triple-net (nnn) rite aid / walgreens · rite aid / walgreens 96 dolson ave middletown ny 10940...

Rite Aid / Walgreens

96 Dolson Ave, Middletown, NY 10940

James Capital Advisors

Marketing Package

Triple-Net (NNN) Rite Aid / WalgreensMiddletown, NY




The Offering

$8,626,866

6.70%

$578,000

$592.34

$39.69

Joel Cukier

(424) 325-2618

SUBMIT OFFER

FINANCIAL SUMMARYPurchase Price

Cap Rate

Net Operating Income

Price / SF

Rent / SF

Listing Agent

Phone Number

Email

PROPERTY INFOTenant

Street Address

City

State

Zip

APN

GLA

Lot Size

Year Built


96 Dolson Ave

Middletown

NY

10940

330900 45-4-2.22

14564 SF

0.85 AC

2007

Historically Strong Performing SiteThis site was constructed in 2007 as a Rite Aid relocation store to support its strong store performance.

Ample Rent GrowthThe lease features rare 2.5% rental increases throughout the four, five-year options providing the investor with an opportunity for steady rent growth and a hedge against inflation.

Excellent DemographicsOver 62,000 people with an average household income of over $80,000 live within a 5 mile radius to the site, making these ideal demographics for any retailer.

Long-Term Triple-Net (NNN) LeaseThe tenant is operating under a long-term Triple-Net lease with very minimal landlord responsibilities. There are over nine years remaining on the base term with rare rental increases in the options.

Double Corporate Guarantee with Investment Grade CreditThe lease is corporately guaranteed by both the Walgreens Corporation (NYSE: WBA), a publicly traded corporation with an investment grade credit rating of ‘BBB’ (S&P) and Rite Aid Corporation.

Highly Recognized BrandWalgreens is a global pharmacy retailer and the second largest pharmacy chain in the nation with more than 9,500 locations in all 50 states.

INVESTMENT HIGHLIGHTS

NEW WALGREENS CONVERSION

mailto: [email protected]?subject=LOI - Rite Aid/Walgreens - Middletown, NY




Property Image




Lease Summary

Tenant Responsible

Tenant Responsible

Tenant Responsible

Corporate

Walgreens Boots Alliance

Public

117 Years

8,100+

Real Estate Taxes

Insurance

Repairs & Maintenance

Lease Guarantor

Company Name

Ownership

Years in Business

Number of Locations

LEASE SUMMARYLease Type

Type of Ownership

Original Lease Term

Commencement Date

Lease Expiration

Term Remaining

Increases

Options

ROFR / ROFO

Triple-Net (NNN)

Fee Simple

20 Years

September 1, 2007

December 31, 2027

8.75 Years

2.5% Each Option

Four, 5-Year

ROFR

INVESTMENT HIGHLIGHTSDouble Drive-Thru LocationThe property benefits from its double drive-thru window lanes adding a meaningful level of convenience to the customer experience and further driving store growth and sales.

Signalized Corner / High Traffic Counts Ideally located on Highway NY-17 M and Dolson Ave with traffic counts in the area exceeding 60,000 vehicles per day.

Limited CompetitionThe next nearest Walgreens is located over 15 miles away, leaving this site with very limited drugstore competition.

High-Performing StoreThis Walgreens has maintained consistent strong store sales year over year and is ranked in the top 25% of the highest performing stores in the United States.

Brand New Wellness Concept AdditionThis site was selected to undergo upgrades to become a wellness concept store that includes a MinuteClinic and a GNC store within a store concept, showing the tenant’s commitment to the site.

Dense Retail CorridorThere are over 600,000 square feet of retailers in the immediate area including, ShopRite Supermarket, Wendy’s, McDonald’s, Sprint, Dunkin’, IHOP, Taco Bell and AutoZone.

NEW WALGREENS CONVERSION




Property Image




Rent Schedule

6.70%

6.87%

7.04%

7.21%

7.38%

$39.69

$40.69

$41.69

$42.69

$43.69

-

2.52%

2.46%

2.40%

2.34%

$48,166.79

$49,380.46

$50,594.12

$51,807.79

$53,021.46

$578,001.49

$592,565.49

$607,129.49

$621,693.49

$636,257.49

Base

1st Option

2nd Option

3rd Option

4th Option

09/01/2007-12/31/2027

01/01/2028-12/31/2033

01/01/2034-12/31/2039

01/01/2040-12/31/2045

01/01/2046-12/31/2051

CAP RATERENT / SFINCREASEMONTHLY RENTANNUAL RENT PERIODRent Schedule




About the Brand

ABOUT THE BRANDBrand OverviewWalgreens Boots Alliance (NASDAQ: WBA) is the first global pharmacy-led, health and wellbeing enterprise. The Company’s heritage of trusted healthcare services through community pharmacy care and pharmaceutical wholesaling dates back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25 countries and employ more than 385,000 people. The Company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has approximately 14,500 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries.

