Offered At: $5,700,000 | 6.00% Cap

OFFERED AT: $5,700,000 | 6.00% CAP

S&P ‘BBB’ CREDIT RATING ABSOLUTE NNN LEASE | STRONG STORE SALES (11% RENT TO SALES RATIO)

WEST DES MOINES, IA

Actual Property EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Executive Summary 5 Investment Highlights 6 Lease Summary & Rent Overview

PROPERTY INFORMATION 8 Location Maps 9 Property Photos 10 Neighboring Tenants 15 Aerials

TENANT OVERVIEW 22 About Walgreens

AREA OVERVIEW 24 West Des Moines Overview 25 Des Moines Overview 26 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 Iowa real estate broker David B Zacharia license B64850000 Actual Property

WALGREENS | West Des Moines, IA | 2 EXECUTIVE SUMMARY

WEST DES MOINES, IA

WALGREENS | West Des Moines, IA | 3 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Offering Summary • Investment Highlights Lease Summary & Rent Schedule

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $5,700,000 Address: 4900 Mills Civic Pkwy Net Operating Income: $342,000 West Des Moines, IA Cap Rate: 6.00% Property Size: Approx 17,969 Sq. Ft. Price/SF: $317 Land Size: 2.75 Acres Lease Type: Absolute NNN Ownership: Fee Simple (Land, Building) Year Built: 2001 Store #: 6677

Lee & Associates is pleased to exclusively offer for sale, the fee simple interest (land & building) in a trophy Walgreens property located in West Des Moines, IA (the “Property”). Built in 2001, the Property consists of a 17,969-square-foot retail building with a drive-thru that sits on an approximately 2.75-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. Walgreens is reporting strong unit level sales at this location (see broker for details) that are above the national average for a Walgreens store. In fact, this location is showing a strong rent to sales ratio of 11% which, is a true indicator of this store’s strong profitability. The tenant just exercised a 10-year lease extension early, leaving 11+ years of firm lease term remaining and ten (10) 5-year renewal options. In addition, the absolute triple-net (NNN) lease requires the tenant pay for taxes, insurance, and 100% of the maintenance of the land & building. The landlord has zero maintenance responsibilities on the asset, providing an investor with a strong corporate guaranty and a passive income stream. The subject property offers highly desirable demographics with an average household income of over $146,000 within a 1-mile radius and $112,747 within a 3-mile radius. The property’s location is also dense with 106,000 people within a 5-mile radius, lending well to the tenant’s concept and supporting its continued success. . The subject property is located across from a Hy-vee Grocery anchored center, with national co-tenants such as IHOP, USPS, Wells Fargo, and Starbucks, providing outstanding retail synergy and a strong draw to the trade area. The property is located just 2 miles from Wells Fargo’s recently completed corporate campus. The 160-acre campus, which sits south of the Jordan Creek Town Center in a booming part of West Des Moines, includes more than 1 million square feet of office space and houses about 7,000 workers. Wells Fargo is the metro area’s largest employer, with roughly 14,000 workers in central Iowa and maintains its residential lending headquarters, Wells Fargo Home Mortgage, in West Des Moines. The property is located within West Des Moines, Iowa. West Des Moines, Iowa is located at the crossroads of interstates 35 and 80. West Des Moines is one of the fastest growing communities in Iowa, with a population of more than 68,000 people. West Des Moines is the national corporate headquarters for Hy-Vee, Inc. and Home Services of Iowa. Additionally, leading developers with established corporate headquarters and regional offices in West Des Moines include Hubbell Realty, Hurd Real Estate, Knapp Properties, Inc., Iowa Commercial. Other large employers include ADP, Goodrich and Wells Fargo’s Card Services and Home Mortgage divisions. With a premier location, a cost of doing business that is nearly 10 percent lower than the U.S. average, a highly educated workforce with 57% of the population holding Bachelor degrees or higher and 67% holding Associates degrees or higher, West Des Moines offers competitive advantages to relocating and expanding businesses.

