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RETAIL ADVISORS OFFERING MEMORANDUM WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA

WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

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Page 1: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

R E T A I L A D V I S O R SOFFERING MEMORANDUM

WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071

W A L G R E E N SS a n t e e , C A

Page 2: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Walgreens located at 9305 Mission Gorge Rd, Santee, CA 92071 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their 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 ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt 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 hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

Page 3: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

EXCLUSIVELY LISTED BY:

Table of ContentsPRICING & FINANCIAL ANALYSIS

Investment Overview ...............................................................................2Executive Summary ..................................................................................3Company Overview .................................................................................4

PROPERTY DESCRIPTIONPhysical Description .................................................................................6Bird’s Eye .......................................................................................................7Regional Map ..............................................................................................8Tenant Map ..................................................................................................9

DEMOGRAPHICSCity Overview | Santee, CA .................................................................. 12Demographics Report ........................................................................... 13

Gary ChouVice President & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kyle B. Matthews, CCIMChairman & CEO DIRECT +1.310.919.5757 MOBILE +1.310.622.3161 [email protected] License No. 01469842

Page 4: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. iv Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Page 5: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

P R I C I N G & F I N A N C I A L A N A LYS I S

Page 6: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 2 Matthews Retail Advisors

Investment Overview

LONG TERM STABILIZED INCOME

• Strong Store Sales

• Property is a modern Walgreen’s concept equipped with drive thru

• 16 Years Left on the Original Lease Term; Ten (10), 5 Year Options

• Absolute NNN lease with no landlord responsibilities

• Delivered Free and Clear of Debt

STRONG RETAIL LOCATION

• Situated on major retail corridor - Average daily traffic counts totaling in 56,800 cars

• Outparceled to a Sprouts Farmers Market anchored shopping center

• Lowe’s Home Improvement and Kohl’s Shopping Center with In-N-Out Burger and Chick-fil-A located just across the street

• National tenants in the area include: Walmart, Costco Wholesale, Target, Best Buy, The Home Depot, Vons, Sprouts, 24 Hour Fitness, Old Navy, Bed Bath & Beyond, Wells Fargo, Bank of America, Union Bank, Wendy’s, KFC, McDonald’s, Olive Garden, Chick-fil-A, and In-N-Out Burger

• On the Intersection of Carton Hills Blvd and Mission George Rd, which feed into residential neighborhoods

• Santee is a suburb of San Diego, CA – located 17 miles from Downtown

• Area has strong income demographics ($76,516 Average Household Income within 1 mile & $80,755 Average Household Income within 3 miles) and positive growth trends

OUTSTANDING TENANT

• Absolute NNN lease to Walgreens, the world’s largest drugstore operator

• Walgreens (NASDAQ: WBA) has market capitalization of over $91B and revenue of over $76B

• Walgreens has Over 8,200 US locations, and over 251,000 employees

Page 7: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors P. 3Walgreens | OFFERING MEMORANDUM

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Executive Summary

WALGREENS9305 MISSION GORGE RD SANTEE, CA 92071

List Price .........................................................................................$10,255,000CAP Rate - Current ....................................................................................5.61%Gross Leasable Area ....................................................................... 13,666 SFLot Size ..................................................................... ±1.15 Acres (50,094 SF)Year Built ...................................................................................................... 2008

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 2/28/2032 $47,916.67 $575,000.00 $42.08 5.61%

Ten (10). 5-Year Options $47,916.67 $575,000.00 $42.08 5.61%

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

Lease Commencment 3/1/2007

Lease Expiration Date 2/28/2032

Term Remaining 16 Years

Increases Flat

Options Ten (10), 5-Year Options

Page 8: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 4 Matthews Retail Advisors

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

Company Overview

Property Name Walgreens

Property Type Drug Store

Parent Company Trade Name Walgreens Boots Alliance, Inc.

Ownership Public

Credit Rating BBB-

Rating Agency Standard & Poor’s

Revenue $76.392 B

Net Income $1.932 B

Stock Symbol WBA

Board NASDAQ

No. of Locations ± 8,229

No. of Employees ± 370,000

Headquartered Deerfield, Illinois

Web Site www.walgreens.com

Year Founded 1901

Walgreens Boots Alliance, Inc., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The company sells prescription and non-prescription drugs; and general merchandise, including convenience and fresh foods, household items, personal care, photofinishing and candy, and beauty care. It also provides specialty pharmacy services for managing complex and chronic health conditions; customers infusion therapy services consisting of administration of intravenous medications for cancer treatments, chronic pain, heart failure, and other infections and disorders; and clinical services, such as laboratory monitoring, medication profile review, nutritional assessments, and patient and caregiver education. In addition, the company manages in-store convenient care clinics (Healthcare Clinics). As of October 20, 2014, it operated 8,207 locations in 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The company also managed approximately 400 Healthcare Clinics and provider practice locations. The company was founded in 1901 and is based in Deerfield, Illinois.