In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s size, scale, and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the U.S. and worldwide.

RECENT NEWSSeptember 2018WBA and Alibaba launches a Boots flagship store on Tmall Global, Alibaba’s B2C platform for international brands and retailers, introducing iconic Boots beauty brands to more than half a billion consumers on Alibaba’s platforms in China.

July 2018The company announces that following receipt of regulatory approvals, it has completed an agreement to acquire a 40 percent minority stake in GuoDa, a leading retail pharmacy chain in China.

June 2018Walgreens Boots Alliance joins the Dow Jones Industrial Average as one of its 30 components.

September 2017Walgreens Boots Alliance receives regulatory clearance to purchase Rite Aid drugstores. Final transaction includes 1,932 stores and related assets for $4.375 billion in cash Walgreens Boots Alliance expects to realize more than $300 million in annual synergies within four years.




Location Overview

70 Miles FromNew York City, NY

MIDDLETOWN, NYMiddletown, NY Located in Orange County, Middletown has a population of nearly 28,000 people. Middletown benefits from many nearby cities in the surrounding metropolitan being highly accessible.

Metro North RailroadThe city’s location provides easy access to the Metro North Railroad, making for seamless commutes to New York, New Jersey and other surrounding areas.

Significant Growth in Market Area Middletown has experienced the growth and expansion of nearby retailers such as Dunning Farms Shopping Center, Orange Plaza and the Galleria at Crystal Run.

Nearby Medical Center The second largest employer in Orange County, Orange Regional Medical Center, employs over 2,500 people and is located less than five miles from the subject property.

LOCATION OVERVIEW70 Miles from New York Middletown is located just 70 miles from North New York and there are many convenient routes offered through Interstate 84, NY 17 and Interstate 187.

Less Than a Mile from Orange County Community College (SUNY)Orange County Community College, a public institution located in Middletown, New York, is home to over 7,000 students.

Proximity to Several National ParksHighland Lakes State Park, Stewart State Forest, Harriman State Park, Goosepond Mountain State Park, Storm King State Park and Bear Mountain State Park are all within 30 miles of Middletown.

West Point AttractionThirty miles from the subject property is the United States Military Academy at West Point, an internationally recognized institution for academic, military and physical excellence.




Retail Aerial




Site Plan




Demographics

10 MILE

40,618

40,112

39,887

1.26%

0.56%

$90,729

$72,694

5 MILE

22,808

22,392

21,699

1.86%

3.19%

$80,154

$63,207

3 MILE

15,443

15,169

14,732

1.81%

2.97%

$74,330

$55,708

1 MILE

4,215

4,114

3,861

2.46%

6.55%

$65,698

$48,800

HOUSEHOLDS

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

Growth 2010 - 2018

HOUSEHOLDS

Avg. HH Income

Med. HH Income

10 MILE

116,686

115,300

115,062

1.20%

0.21%

5 MILE

63,383

62,266

60,620

1.79%

2.72%

3 MILE

42,360

41,616

40,527

1.79%

2.69%

1 MILE

11,246

10,975

10,295

2.47%

6.61%

DEMOGRAPHICSPOPULATION

2023 Projection

2018 Estimate

2010 Census

Growth 2018 - 2023

Growth 2010 - 2018

Middletown, NY Located in Orange County, Middletown has a population of nearly 28,000 people. Middletown benefits from many nearby cities in the surrounding metropolitan being highly accessible. Middletown has experienced the growth and expansion of nearby retailers such as Dunning Farms Shopping Center, Orange Plaza and the Galleria at Crystal Run.

30 Miles fromWest Point Academy




DISCLAIMERThe information contained in this Marketing Brochure has been obtained from sources believed to be reliable. However, James Capital Advisors, Inc. & R. Scott Burdett (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITYThis Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASEThis Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property.

NON-ENDORSEMENTBroker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

Disclaimer




Contact Information

Contact Information

SUBMIT OFFER

R. Scott BurdettFlaum Management Company, Inc.

NY RE Lic. 10301213057

Joel CukierSenior Associate

(424) [email protected] RE Lic. 02005095

mailto: [email protected]?subject=LOI - Rite Aid/Walgreens - Middletown, NY

triple-net (nnn) rite aid / walgreens · rite aid / walgreens 96 dolson ave middletown ny 10940...

Documents