WALGREENS | West Des Moines, IA | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary • Investment Highlights • Lease Summary & Rent Schedule

-- INVESTMENT HIGHLIGHTS --

WALGREENS (NYSE: WBA) • INVESTMENT GRADE CREDIT TENANT (S&P: BBB) • LARGEST RETAIL PROXIMITY TO NEW 1 MILLION SF WELLS FARGO WEST DES MOINES CORPORATE CAMPUS • HOUSES PHARMACY IN THE U.S. & EUROPE • 13,200 LOCATIONS IN 11 COUNTRIES • $50B+ MARKET CAP 7,000 WORKERS • AREA’S LARGEST EMPLOYER The building is leased to Walgreens who is owned by parent company Walgreens Boots Alliance, Inc. (NYSE: WBA). The property is located just 2 miles from Wells Fargo’s recently completed corporate campus. The 160-acre campus, This parent company is currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 which sits south of the Jordan Creek Town Center in a booming part of West Des Moines, includes more than countries and an impressive $50B market CAP. 1 million square feet of office space and houses about 7,000 workers. Wells Fargo is the metro area’s largest employer, with roughly 14,000 workers in central Iowa and maintains its residential lending headquarters, Wells STRONG STORE SALES • ABOVE NATIONAL AVERAGE FOR WALGREENS • 11% RENT TO SALES RATIO • Fargo Home Mortgage, in West Des Moines. LOW RENT Walgreens is reporting strong unit level sales at this location (see broker for details) that are above the national LOCATED IN WEST DES MOINES • SECOND-LARGEST CITY IN THE DES MOINES METROPOLITAN AREA • average for a Walgreens store. In fact, this location is showing a strong rent to sales ration of 11% which is a true HEADQUARTERS OF HY-VEE, INC. • HIGHLY EDUCATED WORKFORCE indicator of this store’s strong profitability. The property is located in West Des Moines, Iowa, which is located at the crossroads of interstates 35 and 80 and is part of Polk, Dallas, Warren, and Madison counties. It is one of the fastest growing communities in Iowa, with a RARE WALGREENS EARLY 10-YEAR LEASE EXTENSION • ABSOLUTE NNN LEASE • NO LANDLORD population of more than 68,000 people and a business-friendly home to more than 3,000 businesses. RESPONSIBILITIES West Des Moines is the national corporate headquarters for Hy-Vee, Inc. and Home Services of Iowa. Additionally, Walgreens just exercised a rare 10-year lease extension early, demonstrating the tenant’s obvious commitment leading developers with established corporate headquarters and regional offices in West Des Moines include to this site. The early lease renewal leaves 11+ years of firm lease term remaining and ten (10) 5-year renewal Hubbell Realty, Hurd Real Estate, Knapp Properties, Inc., Iowa Commercial. Other large employers include ADP, options. In addition, the absolute triple-net (NNN) lease requires the tenant pay for taxes, insurance, and 100% of Goodrich and Wells Fargo’s Card Services and Home Mortgage divisions. With a premier location, a cost of doing the maintenance of the land & building. The landlord has zero maintenance responsibilities on the asset, providing business that is nearly 10 percent lower than the U.S. average, a highly educated workforce with 57% of the an investor with a passive income stream from a strong investment grade credit tenant. population holding Bachelor degrees or higher and 67% holding Associates degrees or higher, West Des Moines A+ REAL ESTATE • HARD CORNER SIGNALIZED INTERSECTION (30,400+ CPD) • MAJOR RETAIL CORRIDOR offers competitive advantages to relocating and expanding businesses. • HALF MILE FROM INTERSTATE 35 (40,600 CPD) The West Des Moines area is defined by a diverse economy, low costs of living and doing business, a creative The subject property is located on the hard corner signalized intersection of Mills Civic Pkwy & S. 50th St, providing culture and a well-educated population. Cultural diversity, well-established neighborhoods and mixed-use areas, a excellent visibility to combined traffic counts over 30,400 cars per day. This location offers multiple entrances to variety of industries, walkability and a thriving retail community are reasons why Money Magazine recognizes West the site for easy in/out access to the property. Mills Civic Pkwy is a major retail corridor and home to Mills Crossing, Des Moines as the #1 City to Live in Iowa and the #37 Best Place Live in America, regardless of population. Jordan Creek Town Center, and Premiere Shoppes shopping center, with national tenants including Target, REI, Walmart, Aldi, Kohl’s, Dollar Tree, TJ Maxx, Trader Joe’s, Maurices, OfficeMax, and many more. SUBURB OF DES MOINES • MOST POPULATED CITY IN IOWA • MAJOR CENTER OF U.S. INSURANCE INDUSTRY The property is strategically located less than a half mile from Interstate 35, a major north-south travel artery West Des Moines is located just 11 miles west of Des Moines, the capital and most populous city in Iowa. With carrying 41,000 commuters/travelers per day to/from Downtown Des Moines via I-80. a population of nearly 217,000 residents (2018), the City of Des Moines is the core of one of the fastest growing $146,000 AVG HH INCOME WITHIN 1-MILE RADIUS & 106,000 PEOPLE WITHIN 5-MILE RADIUS metro areas (DSM USA) in the Midwest and is a financially strong city with exceptional city services, fostering an involved community in a customer friendly atmosphere. The subject property offers highly desirable demographics with an average household income of over $146,000 within a 1-mile radius and $112,747 within a 3-mile radius. The property’s location is also dense with 106,000 Des Moines is a major center of the U.S. insurance industry, and has a sizable financial services and publishing people within a 5-mile radius. business base. The city was credited as the “number one spot for U.S. insurance companies” in a Business Wire article and named the third-largest “insurance capital” of the world. The city is the headquarters for the Principal ACROSS FROM A HY-VEE GROCERY ANCHORED CENTER • NATIONAL CO-TENANTS OFFER STRONG DRAW Financial Group, the Meredith Corporation, Ruan Transportation, EMC Insurance Companies, and Wellmark Blue TO THE TRADE AREA Cross Blue Shield. The subject property is located across from a Hy-vee Grocery anchored center, with national co-tenants such as IHOP, USPS, Wells Fargo, and Starbucks, providing outstanding retail synergy and a strong draw to the trade area.

