fern alley oa - louisille...

3600 Fern Val ley Road - LOUISVILLE, KENTUCKY 40219

Walgreens

ACTUAL PROPERTY

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 or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2016 Marcus & Millichap. All rights reserved. Activity ID: Y0330438


Investment Overv iew

• Walgreens With Above Average Sales in Louisville, Kentucky | The Most Populous City in Kentucky | More Than 200,000 People in Five Miles of this Asset

• Leasehold Interest with Three and a Half Years Remaining on Both Walgreen’s Lease and the Ground Lease

• Walgreen’s Lease Runs Coterminous with the Ground Lease | Both Leases Feature Eight, Five-Year Options with Rent Increases

• Corporate Guaranty | New York Stock Exchange (NYSE: WBA) | Standard & Poor’s (S&P): BBB- | #19 Fortune 500 (June 2016)

• Two Miles from Louisville International Airport | Seventh Busiest Cargo Airport in the World

• One Off Signalized, Hard Corner Intersection of Fern Valley Road & Preston Highway | 53,000 Vehicles per Day

• More Than 2.5-Milllion Square Feet of Retail in Less Than in Less Than Two Miles

• Other Retailers in the Vicinity Include: Sam’s Club, Home Depot, Kroger, PetSmart, AutoZone, LA Fitness, Dillard’s, J.C. Penny, Sears, and More.

Marcus & Millichap is pleased to present this above average performing Walgreens in Louisville, Kentucky’s most populous city. This offering is a leasehold interest with three and a half years remaining on both Walgreen’s lease and the ground lease. Walgreen’s lease runs coterminous with the ground lease, and both leases feature eight, five-year options with rent increases. Walgreens has 4 percent rent increases in the first, third, fifth, and seventh renewal options and the ground rent increases by 10 percent in first, third, fifth, and seventh renewal options. This lease has a corporate guaranty from Wal-green Co, a fortune 500 company that did $117-billion in sales in 2016. Walgreens is located one off the signalized, hard corner intersection of Fern Valley Road and Preston Highway, which sees more than 53,000 Vehicles per Day. This asset is also two miles from Louisville International Airport, the seventh busiest cargo airport in the world, and third busiest in the United States. In less than two miles from this as-set, there is more than two and a half million square feet of retail. Within five miles of this asset, there are more than 200,000 people and more than 84,000 households. Other retailers in the vicinity include: Sam’s Club, Home Depot, Kroger, PetSmart, Au-toZone, LA Fitness, Dillard’s, J.C. Penny, Sears, and More.

Actual Property



PRICE $2,600,000

CAP RATE 8.75%

NOI $227,500

PRICE PER SQUARE FOOT $171.96

RENT PER SQUARE FOOT $15.05

YEAR BUILT 2000

LOT SIZE 1.54 Acres

GROSS LEASEABLE AREA 15,120

TYPE OF OWNERSHIP Leasehold

LEASE GUARANTOR Corporate Guaranty

LEASE TYPE Double-Net (NN)

ROOF AND STRUCTURE Landlord Responsible

LEASE COMMENCEMENT DATE 9/1/2000

LEASE EXPIRATION DATE 8/31/2020

LEASE TERM 20 Years

TERM REMAINING 3.5 Years

INCREASES 4% in Options

OPTIONS TO RENEW 8, 5-Year Options

OPTIONS TO TERMINATE None

OPTIONS TO PURCHASE None

FIRST RIGHT OF REFUSAL Yes

Financia l Overv iew

Offer ing Summary

Lease Summary

Actual Property



Tenant Overview - Walgreens

Founded in 1901, Walgreens Boots Alliance, Incorporated is the nation’s largest drugstore chain. Charles R. Walgreen built the chain from a single drugstore where he created his own drug prod-ucts. By 1919 there were 20 stores, and in 1927 the Company went public. Three years later, the store count was well over 500. Today, Walgreens operates over 8,200 stores in all 50 states, DC, Puerto Rico and the United States Virgin Islands. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the Company operates digital businesses that include: Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

In December 2014, Walgreen acquired the remaining 55 percent of European retailer and whole-saler Alliance Boots, and reorganized under a holding company called Walgreens Boots Alliance, Incorporated., headquartered in Chicago. The Walgreen chain now constitutes the Retail Pharmacy United States of America (USA) Division of Walgreens Boots Alliance, Incorporated.

In October 2015, Walgreens Boots Alliance announced an agree-ment to acquire all outstanding shares of Rite Aid for $9.00 per share in cash, for a total enter-prise value of about $17.20 billion, including acquired net debt. The transaction is expected to close in the second half of calendar year 2017. Upon completion of the merger, Rite Aid will be a wholly owned subsidiary of Walgreens Boots Alliance, and is expected to initially operate under its existing brand name. Working together, decisions will be made over time regarding the integration of the two companies. Once the acqui-sition closes, Walgreens Boots Alliance plans to further transform Rite Aid’s stores to better meet consumer needs.

