offering memorandum - ackerman & co. in atlanta, ga€¦ · pleased to exclusively present for...

OFFERING MEMORANDUM

Net Leased Walgreens9465 Highway 5

Douglasville (Atlanta MSA), GA 30135

ACTUAL PROPERTY

Table of Contents

01 EXECUTIVE SUMMARY Investment Summary

Location and Demographics

Property Aerials

Property Overview

03 MARKET OVERVIEW Douglasville, Georgia Detailed Demographics Competing Properties Sold Comparables

CONTACT

SEAN W. PATRICK, CCIM Vice President, Investment Sales 770.913.3946 [email protected]

ACKERMAN & CO. 10 Glenlake Parkway South Tower, Suite 1000 770.913.3900 | ackermanco.com

02 TENANT OVERVIEW Tenant Summary

Site Plan

Rent Roll

04 FINANCIAL OVERVIEW

This Offering Memorandum and any subsequent evaluation material you may be

provided (collectively known as the “Offering Memorandum”) is intended solely

for your limited use in considering whether to pursue negotiations to acquire

Walgreens (the “Property”) located in Douglasville (Atlanta MSA) Georgia. The

Property is being marketed for sale by Ackerman & Co. (“Broker”).

The Offering Memorandum contains brief, selected information pertaining to

the business and affairs of the Property and has been prepared by Broker. It

does not, however, purport to be all-inclusive or to contain all of the information

that a prospective purchaser may desire. Broker makes no representation or

warranty, express or implied, as to the accuracy or completeness of the Offering

Memorandum or any of its contents, and no legal liability is assumed to be

implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that

the Offering Memorandum and its contents are confidential, that you will hold

and treat it in the strictest of confidence, that you will not directly or indirectly

disclose, or permit anyone else to disclose, the Offering Memorandum or its

contents to any other person, firm, or entity (including, without limitation, any

principal for whom you have been engaged), without prior written authorization

of Owner or Broker and that you will not use or permit to be used the Offering

Memorandum or its contents to be copied or used in any fashion or manner

detrimental to the interest of Owner. Photocopy or other duplication is strictly

prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT

STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT

THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY

SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from

sources that are deemed reliable, but the Broker does not warrant or represent

that the information is true or correct. Prospective offerors are advised to verify

information independently. The Offering Memorandum is not to be construed as

an offer or as any part of a contract to sell the property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of

information relating to asbestos or any other hazardous, toxic or dangerous

chemical item, waste or substance (hereinafter collectively referred to as “Waste”)

relating to the Property shall in no way be construed as creating any warranties

or representations, expressed or implied by the Broker as to the existence or

nonexistence or nature of Waste in, under or on the Property, it may create

significant legal and/or economic obligations upon the Owner, lessee and/or

other holders of interest in the Property or a part thereof and you are hereby

advised to obtain professional assistance such as from a consultant, engineer

and/or attorney prior to taking an interest in the Property or a part thereof.

INFORMATION NOT WARRANTED

EXECUTIVE SUMMARY Investment Summary

Location and Demographics

Property Aerials

Property Overview

01

Absolute Net-Leased Walgreens

501 Executive Summary Absolute Net-Leased Walgreens

9465 Highway 5 Douglasville (Atlanta MSA), GA 30135

Ackerman & Co’s Retail Investment Sales team is pleased to exclusively present for sale an absolute net-leased Walgreens located in Douglasville, GA (Atlanta, GA MSA). The Walgreens property, originally constructed in 2002, includes a 14,490 SF building on approximately 1.376 acres. The offering provides stable cash flow for over 13 years from an investment-grade tenant; S&P: BBB/Stable-rated tenant. This asset is fee simple, and is being offered free and clear of debt.

The Walgreens store is located at a heavily traveled signalized intersection in the strongest retail corridor in Douglasville. Located just south of I-20 and Hwy 5 and down the street from Arbor Place Mall (1.2 million SF)with more than 42,245 vehicles per day.

