harley-davidson (ground lease | walgreens guarantee) 1973

Harley-Davidson (Ground Lease | Walgreens Guarantee)1973 Forest AvenueStaten Island, NY 10303 (New York City MSA)

Net Lease Investment Offering

www.bouldergroup.com | Confidential Offering Memorandum| 2 |

Harley Davidson | Staten Island, NY

Offering SummaryExecutive Summary ................................................................... 1

Investment Highlights ............................................................. 2

Property Overview ...................................................................... 3

Lease & Sublease Overview ..................................................4

Location OverviewPhotographs ................................................................................... 5

Location Aerial ..............................................................................6

Site Plan ............................................................................................. 7

Map .......................................................................................................8

Market OverviewMarket Overviews .......................................................................9

Demographics ..............................................................................11

Tenant OverviewBrand Overview ...........................................................................12

Guarantor Overview .................................................................12

Table of Contents

TABLE OF CONTENTS


Harley Davidson | Staten Island, NYExecutive Summary

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Harley-Davidson property, located in Staten Island, New York. The property is positioned at a signalized intersection along the areas primary thoroughfare. The Harley-Davidson is a relocation of an existing high performing store showing their commitment to the trade area. The property is currently subleased to Harley-Davidson through April 2039.

The 8,299 square foot property is strategically positioned on the northwest corner of Forest Avenue and Van Name Avenue. The intersection experiences traffic counts of 20,794 vehicles per day. The property is benefited by its location within a densely populated area and strong regional trade area that features a number of national retailers including The Home Depot, Lowe’s Home Improvement, Kohl’s, TJ Maxx, LA Fitness, Regal Cinemas, HomeGoods, Michaels and a number of quick service restaurants, auto part stores and banks. There are 208,475 people living within a three-mile radius of the property earning an average household income of more than $90,000 per year.

In 2006, Walgreens originally signed a ground lease through July 2032. In 2017, Walgreens subleased the property to Harley-Davidson of Staten Island. The lease is still guaranteed by Walgreens, an investment grade rated company (S&P: BBB).

The Walgreens ground lease runs through July 31, 2032 and features 10% rental escalations every five years throughout the primary term and in each five 5-year renewal option. The Walgreens sublease with Harley-Davidson runs through April 30, 2039, which suggests Walgreens has full intentions to exercise their first two renewal option periods through July 31, 2042.



INVESTMENT HIGHLIGHTS

■ Located within the New York City MSA

■ Lease is guaranteed by Walgreens, an investment grade rated tenant (S&P: BBB)

■ Long term ground lease with 11 years remaining

■ Harley Davidson sublease with over 18 years remaining

■ 10% rental escalations every 5 years

■ Five 5-year renewal options

■ No landlord responsibilities

■ Excellent visibility and curb appeal

■ Relocation of an existing Harley-Davidson store showing their commitment to the area

■ Positioned at the corner of a signalized intersection (20,794 VPD)

■ Retailers in the immediate area include The Home Depot, Lowe’s Home Improvement, Kohl’s, TJ Maxx, LA Fitness, Regal Cinemas, HomeGoods and Michaels

■ There are 208,475 people living within a three mile radius of the property earning an average household income of more than $90,000 per year

■ Harley-Davidson of Staten Island, Inc. relocated to this location and has been in operation on Staten Island for over 100 years

Walgreens rent escalates to $352,715 in August 2022 and to $387,986 in August 2027.**Walgreens is expected to execute the first two 5-Year renewal option periods based on Harley-Davidson sublease term, which runs through April 2039.

Investment Highlights



PROPERTY OVERVIEW

Property Overview

Price: $5,830,000

Cap Rate: 5.50%

Net Operating Income: $320,650

Year Built: 2008

Lease Type:Ground Lease – No Landlord

Responsibilities

Lease Expiration: July 31, 2032

Building Size: 8,299 SF

Land Size: 0.66 Acres

Address:1973 Forest Avenue

Staten Island, NY 10303



LEASE OVERVIEW

Tenant: Walgreens

Standard & Poor’s Rating: BBB (Investment Grade)

Lease Commencement Date: April 1, 2006

Lease Expiration Date: July 31, 2032

Net Operating Income: $320,650

Rental Escalations: 10% Every 5 Year*

Renewal Options: Five 5-Year**

Lease & Sublease Overview

Sub-Tenant:Harley-Davidson of

Staten Island, Inc.

Sub-Lease Expiration Date: April 30, 2039

Sublease Rent: $318,362 (As of 5/1/2020)

Rental Escalations: 2% annually

Renewal Options: None

SUBLEASE OVERVIEW

* Walgreens rent escalates to $352,715 in August 2022 and to $387,986 in August 2027**Walgreens is expected to execute the first two 5-Year renewal option periods based on Harley-Davidson sublease term, which runs through April 2039.***Harley-Davidson of Staten Island, Inc. relocated to this location and has been in operation on Staten Island for over 100 years


Harley Davidson | Staten Island, NYPhotographs


Harley Davidson | Staten Island, NYLocation Aerial

DR. MARTIN

LUTHER KIN

G JR EXPRESSW

AY

(27,

920

VPD)

BAYONNE BRID

GE (27,400 V

PD)

Public School 22

VAN NAME A

VENUE

FOREST AVENUE (20,794 VPD)


Harley Davidson | Staten Island, NYSite Plan


Harley Davidson | Staten Island, NYLocation Map



1-Mile 3-Mile 5-Mile

Total Population: 43,148 208,475 564,460

Total Households: 13,900 70,889 197,262

1-Mile 3-Mile 5-Mile

Average Household Income: $83,686 $90,090 $84,238

Median Household Income: $68,785 $70,262 $61,774

Population Income

DEMOGRAPHICS

Demographics



Borough ofStaten Island, New York

Staten Island is one of the five boroughs of New York City. Located in the southwest portion of the city, Staten Island is the southernmost part of both the city and state of New York, with Conference House Park located at the southern tip of the island. The borough is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay.