WALGREENS | West Des Moines, IA | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights • Lease Summary & Rent Schedule •

-- LEASE SUMMARY --

LEASE INFORMATION

TENANT: Walgreens

GUARANTOR: Walgreen Co. (Corporate)

CREDIT RATING: Standard & Poor’s: BBB

BUILDING SIZE: 14,490 Sq. Ft.

LOT SIZE: 2.75 Acres

RENT COMMENCEMENT: December 1, 2001

LEASE EXPIRATION: November 30, 2021

BASE LEASE TERM: 20 Years

REMAINING TERM: 11+ Years (Recent 10-Year Early Extension)

RENEWAL OPTIONS: (10) 5-Year Options @ Flat Rent

LEASE TYPE: Absolute Triple-Net (NNN)

LANDLORD RESPONSIBILITIES: None

ANNUAL RENT: $342,000

TENANT SALES REPORTING: Yes - See Broker for Details

-- RENT SCHEDULE --

LEASE TERM

TERM START DATE END DATE NOI/YR NOI/MO NOI/SF/YR

Years 1 - 20 12/1/2001 11/30/2021 $342,000.00 $28,500.00 $19.03

Extension 12/1/2021 11/30/2031 $342,000.00 $28,500.00 $19.03

OPTION PERIODS (10) 5-YEAR OPTIONS (Flat)

WALGREENS | West Des Moines, IA | 6 PROPERTY INFORMATION

WEST DES MOINES, IA

WALGREENS | West Des Moines, IA | 7 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Property Photos Neighboring Tenants Aerials

-- LOCATION MAPS --

MINNEAPOLIS Downtown EAU CLAIRE Des Moines APPLETON GREEN BAY

Urbandale Golf & 255 Miles Country Club

FOND DU LAC

MASON CITY MADISON MILWAUKEE Campbell Clive DUBUQUE 132 Miles Valley West Mall ROCKFORD CEDAR RAPIDS Mercy Medical Center 344 Miles CHICAGO Des Moines Golf & West Lakes 11 Miles Country Club DES MOINES

Valley High School

PEORIA 186 Miles West Glen Town Center Jordan Creek Town Ctr West Des Moines West Des Moines City Hall SPRINGFIELD West Des Moines Public Library West Des Moines Police Dept

TERRE HAUTE West Des Moines Campus Glen Oaks KANSAS CITY Country Club

ST. LOUIS

WALGREENS | West Des Moines, IA | 8 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Property Photos • Neighboring Tenants Aerials

-- PROPERTY PHOTOS --

First Entrance

Drive Around to Drive Thru Drive Thru Pharmacy Lanes Front Entrance from East Side

WALGREENS | West Des Moines, IA | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW