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CONSISTENTLY STRONG SALES REPORTING (11.4% RENT TO SALES RATIO) OUTPARCEL TO THE SCHNUCKS AT TWIN OAKS CROSSING CENTER (S&P: BBB) TWIN OAKS, MO (ST LOUIS MSA) OFFERED AT: $6,080,000 | 6.25% CAP 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 Site Plan 10 Property Photos 11 Neighboring Tenants 15 Aerials TENANT OVERVIEW 20 About Walgreens AREA OVERVIEW 22 St Louis Overview 24 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 Missouri real estate broker Actual Property DZ Net Lease Realty, LLC license 2010035304 WALGREENS | Twin Oaks, MO (St Louis MSA) | 2 EXECUTIVE SUMMARY TWIN OAKS, MO (ST LOUIS MSA) EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW • Offering Summary • Investment Highlights Lease Summary & Rent Schedule -- OFFERING SUMMARY -- INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW Offering Price: $6,080,000 Address: 1391 Big Bend Rd Twin Oaks, MO 63021 Net Operating Income: $380,000 Property Size: Approx 14,722 Sq. Ft. Cap Rate: 6.25% Land Size: 1.57 Acres Price/SF: $413 Ownership: Fee Simple (Land, Building) Lease Type: Absolute Triple-Net (NNN) Year Built: 2005 Store #: 1273 Lee & Associates, in conjunction with Missouri real estate broker DZ Net Lease Realty, LLC license 2010035304, is pleased to exclusively offer for sale, the fee simple interest (land & building) in a Walgreens property located in Twin Oaks, MO within the St Louis MSA (the “Property”). Built in 2005, the Property consists of a 14,722-square-foot retail building with a drive- thru that sits on an approximately 1.57-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 11 years of firm lease term remaining on the lease with ten (10) Five-year renewal options. In addition, the lease provides an investor with a strong corporate guaranty from Walgreens Co. who carries an investment grade credit rating of “BBB” from Standard & Poor’s. The lease is absolute triple-net (NNN), where the tenant pays for taxes, insurance, and 100% of the maintenance of the land & building. The landlord has zero maintenance responsibilities on this asset, providing an investor with a passive income stream from a strong investment grade credit tenant. 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 11.4% which is a true indicator of this store’s strong profitability. The strong store sales at this location are due to a combination of the high visibility and high traffic volumes between Big Bend Road and Missouri Highway 141 as well as the dense surrounding housing population. This location also benefits from the surrounding retail, residential and commercial developments. The subject property offers highly desirable demographics with an average household income of over $115,000 within a 3-mile radius and $134,000 within a 5-mile radius. The property’s location is also dense with 152,000 people within a 5-mile radius. The Walgreens is located on the hard corner signalized entrance to the Schnucks-anchored Twin Oaks Center, which includes co-tenants Regions Bank, First Bank, Dairy Queen Shop ‘n Save, and the Twin Oaks City Hall building. Additionally it is located across from Big Bend Square, an 83,205-square-foot shopping center anchored by The Village of Twin Oaks, a mixed use development with a 219-unit high-rise apartment complex with retail space on the ground floor, as well as other tenants in the center such as Hardee’s, H&R Block, Commerce Bank, Apple Dental, 1356 Public House, and Pizza Hut. The subject property is strategically located within five miles of St. Luke’s Des Peres Hospital, a 143-bed acute care facility offering primary and emergency care, general medicine and specialty surgical services; and SSM Health St. Clare Hospital- Fenton, a Level I Time Critical Diagnosis STEMI Center and a Level I Stroke Center specializing in heart and vascular, neurosciences, cancer care, maternity and other medical services. The site offers strong surrounding demographics, with over 152,000 people living within a 5-mile radius of the subject property with an average household income over $134,000, lending well to the tenant’s concept and supporting its continued success. WALGREENS | Twin Oaks, MO (St Louis MSA) | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW Offering Summary • Investment Highlights • Lease Summary & Rent Schedule -- INVESTMENT