WALGREENS 1900 S 6TH AVE • TUCSON, AZ 85713 RARE, LOW-RENT WALGREENS WITH STRONG SALES AND OVER 26 YEARS OF HISTORICAL OCCUPANCY IN DENSELY POPULATED TUCSON, AZ SUBMARKET Walgreens ACTUAL PROPERTY PHOTO Walgreens | Offering Memorandum 1 PROPERTY PHOTOS PROPERTY PHOTOS ACTUAL PROPERTY PHOTOS 2 Walgreens | Offering Memorandum Walgreens | Offering Memorandum 3 TRADE MAP TRADE MAP TUCSON VA I-19 (103,000+ VPD) MEDICAL DOWNTOWN CENTER TUCSON BARRIO SAN ANTONIO MENLO PARK I-10 (111,000+ VPD) MCDONALD'S BURGER KING I-10 (111,000+ VPD) OCHOA COMMUNITY I-19 (103,000+ VPD) SCHOOL Walgreens 1900 S 6TH AVE TUCSON, AZ 85713 6th Ave (18,000+ VPD) 29th St (12,500+ VPD) MCDONALD'S MCDONALD'S Walgreens 6th Ave (18,000+ VPD) 1900 S 6TH AVE 29th St (12,500+ VPD) TUCSON, AZ 85713 4 Walgreens | Offering Memorandum Walgreens | Offering Memorandum 5 PROPERTY SUMMARY INVESTMENT HIGHLIGHTS WALGREENS LEASE SUMMARY LONG TERM LEASE CORPORATE GUARANTEE Address 1900 S 6th Ave, Tucson, AZ 85713 Lease Term 35 Years Walgreens recently signed an early 10 year lease extension, The Lease is guaranteed by Walgreens (Walgreens showing commitment to the site. The Property currently Boots Alliance Inc., NYSE: WBA) which has an S&P Price $3,745,000 Lease Term Remaining 8.7 Years has over 8.5 years remaining on the Lease, providing an Investment Grade Credit Rating of BBB. CAP Rate 5.50% Lease Commencement Date 11/21/1994 investor with long-term, passive cash flow. RARE LOW RENT, LOW PRICE POINT WALGREENS NOI $206,000 Lease End Date 11/30/2029 STRONG STORE SALES Rare opportunity to purchase a Walgreens for Price/SF $277.41 Type of Ownership Fee Simple Proven Walgreens location with strong store sales and $3,745,000. Walgreens is currently paying just $15.26/SF low rent/sales ratio compared to national average. + NNN with typical lease rates for Walgreens above $20/ Lot Size (Acres) 1.91 Acres Lease Type NNN SF + NNN. GLA 13,500 SF Landlord Responsibilities Roof/Structure MINIMAL LANDLORD RESPONSIBILITIES The NNN Lease features minimal landlord management ESSENTIAL TENANT Property Taxes, Insurance, Walgreens deemed an ""Essential Tenant"" through Year Built 1994 Tenant Responsibilities or repair responsibilities (landlord responsible for roof/ Repair/Maintenance COVID-19 related shelter-in-place orders and offers structure.) Guarantee Corporate Guarantee consumers safe access to pharmacy and retail pickup via RENT SCHEDULE STRONG HISTORICAL OCCUPANCY their drive-thru. Guarantor Walgreens ANNUAL MONTHLY Walgreens is very established at this location having YEAR RENT/SF STRATEGIC LOCATION NEAR MAIN ARTERIALS RENT RENT Renewal Options 5, 5-Year Options operated at this site for over 26 years. The Property is located just off the junction of I-10 Current - 11/30/2029 $206,000 $17,167 $15.26 Increases Flat + Percentage Rent SIGNALIZED HARD CORNER LOCATION WITH DRIVE-THRU (111,000+ VPD) and I-19 (103,000+ VPD) on S 6th Ave Right of First Refusal/Offer Yes - 15 Days The Property is located on the corner of S 6th Ave (18,000+ VPD) a main arterial through Tucson. The OPTION 1: 12/1/2029-11/30/2034 $206,000 $17,167 $15.26 (18,000+ VPD) and W 29th St (12,500+ VPD) at a Property also benefits from its close proximity to the OPTION 2: 12/1/2034-11/30/2039 $206,000 $17,167 $15.26 signalized intersection, allowing for easy ingress/egress Tuscon VA Medical Center. and excellent visibility. OPTION 3: 12/1/2039-11/30/2044 $206,000 $17,167 $15.26 STRONG DEMOGRAPHICS RARE DOUBLE DRIVE-THRU AND LARGE LOT The Property features over 285,000 residents within a OPTION 4: 12/1/2044-11/30/2049 $206,000 $17,167 $15.26 The Property features a double drive-thru and large, 1.91 5-mile radius with an average Household Income of OPTION 5: 12/1/2049-11/30/2054 $206,000 $17,167 $15.26 acre lot. $51,876. 