OFFERED AT: $6,555,000 | 5.50% CAP CONSISTENTLY STRONG SALES | ABOVE NATIONAL AVERAGE FOR WALGREENS 14+ YEARS REMAINING ON FIRM LEASE TERM (S&P: BBB) ALLENTOWN, PA Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW TABLE OF CONTENTS EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Lease Summary & Rent Overview 7 Loan Assumption PROPERTY INFORMATION 9 Location Maps 10 Property Photos 11 Neighboring Tenants 13 Aerials TENANT OVERVIEW 19 About Walgreens AREA OVERVIEW 21 Allentown Overview 22 Lehigh Valley Overview 23 Demographics Confidentiality Agreement & Disclosures EXCLUSIVELY LISTED BY RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected] Color Scheme RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47 RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65 Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT Listed in conjunction with Pennsylvania real estate broker Actual Property DZ Net Lease Realty, LLC license RB067686 WALGREENS | Allentown, PA | 2 EXECUTIVE SUMMARY ALLENTOWN, PA EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Schedule Loan Assumption -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $6,555,000 Address: 1702 W Tilghman St Allentown, PA 18104 Net Operating Income: $365,500 Property Size: Approx 15,064 Sq. Ft. Cap Rate: 5.50% Land Size: 1.52 Acres Price/SF: $435 Ownership: Fee Simple (Land, Building) LOAN ASSUMPTION (Can be assumed or Seller will defease) Year Built: 2001 Equity Requirement: $1,955,000 Store #: 5715 Cash on Cash Return: 7% Debt Service (I/O): $228,160 Annual Cash Flow: $137,340 Lee & Associates, in conjunction with Pennsylvania real estate broker DZ Net Lease Realty, LLC license RB067686, is pleased to exclusively offer for sale, the fee simple interest (land & building) in a Walgreens property located in Allentown, PA (the “Property”). Built in 2001, the Property consists of a 15,064-square-foot retail building with drive-thru lanes that sits on an approximately 1.52-acre parcel. The building is leased to Walgreens Co. (NYSE: WBA) on a corporate lease providing an investor with an investment grade credit rating from Standard of Poor’s of “BBB”. Walgreen’s parent company Walgreens Boots Alliance, Inc. is currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 countries and an impressive $50B market CAP. There are over 14 years of firm lease term remaining on the lease with eight (8) five-year renewal options. The lease is absolute triple-net (NNN), where the tenant pays for taxes, insurance, and 100% of the maintenance of the land & building, providing an investor with a passive income stream from a strong tenant. This Walgreens is reporting strong unit level sales (see broker for details) that are above the national average for a Walgreens store. The strong store sales at this location are due to a combination of this being a 24-Hour location and the proximity to the Lehigh Valley Hospital. This location also benefits from high visibility and dense surrounding housing and retail volumes along this corridor. The Walgreens is located at the signalized intersection of Tilghman Street & W 17th Street, offering excellent visibility to over 22,000 cars per day combined. Additionally, the site benefits from multiple entrances off Tilghman St and W. 17th St, allowing for quick customer access. The subject property is strategically located just a few blocks from the Lehigh Valley Hospital-17th Street, a community neighborhood hospital, and 4 miles east of Lehigh Valley Hospital Tilghman & St Luke’s West End Medical Center. Lehigh Valley Hospital in Allentown is the flagship hospital of the Lehigh Valley Health Network (LVHN), which has been recognized as one of America’s best hospitals by U.S. News & World Report for 22 consecutive years. The subject property is located in Allentown, a city located in Lehigh County, Pennsylvania. It is Pennsylvania’s third most populous city with a total estimated population of 121,433 residents (2018), making it the fastest growing major city in Pennsylvania. It is the largest city in the metropolitan area known as the Lehigh Valley, which had a population of 821,623 residents as of 2010. Allentown constitutes a portion of the New York City Combined Statistical Area and is the county seat of Lehigh County. Located one hour north of Philadelphia and 90 minutes west of New York City, Lehigh Valley is the 64th-largest metropolitan region in the United States. In addition to consistent overall growth, the Lehigh Valley’s GDP grew in nearly every measurable sub-category from 2017 to 2018. With a GDP of $41.2 billion, larger than that