true nnn with 15+ years of proven...

Walgreens Pharmacy #6440 Phoenix Metro Area

• 12 Years remaining on true NNN lease with no management or cost exposure

• 65% of the population is age 55 or older

• Proven, performing location with 15+ years of above average reported sales

• Freestanding store on hard corner with drive thru

• Gold Canyon Arizona is a newer, well maintained unincorporated city in Pinal County about 30 minutes east of the Phoenix Sky Harbor airport

• Walgreens (NASDAQ:WBA) corporate guarantees the rent

$6,125,000

6.00%CAP Rate

DeerfieldPartnersJohn GiordaniArtGriffith(888) [email protected]

True NNN with 15+ Years of Proven Performance

Walgreens Pharmacy #6440 Gold Canyon, Arizona

DeerfieldPartnersJohn GiordaniArt GriffithCall: (888) 258-7605Email: [email protected]

This is an opportunity for an investor to acquire a proven, performing Walgreens in a community with the agingdemographicssoughtoutbyWalgreens.Withinthethreemileradius,65% of the population is age 55 or older! Proven, performing location with 15+ year history of above average reported sales.

Investment Summary1 Mile 3 Mile 5 Mile

Population 3,421 10,828 20,774Avg.HHIncome $78,193 $88,787 $77,822

Price $6,125,000CAP Rate 6.00%

Annual Income $367,500 NNNYears Guaranteed 12 years

Debt Offeredfree&clear

Demographic and Income Profile6951 S Kings Ranch Rd, Gold Canyon, Arizona, 85118 Prepared by EsriRing: 3 mile radius Latitude: 33.35175

Longitude: -111.45788

AreaStateUSA

Trends 2016-2021Trends 2016-2021

Ann

ual R

ate

(in

perc

ent) 2.5

2

1.5

1

0.5

0Population Households Families Owner HHs Median HH Income

20162021

Population by AgePopulation by Age

Perc

ent

30

25

20

15

10

5

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2016 Household Income 2016 Household Income

<$15K6.6%

$15K - $24K7.3%

$25K - $34K10.4%

$35K - $49K10.6%

$50K - $74K22.1%

$75K - $99K14.1%

$100K - $149K16.1%

$150K - $199K6.2%

$200K+6.5%

2016 Population by Race2016 Population by Race

Perc

ent

90

80

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+

2016 Percent Hispanic Origin: 6.2%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2016 and 2021.

August 29, 2016

©2016 Esri Page 4 of 6



Summary Census 2010 2016 2021Population 10,161 10,828 11,156Households 4,907 5,221 5,343Families 3,583 3,775 3,849Average Household Size 2.07 2.07 2.09Owner Occupied Housing Units 4,371 4,540 4,625Renter Occupied Housing Units 536 681 719Median Age 60.7 62.7 65.1

Trends: 2016 - 2021 Annual Rate Area State NationalPopulation 0.60% 1.21% 0.84%Households 0.46% 1.15% 0.79%Families 0.39% 1.05% 0.72%Owner HHs 0.37% 1.13% 0.73%Median Household Income 2.89% 2.16% 1.86%

2016 2021 Households by Income Number Percent Number Percent

<$15,000 346 6.6% 335 6.3%$15,000 - $24,999 382 7.3% 342 6.4%$25,000 - $34,999 545 10.4% 672 12.6%$35,000 - $49,999 556 10.6% 322 6.0%$50,000 - $74,999 1,154 22.1% 1,018 19.1%$75,000 - $99,999 736 14.1% 752 14.1%$100,000 - $149,999 843 16.1% 1,048 19.6%$150,000 - $199,999 322 6.2% 448 8.4%$200,000+ 337 6.5% 408 7.6%

Median Household Income $64,545 $74,422Average Household Income $88,787 $99,961Per Capita Income $42,508 $47,531

Census 2010 2016 2021 Population by Age Number Percent Number Percent Number Percent

0 - 4 257 2.5% 241 2.2% 219 2.0%5 - 9 291 2.9% 292 2.7% 262 2.3%10 - 14 295 2.9% 322 3.0% 330 3.0%15 - 19 305 3.0% 285 2.6% 301 2.7%20 - 24 198 1.9% 234 2.2% 204 1.8%25 - 34 450 4.4% 462 4.3% 458 4.1%35 - 44 725 7.1% 660 6.1% 608 5.4%45 - 54 1,360 13.4% 1,166 10.8% 998 8.9%55 - 64 2,352 23.2% 2,375 21.9% 2,171 19.5%65 - 74 2,598 25.6% 3,022 27.9% 3,386 30.4%75 - 84 1,141 11.2% 1,495 13.8% 1,843 16.5%

