Walgreens EXCLUSIVE LISTING | Lusby, MD...operated 8,232 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois,

Walgreens | Lusby, MDOffering Memorandum

ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 [email protected]

Actual Site

EXCLUSIVE LISTINGOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

Walgreens | Lusby, MD


11745 Rousby Hall Rd | Lusby, MD 20657

Asking Price $6,145,500 | Cap Rate 5.50%

Net Operating Income (NOI) $338,000

Rent/Month $28,166

Rent/SF $22.81

Rentable Square Feet 14,820+/- SF

Land Area 2.03+/- Acres

Tenant Name Walgreens Co.

Credit Rating S&P: BBB

Stock Symbol NASDAQ: WBA

Guarantor Corporate

Ownership Type Fee Simple

Lease Type NNN

Landlord Responsibilities None

Store Opened 2008

Lease Term Remaining 15 Years

Rent Commencement January 9, 2008

Lease Expiration December 31, 2032

Increases Rent Remains Constant Throughout The Term

Termination Options Annually After 25 Year Firm Lease Term

Investment Highlights • 15 years remaining on NNN fee simple lease

• NNN lease, no landlord responsibilities

• Investment grade tenant NASDAQ: WBA (S&P: BBB)

• Located adjacent to Lusby Town Center and Lusby Hills Shopping Center anchored by Giant grocery & gas, and other national retailers including Starbucks, Verizon and Domino’s Pizza

• Drive-thru provides competitive market advantage in limited zoning districts within Lusby

• Just off the intersection of Solomons Island Rd (Route 2/4) with traffic count of 27,175 VPD and Rousby Hall Rd (Route 760) with traffic count of 11,025 VPD passing the site

• Walgreens shares access with Advance Auto Parts and Community Bank as strategic co-tenants

• Strong performing store - contact broker

• Average HH income of over $96K within 3 mile radius

• Population of 25,532 people within 5 miles

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Financial Summary


Site Photos

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Surrounding Retail

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Surrounding Retail

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Tenant Snapshot

# of Locations 8,232

Stock Symbol WBA

Credit Rating S&P: BBB

About WalgreensWalgreens is an American pharmaceutical company which operates the largest drug retailing chain in the United States of America. It specializes in serving prescriptions, health & wellness products, health information and photo services. As of February 29, 2016, the company operated 8,232 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office is in the Chicago suburb of Deerfield, Illinois.

In December 2014, Walgreens completed its strategic combination with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging the first global pharmacy-led, health and wellbeing enterprise. The combination brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health care services through community pharmacy care and pharmaceutical wholesaling. Both companies have more than a century’s worth of experience in customer and patient care. Walgreens is today part of the Retail Pharmacy USA division of Walgreens Boots Alliance. Walgreens provides access to consumer goods and services, plus pharmacy, photo studio, health and wellness services in the United States through its retail drugstores, Walgreens Health Services division, and Walgreens Health and Wellness division.

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Tenant Overview


Washington, DC

Baltimore, MD

Waldorf, MD

Alexandria, VA

Lusby, MDFredericksburg, VA

Location Overview

95

97Annapolis, MD

Distance To:Waldorf, MD 38 miles

Annapolis, MD 54 miles

Alexandria, VA 59 miles

Washington, DC 60 miles

Fredericksburg, VA 72 miles

Baltimore, MD 78 miles

Note:See pages 10-12 for additional info on Lusby, MD including:

• Dominon’s Cove Point

• Calvert Cliffs Nuclear Power Plant

• NAS Pax River

Prince Frederick, MD

St. Michaels, MD

Subject Site

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11745 Rousby Hall Rd | Lusby, MD


Solom

ons Islan

d Rd 2

7,175

VPD

Rousby Hall Rd 11,025 VPD

H G Trueman Rd 9,150 VPD

Lusby Hills Shopping Center

Lusby Town Center

Appeal Elementary School

Patuxent Elementary School

760

4

2

Solomons 4 miles

away

Subject Site

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11745 Rousby Hall Rd | Lusby, MD


Solomons Islan

d Rd 27,17

5 VPD

Rousby Hall Rd 11,025 VPD

H G Trueman Rd 9,150 VPD

760

4

2

Subject Site

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Lusby, MDLusby is an unincorporated community and census-designated place (CDP) in Calvert County, Maryland, United States. The population of the CDP was 1,835 at the 2010 census. Residents of the Chesapeake Ranch Estates and Drum Point communities also use the Lusby ZIP code designation.

Lusby is located near the southern end of Calvert County. It is bordered to the southwest by Solomons, a tourist resort town, to the south by Drum Point (across tidal Mill Creek), and to the southeast by Chesapeake Ranch Estates, a large community governed by a homeowners’ association.

Dominion Cove Point LNG, one of the nation’s largest liquefied natural gas import facilities, is located just northeast of Lusby, and the Calvert Cliffs Nuclear Power Plant is 5 miles to the north. Maryland Routes 2 and 4 run along the western edge of Lusby, leading south to the Patuxent River Naval Air Station and north to Andrews Air Force Base and the Washington, D.C., and Annapolis areas.

Lusby’s central business district has been growing rapidly in recent years. Three shopping centers have recently been built, bringing in new grocery stores, restaurants, and other businesses. Several new roads have either been built or are in planning stages in order to ease traffic congestion to and from the Chesapeake Ranch Estates-Drum Point communities. Lusby also features Cove Point Park, which has numerous baseball, soccer, and lacrosse fields as well as a public swimming pool. There is a public golf course, Chesapeake Hills Golf Course, near Cove Point Park. There is also a private air field owned and operated by the Chesapeake Ranch Estates and Drum Point communities.

