walgreens...tenant walgreen co. type of ownership fee simple lease type nn landlord responsibility...
TRANSCRIPT
™400 W 23RD ST, LAWRENCE, KS 66046
WALGREENS
OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Walgreens located at 400 W 23rd St , Lawrence, KS 66046 (“Property”) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completweness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
TABLE OF CONTENTS
04. Execut ive Summary
06. Property Overv iew
12. Tenant Overv iew
14. Area Overv iew
16. Demographics
400 W 23RD ST LAWRENCE, KS 66046
WALGREENS
Tiffany RuzickaBroker of Record
License No. BR00030763
™
Patrick Toomey Managing Partner
Direct +1.310.919.5765Mobile [email protected] No. 00881133
Kyle Matthews, CCIMChairman & CEO
License No. 01469842O 310.919.5757M [email protected]
EXECUTIVE SUMMARY
Investment Highlights
• More than 12 years remaining on original lease term
• More than 68,000 people within 3 miles with more than $58,000 Average Household Income
• More than 96,800 people within 5 miles with more than $70,000 Average Household Income
• Traffic count on W 23rd St. exceeds 32,000 cars per day
• Limited landlord responsibilities
• Daytime population exceeds 55,000 and retail spending exceeds $1 billion in the retail trade area
• Excellent synergy with surrounding retailers including Checkers Food, CSL Plasma, Panera Bread, Ace Hardware, Rent-A-Center, Chipotle, Advance America, Pizza Hut, McDonald’s, Wendy’s, Checkers Foods, O’Reilly Auto Parts, and more
• Adjacent to Haskell Indian Health Center, which is part of the Haskell Indian Nations University
• Only 1.5 miles from University of Kansas and Watkins Memorial Health Center, the UK teaching hospital serving the University of Kansas student community
• Lawrence is home to University of Kansas, the largest employer in the city with more than 9,800 employees
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Executive Summary
WALGREENS400 W 23rd St Lawrence, KS 66046
List Price ............................................................................................$3,135,600
CAP Rate - Current ...................................................................................6.25%Gross Leasable Area ......................................................................±12,880 SF Lot Size ..................................................................... ±1.37 Acres (59,890 SF)Year Built ........................................................................................................1992
Annualized Operating DataAnnual Rent Rent/SF
Current-7/31/2028 $195,975 $15.26
Option 1 8/1/2028-2033 $195,975 $15.26
Option 2 8/1/2033-2038 $195,975 $15.26
Option 3 8/1/2038-7/31/2043 $195,975 $15.26
Tenant Summary
Tenant Walgreen Co.
Type of Ownership Fee Simple
Lease Type NN
Landlord Responsibility Roof, structure and parking lot replacement
Lease Dated February 4, 1993
Lease Expiration Date July 31, 2028
Term Remaining on Lease 12 years
Increases None
Options Three (3), Five (5) Year Options
PROPERTY OVERVIEW
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Physical Description
Property Name Walgreens
Property Address 400 W 23rd St
Lawrence, KS 66046
Assessor’s Parcel Number 103-06-0-30-25-007.00-0
Zoning PCD2
Site Description
Number of Stories One
Year Built 1992
Gross Leasable Area (GLA) ±12,880 SF
Lot Size ±1.37 Acres (59,890 SF)
Type of Ownership Fee Simple
Parking ±40 Surface Spaces
Parking Ratio 3.11 : 1,000 SF
Landscaping Professional
Topography Generally Level
Construction
Foundation Concrete Slab
Framing Metal
Exterior Masonry/Stucco
Parking Surface Asphalt
Roof Flat
Aerial
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Regional Map
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Tenant Map
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Bird’s Eye
W 2
3rd
St ±
32,0
00
AD
T
Louisiana St
TENANT OVERVIEW
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Tenant Walgreens
Company Name Walgreens Boots Alliance, Inc.
Ownership Public
Stock Symbol WBA
Board NASDAQ
Credit Rating BBB
Rating Agency Standard & Poor’s
Revenue $103.44 Billion
No. of Locations 8,173
No. of Employees 245,000
Headquartered Deerfield, Illinois
Web Site www.walgreens.com
Year Founded 1901
Walgreens Boots Alliance, Inc., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. The company sells prescription and non-prescription drugs; and general merchandise, including convenience and fresh foods, household items, personal care, photofinishing and candy, and beauty care. It also provides specialty pharmacy services for managing complex and chronic health conditions; customers infusion therapy services consisting of administration of intravenous medications for cancer treatments, chronic pain, heart failure, and other infections and disorders; and clinical services, such as laboratory monitoring, medication profile review, nutritional assessments, and patient and caregiver education. In addition, the company manages in-store convenient care clinics (Healthcare Clinics). As of August 31, 2015, it operated 8,173 locations in 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. The company also managed approximately 400 Healthcare Clinics and provider practice locations. The company was founded in 1901 and is based in Deerfield, Illinois.