In addition to outstanding proximity to the area hospital, the Walgreens property is located at the core of the area’s major retail corridor with national retailers such as:

INVESTMENT PROFILE

Square Footage: 14,490 SF

Acreage: 1.376 acres

Offering Price: $5,900,000

Price Per Square Foot: $407.18

Debt Structure: Market (offered free & clear)

Lease Structure: Absolute NNN

Cap Rate: 5.90%

Lease Expiration: 10/31/2027

Rental Rate: $24.00 PSF

� Arby’s � Firestone � Wendy’s � Home Depot � Babies “R” Us

The Walgreens store features a drive-thru pharmacy and Healthcare Clinic.

� Lowe’s � Wal-Mart � SunTrust Bank � McDonald’s � Best Buy


Signalized Hard Corner Location with Drive Thru: The subject Walgreens property is quality all-brick construction with a Drive Thru and Healthcare Clinic. It is the only Walgreens Drugstore within 3 miles. Ease of access and visibility will make this a strong drugstore location over time.

Absolute Net Lease (NNN) Structure: Due to the absolute net lease structure, this allows for fully passive ownership. Under the terms of the lease, the tenant is responsible for all expenses on the leased premises. These responsibilities include, but not limited to, interior, exterior, roof and structure.

Long Term Stable Cash Flow: This asset should provide steady cash flow to ownership over the remainder of the current initial lease term of over 13 years. In addition, there are ten (10), five (5) year tenant renewal options.

Offered Free and Clear of Debt: With limited single tenant product in the market, this is a benefit for an investor looking for an all-cash deal or market debt with current low interest rates.

Surrounded By National Retailers: Property is located in the strongest retail corridor west of Atlanta.

INVESTMENT HIGHLIGHTS

Cartersville

McDonough

Covington

Oxford

Conyers

Loganville

Dacula

Sugar Hill

Buford

FloweryBranchCumming

Alpharetta

F U LTO N

D E K A L B

B A R T O WH A L L

Lawrenceville

DowntownAtlanta

DOUG L A S

Midtown

Hartsfield Jackson Airport

Central Perimeter

Buckhead

CO B B

Kennesaw

Decatur

113

41

400

675

78

Source: 2012 MPSI Systems Inc. d.b.a. DataMetrix®

TRAFFIC COUNTS 42,245 VEHICLES PER DAY (COMBINED: DOUGLAS BLVD AND BILL ARP RD)

1 MILE 3 MILES 5 MILES

Population 2013 5,425 36,464 79,289

Total Households 2,128 13,115 27,289

Average Household Income $57,020 $65,394 $67,802

DEMOGRAPHIC SUMMARY

402

402

402

5

Arbor PlaceMall

Stewart Mill Rd

Brig

ht S

tar R

d

B

ill Ar

p R

d

Chapel H

ill Rd

Central Church Rd

W Stewa rt Mill Rd

Douglas Blvd


LOCATION AND DEMOGRAPHICS

9465 HIGHWAY 5 DOUGLASVILLE, GA 30135

The subject property, a net-leased Walgreens, located on 9465 Highway 5 in Douglasville (Atlanta MSA), GA, was built in 2002 and is in great physical condition. In 2013, total population within 5 miles was 79,289 and average household income within 5 miles was $67,802.


DO

UG

LAS

BLV

D

BILL ARP RD (HWY 5) 27,291 VPD

14,9

54 V

PD


PROPERTY AERIAL - CLOSE UP

DOUGLAS BLVD

BILL A

RP R

D (H

WY

5)

14,954 VPD

27,2

91 V

PD


PROPERTY AERIAL - SURROUNDING RETAIL

BILL A

RP RD (HWY 5)

DOUGLAS BLVD

BRIGHT STAR CONN

CH

APEL H

ILL RD

ARBOR PLACE MALL

STEWART PKWY

14,954 VPD

27,291 VPD


PROPERTY AERIAL - SURROUNDING RETAIL


PROPERTY OVERVIEW

Address: 9465 Hwy 5, Douglasville, GA 30135

Parcel ID: 234-00-00-142

County: Douglas County - City of Douglasville, GA

Metro Market: Atlanta MSA

Zoning: General Commercial (GC)

Building Size: 14,490 SF

Land Area: 1.376 acres

Year Built: 2002

Construction: Concrete block and brick

Parking: 57 parking spaces

Signage: Large dedicated pylon at the intersection of Hwy 5 and Douglas Blvd

Access: There are three points of ingress/egress via Hwy 5 and Douglas Blvd and cross access

