exclusively listed investment offering · exclusively listed investment offering 1815 9th avenue...

E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G

1815 9TH AVENUE NORTH | BESSEMER, AL 35020

BIRMINGHAM MSA INVESTMENT OPPORTUNITY

Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com

JASON STUART PONGSRIKULManaging Principal

Direct: 619.297.0055 [email protected]

CA DRE Lic. #01918332

CHRIS BARRYAssociate


CA DRE Lic. #02018350

JOSH BURMEISTERPresident, BUR Commercial

Direct: [email protected] QBLN 000061104-1

Exclusively Listed By: In Association with:

Jason Stuart PongsrikulManaging Principal, Pharma Property Group

Direct: [email protected]

1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020

Property Overview

Investment Highlights

Year Built: 2001Lot Size: 104,108 Square FeetBuilding Size: 15,120 Square Feet


STABLE INCOMERental income is guaranteed by Walgreens parent corporate (S&P BBB) investment grade, Fortune 500 Company, with over 8,000 locations.

LEASE TERM REMAINING3.75 years of guaranteed income before the eight (5 year) options that go out to March of 2021.

24-HOUR STORE WITH SOLID SALESThe subject property is the only 24-hour Walgreens pharmacy and 24-hour Walgreens store in Bessemer and has a history of strong sales benefiting from its 24 hour presence. This location is the only Walgreens or CVS within a nine mile radius that is open 24 hours.

HIGHLY TRAFFICKED AREASubject property is located at the signalized northeast corner of 9th Avenue, also known as the Bessemer Super Highway (22,197 cars per day) and 18th Street (10,469 cars per day). This corner is highly traveled as it is the main thoroughfare leading into and out of downtown Bessemer and within a mile of Interstate 59/20 (±120,000 cars per day).

STRONG EMPLOYMENT MARKETWithin 4 miles of the subject property are several large employers including: Piggly Wiggly Alabama's 450,000 square foot distribution facility. Dollar General's 106 acre distribution center. US Pipe & Foundry plant employing approximately 500 personnel. Medical West Hospital with acute care and 301 beds. Pediatrics West Children’s Hospital.

RETAIL AREAThe subject property is located in the heart of Bessemer and is surrounded by numerous national and local retail tenants.

Walmart

Supercenter Lowe's Home

Improvement Dollar Tree Tractor

Supply Co. Big Lots Dollar General Aldi Wells Fargo

Family Dollar McDonald's CVS Pizza Hut Church's

Chicken KFC Sherwin

Williams Papa Johns Advanced

Auto Parts Napa Auto Rally's Applebee's Ruby Tuesday Sonic Pep Boys Shell Food Giant PNC Bank T-Mobile




Lease OverviewTenant:WALGREENS (NYSE: WAG)

Landlord Income: CORPORATE GUARANTEE

Credit Rating: INVESTMENT GRADE, BBB (S&P)

Lease Type: DOUBLE NET Landlord responsible for roof and structure.

Lease Term: 3.75 YEARS REMAINING WITH EIGHT (5 YEAR) OPTIONS TO FOLLOW

Rent Commencement Date: MARCH 29, 2001

Next Option Begins: MARCH 30, 2021

Pricing

Building

Price: $4,000,000

CAP: 8.00% CAP

Price/Square Foot: $264.55

Monthly Income: $26,666

Annual Income: $320,000

Building Square Footage: 15,120

Land Square Footage: 104,108

Rent/Square Foot: $21.16

Year Built: 2001

Location Overview

B essemer is in southwestern Jefferson

County, and is a suburb of Birmingham

located just 18 miles to its southwest.

The Birmingham-Hoover metropolitan area

is the largest in the state and is home to over

1.1 million people. Bessemer sits strategically

along Interstate 59/20 and is centrally located to

the economic centers of Birmingham, Hoover,

Tuscaloosa and the Mercedes Plant in Vance.

Bessemer includes a mix of shopping, world-

class restaurants, churches and recreational

and entertainment attractions, such as the

Alabama Splash Adventure.

BESSEMER, ALABAMA

SUBJECT PROPERTY




Area Description

BIRMINGHAM

BESSEMER

BIRMINGHAM-SHUTTLESWORTH INTERNATIONAL AIRPORT

ALABAMA SPLASH ADVENTURE PEDIATRICS WEST

BESSEMERUAB

MEDICAL WEST

±18 MILES

RENAISSANCE BIRMINGHAMROSS BRIDGE GOLF CLUB

DISTRIBUTION CENTERON 106 ACRES

INTERSTATEINDUSTRIAL PARK

108 ACRES

PIGGLY WIGGLYALABAMA DISTRIBUTION

450,000 SF FACILITY

SUBJECT PROPERTY

US PIPE & FOUNDRY500 EMPLOYEES

AREA OVERVIEWThe subject property is centrally located just west of Interstate 20/59 approximately 18 miles southwest from downtown Birmingham, Alabama. Other interstates in the area include Interstate 459 and Interstate 65 offering easy access to surrounding states and metropolitan areas. Bessemer has a strong employment market with employers such as:

PIGGLY WIGGLY ALABAMA DISTRIBUTING HEADQUARTERS ( 3.1 miles north) - This 450,000 square foot distribution facility is one of the main distributing facilities in the south for the Piggly Wiggly chain and serves more than 270 stores across seven states. This site serves as the corporate headquarters for Piggly Wiggly Alabama Distributing which was founded by 27 Piggly Wiggly operators and serves as a critical distribution hub. U.S. PIPE & FOUNDRY (500 employees, 1.1 miles northwest) - U.S. Pipe employs approximately 500 people. In 2008, this plant received $6.3 million in tax breaks and other incentives from state, county and municipal governments during recent renovations.

