Memphis, Tennessee

Walgreens Pharmacy #15928 Memphis, Tennessee

• 18+ Year NNN built just two years ago $7,130,000 • Relocation of two existing stores to a superior location with a strong retail presence • Corner anchored by national retailers including: Walmart Neighborhood Market, Kroger, 5.50% McDonald’s, Regions Bank, Taco Bell, KFC, and Little Caesars Pizza CAP Rate • CVS/pharmacy competed for this site • Walgreens corporate guarantees the rent • Investment grade credit

• True NNN lease with no management responsibilities

John Giordani Art Griffith DeerfieldPartners (415) 685-3035 [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Investment Summary Price $7,130,000 1 Mile 3 Mile 5 Mile CAP Rate 5.50% Population 15,841 84,974 165,854 Annual Income $392,148 Avg. HH Income $72,457 $65,421 $73,919 Years Guaranteed 18+ years Debt Offered free & clear. Attractive new loans available; please call to discuss.

This new prototype Walgreens store was completed just over one year ago, and has opened strong from all indications. Walgreens relocated and consolidated two established stores (Shelby & Ross and Riverdale & Holmes) to this superior location with a strong retail presence. In fact, the corner was so desirable that CVS/pharmacy and Walgreens were competing for the site. The lot size is somewhat smaller than typical, but because Walgreens wanted to be here, they put their stockroom upstairs on a mezzanine.

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Property Details and Lease Summary Address 6939 Shelby Drive, Memphis, TN 38141 Year Built 2014 Building Size 14,550 Square Feet Lot Size 1.55 acres Tenant Walgreens (NASDAQ:WBA) Rent Start Date October 22, 2014 Lease End Date October 31, 2089 Options to Terminate Tenant may terminate every five (5) years, with 12 months notice, after the 240th month. Regional Map

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Store Photos

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Site Plan

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

About Walgreens Boots Alliance Walgreens Boots Alliance is the first global pharmacy-led, health and wellbeing enterprise in the world. Our purpose is to help people across the world lead healthier and happier lives.

Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots in December 2014. This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years.

The Company, with a presence in more than 25 countries, employs over 370,000 people and is the largest retail pharmacy, health and daily living destination in the USA and Europe.

The Company’s size, scale, and expertise will help us to expand the supply, and address the rising cost of, prescription drugs in the USA and worldwide.

By leveraging these advantages and opportunities, as well as the full benefit of our best practices and expertise, Walgreens Boots Alliance will be positioned to create substantial incremental efficiency, synergy and growth opportunities.

The creation of Walgreens Boots Alliance provides an opportunity to further accelerate the development of a fully integrated, global platform for the future to provide innovative ways to address health and wellness challenges. Our Company is well positioned to expand customer offerings in existing markets and become the health and wellbeing partner of choice in emerging markets.

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

WalgreensWalgreens Boots Alliance Boots Alliance-- Segment – Segment Structure Structure

A leading global A leading drugstore chain The largest retail pharmacy pharmaceutical wholesaler in the USA chain in Europe and distributor

The first global pharmacy-led, health and wellbeing enterprise in the world

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Walgreens Boots Alliance -- Retail Pharmacy USA Division The Retail Pharmacy USA Division’s principal retail pharmacy brands are Walgreens and Duane Reade. Together, they form the largest drugstore chain in the USA.

This Division operates 8,240 drugstores in 50 states, the District of Columbia, Puerto Rico and the US Virgin Islands. As of August 2014, approximately 76% of the population of the USA lives within five miles of a Walgreens.

The company sells prescription and non-prescription drugs, as well as general merchandise, including household items, convenience and fresh foods, personal care, beauty care, photofinishing and candy. They provide customers with convenient, omni-channel access to consumer goods and services, pharmacy, and health and wellness services in communities across America.

The company’s websites, which include Walgreens.com and drugstore.com, receive an average of approximately 60 million visits per month. Integrated with an e-commerce platform, the Walgreens mobile application allows customers to refill prescriptions through scan technology, receive text messages alerting when a refill is due and other front-end functionality, such as photo and shopping features.

Prescription drugs account for 64 percent of sales, while retail products are 36 percent. Overall, WBA filled approximately 699 million prescriptions in 2014. – 3Q15 Financial Performance – Retail Pharmacy USA

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected]

* Non-GAAP financial measures – See attached Appendix. 9 Walgreens Pharmacy #15928 Item 1B. Unresolved Staff Comments Memphis,There are no unresolved Tennessee written comments that were received from the SEC Staff 180 days or more before the end of our fiscal year relating to our periodic or current reports under the Securities Exchange Act of 1934.

WalgreensItem 2. Properties Properties Nationwide The Company’s locations, including drugstores, infusion and respiratory service facilities, specialty pharmacies and mail service facilities at August 31, 2014 and 2013 are listed below.

2014 2013 2014 2013 2014 2013 Alabama 115 113 Louisiana 154 152 Oklahoma 117 121 Alaska 8 7 Maine 15 15 Oregon 77 80 Arizona 250 258 Maryland 89 80 Pennsylvania 131 138 Arkansas 83 78 Massachusetts 168 185 Rhode Island 26 29 California 646 663 Michigan 232 232 South Carolina 110 119 Colorado 160 172 Minnesota 154 164 South Dakota 14 14 Connecticut 95 125 Mississippi 78 79 Tennessee 254 271 Delaware 65 66 Missouri 219 221 Texas 712 729 District of Columbia 6 5 Montana 14 14 Utah 48 45 Florida 861 881 Nebraska 60 62 Vermont 3 4 Georgia 204 208 Nevada 84 92 Virginia 141 149 Hawaii 19 17 New Hampshire 32 36 Washington 139 140 Idaho 40 42 New Jersey 191 215 West Virginia 17 23 Illinois 610 620 New Mexico 69 68 Wisconsin 228 234 Indiana 201 218 New York 486 527 Wyoming 11 11 Iowa 70 72 North Carolina 263 221 Guam 0 1 Kansas 70 72 North Dakota 1 1 Puerto Rico 120 118 Kentucky 98 103 Ohio 250 272 U.S. Virgin Islands 1 0 TOTAL 8,309 8,582

The Company owned approximately 20% of its retail drugstore locations and leased the remaining locations at August 31, 2014. The leases are for various terms and periods. See Note 3 to the Company’s Consolidated Financial Statements in Part II, Item 8 of this Form 10-K. Net retail selling space remained consistent at 89 million square feet at August 31, 2014 and 2013. Approximately 20% of Company stores have been opened or remodeled during the past five years, including our “Well Experience” store format in over 700 locations, including a market-wide transformation in the Indianapolis area and new flagship stores in select markets including Boston, Chicago, Los Angeles, New York City, San Francisco, Washington, D.C., Las Vegas and Puerto Rico.

As of August 31, 2014: • The Company’s retail store operations were supported by 19 major distribution centers with a total of approximately 11 million square feet of space, of which 13 locations are owned. The remaining space is leased. All distribution centers are served by modern systems for order processing control and rapid merchandise delivery to stores. In addition, the Company uses public warehouses and third party wholesalers to handle certain distribution needs. As of August 31, 2014, AmerisourceBergen distributed substantially all of the Company’s branded and generic pharmaceutical products. John Giordani • The Company operated 34 principal office facilities containing approximately three million square feet, Art Griffith of which 13 locations were owned. The Company operated two mail service facilities containing (415) 685-3035approximately 237 thousand square feet, one of which was owned.DeerfieldPartners [email protected] • The Company owned 16 strip shopping malls containing approximately 500 thousand square feet.

31 Walgreens Pharmacy #15928 Memphis, Tennessee

Income Statements Trailing 5 Years

John Giordani Art Griffith (415) 685-3035 DeerfieldPartners [email protected] Walgreens Pharmacy #15928 Memphis, Tennessee

Demographics - 1 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 1 mile radius Longitude: -89.83164

Trends 2015-2020 3 ) t n

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u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age 16

t 10 n e

c 8 r e P 6

4 2015 2 2020

0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2015 Household Income 2015 Population by Race 80 $35K - $49K $25K - $34K 12.2% 9.8% 70 $15K - $24K 8.1% 60

<$15K

t 50 6.0% $50K - $74K n

25.9% e c

r 40

$200K+ e 2.1% P 30 $150K - $199K 3.8% 20

$100K - $149K 10 16.3% $75K - $99K 15.8% 0 White Black Am. Ind. Asian Pacific Other Two+

2015 Percent Hispanic Origin: 7.6%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

Demographics - 1 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 1 mile radius Longitude: -89.83164

Summary Census 2010 2015 2020 Population 15,406 15,841 16,317 Households 5,210 5,360 5,517 Families 4,011 4,101 4,202 Average Household Size 2.96 2.95 2.96 Owner Occupied Housing Units 4,270 4,179 4,299 Renter Occupied Housing Units 940 1,181 1,218 Median Age 33.7 35.0 35.1 Trends: 2015 - 2020 Annual Rate Area State National Population 0.59% 0.82% 0.75% Households 0.58% 0.83% 0.77% Families 0.49% 0.74% 0.69% Owner HHs 0.57% 0.81% 0.70% Median Household Income 2.00% 3.12% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 323 6.0% 280 5.1% $15,000 - $24,999 435 8.1% 299 5.4% $25,000 - $34,999 525 9.8% 405 7.3% $35,000 - $49,999 652 12.2% 617 11.2% $50,000 - $74,999 1,388 25.9% 1,516 27.5% $75,000 - $99,999 847 15.8% 993 18.0% $100,000 - $149,999 873 16.3% 1,009 18.3% $150,000 - $199,999 202 3.8% 267 4.8% $200,000+ 115 2.1% 132 2.4%

Median Household Income $60,547 $66,843 Average Household Income $72,457 $80,501 Per Capita Income $24,534 $27,234 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0 - 4 1,062 6.9% 1,035 6.5% 1,046 6.4% 5 - 9 1,226 8.0% 1,074 6.8% 1,065 6.5% 10 - 14 1,481 9.6% 1,209 7.6% 1,161 7.1% 15 - 19 1,342 8.7% 1,306 8.2% 1,153 7.1% 20 - 24 879 5.7% 1,220 7.7% 1,100 6.7% 25 - 34 1,999 13.0% 2,084 13.2% 2,608 16.0% 35 - 44 2,665 17.3% 2,403 15.2% 2,146 13.2% 45 - 54 2,359 15.3% 2,402 15.2% 2,342 14.4% 55 - 64 1,562 10.1% 1,837 11.6% 1,995 12.2% 65 - 74 597 3.9% 953 6.0% 1,234 7.6% 75 - 84 180 1.2% 256 1.6% 393 2.4% 85+ 54 0.4% 64 0.4% 72 0.4% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 1,624 10.5% 1,453 9.2% 1,321 8.1% Black Alone 12,574 81.6% 13,095 82.7% 13,592 83.3% American Indian Alone 37 0.2% 34 0.2% 33 0.2% Asian Alone 202 1.3% 204 1.3% 212 1.3% Pacific Islander Alone 4 0.0% 4 0.0% 4 0.0% Some Other Race Alone 800 5.2% 864 5.5% 942 5.8% Two or More Races 164 1.1% 187 1.2% 212 1.3%

Hispanic Origin (Any Race) 1,112 7.2% 1,205 7.6% 1,323 8.1% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

Demographics - 3 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 3 mile radius Longitude: -89.83164

Trends 2015-2020 3 ) t n

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u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age 18 16 14 12 t n

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e 8 P 6 4 2015 2020 2 0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2015 Household Income 2015 Population by Race

