NET LEASE INVESTMENT OFFERING
WALGREENS (Top Performing Store) 2001 N Milwaukee Avenue, Chicago, IL 60647
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 STATEMENT:
The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended 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 SUMMARY:
The Boulder Group is pleased to exclusively market for sale a single tenant Walgreens property located in the Bucktown neighborhood of Chicago. This Walgreens location has exceptional reported store sales and operates as a 24-hour location. The property is strategically positioned at the notable signalized intersection of Milwaukee Avenue and Armitage Avenue and benefits from its close proximity to a CTA Blue Line “L” station. There are over 16 years remaining on the Walgreens lease which expires on December 31, 2031. The absolute triple net lease features no landlord responsibilities and ten 5-year renewal option periods. Walgreens Company is the largest drug retailing chain in the United States and is an investment grade rated company (S&P: BBB). Walgreens Company is a subsidiary of Walgreens Boots Alliance, Inc. Walgreens Boots Alliance, Inc. is an investment grade rated company (S&P: BBB) and is publicly traded (NASDAQ: WBA) with a market capitalization in excess of $100 billion. The approximately one acre property is positioned at the heavily trafficked signalized intersection of Milwaukee Avenue and Armitage Avenue which experiences traffic counts in excess of 30,000 vehicles per day. The property is located just west of Western Avenue which is the primary north-south thoroughfare in the immediate trade area. The property is benefitted by its proximity to Interstate 90/94 which is located less than one mile east from the Walgreens and experiences traffic counts in excess of 300,000 vehicles per day. The Western CTA Blue Line “L” Station is located one block south of the Walgreens and experiences over 1,500,000 rail entries per year. The CTA Blue “L” Line connects the city of Chicago to Chicago O’Hare International Airport. Additionally, the Bloomingdale Trail, also known as “The 606”, substantially enhanced the property and the surrounding area. The Bloomingdale Trail is an elevated multi-use recreational trail and park that was completed in 2015 and is a popular attraction for walkers, runners, and bikers. The trail is located just south of the Walgreens property. The surrounding area is densely concentrated providing significant barriers to entry. The Walgreens vastly out positions the nearby older midblock CVS that does not have a drive thru providing for a significant competitive advantage. The surrounding retail area features many local and national tenants including Aldi, Starbucks, McDonald’s, Physicians Immediate Care and 7-Eleven. The Bucktown neighborhood features many upscale shops and restaurants such as Lululemon, BCBG, Club Monaco, Nike and Marc by Marc Jacobs. The surrounding area is densely populated with approximately 60,000 people living within a one mile radius and over 135,000 people living within a one and one-half mile radius. There are over 16 years remaining on the absolute triple net Walgreens lease. The lease expires on December 31, 2031. This Walgreens locations has exceptional reported store sales. Walgreens is a wholly owned subsidiary of Walgreens Boots Alliance, Inc. which is an investment grade rated company (S&P: BBB) with a market capitalization in excess of $100 billion.
NET LEASE INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
INVESTMENT HIGHLIGHTS:
• Located in the Bucktown neighborhood of Chicago • Long term lease with over 16 years remaining • Investment grade rated tenant (S&P: BBB) with a market capitalization in excess of $100 billion • Top performing Walgreens with exceptional reported store sales • Absolute triple net lease with no landlord responsibilities • Positioned at the signalized intersection of Armitage Avenue and Milwaukee Avenue (30,000 VPD) • Densely populated area with approximately 60,000 people living within a one mile radius of the property earning average annual household incomes in excess of $80,000 • Immediate proximity to the CTA Blue Line “L” Western Station which experiences total annual rail entries in excess of 1,500,000 people • Positioned near the newly constructed Bloomingdale (“The 606”) Trail which is an elevated multi-use recreational trail and park • Located less than one mile from Interstate 90/94 which experiences traffic volumes in excess of 300,000 vehicles per day • Less than five miles northwest of the downtown Chicago Loop • Surrounding area is densely concentrated providing significant barriers to entry • This Walgreens location significantly out positions the nearby midblock CVS • 24-hour location with a drive thru and 28 on-site parking spots
NET LEASE INVESTMENT OFFERING
PROPERTY OVERVIEW
PROPERTY OVERVIEW:
Price:
$11,900,000
Cap Rate:
5.00%
Net Operating Income:
$595,000
Lease Commencement Date:
January 1, 2006
Lease Expiration Date:
December 31, 2031
Renewal Options:
Ten 5-Year
Tenant:
Walgreens
Credit Rating:
Investment Grade (S&P: BBB)
Year Built:
2006
Lease Type:
Triple Net
Building Size:
13,005 SF
Land Size:
39,513 SF
Parking Spaces:
28
NET LEASE INVESTMENT OFFERING
PHOTOGRAPHS
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AERIAL
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SITE PLAN
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MAPS
Lake Michigan
CHICAGO
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MAPS
Lake Michigan
CHICAGO
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DEMOGRAPHIC REPORT
DEMOGRAPHIC REPORT:
NET LEASE INVESTMENT OFFERING
Population
.5-Mile
1-Mile
1.5-Mile
Total Population
18,625
58,989
136,584
Total Households
8,307
25,968
59,079
Income
.5-Mile
1-Mile
1.5-Mile
Median Household Income
$60,283
$54,010
$52,591
Average Household Income
$88,287
$80,554
$79,783
MARKET OVERVIEW
MARKET OVERVIEW:
Bucktown is a neighborhood located in the east of the Logan Square community area in Chicago, directly north of Wicker Park, and northwest of the Loop. Today, the neighborhood is best known for its numerous commercial and entertainment establishments and being a convenient place to live for downtown workers due to its proximity to public transportation and the Loop. Gentrification has made the area much more attractive to college-educated white-collar workers. This has led to increased business activity, with many new bars, restaurants, and stores opening to serve these individuals. The neighborhood is readily accessible via the Blue Line and has multiple access points to the elevated Bloomingdale Trail. Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement. The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. www.cityofchicago.org
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TENANT OVERVIEW
TENANT OVERVIEW:
Walgreens Boots Alliance, Inc. is an American-based multinational holding company headquartered in Deerfield, Illinois that owns Walgreens, Boots and a number of pharmaceutical manufacturing, wholesale and distribution companies. The company was formed on December 31, 2014 after Walgreens purchased the 55% stake in Switzerland-based Alliance Boots that it did not already own. Walgreens had previously purchased 45% of the company in 2012 with an option to purchase the remaining shares within three years. Under the terms of the merger, the new company was organized into three divisions, of which Walgreens and Boots each became one. The third division is Pharmaceutical Wholesale, incorporating Alliance Healthcare. The new holding company began trading on the NASDAQ on December 31, 2014. The combined business has operations in over 25 countries. Walgreens had formerly operated solely within the United States and its territories, while Alliance Boots operated a more international business. Walgreens Boots Alliance, Inc is an investment grade rated company with a Standard and Poor’s rating of BBB. The company is listed on the NASDAQ (WBA) with a market capitalization in excess of $100 billion.
Website: Credit Rating: Stock Symbol: Market Capitalization: Number of Walgreens Locations: Number of Employees: Headquarters:
NET LEASE INVESTMENT OFFERING
www.walgreensbootsalliance.com Investment Grade (S&P: BBB) NASDAQ: WBA $100 Billion 8,207 370,000 Deerfield, IL
Randy Blankstein President 847.562.0003 randy@bouldergroup.com
Jimmy Goodman Partner 847.562.8500 jimmy@bouldergroup.com
666 Dundee Road, Suite 1801 Northbrook, IL 60062 www.bouldergroup.com