Staten Island is renowned for its museums, historic landmarks, beaches and parkland—including the City’s largest forest preserve in the Staten Island Greenbelt. Motor traffic can reach the borough from Brooklyn via the Verrazano-Narrows Bridge and from New Jersey via the Outerbridge Crossing, Goethals Bridge, and Bayonne Bridge. Staten Island has Metropolitan Transportation Authority (MTA) bus lines and an MTA rapid transit line, the Staten Island Railway, which runs from the ferry terminal at St. George to Tottenville. Staten Island is the only borough that is not connected to the New York City Subway system. The free Staten Island Ferry connects the borough to Manhattan and is a popular tourist attraction, providing views of the Statue of Liberty, Ellis Island, and Lower Manhattan.

www.statenislandusa.com

Market Overview



City ofNew York, New York

New York City is the most populous city in the United States. With an estimated population of over 8,537,000 people distributed over a land area of about 302.6 square miles, New York City is also the most densely populated major city in the United States. Located at the southern tip of the state of New York, the city is the center of the New York metropolitan area, one of the most populous urban agglomerations in the world with an estimated 23.7 million residents. A global power city, New York City has been described as the cultural, financial, and media capital of the world, and exerts a significant impact upon commerce, entertainment, research, technology, education, politics, and sports. Home to the headquarters of the United Nations, New York is an important center for international diplomacy.

Situated on one of the world’s largest natural harbors, New York City consists of five boroughs, each of which is a separate county of New York State. The five boroughs – Brooklyn, Queens, Manhattan, The Bronx, and Staten Island – were consolidated into a single city in 1898. The city and its metropolitan area constitute the premier gateway for legal immigration to the United States. As many as 800 languages are spoken in New York, making it the most linguistically diverse city in the world. New York City is home to more than 3.2 million residents born outside the United States, the largest foreign-born population of any city in the world. In 2013, the tri-state New York Metropolitan Statistical Area (MSA) produced a gross metropolitan product (GMP) of nearly US$1.4 trillion. If greater New York City were a country, it would have the 12th highest GDP in the world.

Many districts and landmarks in New York City are well known, and the city received a record 61 million tourists in 2016, hosting three of the world’s ten most visited tourist attractions in 2013. Several sources have ranked New York the most photographed city in the world. Times Square, iconic as the world’s “heart” and its “Crossroads”, is the brightly illuminated hub of the Broadway Theater District, one of the world’s busiest pedestrian intersections, and a major center of the world’s entertainment industry. The names of many of the city’s bridges, skyscrapers, and parks are known around the world. Anchored by Wall Street in the Financial District of Lower Manhattan, New York City has been called both the most economically powerful city and the leading financial center of the world, and the city is home to the world’s two largest stock exchanges by total market capitalization, the New York Stock Exchange and NASDAQ. Manhattan’s real estate market is among the most expensive in the world. Manhattan’s Chinatown incorporates the highest concentration of Chinese people in the Western Hemisphere, with multiple signature Chinatowns developing across the city. Providing continuous 24/7 service, the New York City Subway is one of the most extensive metro systems worldwide, with 472 stations in operation. Over 120 colleges and universities are located in New York City, including Columbia University, New York University, and Rockefeller University, which have been ranked among the top universities in the world.

www1.nyc.gov

Market Overview



Harley DavidsonHarley-Davidson is an American motorcycle manufacturer, founded in Milwaukee, Wisconsin in 1903. One of two major American motorcycle manufacturers to survive the Great Depression, Harley-Davidson has survived numerous ownership arrangements, subsidiary arrangements, periods of poor economic health and product quality, as well as intense global competition, to become one of the world’s largest motorcycle manufacturers and an iconic brand widely known for its loyal following. There are owner clubs and events worldwide as well as a company-sponsored brand-focused museum.

The tenant of the property is Harley-Davidson of Staten Island. Harley-Davidson of Staten Island provides superior customer service and has an entire team that consists of professional sales members, finance experts, service technicians and a knowledgeable parts and accessories staff to support customers. Harley-Davidson of Staten Island offers the newest models. The location is complete with service, parts and sales departments. Harley-Davidson of Staten Island, Inc. re-located to this location and has been in operation on Staten Island for over 100 years.

Website: www.harley-davidson.comFounded: 1903Stock Symbol: HOG (New York Stock Exchange)Standard & Poor’s Rating: A-Market Capitalization: $9 Billion

Brand Overview



WalgreensWalgreens 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, 2018, this segment operated 9,560 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 (Symbol: WBA) with a market capitalization in excess of $51 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB. In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN’s Sustainable Development Goals.

Website: www.walgreens.comNumber of Locations: 9,560Stock Symbol: WBA (NASDAQ)Standard & Poor’s Rating: BBBMarket Capitalization: $51 Billion

Guarantor Overview

Jimmy [email protected]

EXLUSIVELY LISTED BY:

Randy [email protected]

The Boulder Group3520 Lake Avenue, Suite 203Wilmette, Illinois 60091

www.bouldergroup.com

CONFIDENTIALITY & DISCLAIMERThe 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.

harley-davidson (ground lease | walgreens guarantee) 1973

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