HIGHLIGHTS -- WALGREENS (NYSE: WBA) • LARGEST RETAIL PHARMACY IN THE U.S. & EUROPE • 13,200 LOCATIONS IN SIGNALIZED HARD CORNER LOCATION AT ENTRANCE TO SCHNUCKS-ANCHORED TWIN OAKS CENTER • 11 COUNTRIES • $50B+ MARKET CAP ACROSS FROM THE VILLAGES AT TWIN OAKS: NEW MIXED USE DEVELOPMENT WITH 219-UNIT HIGH RISE The building is leased to Walgreens Co. (NYSE: WBA) on a corporate lease providing an investor with an investment APARTMENTS grade credit rating from Standard of Poor’s of “BBB”. Walgreen’s parent company Walgreens Boots Alliance, Inc. is The Walgreens is located on the hard corner signalized entrance to the Schnucks-anchored Twin Oaks Center, currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 countries and an impressive which includes co-tenants Regions Bank, First Bank, Dairy Queen Shop ‘n Save, and the Twin Oaks City Hall building. $50B market CAP. Additionally it is located across from Big Bend Square, an 83,205-square-foot shopping center anchored by The Village of Twin Oaks, a mixed use development with a 219-unit high-rise apartment complex with retail space on TROPHY ASSET • STRONG STORE SALES FOR WALGREENS • IDEAL 11.4% RENT TO SALES RATIO CONFIRMING the ground floor, as well as other tenants in the center such as Hardee’s, H&R Block, Commerce Bank, Apple Dental, STORE’S PROFITABILITY • MITIGATED FUTURE VACANCY RISK 1356 Public House, and Pizza Hut. 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 11.4% which is a true STRATEGIC LOCATION WITHIN FIVE MILES OF TWO MAJOR HEALTH FACILITIES • LENDS TO THE TENANT’S indicator of this store’s strong profitability. Our understanding is the benchmark for a healthy Walgreens store is SUCCESS roughly a 15% rent to sales ratio. The lower this percentage the more profitable the store. The subject property is strategically located within five miles of St. Luke’s Des Peres Hospital, a 143-bed acute care The strong store sales at this location are due to a combination of the high visibility and high traffic volumes between facility offering primary and emergency care, general medicine and specialty surgical services; and SSM Health St. Big Bend Road and Missouri Highway 141 as well as the dense surrounding housing population. This location also Clare Hospital-Fenton, a Level I Time Critical Diagnosis STEMI Center and a Level I Stroke Center specializing in heart benefits from the surrounding retail, residential and commercial developments. and vascular, neurosciences, cancer care, maternity and other medical services. 11 YEARS REMAINING ON FIRM LEASE TERM • ABSOLUTE NNN LEASE • LL HAS ZERO MAINTENANCE LOCATED IN TWIN OAKS, IN WEST ST LOUIS COUNTY • JUST 30 MINUTES FROM DOWNTOWN ST. LOUIS & ST LOUIS-LAMBERT INTERNATIONAL AIRPORT • HOME TO 9 OF 10 FORTUNE 500 COMPANIES There are 11 years of firm lease term remaining on the lease with ten (10) Five-year renewal options. In addition, the lease provides an investor with a strong corporate guaranty from Walgreens Co. who carries an investment grade The subject property is located in Twin Oaks, a growing community located in the heart of prestigious West St Louis credit rating of “BBB” from Standard & Poor’s. County, just 30 minutes from Downtown St. Louis and the St Louis-Lambert International Airport. Ballwin is located just 21 miles from Downtown St. Louis, the largest metropolitan area in Missouri with an estimated population of Finally, the lease is absolute triple-net (NNN), where the tenant pays for taxes, insurance, and 100% of the 311,400 (2016). The city of Ballwin has been named as “One of America’s Best Places to Live” by Money Magazine in maintenance of the land & building. The landlord has zero maintenance responsibilities on this asset, providing an 2005, 2011 and 2013. The economy of metropolitan St. Louis relies on service, manufacturing, trade, transportation investor with a passive income stream from a strong investment grade credit tenant. of goods, and tourism. Its metro area is home to major corporations, including Anheuser-Busch, Boeing Defense, $115,000 AVG HH INCOME WITHIN 3-MILE RADIUS & 152,000 PEOPLE WITHIN A 5-MILE RADIUS Emerson, Energizer, Panera, and Enterprise. Nine of the ten Fortune 500 companies based in Missouri are located The subject property offers highly desirable demographics with an average household income of over $115,000 within the St.