of the entire states of Wyoming and Vermont, the Lehigh Valley is home to more than 15,000 businesses, including Fortune 500 companies and many nationally-recognized brands. WALGREENS | Allentown, PA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Schedule Loan Assumption -- INVESTMENT HIGHLIGHTS -- WALGREENS (NYSE: WBA) • LARGEST RETAIL PHARMACY IN THE U.S. & EUROPE • 13,200 LOCATIONS IN SIGNALIZED INTERSECTION (22,000+ CPD) • EXCELLENT VISIBILITY • MULTIPLE ENTRANCES 11 COUNTRIES • $50B+ MARKET CAP The Walgreens is located at the signalized intersection of Tilghman Street & W 17th Street, offering excellent visibility The building is leased to Walgreens Co. (NYSE: WBA) on a corporate lease providing an investor with an investment to over 22,000 cars per day combined. Additionally, the site benefits from multiple entrances off of Tilghman St and grade credit rating from Standard of Poor’s of “BBB”. Walgreen’s parent company Walgreens Boots Alliance, Inc. is W. 17th St, allowing for quick customer access. currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 countries and an impressive $50B market CAP. STRATEGIC LOCATION WITHIN FOUR MILES OF THREE MAJOR HEALTH FACILITIES • LENDS TO THE TENANT’S SUCCESS 24-HOUR LOCATION • STRONG STORE SALES FOR WALGREENS • ABOVE NATIONAL AVERAGE FOR The subject property is strategically located just a few blocks from the Lehigh Valley Hospital-17th Street, a community WALGREENS • CONFIRMING STORE’S PROFITABILITY • MITIGATED FUTURE VACANCY RISK neighborhood hospital, and 4 miles east of Lehigh Valley Hospital Tilghman & St Luke’s West End Medical Center. Walgreens is reporting strong unit level sales at this location (see broker for details) that are above the national Lehigh Valley Hospital in Allentown is the flagship hospital of the Lehigh Valley Health Network (LVHN), which has average for a Walgreens store. The strong store sales at this location are due to a combination of this being a been recognized as one of America’s best hospitals by U.S. News & World Report for 22 consecutive years. 24-Hour location with high visibility and proximity to Lehigh Valley Hospital. This location also benefits from the surrounding retail, residential and commercial developments. LOCATED IN ALLENTOWN • 3RD-MOST POPULOUS CITY IN PENNSYLVANIA • LARGEST CITY IN THE LEHIGH VALLEY METROPOLITAN AREA OVER 14 YEARS REMAINING ON FIRM LEASE TERM • ABSOLUTE NNN LEASE • ZERO MAINTENANCE FOR The subject property is located in Allentown, a city located in Lehigh County, Pennsylvania. It is Pennsylvania’s third LANDLORD most populous city with a total estimated population of 121,433 residents (2018), making it the fastest growing There are over 14 years of firm lease term remaining on the lease with eight (8) Five-year renewal options. In major city in Pennsylvania. It is the largest city in the metropolitan area known as the Lehigh Valley, which had addition, the lease provides an investor with a strong corporate guaranty from Walgreens Co. who carries an a population of 821,623 residents as of 2010. Allentown constitutes a portion of the New York City Combined investment grade credit rating of “BBB” from Standard & Poor’s. Statistical Area and is the county seat of Lehigh County. Finally, the lease is absolute triple-net (NNN), where the tenant pays for taxes, insurance, and 100% of the Located one hour north of Philadelphia and 90 minutes west of New York City, Lehigh Valley is the 64th largest maintenance of the land & building. The landlord has zero maintenance responsibilities on this asset, providing an metropolitan region in the United States. In addition to consistent overall growth, the Lehigh Valley’s GDP grew in investor with a passive income stream from a strong investment grade credit tenant. nearly every measurable sub-category from 2017 to 2018. With a GDP of $41.2 billion, larger than that of the entire states of Wyoming and Vermont, the Lehigh Valley is home to more than 15,000 businesses, including Fortune 500 STRONG DEMOGRAPHICS: $75,000 AVG HH INCOME & 227,000 PEOPLE WITHIN A 5-MILE RADIUS companies and many nationally-recognized brands. The subject property offers desirable demographics, with nearly 227,000 people with an average household income of over $75,000 within a 5-mile radius. WALGREENS | Allentown, PA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary Investment Highlights • Lease Summary & Rent Schedule • Loan Assumption -- LEASE SUMMARY -- LEASE INFORMATION TENANT: Walgreen Eastern Co., Inc dba Walgreens GUARANTOR: Walgreen Co.(Corporate) CREDIT RATING: Standard & Poor’s: BBB