$25K - $34K 10.5% 70 $15K - $24K $35K - $49K 11.4% 14.3% 60

<$15K 50

8.6% t n

e 40 c $200K+ r e 1.8% P 30 $150K - $199K $50K - $74K 3.3% 22.1% 20

$100K - $149K 12.8% 10

$75K - $99K 0 15.2% White Black Am. Ind. Asian Pacific Other Two+

2015 Percent Hispanic Origin: 8.5%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

Demographics - 3 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 3 mile radius Longitude: -89.83164

Summary Census 2010 2015 2020 Population 81,457 84,974 88,193 Households 29,753 30,982 32,127 Families 20,768 21,412 22,077 Average Household Size 2.73 2.74 2.74 Owner Occupied Housing Units 18,243 17,658 18,259 Renter Occupied Housing Units 11,510 13,324 13,868 Median Age 31.9 32.7 32.8 Trends: 2015 - 2020 Annual Rate Area State National Population 0.75% 0.82% 0.75% Households 0.73% 0.83% 0.77% Families 0.61% 0.74% 0.69% Owner HHs 0.67% 0.81% 0.70% Median Household Income 2.07% 3.12% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 2,665 8.6% 2,531 7.9% $15,000 - $24,999 3,538 11.4% 2,648 8.2% $25,000 - $34,999 3,240 10.5% 2,655 8.3% $35,000 - $49,999 4,434 14.3% 4,346 13.5% $50,000 - $74,999 6,858 22.1% 7,675 23.9% $75,000 - $99,999 4,701 15.2% 5,492 17.1% $100,000 - $149,999 3,958 12.8% 4,751 14.8% $150,000 - $199,999 1,028 3.3% 1,368 4.3% $200,000+ 560 1.8% 660 2.1%

Median Household Income $54,079 $59,903 Average Household Income $65,421 $73,042 Per Capita Income $23,870 $26,623 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0 - 4 6,137 7.5% 6,118 7.2% 6,392 7.2% 5 - 9 6,525 8.0% 5,922 7.0% 6,023 6.8% 10 - 14 7,276 8.9% 6,326 7.4% 6,052 6.9% 15 - 19 6,867 8.4% 6,661 7.8% 6,016 6.8% 20 - 24 5,760 7.1% 7,195 8.5% 6,751 7.7% 25 - 34 12,058 14.8% 12,952 15.2% 16,132 18.3% 35 - 44 13,324 16.4% 12,595 14.8% 11,647 13.2% 45 - 54 11,053 13.6% 11,575 13.6% 11,362 12.9% 55 - 64 7,461 9.2% 8,753 10.3% 9,195 10.4% 65 - 74 2,791 3.4% 4,515 5.3% 5,780 6.6% 75 - 84 1,387 1.7% 1,477 1.7% 1,949 2.2% 85+ 817 1.0% 886 1.0% 894 1.0% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 13,054 16.0% 12,205 14.4% 11,541 13.1% Black Alone 61,389 75.4% 65,149 76.7% 68,338 77.5% American Indian Alone 207 0.3% 188 0.2% 182 0.2% Asian Alone 1,314 1.6% 1,405 1.7% 1,505 1.7% Pacific Islander Alone 47 0.1% 48 0.1% 51 0.1% Some Other Race Alone 4,388 5.4% 4,760 5.6% 5,187 5.9% Two or More Races 1,058 1.3% 1,219 1.4% 1,389 1.6%

Hispanic Origin (Any Race) 6,685 8.2% 7,259 8.5% 7,979 9.0% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

June 03, 2015

Demographics - 5 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 5 mile radius Longitude: -89.83164

Trends 2015-2020 3 ) t n

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u Area n 0.5 State A n USA 0 Population Households Families Owner HHs Median HH Income

