NET LEASE INVESTMENT OFFERING Representative Image WALGREENS 1180 Arcade Street St. Paul, MN 55106 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial Market Overview Property Overview Site Plan Tenant Overview 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 St. Paul, Minnesota. SUMMARY: The property is strategically located in the heavily trafficked signalized intersection of State Route 61 (Arcade Street) and Maryland Avenue E. Walgreens has over 16 years remaining on the Walgreens lease which expires December 31, 2033. This absolute triple net lease features no landlord responsibilities and ten 5-year renewal option periods. The 14,490 square foot Walgreens is strategically positioned on the southeast corner of Maryland Avenue E and State Route 61 (Arcade Street) in a densely populated residential area of St. Paul. This intersection experiences traffic counts in excess of 30,800 vehicles per day. The Walgreens is located within a mile of Interstate 35, with easy interchange access. Interstate 35 gives direct access to St. Paul and to Interstate 94 which connects St. Paul and Minneapolis. Interstate 35 experiences traffic counts in excess of 133,000 vehicles per day. There are approximately 147,500 people living within a three mile radius of the property. Walgreens is the largest drug retailing chain in the United States and has over 8,100 locations in the U.S.A. Walgreens is publicly traded on the New York Stock Exchange (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. NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS INVESTMENT • Located within the Minneapolis-St. Paul MSA HIGHLIGHTS: • Long term lease with over 16 years remaining • Absolute NNN lease with no landlord responsibilities • Investment grade rated tenant (S&P: BBB) • Positioned at the corner of a heavily trafficked signalized intersection (30,800+ VPD) • Positioned at the corner of a signalized intersection along a primary east-west thoroughfare • Located in a dense urban area with 147,496 people living within a 3 mile radius • Close proximity to Interstate 35 NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW PROPERTY Price: $6,648,500 OVERVIEW: Cap Rate: 6.00% Net Operating Income: $398,900 Rent Commencement Date: January 7, 2008 Lease Expiration Date: December 31, 2033 Renewal Options: Ten 5-Year Tenant: Walgreens Credit Rating: S&P: BBB | Investment Grade Year Built: 2008 Lease Type: NNN Building Size: 14,490 SF Land Size: 1.18 Acres NET LEASE INVESTMENT OFFERING PHOTOGRAPHS NET LEASE INVESTMENT OFFERING AERIAL ARCADE ST. (11,500 VPD) (133,000 VPD) ONE MILE AWAY MARYLAND AVE E (19,300 VPD) NET LEASE INVESTMENT OFFERING SITE PLAN MARYLAND AVENUE 1,300 VPD ARCADE STREET 11,500 VPD STREET ARCADE ROSE AVENUE 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 23,933 147,496 330,693 Total Households 7,414 52,327 128,436 Income 1-Mile 3-Mile 5-Mile Median Household Income $41,220 $41,865 $49,293 Average Household Income $53,053 $55,178 $66,276 MARKET OVERVIEW MARKET Saint Paul OVERVIEW: Saint Paul is the capital and second-most populous city in Minnesota. As of 2015, Saint Paul’s estimated population was 300,851. Saint Paul is the county seat of Ramsey County, the smallest and most densely populated county in Minnesota. The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins Minneapolis, the state’s largest city. Known as the “Twin Cities”, the two form the core of Minneapolis–Saint Paul, the 16th-largest metropolitan area in the United States, with about 3.52 million residents. The Minneapolis-St. Paul area is home to 19 of the 20 Fortune 500 headquarters (Target, 3M and General Mills) located within Minnesota and has the second largest economy in the Midwest only behind Chicago. The largest companies in Minneapolis include Target, US Bank, Xcel Energy, Ameriprise Financial and Thrivent Financial. www.stpaul.gov TENANT OVERVIEW TENANT Walgreens Boots Alliance Inc. OVERVIEW: Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA 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 NASDAQ (WBA) with a market capitalization in excess of $86 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 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.