Places of note in the Lusby area include the Cove Point Lighthouse on the Chesapeake Bay and Calvert Cliffs State Park. The lighthouse was listed on the National Register of Historic Places in 1973. Also on the National Register are Middleham Chapel and Morgan Hill Farm.

Calvert Cliffs State Park

Cove Point Lighthouse

Naval Air Station Patuxent River

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Market Overview


Location Overview

Dominion Cove Point

Calvert Cliffs Nuclear Power

Plant

Naval Air Station Patuxent River

Offshore Docks4

4

Subject Site

CHESAPEAKE BAY

Solomons, MD

California, MD

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Dominion’s Cove Point

Cove Point Liquefaction ProjectDominion is constructing liquefaction facilities for exporting liquefied natural gas (LNG) at its existing Cove Point Terminal on the Chesapeake Bay in MD. The proposed liquefaction facilities, combined with existing facilities, will provide a bi-directional service of import and export of LNG at the Dominion Cove Point LNG Terminal.

Project BenefitsThere are currently more than 2,500 construction workers on site which accounts for millions in tax revenue, continued community partnership and environmental conservation. For nearly 40 years, the Cove Point Terminal has taken great pride in being a valued member of the Maryland community and a responsible environmental steward. The $3.8 billion investment to add natural gas liquefaction and export facilities to the existing site is simply a new phase for Cove Point, one that will significantly benefit the community and the economy.

Read More HERE

Calvert Cliffs Nuclear Power Plant Located in Lusby, MD, Calvert Cliffs Unit 1 began generating electricity in 1975 and Unit 2 joined the system in 1977. Since then, Calvert Cliffs has continually set records for power production and worker safety.

The nuclear power plant is built on a 1,500 acre site on the western shore of the Chesapeake Bay. Its two units-are capable of generating-over 1,757 net megawatts annually, enough to power over 1 million average american homes each year.

The majority of Calvert Cliffs and its approximately 900 employees live in communities surrounding the plant. During refueling outages, the station employs several hundred contractors who boost the local economy during their stay.

Read More HERE

Naval Air Station Patuxent River NAS is home to NAVAIR Headquarters, affiliated Program Executive Officers, and the Naval Air Warfare Center Aircraft Division. Conducting over 200,000 air operations annually, NAS Pax River hosts more than 50 tenants including three services, federal agencies and private industry.

The largest employer in St. Mary’s County, MD, NAS Patuxent River employs 9,800 civilian employees, 5,700 contractors and 2,400 active duty military personnel.

FacilitiesThe air combat systems development functions conducted at Patuxent River require sea level altitude, a varied climate and a location near the sea to produce the test conditions essential for Naval aircraft. The climatic and geographic conditions unique to Patuxent River are crucial for the proper performance testing of both fixed-wing and rotary-wing vehicles in preparation for operations in the maritime environment.

• Patuxent River encompasses more than 14,500 acres

• Estimated value of the facilities located on Patuxent River and Webster Field is $3.6 billion

• 740 separate buildings, including 10 hangars, with a total of over 8.4 million square feet of facilities

Read More HERE

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Market Overview


Radius 3 Miles 5 Miles 10 MilesPopulation2016 Population 17,720 25,532 87,571

2021 Population 17,872 25,877 92,606

2010-2016 Annual Rate 0.15% 0.25% 1.15%

2016-2021 Annual Rate 0.17% 0.27% 1.12%

2016 Male Population 48.7% 49.1% 49.4%

2016 Female Population 51.3% 50.9% 50.6%

2016 Median Age 37.7 38.8 35.6

Households2016 Total Households 6,377 9,291 31,893

2021 Total Households 6,451 9,445 33,643

2010-2016 Annual Rate 0.21% 0.30% 1.09%

2016-2021 Annual Rate 0.23% 0.33% 1.07%

2016 Average Household Size 2.76 2.73 2.73

Median Household Income2016 Median Household Income $83,385 $85,188 $84,423

2021 Median Household Income $91,075 $94,073 $92,736

2016-2021 Annual Rate 1.78% 2.00% 1.90%

Average Household Income2016 Average Household Income $96,345 $100,576 $99,543

2021 Average Household Income $104,668 $110,047 $108,250

2016-2021 Annual Rate 1.67% 1.82% 1.69%

Per Capita Income2016 Per Capita Income $35,015 $36,527 $36,553

2021 Per Capita Income $38,134 $40,045 $39,641

2016-2021 Annual Rate 1.72% 1.86% 1.64%

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Demographics


ANDREW FALLONEXECUTIVE MANAGING DIRECTOR

(703) 787-4733 [email protected]

Who Are We? We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

–Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

DISCLAIMER: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regula-tions, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Corporate Headquarters Washington, DC12930 Worldgate Drive | Suite 150 Herndon, VA 20170 T: (703) 787-4714 • F: (703) 787-4783

Tampa400 N. Tampa Street | Suite 2660 Tampa, FL 33602 T: (813) 282-6000 • F: (813) 282-6098

South Florida300 S. Pine Island Road | Suite 300 Fort Lauderdale, FL 33324 T: (954) 302-7365

Atlanta111 Village Parkway, Building 2 | Suite 202 Marietta, GA 30067 T: (404) 900-5629

Boston101 Federal Street | Suite 1900 Boston, MA 02110 T: (617) 261-8584

CALKAIN.COM

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Walgreens EXCLUSIVE LISTING | Lusby, MD...operated 8,232 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois,