EXCLUSIVELY LISTED INVESTMENT OFFERING

MEMPHIS MSA INVESTMENT OPPORTUNITY

4028 GOODMAN ROAD | HORN LAKE (MEMPHIS), MS 38637

Exclusively Listed By: In Association with: JASON STUART PONGSRIKUL CHRIS BARRY GREGG POUNDERS Managing Principal Associate Pounders & Associates Direct: 619.297.0055 x302 Direct: 619.297.0055 x305 Direct: 256-766-0998 [email protected] [email protected] [email protected] CA DRE Lic. #01918332 CA DRE Lic. #02018350 MS DRE Lic. B-14367

Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com 4028 GOODMAN ROAD HORN LAKE, MS 38637

Property Overview

4028 GOODMAN ROAD HORN LAKE (MEMPHIS), MS 38637 Year Built: 2001 Lot Size: 88,426 Square Feet Building Size: 14,490 Square Feet

Investment Highlights

STABLE INCOME STRONG RETAIL CORRIDOR Rental income guaranteed by Walgreens parent The subject property is located next to a Walmart and corporate (S&P BBB) investment grade Fortune 500 is adjacent from a Kroger anchored shopping center Company with over 8,000 locations. which includes national retailers such as Pizza Hut, Taco Bell and Papa Murphy’s. Other Retailers in the LEASE TERM REMAINING immediate area include Auto Zone, Family Dollar, Little This location has nine (9) years and six (6) months Caesars, Dollar General, AT&T, Advanced Auto Parts, of primary lease term remaining with eight (5-year) and Fred’s Supermarket. options to renew on a absolute net basis with no landlord responsibilities whatsoever. CENTRAL THOROUGHFARE LOCATION This Walgreens is located on the main retail corridor MEMPHIS MSA of Horn Lake at the signalized northwest corner Horn Lake is located in the Memphis Metropolitan of Goodman Road (26,000 cars per day) and Horn Statistical area just 18 miles south of Memphis, the Lake Road (9,455 cars per day). This corner is highly largest city in the state of . The subject trafficked as It is the main thoroughfare leading to property is about 11 miles southwest of the Memphis Interstate 55 located only four miles away with over International Airport, home to the FedEx Express 61,000 cars per day and Highway 51 with 18,000 cars global hub and the busiest cargo airport in the united per day. states with a passenger count of 3.75 million in 2015.

GOODMAN ROAD - 26,000 CARS PER DAY

SUBJECT PROPERTY

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 2 4028 GOODMAN ROAD HORN LAKE, MS 38637

Lease Overview Pricing

Tenant: Price: $4,507,692 WALGREENS (NYSE: WAG) CAP: 6.50% CAP Landlord Income: CORPORATE GUARANTEE Price/Square Foot: $311.08 Monthly Income: $24,416.67 Credit Rating: INVESTMENT GRADE, BBB (S&P) Annual Income: $293,000

Lease Type: ABSOLUTE NET Building No landlord responsibilities whatsoever.

Lease Term: Building Square Footage: 14,490 9 YEARS AND 6 MONTHS REMAINING WITH Land Square Footage: EIGHT (5 YEAR) OPTIONS TO FOLLOW 88,426 Rent/Square Foot: $20.22 Lease Commencement: OCTOBER 1, 2001 Year Built: 2001

Next Option Begins: OCTOBER 1, 2026

Location Overview HORN LAKE,

orn Lake, Mississippi is located in the north west part of the state, in DeSoto County H within the Memphis MSA, approximately four miles south of the Tennessee border and SUBJECT PROPERTY only 17 miles south of Memphis, TN. Memphis is the largest city in Tennessee and the 23rd largest city in America. Memphis is known as “America's Distribution Center,” serving multiple regions of the country. The city has one of the country's largest inland ports and is the national headquarters for the Fed Ex air-courier company. Health care and related activities such as medical education and biomedical research are Memphis's largest industries, bringing over $5 billion a year to the local economy.

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 3 4028 GOODMAN ROAD HORN LAKE, MS 38637

Area Description

DOWNTOWN MEMPHIS MISSISSIPPI 18 MILES FROM SUBJECT PROPERTY RIVER

MEMPHIS INTERNATIONAL AIRPORT 11 MILES FROM SUBJECT PROPERTY

BNSF RAILWAY

TENNESSEE - MISSISSIPPI BORDER

BAPTIST MEMORIAL

HOSPITAL DESOTO 

18 miles to memphis

SUBJECT PROPERTY

AREA OVERVIEW AREA OVERVIEW Horn Lake is located within the Memphis MSA just The area surrounding Southaven Towne Center has a large 18 miles south of Memphis, TN, the largest city in the and diverse collection of retailers and restaurants that state of Tennessee. Approximately 11 miles northeast include Wal-Mart Supercenter, Target, Lowe’s, Kroger, of subject property is the Memphis International Best Buy, Home Depot, Kohl’s, Desoto Towne Cinema, Airport home to the FedEx Express global hub, which CVS, Sam’s Club, Marshalls, Gap Factory, Old Navy, Petco, processes many of the company’s packages. As of 2015, Five Guys Burgers & Fries, Outback Steakhouse, TGI Memphis International Airport had a passenger count of Fridays, IHOP, Chili’s, Buffalo Wild Wings, Sonic Drive-in, 3.75 million. The hospitals nearby include the Baptist Starbucks and more. Memorial Hospital Desoto, Memphis Children’s Clinic and Desota Family Medical Center. TANGER OUTLET SOUTHAVEN SOUTHAVEN TOWNE CENTER Two miles south of Southaven Town Center is the Tanger Approximately 4 miles to the east lies the Southaven Outlet Southaven with tenants that include Nike Factory Towne Center, a 520,828 square foot center with Store, Under Armour Factory House, Converse Factory tenants that include J.C.Penney, Dillard’s, Bed Bath & Store, Sketchers Factory Outlet, Gap Outlet, Express Beyond, Pier 1 Imports, Zales – The Diamond Store, GNC, Factory Outlet, Michael Kors, Tommy Hilfiger, Lucky Journeys, Gordmans, Ulta Beauty, HH Gregg, American Brand, Maurices, Charlotte Russe and rue21. Eagle Outfitters, Jo-Ann Fabric and Craft Stores, Payless ShoeSource, Men’s Warehouse, Red Lobster, Logan’s Roadhouse and Olive Garden.