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Lawrence, Kansas
Lawrence is a diverse and multifaceted city that provides many of the amenities of a large metropolitan area, while still maintaining a strong sense of community. Located in Northeast Kansas, Lawrence is just 45 minutes west of Kansas City, and 30 minutes east of Topeka, the state capital. Lawrence offers a rich and fascinating history, a wide range of exciting cultural experiences, nationally recognized educational institutions, and some of the most unique and enjoyable shopping opportunities in the Midwest. It has been ranked #3 in Education and #5 for Best Small Places for Business and Careers.
Home to the University of Kansas and Haskell Indian Nations University, Lawrence is considered a college town. Additionally, the city is known for a thriving music and art scene. Downtown Lawrence, in particular Massachusetts Street, has a lively atmosphere and is filled with restaurants, bars, galleries, shops and music venues. Other points of interest include the Bowersock Dam, the Free State Brewery, the Lawrence Public Library, the KU Natural History Museum and the Spencer Museum of Art. Events within the city include the Wakarusa Music and Camping Festival at Clinton State Park, Art in the Park, and the North vs. South Music Festival.
# Employer # of Employees
1 The University of Kansas 9,881
2 Lawrence Public Schools 1,650
3 Vangent 1,500
4 City of Lawrence 1,455
5 Lawrence Memorial Hospital 1,322
6 Berry Plastics 739
7 Hallmark Cards, Inc. 525
8 Baker University 496
9 Amarr Garage Doors 461
10 Douglas County 435
AREA OVERVIEW
Top Employers
14 | Walgreens
Kansas City, KansasAs the third largest city in the state of Kansas, Kansas City, often abbreviated KCK, is part of the greater metropolitan area neighboring cities on both sides of the state line of Kansas and Missouri.
From world-class racing and grand-scale shopping, to distinctive dining and lodging, Kansas City offers visitors unique experiences. The city has a number of buildings that are listed on the National Register of Historic Places, such as the Rosedale Arch and the Argentine Carnegie Library.
KCK is the home to the General Motors Fairfax Assembly plant, which manufactures the Chevrolet Malibu and the Buick LaCrosse. The largest employer is the University of Kansas Hospital along with the adjoining University of Kansas Medical Center, which includes the schools of medicine, nursing, and allied health.
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Topeka, KansasTopeka is the capital city of the State of Kansas in northeast Kansas at the intersection of I-70 and US Highway 75. It is situated along the Kansas River in the central part of Shawnee County in the northeast part of the state. From exploring the many family attractions within beautiful Gage Park, to the heart-pounding excitement of the NHRA Kansas Nationals, the Topeka metropolitan area is rich in history and highly favored by nature; Its geographic location has always worked to a decided advantage for the area and has been key to development.
Planning is underway to redevelop areas along the Kansas River, which runs west to east through Topeka. In the Kansas River Corridor through the center of town, Downtown Topeka has experience apartment and condominium loft development as well as streetscape improvements. On the other side of the river, Historic North Topeka has benefited from a major streetscape project and the Great Overland Station has been undergoing an eight-year $283 million renovation.
As the state’s capital, Topeka’s largest employer is the State of Kansas. Other major employers are in the educational, health and social services industry and the retail trade.
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DemographicsPopulation 1-Mile 3-Mile 5-Mile
2021 Projection 12,906 71,255 101,574
2016 Estimate 12,629 68,908 96,710
2010 Census 12,322 66,000 90,075
2000 Census 12,247 64,879 82,538
Growth 2016 - 2021 2.19% 3.41% 5.03%
Growth 2010 - 2016 2.50% 4.41% 7.37%
Growth 2000 - 2010 0.61% 1.73% 9.13%
Households 1-Mile 3-Mile 5-Mile
2021 Projection 5,484 29,055 41,364
2016 Estimate 5,289 27,769 39,057
2010 Census 5,030 26,140 35,932
2000 Census 5,053 25,388 32,257
Growth 2016 - 2021 3.68% 4.63% 5.91%
Growth 2010 - 2016 5.16% 6.23% 8.70%
Growth 2000 - 2010 -0.46% 2.96% 11.39%
Income 1-Mile 3-Mile 5-Mile
Income < $15,000 20.47% 19.13% 15.64%
Income $15,000 - $24,999 13.27% 11.50% 9.81%
Income $25,000 - $34,999 12.70% 12.05% 10.94%
Income $35,000 - $49,999 13.74% 12.83% 12.00%
Income $50,000 - $74,999 17.28% 19.45% 18.75%
Income $75,000 - $99,999 8.54% 10.11% 11.13%
Income $100,000 - $124,999 6.68% 6.12% 7.58%
Income $125,000 - $149,999 3.96% 3.52% 4.69%
Income $150,000 - $199,999 2.17% 2.91% 4.85%
Income $200,000 - $249,999 0.48% 0.97% 2.08%
Income $250,000 - $499,999 0.40% 1.03% 1.90%
Income $500,000+ 0.31% 0.38% 0.62%
2016 Est. Average Household Income $53,005 $58,143 $70,574
2016 Est. Median Household Income $38,887 $43,557 $52,149
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™
Tiffany RuzickaBroker of Record
License No. BR00030763
Patrick Toomey Managing Partner
Direct +1.310.919.5765Mobile [email protected] No. 00881133
Kyle Matthews, CCIMChairman & CEO
License No. 01469842O 310.919.5757M [email protected]