACANT - 0.00%

TOTAL OCCUPIED 24,220 100.00% $541,800

TOTAL 24,220 100.00% $541,800

Annua l i zed Operat ing Data :Base Rent $541,800

Expense Reimbursements

Real Estate Taxes $14,796

CAM $20,555

Total Expense Reimbursements $35,351

Effective Gross Income $577,151

Expenses

Real Estate Taxes $15,058

Insurance $2,380

CAM

Landscaping Expense $908

Parking Lot Cleaning $780

Snow Removal $2,900

Maintence & Repairs $3,689

Utilities $8,998

Management Fee (2.5% of EGI) $14,429

Total Expenses $49,142

Net Operating Income $528,009

Offer ing Summary :

PRICE: $7,500,000

CAP RATE: 7.04%

NOI: $528,009

PRICE PER SQUARE FOOT: $309.66

RENT PER SQUARE FOOT: $22.37

YEAR BUILT: 2006

APPROXIMATE LOT SIZE: 3.28 Acres

GROSS LEASEABLE AREA: 24,220 Square Feet

TYPE OF OWNERSHIP: Fee Simple



Tenant Overv iew - Walgreens

Founded in 1901, Walgreens Boots Alliance, Incorporated is the nation’s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug products. By 1919 there were 20 stores, and in 1927 the company went public. Approximately three years later, the store count was well over 500. Today, Walgreens operates over 8,200 stores in all 50 states, DC, Puerto Rico and the U.S. Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

In December 2014, Walgreen acquired the remaining 55 Percent of European retailer and wholesaler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Incorporated, headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Incorporated.

In October 2015, Walgreens Boots Alliance announced an agreement to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enterprise value of about $17.20 billion, including acquired net debt. The transaction is expected to close in the second half of calendar year 2017. Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies. Once the acquisition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to better meet consumer needs.

TENANT PROFILE

TENANT TRADE NAME Walgreen Co.

OWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 8,200 Plus

HEADQUARTERED Deerfield, IL

WEB SITE www.walgreens.com

SALES VOLUME $117.4 Billion (2016)

NET WORTH $42.4 Billion (2016)

STOCK SYMBOL WBA

BOARD NYSE

CREDIT RATING BBB-

RATING AGENCY S&P

RANK #19 in Fortune 500 (June 2016)



Tenant Overv iew

Doughnuts and ice cream make sweet bedfellows at Dunkin’ Brands Group. The company is a leading multi-concept quick-service restaurant franchisor that operates both the Dunkin’ Donuts and Baskin-Robbins chains. It has more than 18,000 franchise locations operating in about 60 countries. With nearly 11,000 units in about 30 countries (including approximately 7,675 in the United States), Dunkin’ Donuts is the world’s leading doughnut chain. Baskin-Robbins is a top ice cream and frozen snacks outlet with more than 7,300 locations in 45 countries (roughly 2,450 in the United States). The company went public in mid-2011.

This Dunkin’ Donuts is operated by a local franchisee, May Brands LLC. May Brands has locations nearby in Forty Fort, Tunkhannock, and Scranton. More information can be found on the franchisee website, www.maybrandsllc.com.

TENANT PROFILE

TENANT TRADE NAME Dunkin’ Donuts

TENANT Maybrands, Limited Liability Company

LEASE GUARANTOR Franchisee Guarantee

NUMBER OF FRANCHISEE LOCATIONS

40-Plus

PARENT COMPANY Dunkin’ Brands Group, Incorporated

OWNERSHIP Public

NUMBER OF TOTAL LOCATIONS

11,000-Plus

HEADQUARTERED Canton, MA

WEB SITE https://www.dunkindonuts.com/

SALES VOLUME $828.8 Million (2016)

STOCK SYMBOL DNKN

BOARD NASDAQ

RANK #200 in Fortune 500 (June 2016)

Northeastern Eye Institute (NEI) is the largest and most comprehensive eye care center in Northeastern Pennsylvania.

In response to changing regulation and a dynamic market environment, NEI was formally established in 1984 through the merger of several ophthalmic practices including those of Dr. Jerome J. Jordan, Dr. William J. Jordan, Dr. Arthur J. Jordan, Dr. William H. Kehrli and Dr. Stanley W.

Beginning in 1994, the third generation of doctors hailing from members of the founding medical directors came on board at NEI.

