WALGREENS 218 Claude Terry Drive – Oneida, Tennessee
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Exclusive Net-Leased Offering WALGREENS 218 Claude Terry Drive – Oneida, Tennessee Walgreens Investment Highlights MARCUS & MILLICHAP IS PLEASED TO EXCLUSIVELY OFFER THE FEE SIMPLE INTEREST IN THIS ABSOLUTE TRIPLE NET (NNN) WALGREENS LOCATED IN ONEIDA, TENNESSEE. ✓ Freestanding Property ✓ High Visibility and Ease of Access ✓ Positioned on a Hard Corner ✓ Signalized Intersection ✓ Dense Retail Corridor ✓ National Tenants: Walmart, Family Dollar, Save-A-Lot, Dollar Tree, McDonald’s, Taco Bell, Tractor Supply Co. ✓ Original Lease Term: 25 Years ✓ Lease Term Remaining: +15 Years ✓ Absolute Triple-Net (NNN) Lease ✓ Investment Grade Credit ✓ Walgreens Boots Alliance: B1 ✓ S&P Rated: “BBB” ✓ Corporate Tenant / Corporate Guaranty Financial Analysis PRICE: $5,483,333 | CAP: 6.00% | RENT: $329,000 PROPERTY DESCRIPTION ANNUALIZED OPERATING DATA Property Walgreens Annual Rent $329,000 Property Address 218 Claude Terry Drive Monthly Rent $27,416 City, State, ZIP Oneida, TN 37841 Rent / SF $22.33 Year Built / Remodeled 2007 Building Size 14,732 SF Lot Size +/- 1.99 Acres Type of Ownership Fee Simple THE OFFERING Current Rent $329,000 CAP Rate 6.00% Purchase Price $5,483,333 Price / SF $372 Rent / SF $22.33 LEASE SUMMARY Property Type Net Leased General Merchandise/Pharmacy Ownership Public Nasdaq: WBA Tenant / Guarantor Walgreen Co. Original Lease Term 25 Years Lease Commencement July 16, 2007 Lease Expiration July 31, 2032 Lease Term Remaining 15.0 Years Lease Type Absolute Triple Net (NNN) Roof & Structure Tenant Responsible Rental Increases None Options to Renew Fifty, One-Year Option Periods Walgreens 3 Location Overview SURROUNDING RETAIL & POINTS OF INTEREST The property is well-positioned in a dense retail corridor with many national and local tenants. Major national tenants in the area include: Walmart, Family Dollar, Save-A-Lot, Dollar Tree, McDonald’s, Taco Bell, Tractor Supply Co., as well as many others. The subject property benefits from its close proximity to several schools. Oneida High School, Oneida Elementary School, and Burchfield Elementary School are all located within two miles of the subject Walgreens. The schools have a total combined enrollment of over 1,560 students. The subject property is also located approximately six miles northeast of Scott Municipal Airport, a public use airport located adjacent to the Big South Fork Airpark. ADTC: 18,580 TRAFFIC COUNTS & DEMOGRAPHICS This subject property is situated on the corner of Claude Terry Drive and Alberta Street. The average daily traffic counts of Alberta Street are over 18,500 vehicles. There are approximately 10,067 people within a five-mile radius and 19,912 people within a ten-mile radius. MARKET OVERVIEW Located atop the northern Cumberland Plateau near the Tennessee- Kentucky border, Oneida is the perfect blend of quiet, country living and the conveniences of modern life. The gateway to the Big South Fort National River & Recreation Area, Oneida is characterized by its award-winning public schools, strong spirit of community and scenic beauty. Big South Fork River National & Recreation Area is a 125,000- acrea national park that encompasses the Big South Fork of the Cumberland River and the unique geography that surrounds it. The Big South Fork offers a wide range of recreational opportunities for visitors. The entire length of the Big South Fork, from the confluence of its two largest tributaries (New River and Clear Fork River) just southwest of Oneida to Blue Heron downstream in Kentucky, is popular among kayakers and rafters. Walgreens 4 Surrounding Area Oneida Elementary School 5 Walgreens SUBJECT PROPERTY Property Photo Walgreens 6 Property Photo Walgreens 7 Property Photo Walgreens 8 Surrounding Retail Walgreens 9 Demographics MAJOR EMPLOYERS Employer # of Employees* Tennier Industries Inc 400 Denim Processing Inc 350 Great Dane Limited Partnership 327 Thermoid HBD 215 Takahata Precision Tenn Inc 200 Scott County Hospital 162 Walmart 132 Oneida Elementary School 110 Huntsville Manor 100 Scott Appalachian Inds Inc 100 Camel Opco LLC 99 Oneida Special School District 90 DEMOGRAPHICS 3-Miles 5-Miles 10-Miles 2016 Estimate Pop 5,924 10,067 18,912 2010 Census Pop 5,955 10,140 19,072 2016 Estimate HH 2,409 3,959 7,381 2010 Census HH 2,425 3,994 7,449 Median HH Income $28,002 $28,428 $29,395 Per Capita Income $15,936 $15,503 $15,884 Average HH Income $38,915 $39,251 $40,268 2016 Daytime Population 5,750 8,953 15,954 2016 Unemployment 10.87% 11.51% 11.73% 2016 Median Time Traveled 24 25 27 10 Walgreens 10 State Map 11 Walgreens SUBJECT