Page 9: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

P R O P E RT Y D E S C R I P T I O N

Page 10: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 6 Matthews Retail Advisors

Physical Description

THE OFFERING

Property Name .......................................................................................Walgreens

Property Address .........................................................9305 Mission Gorge Rd

Santee, CA 92071

Assessor’s Parcel Number ..........................................................383-124-67-00

SITE DESCRIPTION

Number of Stories .............................................................................................One

Year Built ........................................................................................................... 2008

Gross Leasable Area (GLA) ................................................................. 13,666 SF

Lot Size............................................................................ ±1.15 Acres (50,094 SF)

Type of Ownership ...............................................................................Fee Simple

Parking ................................................................................... ±32 Surface Spaces

Parking Ratio.................................................................................. 2.34 : 1,000 SF

Landscaping ........................................................................................Professional

Topography ................................................................................... Generally Level

CONSTRUCTION

Foundation .......................................................................................Concrete Slab

Framing .............................................................................................................. Steel

Exterior ..................................................................................................Cinderblock

Parking Surface ............................................................................................Asphalt

Roof ........................................................................................................................Flat

Representative Photos

Page 11: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors P. 7Walgreens | OFFERING MEMORANDUM

Bird’s Eye

Mis

sion

Gor

ge R

d ( 5

6,8

00

VP

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Page 12: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 8 Matthews Retail Advisors

Regional Map

Page 13: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors P. 9Walgreens | OFFERING MEMORANDUM

Tenant Map

Page 14: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 10 Matthews Retail Advisors ™

Page 15: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

D E M O G R A P H I C S

Page 16: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

OFFERING MEMORANDUM | WalgreensP. 12 Matthews Retail Advisors

City Overview | Santee, CA

Santee is a suburban city of San Diego in San Diego County, California, with a population of 56,105 at the 2013 census. Although it is a part of the East County region, Santee is located just 18 miles (29 km) from the Pacific Ocean. The city is connected to the coastline by State Route 52, a six-lane freeway that runs from Interstate 5 in La Jolla to State Route 67 in El Cajon. The city is bisected by the San Diego River, a linear greenbelt that includes parks, trails and more than 1,100 acres of natural riparian habitat. The city’s potential for growth and progress was touted in a San Diego Union-Tribune editorial titled “All Roads Lead to Santee”.

In 2010, the city was populated by 19,272 households, of which 64 percent had incomes greater than $45,000 annually. In 2009, the median household income was $78,872 per year, according to the San Diego Association of Governments. In 2010, Santee had one of the lowest crime rates among cities in San Diego County. Unlike most of the county’s coastal cities, Santee still has sizable portions of vacant land suitable for development. It is a growing suburban community that in recent years has added upscale housing, a major corporate business park and expansive shopping centers, along with a destination recreational complex called Sportsplex USA Santee.

Page 17: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors P. 13Walgreens | OFFERING MEMORANDUM

Population 1-Mile 3-Mile 5-Mile2020 Projection 12,383 93,205 273,922 2015 Estimate 11,970 89,300 263,748 2010 Census 11,627 85,710 254,901 2000 Census 12,087 85,091 248,308 Growth 2015-2020 3.45% 4.37% 3.86%Growth 2010-2015 2.95% 4.19% 3.47%Growth 2000-2010 -3.81% 0.73% 2.66%

Households 1-Mile 3-Mile 5-Mile2020 Projection 4,548 34,638 101,966 2015 Estimate 4,372 33,137 97,936 2010 Census 4,205 31,793 94,352 2000 Census 4,207 31,006 92,988 Growth 2015-2020 4.02% 4.53% 4.12%Growth 2010-2015 3.98% 4.23% 3.80%Growth 2000-2010 -0.05% 2.54% 1.47%

Demographics Report

Income 1-Mile 3-Mile 5-Mile$0 - $15,000 7.50% 7.37% 11.09%$15,000 - $24,999 9.31% 8.21% 10.60%$25,000 - $34,999 8.97% 8.41% 9.95%$35,000 - $49,999 12.40% 12.08% 12.92%$50,000 - $74,999 19.60% 20.75% 18.68%$75,000 - $99,999 15.71% 14.64% 13.06%$100,000 - $124,999 9.10% 10.01% 8.41%$125,000 - $149,999 6.84% 7.10% 5.82%$150,000 - $199,999 7.66% 7.51% 5.77%$200,000 - $249,999 1.76% 2.01% 1.70%$250,000 - $499,999 0.98% 1.67% 1.67%$500,000+ 0.16% 0.25% 0.33%2015 Est. Average Household Income $77,638 $81,164 $73,1342015 Est. Median Household Income $65,066 $66,791 $57,280

Page 18: WALGREENS - Matthews€¦ · WALGREENS 9305 MISSION GORGE RD, SANTEE, CA 92071 WALGREENS Santee, CA. Matthews Retail Advisors CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

WALGREENS9305 Mission Gorge RdSantee, CA 92071OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY:Gary ChouVice President & Director DIRECT +1.310.919.5827 MOBILE +1.714.928.8016 [email protected] License No. 01911222

Kyle B. Matthews, CCIMChairman & CEO DIRECT +1.310.919.5757 MOBILE +1.310.622.3161 [email protected] License No. 01469842