85+ 186 1.8% 274 2.5% 376 3.4%Census 2010 2016 2021

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 9,638 94.9% 10,215 94.3% 10,460 93.8%Black Alone 89 0.9% 102 0.9% 112 1.0%American Indian Alone 42 0.4% 52 0.5% 66 0.6%Asian Alone 84 0.8% 87 0.8% 89 0.8%Pacific Islander Alone 10 0.1% 12 0.1% 12 0.1%Some Other Race Alone 140 1.4% 169 1.6% 197 1.8%Two or More Races 158 1.6% 192 1.8% 220 2.0%

Hispanic Origin (Any Race) 561 5.5% 668 6.2% 790 7.1%Data Note: Income is expressed in current dollars.


August 29, 2016




Regional Map

Property Details and Lease SummaryAddress 6951S.KingsRanchRoad,GoldCanyon,AZ85118

Year Built 2001Building Size 15,125 Square Feet

Lot Size 1.54acresTenant Walgreens (NASDAQ:WBA)

Termination Options Tenant may terminate every 5 years starting 12/31/2028 with six months noticeLease End Date 12/31/2081



Gold Canyon Arizona is a newer, well maintained unincorporated city in Pinal County about 45 minutes east of the PhoenixSkyHarborairport.Theareaisconsideredbymanyasanupscalecommunitythathasmanyaffordablehomes.GoldCanyonisadjacenttotheSuperstitionMountainWildernessandatthefoothillsofSuperstitionMountain,whichofferthousandsofsquaremilesofpubliclandforhiking,bikeriding,photography,campingandotheroutdoorsports.Therearefive18-holechampionshiplengthgolfcourseswithinGoldCanyonanddozensmorewithina30minutedrive.

Manyofthecommunity’shomeshavebeenbuiltsinceabout2000.Thereareavarietyofhousingoptions.Thereiseverythingfromveryaffordablepricedsinglefamilyhomes;singlelevelortwostoryhomes,aswellascondos.Therearealsocustombuiltluxuryhomesinprivategatedcommunities.Somehomesarepricedinthelow$100’stoothersrangingupwardstomorethan$1+milliondollars.

The growth and development of the area has encouraged the building of commercial businesses less than ten minutesaway.Thedevelopmentincludesmanynationalchainstores,suchasWalmart,Kohls,BedBathandBeyond,Staples,andmanyotherswhichislocatedoffofHighway60atSignalButteinMesa,Arizona.Alsolocatedthereareseveralrestaurants,smallershops,amajorhealthclub,andmultiplemovietheaters,includinganIMAXtheateralllocatedthere.LocatedrightinGoldCanyonarecoffeeshops,afewrestaurants,banks,agrocerystore,amovierental kiosks, a gas station, an elementary school, places of worship, medical facilities and all the other services one needstolivecomfortablydaytoday.TherearemedicaldoctorsinGoldCanyon,alternativecareproviders,aswellasmajor,nearbyhospitalslocatedlessthan30minutesaway,withacoupleonlyabout10minutesaway.

The community is made up of year round residents as well as seasonal “snow-birds” who come to the Gold Canyon Arizonaareatoescapethesnowandcold.GoldCanyonweatheristerrificwithplentyofsunshine,nosnowfall,andbeautifuldaysandnightsfilledwithmildandhottemperatures.

The views of the Superstition Mountain, along with evening sunsets, makes Gold Canyon one of the most picturesque areasinallofArizona.Itisagreatplacetocallhome.

About Gold Canyon



Store Photos



About Walgreens Boots AllianceWalgreensBootsAllianceisthefirstglobalpharmacy-led,healthandwellbeingenterpriseintheworld.Ourpurposeistohelppeopleacrosstheworldleadhealthierandhappierlives. Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots inDecember2014.Thistransactionbroughttogethertwoleadingcompanieswithiconicbrands,complementary geographic footprints, shared values and a heritage of trusted healthcare services throughpharmaceuticalwholesalingandcommunitypharmacycare,datingbackmorethan100years.

The Company, with a presence in more than 25 countries, employs over 370,000 people and is the largestretailpharmacy,healthanddailylivingdestinationintheUSAandEurope.

The Company’s size, scale, and expertise will help us to expand the supply, and address the rising cost of,prescriptiondrugsintheUSAandworldwide.

Byleveragingtheseadvantagesandopportunities,aswellasthefullbenefitofourbestpracticesandexpertise,WalgreensBootsAlliancewillbepositionedtocreatesubstantialincrementalefficiency,synergyandgrowthopportunities.

The creation of Walgreens Boots Alliance provides an opportunity to further accelerate the development of a fully integrated, global platform for the future to provide innovative ways to address health and wellnesschallenges.OurCompanyiswellpositionedtoexpandcustomerofferingsinexistingmarketsandbecomethehealthandwellbeingpartnerofchoiceinemergingmarkets.



Walgreens Boots Alliance -- Segment Structure

8

Walgreens Boots Alliance – Segment Structure

The largest retail pharmacy chain in Europe

A leading global pharmaceutical wholesaler

and distributor

A leading drugstore chain in the USA

The first global pharmacy-led, health and wellbeing enterprise in the world



Walgreens Boots Alliance -- Retail Pharmacy USA DivisionTheRetailPharmacyUSADivision’sprincipalretailpharmacybrandsareWalgreensandDuaneReade.Together,theyformthelargestdrugstorechainintheUSA.

This Division operates 8,240 drugstores in 50 states, the District of Columbia, Puerto Rico and the US VirginIslands.AsofAugust2014,approximately76%ofthepopulationoftheUSAliveswithinfivemilesofaWalgreens.

The company sells prescription and non-prescription drugs, as well as general merchandise, including householditems,convenienceandfreshfoods,personalcare,beautycare,photofinishingandcandy.They provide customers with convenient, omni-channel access to consumer goods and services, pharmacy,andhealthandwellnessservicesincommunitiesacrossAmerica.

Thecompany’swebsites,whichincludeWalgreens.comanddrugstore.com,receiveanaverageofapproximately60millionvisitspermonth.Integratedwithane-commerceplatform,theWalgreensmobileapplicationallowscustomerstorefillprescriptionsthroughscantechnology,receivetextmessagesalertingwhenarefillisdueandotherfront-endfunctionality,suchasphotoandshoppingfeatures.

Prescriptiondrugsaccountfor64percentofsales,whileretailproductsare36percent.Overall,WBAfilledapproximately699millionprescriptionsin2014.

3Q15 Financial Performance – Retail Pharmacy USA

9

GAAP $ million

3Q15 Financial Performance – Retail Pharmacy USA

Non-GAAP* $ million

* Non-GAAP financial measures – See attached Appendix.

Total Sales $20,425 Gross Profit $5,527 SG&A $4,494 Operating Income $1,033

Operating Margin 5.1%

Adjusted Gross Profit $5,596

Adjusted SG&A $4,268

Adjusted Operating Income $1,328

Adjusted Operating Margin 6.5%



Item 1B. Unresolved Staff Comments

There are no unresolved written comments that were received from the SEC Staff 180 days or more before theend of our fiscal year relating to our periodic or current reports under the Securities Exchange Act of 1934.

Item 2. Properties

The Company’s locations, including drugstores, infusion and respiratory service facilities, specialty pharmaciesand mail service facilities at August 31, 2014 and 2013 are listed below.

2014 2013 2014 2013 2014 2013

Alabama 115 113 Louisiana 154 152 Oklahoma 117 121Alaska 8 7 Maine 15 15 Oregon 77 80Arizona 250 258 Maryland 89 80 Pennsylvania 131 138Arkansas 83 78 Massachusetts 168 185 Rhode Island 26 29California 646 663 Michigan 232 232 South Carolina 110 119Colorado 160 172 Minnesota 154 164 South Dakota 14 14Connecticut 95 125 Mississippi 78 79 Tennessee 254 271Delaware 65 66 Missouri 219 221 Texas 712 729District of Columbia 6 5 Montana 14 14 Utah 48 45Florida 861 881 Nebraska 60 62 Vermont 3 4Georgia 204 208 Nevada 84 92 Virginia 141 149Hawaii 19 17 New Hampshire 32 36 Washington 139 140Idaho 40 42 New Jersey 191 215 West Virginia 17 23Illinois 610 620 New Mexico 69 68 Wisconsin 228 234Indiana 201 218 New York 486 527 Wyoming 11 11Iowa 70 72 North Carolina 263 221 Guam 0 1Kansas 70 72 North Dakota 1 1 Puerto Rico 120 118Kentucky 98 103 Ohio 250 272 U.S. Virgin Islands 1 0