Store Number: 6896

Drive-Thru: Yes

Pharmacy: Yes

Photo: Yes

Health Clinic: Yes

Store Hours : Open seven days a week8:00 AM - 10:00 PM

Pharmacy Hours: M-F, 7:00 AM - 12:00 AMSat, 8:00 AM - 10:00 PMSun, 8:00 AM - 8:00 PM

9465 Highway 5 Douglasville (Atlanta MSA), GA 30135

TENANT OVERVIEW Tenant Summary Site Plan Rent Roll

02


SIZEOne-Story Building

SQUARE FOOTAGE14,490

LEASE EXPIRATION2027

02 Tenant Overview 13Absolute Net-Leased Walgreens

WALGREENS

Founded in 1901, Walgreens is the largest drug retailing chain in the United States currently operates 8,678 drugstore chains across the United States and Puerto Rico. In addition, Walgreens completed their purchase in 3,000+ store European retail pharmacy giant Alliance Boots to expand their presence internationally. Walgreens is a national leader in providing prescription and non-prescription drugs and household consumer products. With an S&P credit rating of BBB, Walgreens is consistently regarded as one of the most financially sound organizations in the United States. Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to consistently outperform its competitors with regard to earnings per share, revenue growth, net income growth, and cash flow from operations. In 2013, Walgreens posted its unprecedented 39th straight year of record sales and earnings.

Walgreen Company (NYSE: WAG) S&P Rating: BBB/stableHeadquarters: Deerfield, IL USA Store Locations: 8,678 as of January 31, 2014Year Founded: 1901Employees: 244,000Market Capitalization: $59.31B (8/20/2014)Net Sales: $72.217B (Fiscal 2013)

www.walgreens.com

TENANT SUMMARY

1402 Property Overview Absolute Net-Leased Walgreens

SITE PLAN

02 Tenant Overview 15Absolute Net-Leased Walgreens

RENT ROLL – as of August 2014

SUITE TENANT START DATE

EXPIRATION DATE

RSF ANNUAL RENT

MONTHLY RENT

PSFRENT

RENEWALTERM

RENEWAL INCREASE

NOTES

1 Walgreens 11/1/2002 10/31/2027 14,490 $347,760 $28,980 $24.00 5 years None

Tenant retains Ten (10) x Five (5) year options after the initial Twenty

Five (25) year lease term.

RENEWAL OPTIONS

Option 1 $347,760

Option 2 $347,760

Option 3 $347,760

Option 4 $347,760

Option 5 $347,760

Option 6 $347,760

Option 7 $347,760

Option 8 $347,760

Option 9 $347,760

Option 10 $347,760

MARKET OVERVIEW Douglasville, Georgia Demographics Competing Properties Sold Comparables

03


Douglasville Courthouse

03 Market Overview 17Absolute Net-Leased Walgreens

DOUGLASVILLE, GEORGIA

The City of Douglasville has thrived just 20 minutes west of downtown Atlanta. The City is the 7th largest municipality in the Atlanta MSA Market and the county seat of Douglas County. With the slogan, “New Growth, Old Charm, Always Home” , it is a pro-business community with average Household Income within 5 miles of $67,802 expected to grow by over 3% through 2018.

The Hwy 5 and Chapel Hill Rd retail corridor was confirmed when the 1.2M square foot Arbor Place Mall was opened in the fall of 1999 and has followed with just about every national retailer. The other amenities in the area include the 2000 ac Sweetwater Creek State Park, multiple public golf courses and Six Flags Over Georgia.

TOP TEN CORPORATE EMPLOYERS: METRO ATLANTA

Company EmploymentDelta Airlines 22,257

AT&T 21,915

Emory University and Emory Healthcare 21,000

Cox Enterprises 13,583

United Parcel Service (UPS) 10,745

WellStar Health System 10,112

SunTrust Banks 7,700

Lockheed Martin Aeronautics 7,531

IBM Corporation 7,500

Georgia Institute of Technology 7,342

COMPANY EMPLOYMENT LOCATION

Silver Line Building Products 1,200 Douglas County

Douglas County Gvmt. 875 City of Douglasville

American Red Cross 450 City of Douglasville

APL Logistics 400 Douglas County

WellStar Douglas Hospital 313 City of Douglasville

Benton Georgia 300 City of Douglasville

Staples Customer Fulfillment 258 City of Douglasville

Medline Industries 250 City of Douglasville

Douglasville Government 243 Douglas County

Seasons 4 225 Douglas County

TOP TEN EMPLOYERS:

