NET LEASE INVESTMENT OFFERING

WALGREENS (Recent Lease Extension) 3505 University Blvd W Jacksonville, FL 32217 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerials Market Overview Property Overview Surrounding Attractions Tenant Overview Site Plan Maps

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended STATEMENT: to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens located in Jacksonville, SUMMARY: Florida. The property is strategically located at a heavily trafficked signalized intersection in a strong retail corridor. Walgreens is committed to this location as evidenced by their recent execution of a 10 year lease extension. The Walgreens lease expires August 31, 2026 and features eight 5-year renewal option periods.

The 13,905 square foot Walgreens is strategically located at the heavily trafficked signalized intersection of University Boulevard W and St. Augustine Road. This intersection experiences traffic counts in excess of 38,000 vehicles per day and University Boulevard W is the primary east-west thoroughfare in the trade area. The Walgreens is located one mile west of Interstate 95 which experiences traffic counts in excess of 119,000 vehicles per day. The property is located across the street immediately to the north of a TJ Maxx, Beall’s Outlet and LA Fitness anchored development. Located across the street to the west is a Publix grocery store and BBVA Compass Bank. Additional retailers located in the surrounding trade area include Winn-Dixie, Restaurant Depot, Bank of America, AutoZone, Fifth Third Bank, McDonald’s, Whataburger, and CVS. There are approximately 150,000 people living within a five mile radius of the property.

The Walgreens is strategically located in close proximity to several of Jacksonville’s largest and most important hospitals. Memorial Hospital Jacksonville is located approximately two and one-half miles east of the property and is a 418-bed acute care hospital offering a full line of services. Baptist Medical Center, Wolfson Children’s Hospital and Nemours Children’s Clinic are three significant hospitals all located approximately five miles north of the Walgreens property. Baptist Medical Center is a 477-bed hospital with 154,000 outpatient visits and 81,000 emergency room visits annually. Wolfson Children’s Hospital is recognized year after year as one of America’s Best Children’s Hospitals by U.S. News & World Report and features 216 beds. Nemours Children’s Clinic is an 11-story pediatric specialty care and research hospital.

Walgreens is the largest drug retailing chain in the and has over 8,100 locations in the U.S.A. Walgreens is publicly traded on the New York Exchange (WBA) with a market capitalization in excess of $90 billion. Both Walgreen Co. and , Inc. are investment grade rated each with a Standard & Poor’s rating of BBB.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Located in Jacksonville, Florida HIGHLIGHTS: • Walgreens is committed to this location as evidenced by their recent execution of a 10-year lease extension

• Long operating history at this location (since 1996) with an established customer base

• Long term lease with over 10 years remaining

• Investment grade rated tenant (S&P: BBB)

• Positioned at the hard corner of a heavily trafficked signalized intersection (38,000 VPD)

• Across the street from a Publix grocery store and a TJ Maxx, Beall’s Outlet & LA Fitness center

• Additional retailers located in the immediate vicinity include Winn-Dixie, Restaurant Depot, Bank of America, BBVA Compass, AutoZone, Fifth Third Bank, McDonald’s, Whataburger & Dollar Tree

• Strategically located in close proximity to several of Jacksonville’s largest and most important hospitals including Baptist Medical Center, Memorial Hospital Jacksonville, Wolfson Children’s Hospital and Nemours Children’s

• One mile west of Interstate 95 (119,000 VPD)

• Approximately 150,000 people living within a five mile radius of the property

• Surrounding area is home to many of Jacksonville’s most affluent residents and the San Jose Country Club

• Income tax free state

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $5,275,000 OVERVIEW: Cap Rate: 5.79% Net Operating Income: $305,215* Rent Commencement Date: July 1996 Lease Expiration Date: August 31, 2026 Renewal Options: Eight 5-Year Tenant: Walgreens Credit Rating: Investment Grade (S&P: BBB) Year Built: 1996 Lease Type: NN (Roof, Structure & Parking Lot Replacement) Building Size: 13,905 SF Land Size: 1.54 Acres

*Rent is abated until March 31, 2017. At closing, the seller will credit the purchaser for the rent deficiency.

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIALS

UNIVERSITY BLVD W (2,000 VPD)

NET LEASE INVESTMENT OFFERING AERIALS

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NET LEASE INVESTMENT OFFERING SITE PLAN

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NET LEASE INVESTMENT OFFERING SURROUNDING ATTRACTIONS

Rare trophy Walgreens serving the following prestigious institutions:

Baptist Medical Center Wolfson’s Children Hospital Prestigious Riverfront Homes

San Jose Country Club Epping Forest Yacht & Country Club

NET LEASE INVESTMENT OFFERING MAPS

NET LEASE INVESTMENT OFFERING MAPS

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT:

Total Population 7,126 56,590 149,717 Total Households 3,272 23,634 64,247

Income 1-Mile 3-Mile 5-Mile

Average Household Income $59,203 $59,317 $60,279

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Jacksonville is the largest city by population in the state of Florida and the largest city by area in the contiguous United States. It is the OVERVIEW: county seat of Duval County. With an estimated 2014 population of 853,382, Jacksonville is the most populated city in the Southeast and 12th most populated city in the United States. The Jacksonville MSA has a total population of approximately 1,350,000 people.

Jacksonville is in the First Coast region of northeast Florida and is centered on the banks of the St. Johns River, about 25 miles south of the Georgia state line and about 340 miles north of Miami. The Jacksonville Beaches communities are along the adjacent Atlantic coast. Harbor improvements since the late 19th century have made Jacksonville a major military and civilian deep-water port. Its riverine location facilitates two United States Navy bases and the Port of Jacksonville. The two US Navy bases, Command and the nearby Naval Submarine Base Kings Bay form the third largest military presence in the United States.

Jacksonville has the largest deepwater port in the South (as well as the second-largest port on the U.S. East coast) and a leading port in the U.S. for automobile imports, as well as the leading transportation and distribution hub in the state. However, the strength of the city’s economy lies in its broad diversification. While the area once had many thriving dairies such as Gustafson’s Farm and Skinner Dairy, this aspect of the economy has declined over time. The area’s economy is balanced among distribution, financial services, biomedical technology, consumer goods, information services, manufacturing, insurance and other industries. Jacksonville is home to many prominent corporations and organizations, including the headquarters of four Fortune 500 companies: CSX Corporation, Fidelity National Financial, Fidelity National Information Services and .

Interstate Highways 10 and 95 intersect in Jacksonville, forming the busiest intersection in the region with 200,000 vehicles each day. There are seven bridges over the St. Johns River at Jacksonville.

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through TENANT three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA OVERVIEW: segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As of August 31, 2015, this segment operated 8,173 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacy locations, as well as managed approximately 400 Healthcare Clinics. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

The Walgreen Company is the largest drug retailing chain in the United States. The company is publicly traded on the (WBA) with a market capitalization in excess of $90 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB.

Website: www.walgreens.com Number of Locations: 8,173 Stock Symbol: WBA : NASDAQ Standard & Poor’s Rating: BBB Market Capitalization: $90 Billion

NET LEASE INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

666 Dundee Road, Suite 1801 Northbrook, IL 60062

www.bouldergroup.com