Offering Memorandum

$6,245,455 | Investment Details

❖ 20 year absolute NNN lease on 2015 construction

❖ Attractive option periods offering additional 50 years of lease

term

❖ Larger lot exceeding 2.30 acres

❖ Near Eastern Kentucky University (EKU) with 15,975 student body

population and 1,554 full time staff members

❖ Richmond Women’s Healthcare Center Hospital and clinic are

located directly to the southwest

❖ Limited national competition in immediate area

❖ Strong traffic counts with more than 31,000 vehicles per day

passing in front of site dailyFile Photo

501 Caperton Drive, Richmond, KY 40475

TENANT OVERVIEW

❖ Tenant Trade Name – Walgreens Boots Alliance, Inc.

❖ Ownership – Public (NASDAQ:WBA)

❖ Lease Guarantor – Corporate

❖ No Of Locations – 8,175 +/-

❖ Headquarters – Deerfield, IL

❖ Website – www.walgreens.com

File Photo

Founded in 1901, Walgreens is the largest drug retailing chain in the United States currently operating

over 8,175 drugstores in the U.S. and Puerto Rico. Additionally, in 2014, Walgreens completed the

purchase of 3,000 +/- stores of the European retail pharmacy giant Alliance Boots for $15(Bil) +/- in

cash and stock, to expand their presence internationally. This acquisition created a drugstore network

of nearly 13,200 stores across two dozen countries, with Walgreen Co. becoming a subsidiary of newly

formed Walgreens Boots Alliance. Walgreens is consistently regarded as one of the most financially

sound organizations in the United States.

❖ Standard & Poor’s Rated BBB

❖ Second Largest Drugstore Chain in the United States

❖ Ranked #19 Fortune 500 Company

❖ Ranked #47 Global 500 Company

❖ Ranked #100,000 Global World’s Most Admired Company

TENANT INFO

Overview

Price $6,245,455

Gross Leasable Area 14,820 SF

Lot Size 2.30 Acres

Net Operating Income $343,500

CAP Rate 5.50%

Year Built 2015

Lease Abstract

Lease Type NNN

Lease Term 20 Years

Lease Start 08/31/2015

Renewal Options 11 Five-Year Options

Increases N/A

Roof and Structure Tenant Responsible

THE OFFERINGMarcus & Millichap is pleased to announce the exclusive right to list for sale the within Walgreens, located at 501 Caperton Drive, Richmond, Kentucky. The 20

year NNN lease (no landlord obligations) was constructed in 2015 and has 18.3 years remaining on the base term of the lease (as at the time this campaign

was launched) with a base term expiration date of August 2035, followed by eleven 5 year options thereafter. These inviting option terms are a rarity in the

reformulated Walgreens lease structure. Located along the corridor of Eastern Bypass 876 which is flanked by such national retailers as: Krogers,

McDonald’s, Hobby Lobby, Applebee’s, KFC, White Castle, WalMart Super Center, and Lowe’s Home Improvement Center. The site is also strategically

located near the Richmond Women’s Healthcare Center and Clinic and just outside the campus of Eastern Kentucky University (EKU).

EASTERN KENTUCKY UNIVERSITY

Location Map

SALE COMPARABLES

NEW 20-YR. NNN WALGREENS17979 NE GILSAN ST., PORTLAND, OR, 97230

1

Close Of Escrow 3/16/2017

Days On Market 108

Sales Price $8,075,000

Price/SF $544.87

CAP Rate 5.26%

GLA 14,820 SF

Year Built 2016

WALGREENS DRUG STORE (20-YEAR NNN

LEASE)635 NORTH SKYLINE DRIVE, IDAHO FALLS, ID, 83402

2

Close Of Escrow 7/29/2015

Days On Market 97

Sales Price $6,915,000

Price/SF $477.23

CAP Rate 5.35%

GLA 14,490 SF

Year Built 2015

WALGREENS1630 ANDREWS ROAD, MURPHY, NC, 28906

3

Close Of Escrow On Market

Days On Market 132

Sales Price $6,300,000

Price/SF $437.00

CAP Rate 5.50%

GLA 14,430 SF

Year Built 2015

Avg. 5.31%%

0

1

1

2

2

3

4

4

5

5

6

Walgreens -

Richmond KY

New 20-Yr.

NNN

Walgreens

Walgreens

Drug Store

(20-Year

NNN Lease)

Walgreens

Average Cap Rate

Location Map

AREA MAPPING

CREATED ON APRIL 28, 2017

3 Miles 5 Miles 7 Miles

POPULATION

2021 Projection 34,122 46,752 56,934

2016 Estimate 32,635 44,495 54,023

2010 Census 29,775 41,115 50,112

2000 Census 26,211 35,664 42,855

INCOME

Average $50,509 $55,388 $58,197

Median $33,178 $38,150 $41,390

Per Capita $21,234 $22,879 $23,523

HOUSEHOLDS

2021 Projection 13,322 18,428 22,194

2016 Estimate 12,687 17,437 20,938

2010 Census 11,615 16,181 19,504

2000 Census 10,247 13,951 16,586

HOUSING

2016 $154,556 $162,020 $164,679

EMPLOYMENT2016 Daytime Population

52,548 62,496 68,420

2016 Unemployment

6.19% 5.56% 5.51%

2016 Median Time Traveled

22 23 24

RACE & ETHNICITY

White 86.75% 88.02% 89.40%

Native American 0.04% 0.05% 0.05%

African American 7.87% 6.89% 5.96%

Asian/Pacific Islander

1.52% 1.39% 1.24%

DEMOGRAPHICS

Standard & Poor’s

BBB Rated$83.8 Billion

Store Sales as of 8/201613,200+

Locations

Richmond’s Largest EmployersMAJOR EMPLOYERS

EMPLOYER# OF EMPLOYEES

*

Eastern Kentucky University 2,001

E K U 1,600

Walmart 500

Office Depot 400

Enersys Delaware 400

Sherwin-Williams 343

Physical Plant--Gentry Bldg 315

Okonite Company 310

Blue Grass Munition Center 250

Time Warner 250

Afg Richmond Plant 245

Kenwwood House 225

DEMOGRAPHICS

3-Miles 5-Miles 7-Miles

2016 Estimate Pop 32,635 44,495 54,023

2010 Census Pop 29,775 41,115 50,112

2016 Estimate HH 12,687 17,437 20,938

2010 Census HH 11,615 16,181 19,504

Median HH Income $33,178 $38,150 $41,390

Per Capita Income $21,234 $22,879 $23,523

Average HH Income $50,509 $55,388 $58,197

Population 3-Mile 5-Mile 7-Mile

2011 29,776 41,115 50,112

2016 32,636 44,495 54,023

2021 34,122 46,752 56,934

2016

Household

Incomes

3-Mile 5-Mile 7-Mile

Average $50,509 $55,388 $58,197

Median $33,178 $38,150 $41,390

Richmond, KentuckyRichmond is located in Madison County, Kentucky, United States. It is named after

Richmond, Virginia, and is the home of Eastern Kentucky University. The subject property,

Walgreens, is surrounded by national retailers in all directions. To the north the

Walgreens’ neighbors a Sonic Drive-In, O’Reilly Auto Parts, AutoZone, and an Advanced

Auto Parts. To the north east via the Eastern Bypass, there is a strip of retail containing

Pizza Hut, Napa Auto Parts, Zaxby’s Chicken, Dunkin Donuts, Rite Aid, Outback

Steakhouse, and a Dairy Queen. Directly to the south across the street is a Kroger’s

Anchored Center which shares the lot with a McDonalds, Tractor Supply Co, and a First

South National Bank. The area with the most dense area of retail lies just west of the

Walgreens. This dense corridor is home to the Vineyard Community Church, Red Lobster,

Bath & Body Works, and Sears. Adjacent to these properties is a Walmart Supercenter

and a Lowe’s. Across the street there are even more retail properties such as Dollar Tree,

Office Depot, KFC, and Applebee’s. Due to the amount of retail in this area, the

Walgreens property location has high traffic counts, with over 20,000 vehicles passing in

front of the site daily. In addition to all the retail properties, Richmond is home to

Eastern Kentucky University, which has 15,000 students +/- enrolled.

$50,5093-mile radius average Household Income

54,0237-mile radius population

20,9387-mile radius number of households

File Photo

501 Caperton Drive, Richmond, KY 40475

PRESENTED BY:

Lior Regenstreif

Senior Managing Director Investments

Senior Director Net Leased Properties Group

16830 Ventura Blvd., Suite 100

Encino, CA 91436

818.907.9525 Direct

E-mail: Lior.Regenstreif@MarcusMillichap.com