offering memorandum - ackerman & co. in atlanta, ga€¦ · 8,650 locations. the company had...

offering memorandum

Net Leased Walgreens204 Jonesboro road

mcdonough, ga 30253

Table of Contents

01 EXECUTIVE SUMMARY Investment Summary

Location and Demographics

Property Aerials

Property Overview

03 MARkET OVERVIEw McDonough, Georgia Detailed Demographics Competing Properties Sold Comparables

COnTACT

SEAn w. PATRICk, CCIM Vice President, Investment Sales 770.913.3946 [email protected]

ACkERMAn & CO. 10 Glenlake Parkway South Tower, Suite 1000 770.913.3900 | ackermanco.com

02 TEnAnT OVERVIEw Tenant Summary

Rent Roll

04 fInAnCIAL OVERVIEw Summary

Cash flow Model

This Offering Memorandum and any subsequent evaluation material you may be

provided (collectively known as the “Offering Memorandum”) is intended solely

for your limited use in considering whether to pursue negotiations to acquire

Walgreens (the “Property”) located at 204 Jonesboro Road in McDonough,

Georgia. The Property is being marketed for sale by Ackerman & Co. (“Broker”).

The Offering Memorandum contains brief, selected information pertaining to

the business and affairs of the Property and has been prepared by Broker. It

does not, however, purport to be all-inclusive or to contain all of the information

that a prospective purchaser may desire. Broker makes no representation or

warranty, express or implied, as to the accuracy or completeness of the Offering

Memorandum or any of its contents, and no legal liability is assumed to be

implied with respect thereto.

By acknowledgment of your receipt of the Offering Memorandum you agree that

the Offering Memorandum and its contents are confidential, that you will hold

and treat it in the strictest of confidence, that you will not directly or indirectly

disclose, or permit anyone else to disclose, the Offering Memorandum or its

contents to any other person, firm, or entity (including, without limitation, any

principal for whom you have been engaged), without prior written authorization

of Owner or Broker and that you will not use or permit to be used the Offering

Memorandum or its contents to be copied or used in any fashion or manner

detrimental to the interest of Owner. Photocopy or other duplication is strictly

prohibited.

THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT

STATE OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT

THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY

SINCE THE DATE OF PREPARATION OF THE OFFERING MEMORANDUM.

The information provided in the Offering Memorandum has been gathered from

sources that are deemed reliable, but the Broker does not warrant or represent

that the information is true or correct. Prospective offerors are advised to verify

information independently. The Offering Memorandum is not to be construed as

an offer or as any part of a contract to sell the property.

Furthermore, the inclusion or exclusion in the Offering Memorandum of

information relating to asbestos or any other hazardous, toxic or dangerous

chemical item, waste or substance (hereinafter collectively referred to as “Waste”)

relating to the Property shall in no way be construed as creating any warranties

or representations, expressed or implied by the Broker as to the existence or

nonexistence or nature of Waste in, under or on the Property, it may create

significant legal and/or economic obligations upon the Owner, lessee and/or

other holders of interest in the Property or a part thereof and you are hereby

advised to obtain professional assistance such as from a consultant, engineer

and/or attorney prior to taking an interest in the Property or a part thereof.

INFORMATION NOT WARRANTED

eXeCuTiVe SummarY investment Summary

Location and demographics

Property aerials

Property overview

01

Net-Leased Walgreens

501 Executive Summary Net-Leased Walgreens

204 Jonesboro RoadMcDonough, GA 30253

Ackerman & Co’s Retail Investment Sales group is pleased to exclusively present for sale a double net-leased Walgreens property located in McDonough, GA (Atlanta, GA MSA). The Walgreens property, originally constructed in 2001, includes a 15,120 SF building on approximately 1.92 acres. The offering provides stable cash flow, with just over 7 years of initial lease term remaining and eight 5-year options, from an investment-grade tenant; S&P: BBB/Stable rated tenant. This asset is fee simple and is being offered free and clear of debt.

The Walgreens store is located along Jonesboro Road, a heavily traveled

east/west corridor in McDonough, on a hard signalized intersection

with Kroger and Goodwill anchored shopping centers. The Walgreens

store features a drive-thru pharmacy and healthcare clinic.

InVESTMEnT PROfILE

Square footage: 15,120 SF

Acreage: 1.92 acres

Offering Price: $5,235,000

Price Per Square foot: $346.00

Debt Structure: Market (offered free & clear)

Lease Structure: NN (roof & structure)

Cap Rate: 6.60%

Lease Expiration: 12/31/2062

Rental Rate: $23.00 PSF


Tenant: Walgreens (NYSE: WAG S&P: BBB stable) is an investment grade tenant with more than

8,650 locations. The company had revenues exceeding $75 billion in 2014.

Signalized Hard Corner Location w/ Drive Thru: The subject Walgreens property is quality brick

construction with a drive-thru on a hard signalized intersection across from Kroger and Goodwill

anchored shopping centers.

Offered free and Clear of Debt: With limited single tenant product in the market, this is a benefit

for an investor looking for an all-cash deal or market debt with low current interest rates.

Low Rental Rate: The rent could be replaced if Walgreens does not exercise their options.