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 4 4028 GOODMAN ROAD HORN LAKE, MS 38637

Property Photos

STORE ENTRANCE AND PARKING AREAS

GOODMAN ROAD - 26,000 CARS PER DAY

NORTH DRIVEWAY AND DRIVE-THRU

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 5 4028 GOODMAN ROAD HORN LAKE, MS 38637

Property Photos

SUBJECT PROPERTY

GOODMAN ROAD - 26,000 CARS PER DAY

GOODMAN ROAD - 26,000 CARS PER DAY

SUBJECT PROPERTY

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 6 4028 GOODMAN ROAD HORN LAKE, MS 38637

Company Summary*

Tenant History Walgreens, headquarted in Deerfield, IL, is the largest drug retailing chain in the United States with more than 8,175 stores in all 50 states, the Disctrct of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens built out its national platform through its corporate real estate department heavily during the 1990’s continuing through the mid 2000’s. By 2012, Walgreens had opened its 8,000th store and later that year the company made a bold move by purchasing a 45% interest in Alliance Boots, a leading international pharmacy-led health and beauty group. Two years later, Walgreens exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance(NASDAQ: WBA).

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. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance. The company sells prescription and non-prescription drugs and general merchandise including household products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for managing complex and chronic health conditions. In addition to these in-store offerings, the company operates digital businesses that include Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com, and VisionDirect.com. *Walgreens company information received from Walgreens investor relations.

tenant profile Guarantor: Walgreens Boots Alliance, Inc. Ownership: Public Stock Symbol (NASDAQ): WBA Credit Rating (S&P): BBB Business: Retail Pharmacy Locations: 8,175 Annual Revenue: $117.35 Billion Net Worth: $29.88 Billion Headquartrs: Deerfield, IL Website: www.walgreens.com

On Oct 27, 2015, Walgreens Boots Alliance entered into a merger agreement with Rite Aid Corporation (NYSE: RAD). The transaction is expected to close sometime in mid-2017, but is subject to Rite Aid stockholder approval, regulatory approvals and other customary closing conditions.

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 7 4028 GOODMAN ROAD HORN LAKE, MS 38637

Locations by State

Alabama 113 Idaho 39 Mississippi 76 Oklahoma 114 West 16 Alaska 12 598 212 Oregon 76 225 Arizona 244 190 Montana 13 123 10 81 Iowa 70 57 Rhode Island 25 Puerto Rico 120 633 69 Nevada 82 114 US Virgin Islands 1 159 95 New Hampshire 31 South Dakota 14 Connecticut 92 158 New Jersey 197 Tennessee 252 Delaware 64 Maine 14 New Mexico 72 713 Washington DC 8 85 469 48 831 163 268 Vermont 3 203 228 1 Virginia 140 Hawaii 20 Minnesota 152 247 Washington 135 *Nationwide locations as of August 31, 2016 Total 8,175* Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 8 4028 GOODMAN ROAD HORN LAKE, MS 38637 Demographic Snapshot | 2016

Total Population Average Age 5 Miles 1 Mile 1 1 Mile 1 5 Miles 3 Miles 3 Miles 36.10 34.60 32.50 10,158 101,712 37,839

Average Household Inc Total Households 5 Miles 1 Mile 1 Mile 1 5 Miles 3 Miles 3 Miles 3,465 13,129 36,811 $55,674 $56,238 $53,880

Disclaimer: 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, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.

Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.

By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2017 Pharma Property Group.

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 9 4028 GOODMAN ROAD HORN LAKE, MS 38637

SUBJECT PROPERTY

GOODMAN ROAD - 26,000 CARS PER DAY

Investment Property Recap

Lease Overview Tenant: Walgreens (NYSE: WAG) Landlord Income: Corporate Guarantee Credit Rating: Investment Grade, BBB (S&P) Lease Type: Absolute Net Lease 4028 GOODMAN ROAD No landlord responsibilities whatsoever. HORN LAKE (MEMPHIS), MS 38637 Lease Term: Year Built: 2001 9 years and 6 months remaining with eight (5-year) Total Lot Size: 88,426 Square Feet options to follow Total Building Size: 14,490 Square Feet Next Option Begins: October 1, 2026

Pricing

Price: Cap Rate: Total Monthly Income: Total Annual Income: $4,507,692 6.50% $24,416.67 $293,000

PHARMA PROPERTY GROUP POUNDERS & ASSOCIATES Direct: Direct: 619.297.0055 256.766.0998 page 10 Exclusively listed by Jason Stuart Pongsrikul Managing Principal Direct: 619.297.0055 x302 5328 Banks Street, Suite B [email protected] San Diego, CA 92110 CA DRE Lic. #01918332 P 619.297.0055 F 619.839.0828 Chris Barry Associate www.pharmapropertygroup.com Direct: 619.297.0055 x305 [email protected] CA DRE Lic. #02018350

In association with Gregg Pounders Pounders & Associates Direct: 256.766.0998 [email protected] MS DRE Lic. B-14367

EXCLUSIVELY LISTED INVESTMENT OFFERING

4028 GOODMAN ROAD | HORN LAKE (MEMPHIS), MS 38637