6 Walgreens | Offering Memorandum Walgreens | Offering Memorandum 7 Walgreens LOCATION OVERVIEW the university has a major impact on the local economy and is Walgreens, Duane Reade, Boots and Alliance Healthcare, as the largest employer. well as increasingly global health and beauty product brands, PHOENIX such as No7, Soap & Glory, Liz Earle, Botanics, Sleek MakeUP and DAVIS-MONTHAN AIR FORCE BASE YourGoodSkin. Davis-Monthan Air Force Base is home to the 355th Wing. Most visible is the aircraft boneyard located on the base, which Aside from selling other brands, Walgreens has a number of employs roughly 10,000 people. their own branded products which help to boost their sales and differentiate them from competitors. They offer a wide range of AFFORDABLE BUSINESS COSTS products, from medication to groceries, to pet products. Lower labor, materail and utility costs, as well as access to Mexico IN THE NEWS markets attract businesses. Walgreens Reports Stronger Profit as Covid-19 Vaccine Walgreens Boots Alliance (Nasdaq: WBA) is a global leader Rollout Ramps Up TECH CLUSTER PROGRAM in retail and wholesale pharmacy, touching millions of lives Tucson has capitalized on its high-tech cluster program, TUCSON every day through dispensing and distributing medicines, Walgreens Says 8 Million Covid-19 Vaccines Administered, spawning technology jobs an attracting high-tech companies and through its convenient retail locations, digital platforms Ups Its 2021 Profit Forecast with a focus on solar, aerospace and defence, bioscience, and and health and beauty products. The company has more than information tehcnology. 100 years of trusted healthcare heritage and innovation in TUCSON, ARIZONA MOODY'S community pharmacy and pharmaceutical wholesaling. REVENUE Home to The University of Arizona, the Tucson metro is entirely within Pima County in south-central Arizona. A portion of the WBA has one of the largest global pharmaceutical wholesale county borders Mexico. Tucson is the second-largest metro and distribution networks, with more than 425 distribution Baa2 $139.5 BILLION in Arizona, containing 1 million residents. The city of Tucson centers delivering to more than 250,000 pharmacies, doctors, CREDIT RATING accounts for more than half of the population, with 541,000 health centers and hospitals each year in more than 20 countries. Walgreens citizens. The population swells during the winter months as WBA is one of the world’s largest purchasers of prescription warm weather brings seasonal residents and tourists. During drugs and many other health and well-being products. The EMPLOYS STORES the next five years, nearly 32,100 additional people are expected, company’s size, scale and expertise help position them to with outlying areas such as Marana projected to have the fastest expand the supply of, and address the rising cost of, prescription 450,000+ 21,000+ growth. drugs in the U.S. and worldwide. EMPLOYEES IN OVER 11 COUNTRIES The company’s portfolio of retail and business brands includes UNIVERSITY OF ARIZONA With a student body of more than 45,900 and 16,500 employees, 8 Walgreens | Offering Memorandum Walgreens | Offering Memorandum 9 MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY DEMOGRAPHICS AS FOLLOWS The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. POPULATION 1 MILE 3 MILES 5 MILES Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should 2020 Population 12,480 108,450 285,681 be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer 2010 Population 12,198 105,215 272,935 and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly- acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the 2025 Population Projection 12,887 112,008 296,019 tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole 5 Miles due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all Pop Growth Forecast 2020 - 2025 3.26% 3.28% 3.62% matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability Average Age 33.3 31.1 31.7 to make alternate use of the property.