TOTAL 8,309 8,582

The Company owned approximately 20% of its retail drugstore locations and leased the remaining locations atAugust 31, 2014. The leases are for various terms and periods. See Note 3 to the Company’s ConsolidatedFinancial Statements in Part II, Item 8 of this Form 10-K. Net retail selling space remained consistent at89 million square feet at August 31, 2014 and 2013. Approximately 20% of Company stores have been opened orremodeled during the past five years, including our “Well Experience” store format in over 700 locations,including a market-wide transformation in the Indianapolis area and new flagship stores in select marketsincluding Boston, Chicago, Los Angeles, New York City, San Francisco, Washington, D.C., Las Vegas andPuerto Rico.

As of August 31, 2014:

• The Company’s retail store operations were supported by 19 major distribution centers with a total ofapproximately 11 million square feet of space, of which 13 locations are owned. The remaining spaceis leased. All distribution centers are served by modern systems for order processing control and rapidmerchandise delivery to stores. In addition, the Company uses public warehouses and third partywholesalers to handle certain distribution needs. As of August 31, 2014, AmerisourceBergendistributed substantially all of the Company’s branded and generic pharmaceutical products.

• The Company operated 34 principal office facilities containing approximately three million square feet,of which 13 locations were owned. The Company operated two mail service facilities containingapproximately 237 thousand square feet, one of which was owned.

• The Company owned 16 strip shopping malls containing approximately 500 thousand square feet.

31

Walgreens Properties Nationwide



Income Statements Trailing 5 Years



Demographics - 1 Mile Radius



AreaStateUSA

Trends 2016-2021Trends 2016-2021

Ann

ual R

ate

(in

perc

ent)

2.22

1.81.61.41.2

10.80.60.40.2


20162021


Perc

ent

30

25

20

15

10

5

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K7.9%

$15K - $24K8.4%

$25K - $34K11.7%$35K - $49K

11.9%

$50K - $74K21.6%

$75K - $99K14.1%

$100K - $149K14.9%

$150K - $199K5.4%

$200K+4.2%


Perc

ent

90

80

70

60

50

40

30

20

10




August 29, 2016










<$15,000 138 7.9% 135 7.6%$15,000 - $24,999 147 8.4% 134 7.5%$25,000 - $34,999 205 11.7% 258 14.5%$35,000 - $49,999 208 11.9% 123 6.9%$50,000 - $74,999 377 21.5% 336 18.8%$75,000 - $99,999 247 14.1% 256 14.3%$100,000 - $149,999 260 14.9% 324 18.2%$150,000 - $199,999 94 5.4% 131 7.3%$200,000+ 73 4.2% 89 5.0%



0 - 4 75 2.3% 71 2.1% 67 1.9%5 - 9 81 2.5% 84 2.5% 80 2.3%10 - 14 78 2.4% 90 2.6% 95 2.7%15 - 19 83 2.6% 76 2.2% 86 2.4%20 - 24 52 1.6% 69 2.0% 57 1.6%25 - 34 128 4.0% 132 3.9% 140 4.0%35 - 44 197 6.1% 183 5.4% 173 4.9%45 - 54 357 11.1% 288 8.4% 264 7.5%55 - 64 725 22.4% 697 20.4% 624 17.8%65 - 74 945 29.3% 1,062 31.1% 1,122 31.9%75 - 84 441 13.7% 567 16.6% 669 19.0%