Thanks to a tradition of service and excellence, while remaining on the cutting edge of eye care technology, NEI has grown consistently over the years and emerged as the leading provider of comprehensive eye care

TENANT PROFILE

TENANT Northeast Eye Institute

LEASE COMMENCEMENT August 1, 2013

LEASE EXPIRATION July 31, 2018

GROSS LEASABLE AREA 3,200

ORIGINAL TERM 5 Years

HEADQUARTERED Scranton, Pennsylvania

WEB SITE www.neivision.com



Tenant Overv iew

Verizon Wireless is the Number 1 US wireless phone operator in terms of sales and subscribers (ahead of top rival AT&T Mobility). Serving nearly 137 million consumer, business, and government customers nationwide, the company offers both standard post-paid (about 95 Percent of its customers) and prepaid subscription plans. It distributes new and pre-owned phones from manufacturers including Samsung Electronics, BlackBerry, LG, and Apple. The company also offers mobile data services, including text messaging, multimedia content (V CAST), and Web access. Verizon Wireless is wholly owned by Verizon Communications, after Verizon bought the part that had been owned by United Kingdom-based global communications giant Vodafone in the companies’ joint venture.

Verizon is ranked Number 13 in Fortune 500 and is traded on the New York Stock Exchange under the ticker VZ. In 2016, the company had $125 billion in revenue.

TENANT PROFILE

TENANT Moorehead Communications

d/b/a Verizon Wireless

LEASE COMMENCEMENT July 1, 2009

LEASE EXPIRATION February 28, 2018

GROSS LEASABLE AREA 1,600

ORIGINAL TERM 8.5 Years

HEADQUARTERED Basking Ridge, New Jersey

WEB SITE www.verizonwireless.com

Shanghai Restaurant offers delicious dining, takeout and delivery to Dallas, Pennsylvania. Shanghai Restaurant is a cornerstone in the Dallas community and has been recognized for its outstanding Chinese cuisine, excellent service, and friendly staff.

Their Chinese restaurant is known for its modern interpretation of classic dishes and its insistence on only using high quality fresh ingredients.



Aer ia l Overv iew



Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n2000 Population 5,570 18,789 36,044

2010 Population 5,939 19,730 37,057

2016 Population 5,929 19,282 36,722

2021 Population 5,898 19,098 36,479


H o u s e h o l d s


H o u s e h o l d ( H H ) I n c o m e s2000 Households 2,144 7,034 14,044

2010 Households 2,357 7,667 14,782

2016 Households 2,343 7,461 14,623

2021 Households 2,328 7,382 14,519

2016 Average HH Income $89,792 $87,467 $75,924 2016 Median HH Income $71,462 $69,215 $58,970 2016 Per Capita Income $35,484 $33,845 $30,234



Dallas is a borough in Luzerne County, Pennsylvania, United States. The population was 2,804 at the 2010 census. It was created by a charter granted April 21, 1879, from land entirely within Dallas Township. The township had been formed in 1817 and was named for Alexander J. Dallas, who was the Sixth United States Secretary of the Treasury and the father of George M. Dallas, the vice president of James Polk. The local government describes the borough as the “Pride” of The Back Mountain, an area consisting of Dallas, Kingston Township, a part of Wyoming, West Wyoming, and Harveys Lake. Dallas is the home of Misericordia University and Dallas State Correctional Institution which holds 2,150 inmates.

Business growth in Dallas Borough was realized in the development of shopping centers along Routes 309 and 415. This business expansion however came at the expense of the traditional shopping district at the center of the Borough. Dallas Borough has developed the Dallas Borough Downtown Master Plan in an effort to revitalize and restore the former luster the downtown once enjoyed.

Dallas Borough is a great place to live and raise a family. The success of the community is directly attributable to the wonderful residents who live here and the businesses that are confident in the Borough and in its future. Evidence of the community pride of Dallas’ stakeholders is the level of commitment of those volunteers throughout the community who give their time and resources in assuring the fine quality of life enjoyed in Dallas and the Back Mountain region of Luzerne County

Market Overview - Dal las, Pennsylvania

Photo: Andrea_44 CC BY 2.0



Broker of RecordBrenton Bask in

T i t le : Reg iona l ManagerMM REIS Seat t le

2005 Market St reet , Su i te 150Ph i lade lph ia , PA 19103

Te l : (215) 531-7050Fax: (215) 531-7010L icense: RM423071

Walgreens Anchored Center

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Walgreens Anchored Center - Constant Contactfiles.constantcontact.com/011cb4c9501/9674076c-b59f-4378-8908-ec7f... · Walgreens Anchored Center ... snacks outlet with more than 7,300