DOLLAR GENERAL DISTRIBUTION CENTER (650 employees, 3.8 miles southeast) - A $100 million campus on 106 acres that includes six buildings and is the largest distribution center in Bessemer.

TWO HOSPITALS - Within two and a half miles of the property are two medical facilities. Medical West is a 310-bed acute care hospital and Pediatrics West Children’s Hospital serving patients ranging from newborns to 18 years.




9TH AVENUE NORTH ± 22,197 CARS PER DAY

± 120,000 CARS PER DAY

NEW BETHLEHEMBAPTIST CHURCJ

JS ABRAMSELEMENTARY SCHOOL

US PIPE & FOUNDRY500 EMOPLOYEES

RESIDENTIAL AREAS

RESIDENTIAL AREAS

Property Photos



INTERSTATE INDUSTRIAL PARK108 ACRES WITH RAIL ACCESS

BESSEMERPUBLIC LIBRARY

RESIDENTIAL AREAS

RESIDENTIAL AREAS




Property Photos

SOUTH AND WEST PARKING AREAS

NORTH AND EAST SIDE WITH DRIVE-THRU




RESIDENTIAL AREAS

RESIDENTIAL AREAS

RESIDENTIAL AREAS

US PIPE & FOUNDRY500 EMOPLOYEES

RESIDENTIAL AREAS




Company Summary*

Tenant HistoryWalgreens, headquarted in Deerfield, IL, is the largest drug retailing chain in the United States with more than 8,175 stores in all 50 states, the Disctrct of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens built out its national platform through its corporate real estate department heavily during the 1990’s continuing through the mid 2000’s. By 2012, Walgreens had opened its 8,000th store and later that year the company made a bold move by purchasing a 45% interest in Alliance Boots, a leading international pharmacy-led health and beauty group. Two years later, Walgreens exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance(NASDAQ: WBA). This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance. The company sells prescription and non-prescription drugs and general merchandise including household products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for managing complex and chronic health conditions. In addition to these in-store offerings, the company operates digital businesses that include Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com, and VisionDirect.com.*Walgreens company information received from Walgreens investor relations.

tenant profileGuarantor: Walgreens Boots Alliance, Inc.Ownership: PublicStock Symbol (NASDAQ): WBACredit Rating (S&P): BBBBusiness: Retail PharmacyLocations: 8,175Annual Revenue: $117.35 BillionNet Worth: $29.88 BillionHeadquartrs: Deerfield, ILWebsite: www.walgreens.com

On Oct 27, 2015, Walgreens Boots Alliance entered into a merger agreement with Rite Aid Corporation (NYSE: RAD). The transaction is expected to close sometime in mid-2017, but is subject to Rite Aid stockholder approval, regulatory approvals and other customary closing conditions.




Locations by State

Alabama 113 Idaho 39 Mississippi 76 Oklahoma 114 West Virginia 16

Alaska 12 Illinois 598 Missouri 212 Oregon 76 Wisconsin 225

Arizona 244 Indiana 190 Montana 13 Pennsylvania 123 Wyoming 10

Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 120

California 633 Kansas 69 Nevada 82 South Carolina 114 US Virgin Islands 1

Colorado 159 Kentucky 95 New Hampshire 31 South Dakota 14

Connecticut 92 Louisiana 158 New Jersey 197 Tennessee 252

Delaware 64 Maine 14 New Mexico 72 Texas 713

Washington DC 8 Maryland 85 New York 469 Utah 48

Florida 831 Massachusetts 163 North Carolina 268 Vermont 3

Georgia 203 Michigan 228 North Dakota 1 Virginia 140

Hawaii 20 Minnesota 152 Ohio 247 Washington 135

*Nationwide locations as of August 31, 2016Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.

Total 8,175*




Demographic Snapshot | 2016

Disclaimer: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.

Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.

By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2017 Pharma Property Group.

39.70

38.60

39.40

3 Mile

s

1 Mile

5 Mile

s

Average Age6,1

52

34,28

6

70,11

55 M

iles

3 Mile

s

1 Mile

Total Population

2,307

13,27

0

27,55

15 M

iles

3 Mile

s

1 Mile

Total Households

$37,3

50

$38,6

77

$48,6

98

3 Mile

s

1 Mile

5 Mile

s

Average Household Inc




Investment Property Recap

Lease Overview

PricingPrice: $4,000,000

Total Monthly Income: $26,666

Total Annual Income: $320,000

Tenant:Walgreens (NYSE: WAG)

Landlord Income: Corporate Guarantee

Credit Rating: Investment Grade, BBB (S&P)

Lease Type: Double NET LeaseLandlord responsible for roof and structure.

Lease Term: 3.75 years remaining with eight (five year) options to follow

Next Option Begins: February 9, 2020

Year Built: 2001Total Lot Size: 104,108 Square FeetTotal Building Size: 15,120 Square Feet


Cap Rate: 8.00%

5328 Banks Street, Suite BSan Diego, CA 92110P 619.297.0055F 619.839.0828

www.pharmapropertygroup.com

E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G

1815 9TH AVENUE NORTH | BESSEMER (BIRMINGHAM MSA), AL 35020

JASON STUART PONGSRIKULManaging Principal


CA DRE Lic. #01918332

CHRIS BARRYAssociate


CA DRE Lic. #02018350

JOSH BURMEISTERPresident, BUR Commercial


AL QBLN 000061104-1

http://www.pharmapropertygroup.com

exclusively listed investment offering · exclusively listed investment offering 1815 9th avenue...

Documents