85+ 68 2.1% 101 3.0% 136 3.9%Census 2010 2016 2021




August 29, 2016







AreaStateUSA

Trends 2016-2021Trends 2016-2021

Ann

ual R

ate

(in

perc

ent) 2.5

2

1.5

1

0.5


20162021


Perc

ent

30

25

20

15

10

5

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K6.6%

$15K - $24K7.3%

$25K - $34K10.4%

$35K - $49K10.6%

$50K - $74K22.1%

$75K - $99K14.1%

$100K - $149K16.1%

$150K - $199K6.2%

$200K+6.5%


Perc

ent

90

80

70

60

50

40

30

20

10




August 29, 2016










<$15,000 346 6.6% 335 6.3%$15,000 - $24,999 382 7.3% 342 6.4%$25,000 - $34,999 545 10.4% 672 12.6%$35,000 - $49,999 556 10.6% 322 6.0%$50,000 - $74,999 1,154 22.1% 1,018 19.1%$75,000 - $99,999 736 14.1% 752 14.1%$100,000 - $149,999 843 16.1% 1,048 19.6%$150,000 - $199,999 322 6.2% 448 8.4%$200,000+ 337 6.5% 408 7.6%



0 - 4 257 2.5% 241 2.2% 219 2.0%5 - 9 291 2.9% 292 2.7% 262 2.3%10 - 14 295 2.9% 322 3.0% 330 3.0%15 - 19 305 3.0% 285 2.6% 301 2.7%20 - 24 198 1.9% 234 2.2% 204 1.8%25 - 34 450 4.4% 462 4.3% 458 4.1%35 - 44 725 7.1% 660 6.1% 608 5.4%45 - 54 1,360 13.4% 1,166 10.8% 998 8.9%55 - 64 2,352 23.2% 2,375 21.9% 2,171 19.5%65 - 74 2,598 25.6% 3,022 27.9% 3,386 30.4%75 - 84 1,141 11.2% 1,495 13.8% 1,843 16.5%

85+ 186 1.8% 274 2.5% 376 3.4%Census 2010 2016 2021




August 29, 2016







AreaStateUSA

Trends 2016-2021Trends 2016-2021

Ann

ual R

ate

(in

perc

ent)

21.81.61.41.2

10.80.60.40.2


20162021


Perc

ent

242220181614121086420

0-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K8.8%

$15K - $24K8.8%

$25K - $34K10.9%

$35K - $49K13.1%

$50K - $74K21.6%

$75K - $99K13.4%

$100K - $149K14.2%

$150K - $199K4.6%

$200K+4.7%


Perc

ent

90

80

70

60

50

40

30

20

10




August 29, 2016







Summary Census 2010 2016 2021Population 19,023 20,774 21,526Households 8,791 9,505 9,764Families 6,253 6,680 6,832Average Household Size 2.16 2.19 2.20Owner Occupied Housing Units 7,640 7,991 8,173Renter Occupied Housing Units 1,151 1,514 1,592Median Age 57.4 58.9 61.1



<$15,000 836 8.8% 840 8.6%$15,000 - $24,999 833 8.8% 784 8.0%$25,000 - $34,999 1,037 10.9% 1,308 13.4%$35,000 - $49,999 1,248 13.1% 710 7.3%$50,000 - $74,999 2,052 21.6% 2,018 20.7%$75,000 - $99,999 1,271 13.4% 1,337 13.7%$100,000 - $149,999 1,351 14.2% 1,626 16.7%$150,000 - $199,999 433 4.6% 605 6.2%$200,000+ 444 4.7% 537 5.5%



0 - 4 693 3.6% 722 3.5% 696 3.2%5 - 9 753 4.0% 790 3.8% 760 3.5%10 - 14 735 3.9% 841 4.0% 863 4.0%15 - 19 722 3.8% 751 3.6% 801 3.7%20 - 24 506 2.7% 621 3.0% 591 2.7%25 - 34 1,188 6.2% 1,264 6.1% 1,242 5.8%35 - 44 1,635 8.6% 1,661 8.0% 1,565 7.3%45 - 54 2,467 13.0% 2,364 11.4% 2,204 10.2%55 - 64 3,883 20.4% 3,999 19.3% 3,813 17.7%65 - 74 4,143 21.8% 4,762 22.9% 5,337 24.8%75 - 84 1,934 10.2% 2,477 11.9% 2,984 13.9%

85+ 363 1.9% 522 2.5% 671 3.1%Census 2010 2016 2021


Hispanic Origin (Any Race) 1,400 7.4% 1,745 8.4% 2,065 9.6%Data Note: Income is expressed in current dollars.


August 29, 2016


true nnn with 15+ years of proven...

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