CITY OF DOUGLASVILLE & DOUGLAS COUNTY


DOUGLASVILLE, GA DEMOGRAPHICS

Sources: Claritas, Market + Main, Inc., U.S. Census Bureau

DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2013 Population 5,425 36,464 79,2892018 Projected Population 5,469 37,310 81,0472010 Census Population 5,430 36,128 78,6042000 Census Population 4,572 27,216 58,814Growth 2000 - 2013 18.69% 33.68% 34.52%Growth 2013 - 2018 .81% 2.32% 2.22%2013 Median Age 35.0 36.1 35.72013 Households 2,128 13,115 27,2892018 Projected Households 2,168 13,433 27,8892010 Census Households 2,110 12,972 27,0212000 Census Households 1,740 9,672 20,296Growth 2000 - 2010 21.27% 34.12% 33.14%Growth 2010 - 2013 .87% 1.10% .99%Growth 2013 - 2018 1.87% 2.43% 2.20%2013 Average Household Size 2.41 2.70 2.862013 Housing Units 2,128 13,115 27,2892013 Owner Occupied Units 44.17% 63.30% 72.24%2013 Renter Occupied Units 55.83% 36.70% 27.76%

402

402

402

5

Arbor PlaceMall

Stewart Mill Rd

Brig

ht S

tar R

d

B

ill Ar

p R

d

Chapel H

ill Rd

Central Church Rd

W Stewa rt Mill Rd

Douglas Blvd

2.5-

MILE

RAD

IUS


KROGER PHARMACY3251 HWY 5DOUGLASVILLE, GA 30135

0.5 MILES

PUBLIX PHARMACY3316 HWY 5DOUGLASVILLE, GA 30135

0.6 MILES

CVS - FREESTANDING3674 HWY 5DOUGLASVILLE, GA 30135

1.2 MILES

RITE AID - FREESTANDING3687 HWY 5DOUGLASVILLE, GA 30135

1.2 MILES

SAM’S CLUB PHARMACY6995 CONCOURSE PKWYDOUGLASVILLE, GA 30134

0.15 MILES

WALMART PHARMACY 7001 CONCOURSE PKWYDOUGLASVILLE, GA 30134

0.15 MILES

RITE AID - FREESTANDING2981 CHAPEL HILL RDDOUGLASVILLE, GA 30135

2.5 MILES


COMPETING PROPERTIES WITHIN 3 MILES

1

2

3

2 31

841 S. Main StGraham, NC 27253

Total SF 13,824

Sales Price $4,290,000 ($310.33 PSF)

Built 2004

Sold 6.7.2013

Parking 57Surface Spaces

Land 1.18 Acres

2050 Government StMobile, AL

Total SF 15,820

Sales Price $6,065,573 ($383.41 PSF)

Built 2003

Sold 2.26.2014

Parking 62Surface Spaces

Land 2.07 Acres

780 Glynn StFayetteville, GA

Total SF 14,668

Sales Price $6,239,500 ($425.38 PSF)

Built 2002

Sold 2.18.2014

Parking 54 Surface Spaces

Land 2.45 Acres


SOLD COMPARABLES

FINANCIAL OVERVIEW

04


04 Financial Overview 22Absolute Net-Leased Walgreens

Sales Price $5,900,000

Square Feet 14,490

Price Per SF $407

Cap Rate 5.90%

Financing Market

FINANCIAL OVERVIEW

Address 9465 Highway 5, Douglasville, GA

Propety Type Single-Tenant Retail

Year Built 2002

Parcel Size 1.376 Acres

Type of Ownership Fee Simple

BUILDING INFORMATION

Commencement Date 11/1/2002

End Date 10/31/2077

Initial Lease Term 25 Years

Annual Rent $347,760

Rent Escalations (Current Term) None

Rent Per Month $28,980

Lease Type Absolute NNN

Options Ten (10) x Five (5)

Option Rental Increases None

Landlord Responsibilities None

LEASE DETAILS

offering memorandum - ackerman & co. in atlanta, ga€¦ · pleased to exclusively present for...

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