Population by Age

16 14 12 t

n 10 e c

r 8 e P 6

4 2015 2020 2 0 0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2015 Household Income 2015 Population by Race $25K - $34K 10.0% 60 $15K - $24K $35K - $49K 55 10.7% 14.0% 50 45 <$15K 40 8.9% t

n 35 e c

r 30 e P $200K+ 25 $50K - $74K 4.4% 20 21.3% $150K - $199K 3.9% 15 10 $100K - $149K 12.3% 5 $75K - $99K 0 14.4% White Black Am. Ind. Asian Pacific Other Two+

2015 Percent Hispanic Origin: 7.4%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

Demographics - 5 Mile Radius

Demographic and Income Profile

WAG #15928 6939 E Shelby Dr, Memphis, Tennessee, 38141 Latitude: 35.02036 Ring: 5 mile radius Longitude: -89.83164

Summary Census 2010 2015 2020 Population 159,263 165,854 172,495 Households 59,196 61,580 64,028 Families 41,161 42,389 43,803 Average Household Size 2.69 2.69 2.69 Owner Occupied Housing Units 36,021 34,994 36,329 Renter Occupied Housing Units 23,175 26,586 27,699 Median Age 33.1 34.0 34.2 Trends: 2015 - 2020 Annual Rate Area State National Population 0.79% 0.82% 0.75% Households 0.78% 0.83% 0.77% Families 0.66% 0.74% 0.69% Owner HHs 0.75% 0.81% 0.70% Median Household Income 2.05% 3.12% 2.66% 2015 2020 Households by Income Number Percent Number Percent <$15,000 5,492 8.9% 5,182 8.1% $15,000 - $24,999 6,619 10.7% 4,989 7.8% $25,000 - $34,999 6,140 10.0% 5,105 8.0% $35,000 - $49,999 8,622 14.0% 8,459 13.2% $50,000 - $74,999 13,141 21.3% 14,805 23.1% $75,000 - $99,999 8,845 14.4% 10,232 16.0% $100,000 - $149,999 7,584 12.3% 9,044 14.1% $150,000 - $199,999 2,403 3.9% 3,189 5.0% $200,000+ 2,734 4.4% 3,023 4.7%

Median Household Income $55,372 $61,293 Average Household Income $73,919 $82,261 Per Capita Income $27,703 $30,819 Census 2010 2015 2020 Population by Age Number Percent Number Percent Number Percent 0 - 4 11,658 7.3% 11,631 7.0% 12,161 7.1% 5 - 9 12,188 7.7% 11,399 6.9% 11,661 6.8% 10 - 14 13,242 8.3% 12,068 7.3% 11,751 6.8% 15 - 19 12,797 8.0% 12,262 7.4% 11,419 6.6% 20 - 24 11,090 7.0% 13,206 8.0% 12,146 7.0% 25 - 34 22,959 14.4% 24,785 14.9% 29,310 17.0% 35 - 44 24,053 15.1% 23,005 13.9% 22,780 13.2% 45 - 54 22,061 13.9% 22,191 13.4% 21,514 12.5% 55 - 64 16,349 10.3% 18,492 11.1% 19,135 11.1% 65 - 74 7,285 4.6% 10,640 6.4% 13,281 7.7% 75 - 84 3,856 2.4% 4,267 2.6% 5,288 3.1% 85+ 1,724 1.1% 1,910 1.2% 2,049 1.2% Census 2010 2015 2020 Race and Ethnicity Number Percent Number Percent Number Percent White Alone 48,737 30.6% 47,493 28.6% 46,591 27.0% Black Alone 97,067 60.9% 103,620 62.5% 109,659 63.6% American Indian Alone 398 0.2% 369 0.2% 364 0.2% Asian Alone 3,767 2.4% 4,076 2.5% 4,475 2.6% Pacific Islander Alone 87 0.1% 91 0.1% 97 0.1% Some Other Race Alone 7,131 4.5% 7,763 4.7% 8,477 4.9% Two or More Races 2,077 1.3% 2,441 1.5% 2,831 1.6%

Hispanic Origin (Any Race) 11,279 7.1% 12,323 7.4% 13,633 7.9% Data Note: Income is expressed in current dollars.

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2015 and 2020.

June 03, 2015