TENANT TRADE NAME WalgreensOWNERSHIP Public

TENANT Corporate Store

LEASE GUARANTOR Corporate Guarantee

NUMBER OF LOCATIONS 8,200+

HEADQUARTERED Deerfield, IL

WEB SITE www.walgreens.com

SALES VOLUME $117.4 Billion (2016)

NET WORTH $42.4 Billion (2016)

STOCK SYMBOL WBA

BOARD New York Stock Exchange

CREDIT RATING BBB-

RATING AGENCY Standard & Poor’s

RANK #19 in Fortune 500 (June 2016)

TENANT PROFILE

Actual Property



Aer ia l Overv iew

NORTH

24,400 VPD

24,400 VPD

28,700 V

PD

24,300 V

PD

24,600 VPD

Preston Hwy

Fern V

alley R

d

Outer L

oop

Shephersvi l le Rd

Preston Hwy

Interstate-65 / Dr. Martin Luthar King, Jr. Expy 131,900 VPD

3600 Fern Valley RdLouisville, KY 40219

LouisvilleInternational Airport

PROPERTY ADDRESS

JEFFERSON MALL

®



5 MILE

RA

DIU

S

3 MILE R

AD

IUS

1 MILE

SITE

31W

31W

150

150

150

150

31W

31W

6060

6064

64

65

65

65

64

1934

1931

1865

10651065

2052

1703

1703

1932

1932

1947

1947

1531

1531

1819

1319

1116

1020

1020

1526

2053

1934

111

111

111

211

907

841

841864

660

155

155864

155

148

11

11

61

61

264

264

264

265

265

265

265

Greenwood

Praririe Village

Orell

Penile

Heritage Creek

Parkwood

Hollyvilla

Brooks

Thixton

AshvilleSeatownville

Whitefield

Hopewell

Jeffersontown

Middletown

MiddletownEstates

Seneca Gardens

West Buechel

KnoppSpring Mill

Lynnview

ShivelyAudubon

Park

LouisvilleInternational

Airport

Hunter Hollow

Hillview

Pioneer Village

Louisville

Area Overview & Demographics

1-Mile 3-Mile 5-Mile

P o p u l a t i o n

2000 Population 10,274 54,274 191,090

2010 Population 10,256 54,564 200,202

2016 Population 10,529 56,408 203,692

2021 Population 10,787 57,861 208,283


H o u s e h o l d s

2000 Households 4,191 21,916 79,420

2010 Households 4,105 22,072 83,061

2016 Households 4,221 22,736 84,478

2021 Households 4,327 23,313 86,415


H o u s e h o l d ( H H ) I n c o m e s

2016 Average HH Income $45,552 $47,588 $57,413

2016 Median HH Income $32,695 $37,842 $44,199

2016 Per Capita Income $18,261 $19,181 $23,811



Introduction to LouisvilleLouisville, Kentucky is the largest city in the state and the 16th largest in the country. Louisville has 90 attractions, 17,000 hotel rooms, and 2,500 restau-rants to satisfy visitors and residents alike. The city was founded in 1778 by George Rogers Clark and named after King Louis XVI. It lies on the Ohio River near the border with Indiana. The metro area is widely referred to as “Kentuckiana”, and residents of Louisville are known as Louisvillians. The city is best known for the Kentucky Derby, the most popular event in horse racing and known as the “most exciting two minutes in sports”.

Louisville CultureThe four most popular attractions Louisville has to offer are the Louisville Slugger Museum, with the world’s largest bat; the Louisville Science Center, Glassworks, a space housing works from 50 glass artists; and the Frazier Historical Arms Museum. The downtown area is alive with performing arts venues, such as the Kentucky Center, which hosts local and national theater programming. The East Market Street Neighborhood has become an attrac-tion due to its restaurants and art galleries. There are many charming neigh-borhoods in the city, including Old Louisville with its 19th-century charm.

Louisville Sports and LeisureThere are many spectator sports to enjoy in Louisville. The 13,000-seat Slugger Field is home to the Louisville Bats, the Cincinnati Red’s top minor league affiliate. The field is known as one of the best in minor league base-ball and the Bats have an impressive record. The University of Louisville’s men’s basketball team plays at Freedom Hall. Churchill Downs is the site of the Kentucky Derby, the most famous horse racing event in the country. The Valhalla Golf Club is located in Louisville and hosted the 1996 and 2000 PGA Championships. The city has one of the best skate parks in the country, the Louisville Extreme Park. High school sports enjoy a high degree of popu-larity in the city, with schools like Trinity, Saint Xavier, and Male winning an impressive number of titles.

Market Overview - Louisvi l le, Kentucky

Photo: Nicholas Henderson; CC BY 2.0


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