PROPERTY Regional Map 12 Walgreens SUBJECT PROPERTY 12 Walgreens Boots Alliance, Inc. CREDIT RATING: B1 General Information Address 108 Wilmot Road, Deerfield, IL 60015 Phone (847) 315-2500 Website www.walgreens.com Company Financial Highlights Store Count (as of 2/1/2017) 8,126 TTM Sales $116,081,000,000 Comparable Store Sales Average1 3.9% Stockholders' Equity (Net Worth) $30,421,000 Stock Ticker WBA Average Store Size 14,400 Square Feet Current Period (2Q - 02/28/2017) www.fdreports.com | www.creditntell.com | May 19, 2017 Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise. The company was created through the combination of Walgreens and Alliance Boots in December 2014, bringing together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted health The company's portfolio of retail and business brands includes Walgreens, Duane Reade, care services through pharmaceutical wholesaling and community pharmacy care, dating Boots and Alliance Healthcare, as well as increasingly global health and beauty product back more than 100 years. brands, such as No7, Botanics, Liz Earle and Soap & Glory. Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global across the USA and Europe. Walgreens Boots Alliance and the companies in which it has Leadership Award for its commitment to the UN's Sustainable Development Goals. The equity method investments together have a presence in more than 25* countries and employ company also ranks No. 1 in the Food and Drug Stores industry of Fortune magazine's 2017 more than 400,000* people. The company is a global leader in pharmacy-led, health and list of the World's Most Admired Companies. wellbeing retail and, together with the companies in which it has equity method investments, has over 13,200* stores in 11* countries as well as one of the largest global pharmaceutical More company information is available at www.walgreensbootsalliance.com wholesale and distribution networks, with over 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* * As of 31 August 2016, using publicly available information for AmerisourceBergen. countries. In addition, Walgreens Boots Alliance is one of the world's largest purchasers of ** For 12 months ending 31 August 2016, using publicly available information for AmerisourceBergen** For prescription drugs and many other health and wellbeing products. 12 months ending 31 August 2016, using publicly available information for AmerisourceBergen. Walgreens 13 Confidentiality and Disclaimer Marcus & Millichap hereby advises all prospective locations is an important consideration, it is not a diligence investigation. Marcus & Millichap has not made purchasers of Net Leased property as follows: guarantee of future success. Similarly, the lease rate for any investigation, and makes no warranty or some properties, including newly-constructed facilities or representation, with respect to the income or expenses for The information contained in this Marketing Brochure has newly-acquired locations, may be set based on a tenant’s the subject property, the future projected financial been obtained from sources we believe to be reliable. projected sales with little or no record of actual performance of the property, the size and square footage However, Marcus & Millichap has not and will not verify performance, or comparable rents for the area. Returns are of the property and improvements, the presence or any of this information, nor has Marcus & Millichap not guaranteed; the tenant and any guarantors may fail to absence of contaminating substances, PCB’s or asbestos, conducted any investigation regarding these matters. pay the lease rent or property taxes, or may fail to comply the compliance with State and Federal regulations, the Marcus & Millichap makes no guarantee, warranty or with other material terms of the lease; cash flow may be physical condition of the improvements thereon, or the representation whatsoever about the accuracy or interrupted in part or in whole due to market, economic, financial condition or business prospects of any tenant, or completeness of any information provided. environmental or other conditions. Regardless of tenant any tenant’s plans or intentions to continue its occupancy history and lease guarantees, Buyer is responsible for of the subject property. The information contained in this As the Buyer of a net leased property, it is the Buyer’s conducting his/her own investigation of all matters Marketing Brochure has been obtained from sources we responsibility to independently confirm the accuracy and affecting the intrinsic value of the property and the value of believe to be reliable; however, Marcus & Millichap has not completeness