Absolute Net walgreens LOCATED 1 mile from For more info on this opportunity please contact: JOHN ANDREINI RICK SANNER Utah valley university [email protected] | (415) 274-2715 [email protected] | (415) 274-2709 in orem, ut CA BRE# 01440360 CA BRE# 01792433 BOB SANNER CHRIS KOstaNECKI [email protected] | (415) 274-2717 [email protected] | (415) 274-2701 850 S State Street, Orem, UT 84097 CA BRE# 00869657 CA BRE# 01002010 IN CONJUNCTION WITH UT LICENSED BROKER: CHRIS HATCH, MOUNTAIN WEST RETAIL & INVESTMENT Capital Pacific collaborates. Click here to meet the rest of our San Francisco team. (801) 456-8805 [email protected] ABSOLUTE NET LEASED WALGREENS IN OREM UTAH JUST Investment Highlights ONE MILE FROM UTAH VALLEY UNIVERSITY AND LESS THAN 3 MILES FROM BRIGHAM YOUNG UNIVERSITY PRICE: $7,509,434 RENTABLE SF . 14,820 SF CAP: 5.3% PRICE PER SF . $506.71 LAND AREA . 76,230 SF TENANT HIGHLIGHTS YEAR BUILT . 2007 Strong investment-grade credit tenant (S&P “BBB” rating) Walgreens (NYSE: WBA) has the highest sales of any drugstore in the United States with more than $71 billion in annual sales and 8,215 locations as of June 30th, 2014 Walgreens ranked #37 on the Fortune 500 for 2014 PROPERTY HIGHLIGHTS The Orem/Provo MSA is home to Brigham Young University and Utah Valley University - enrollments between the two colleges are over 66,000 students Located in very dense retail area down the street from University Mall, a 1.5 million square foot enclosed mall with over 180 stores, including: Macy’s, H&M, Sports Authority, Cinemark, and Costco University Mall is undergoing a $500 million redevelopment that will include the strong retail element in place and will add 600,000 square feet of office space, 1,100 housing units, a two-acre civic plaza and park, a swim and tennis club, an outdoor music venue, and a hotel. Over 54,000 vehicles per day at the signalized intersection of S State Street and E 800 South Freestanding building with drive-thru on soft corner at signalized intersection LEASE HIGHLIGHTS 18 years remaining on 25 year primary term Walgreens corporate lease Absolute net zero landlord responsibilities walGREENS | 2 Property Signage LAKE POINTE SHOPPING CENTER Dixon Middle School Freedom Academy 265 Westridge Elementary 11,160 DAILY Westmore Elementary Lakeridge Timpanogos Jr . High School Elementary THE FAMILY CENTER 89 AT OREM N 500 W Street UNIVERSITY CROSSING W 800 Street S State Street RIVERSIDE PLAZA Provo 43,215 DAILY High School Hillcrest Elementary 89 CARILLON SQUARE Noah Webster W University Parkway Academy N University Parkway Scera Park 265 School UNIVERSITY MALL Orem High School RIVERSIDE COUNTRY CLUB E 1650 N Street N 900 E Centennial Middle School 189 N University Avenue 89 Rock Canyon Elementary SALT LAKE CITY E 800 Street walGREENS | 3 Traffic at S. State Street and 800 So. Representative Photos Income & Expense PRICE $7,509,434 Price Per Square Foot: $506.71 Capitalization Rate: 5.30% Total Rentable Area (SF): 14,820 Land Size (SF): 76,230 Year Built: 2007 STABILIZED INCOME Per Square Foot Scheduled Rent $26.86 $398,000 Effective Gross Income $26.86 $398,000 LESS Per Square Foot Traffic on S State Street Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses $0.00 EQUALS NET OPERATING INCOME $398,000 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. walGREENS | 4 Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY Monthly Yearly Tenant Name Sq. Ft. Term Current Rent Monthly Rent Yearly Rent Rent/FT Rent/FT Walgreens 14,820 10/1/2007 9/30/2082* $398,000 $33,167 $398,000 $2.24 $26.86 Current Totals: 14,820 $398,000 $33,167 $398,000 $2.24 $26.86 *Tenant has the option to terminate this lease after the 25th year at the end of any month with 12 months notice