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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
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.
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
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OFFERING MEMORANDUM | WalgreensP. iv Matthews Retail Advisors
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
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P R I C I N G & F I N A N C I A L A N A LYS I S
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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
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
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.
P R O P E RT Y D E S C R I P T I O N
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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
Matthews Retail Advisors P. 7Walgreens | OFFERING MEMORANDUM
Bird’s Eye
Mis
sion
Gor
ge R
d ( 5
6,8
00
VP
D )
OFFERING MEMORANDUM | WalgreensP. 8 Matthews Retail Advisors
Regional Map
Matthews Retail Advisors P. 9Walgreens | OFFERING MEMORANDUM
Tenant Map
OFFERING MEMORANDUM | WalgreensP. 10 Matthews Retail Advisors ™
D E M O G R A P H I C S
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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.
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
Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com
WALGREENS9305 Mission Gorge RdSantee, CA 92071OFFERING MEMORANDUM
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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