This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. walGREENS | 5 Tenant Walgreens Walgreens is the largest drugstore chain in the United States, operating over 8,500 drugstores in all 50 US states. Founded in 1901, Walgreens provides the most convenient access to consumer goods and services, and pharmacy, health and wellness services, in America. The company has recorded 35 consecutive years of record sales, a track record matched by only one other Fortune 500 company. Walgreens had a record 2013, achieving $72.2 billion in sales - this is a 0.8% boost from 2012. Walgreens continues to show growth in both store numbers and sales. In the fourth quarter of 2013 Walgreens reported a 26.9% jump in sales over the same quarter of 2012. In 2013 Walgreens was named to Fortune magazine’s World’s Most Admired Companies list for the 20th consecutive year, and was ranked 37th on the Fortune 500 list of largest U.S.-based companies. The company was also ranked 120th overall in revenue on the Fortune Global 500 largest companies list. walGREENS | 6 Representative Photo Site Plan walGREENS | 7 Surrounding Retail Photos walGREENS IS locateD IN DENSE retail AREA WITH national retailers incluDING Costco, sprouts, macy’S AND many MORE walGREENS | 8 Regional Map Orem UT Location WALGREENS walGREENS | 9 Location & Demos OREM / PROVO MSA, UT Population 1 Mile 3 Miles 5 Miles The city of Orem is located 45 minutes south of Salt Lake City in beautiful Utah 2010 Population 16,747 125,481 204,648 Valley, Orem is bordered by Utah Lake on the west and the majestic Wasatch 2013 Population 16,788 129,143 221,995 Mountains on the east. Its recent development and growth have resulted in 2018 Population Orem’s population exceeding 90,000 residents, making it the fifth-largest city in (Projection) 17,485 138,443 226,823 Utah. Along with Provo and other surrounding cities, Orem is part of the Provo- 2013 HOUSEHOLD INCOMES Orem MSA with a population over 500,000. Orem uses the moniker “Family City USA”. In fact, in 2010 Forbes rated it the 5th 2013 Average Household best place to raise a family. Provo-Orem, Utah, has the highest Well-Being Index Income $68,766 $68,766 $63,245 score (71.4) in the U.S. across 189 communities Gallup and Healthways surveyed in 2012-2013. Also in the top 10 are Boulder, Colo.; Fort Collins-Loveland, Colo.; Honolulu, Hawaii; and San Jose-Sunnyvale-Santa Clara, Calif. TOP EMPLOYERS IN OREM The Orem/Provo MSA is home to Brigham Young University (BYU) and Utah Valley Employer # of Employees* University (UVU). BYU has over 27,190 undergratuate students and another 7,400 Utah Valley University 1,528 graduate students. UVU is one of the United States only Open Enrollment Universities Alpine School District 1,234 offering an acceptance to all applicants. As a university UVU offers a wide variety Convergys 647 of bachelors and masters degrees. UVU is the largest and fastest growing public Timpanogos Regional Hospital 600 university in Utah with its attendance of over 34,000 undergraduates. The campus’s notable features include the UCCU Center, the Digital Learning Center library, the Hal Wing Track and Field Complex, and the Woodbury School of Business. walGREENS | 10 A unique HUMAN THE CAPItal paCIFIC EXPERIENCE - OUR DAIly COMMITMENT TO OUR CLIENTS RESULTS-DRIVEN client experience JOHN ANDREINI RICK SANNER [email protected] | (415) 274-2715 [email protected] | (415) 274-2709 CA BRE# 01440360 CA BRE# 01792433 [ www .capitalPacific .com ] BOB SANNER CHRIS KOstaNECKI [email protected] | (415) 274-2717 [email protected] | (415) 274-2701 CA BRE# 00869657 CA BRE# 01002010 IN CONJUNCTION WITH UT LICENSED BROKER: CHRIS HATCH, MOUNTAIN WEST RETAIL & INVESTMENT (801) 456-8805 [email protected] walGREENS | 11.