InVESTMEnT HIGHLIGHTS

Cartersville

McDonough

Covington

Oxford

Conyers

Loganville

Dacula

Sugar Hill

Buford

FloweryBranchCumming

Alpharetta

F U LTO N

D E K A L B

B A R T O WH A L L

Lawrenceville

DowntownAtlanta

CO B B

Kennesaw

Decatur

Duluth

Suwanee

G W I N N E T T

Stockbridge

Hartsfield Jackson Airport

Fayetteville

Braselton

113

41

400

675

78

Source: 2013 Georgia Department of Transportation

TRAffIC COUnTS 33,110 vehicles per day (COMbInED: JOnESbORO RD AnD MCDOnOUGH PkwY)

1 Mile 3 Miles 5 Miles

population 2013 7,165 38,464 71,767

Total households 2,646 13,674 24,961

average household income $54,077 $56,685 $64,536

DEMOGRAPHIC SUMMARY

75

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McDonough CrossingShopping Center

Jonesboro Rd

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armel Rd

Bridges Rd

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LOCATIOn AnD DEMOGRAPHICS

204 JoNesboro roadmcdoNough, ga 30253

The subject property, a net-leased Walgreens, located on 204 Jonesboro Road in McDonough, GA, was built in 2001 and is in great physical condition. In 2013, total population within 5 miles was 71,767 with an average household income of $64,536.

204 JoNesboro roadmcdoNough, ga 30253

24,790 VPD 8,32

0 VPD


PROPERTY AERIAL - CLOSE UP

MCDOnOUGH P

kwY

JOnESbORO RD

8,32

0 VPD

24,790 VPD


PROPERTY AERIAL - SURROUnDInG RETAIL

Jonesboro rd

M

CDOnOUGH P

kwY

wesleyLakes

Subdivision

PembrookePark

SubdivisionCrossCreek

Subdivision

8,32

0 VPD

24,790 VPD

75


PROPERTY AERIAL - MAJOR SUbDIVISIOnS

M

CDO

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GH P

kw

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JOnESbORO RD


PROPERTY OVERVIEw

Address: 204 Jonesboro Road, McDonough, GA 30253

Parcel ID: 091-01-024-021

County: Henry County - City of McDonough, GA

Metro Market: Atlanta MSA

Zoning: C3

building Size: 15,120 SF

Land Area: 1.92 acres

Year built: 2001

Construction: Concrete block and brick

Parking: 35 parking spaces

Signage: Large dedicated pylon at Jonesboro Road

Access: There are (2) two points of ingress/egress via Jonesboro Road and McDonough Highway

Store number: 6208

Drive-Thru: Yes

Pharmacy: Yes

Photo: Yes

Health Clinic: No

Store Hours :8:00 AM - 10:00 PM

Pharmacy Hours: M-F, 9:00 AM - 9:00 PMSat, 9:00 AM - 6:00 PMSun, 10:00 AM - 6:00 PM

204 Jonesboro RoadMcDonough, GA 30253

TenanT oVerView Tenant Summary rent roll

02


SiZeone-Story Building

SQuare fooTage15,120

LeaSe eXPiraTion2062

02 Tenant Overview 13Net-Leased Walgreens

wALGREEnS

Founded in 1901, Walgreens is the largest drug retailing chain in the United States currently operates 8,678 drugstore chains across the United States and Puerto Rico. In addition, Walgreens completed their purchase in 3,000+ store European retail pharmacy giant Alliance Boots to expand their presence internationally. Walgreens is a national leader in providing prescription and non-prescription drugs and household consumer products. With an S&P credit rating of BBB, Walgreens is consistently regarded as one of the most financially sound organizations in the United States. Innovations such as store layout remodeling and in-store health centers have allowed Walgreens to consistently outperform its competitors with regard to earnings per share, revenue growth, net income growth, and cash flow from operations. In 2013, Walgreens posted its unprecedented 39th straight year of record sales and earnings.

Walgreen Company (NYSE: WAG) S&P Rating: BBB/stableHeadquarters: Deerfield, IL USA Store Locations: 8,678 as of January 31, 2014Year Founded: 1901Employees: 244,000Market Capitalization: $59.31B (8/20/2014)Net Sales: $72.217B (Fiscal 2013)

www.walgreens.com

TEnAnT SUMMARY

02 Tenant Overview 14Net-Leased Walgreens

REnT ROLL – as of August 2014

SUITE TEnAnT START DATE

EXPIRATIOn DATE

RSf AnnUAL REnT

MOnTHLY REnT

PSfREnT

REnEwAL InCREASE

nOTES

1 walgreens 1/1/2002 12/31/2021 15,120 $347,760 $28,980 $23.00 none

Tenant retains Eight (8) x five (5) year options after the initial Twenty (20) year lease term. 60 year lease.

markeT oVerView mcdonough, georgia demographics Competing Properties Sold Comparables

03


McDonough Courthouse

03 Market Overview 16Net-Leased Walgreens

MCDOnOUGH, GEORGIA

The City of McDonough is located just 20 minutes south of downtown Atlanta. The county seat of Henry County and part of the Atlanta MSA, the City of McDonough has blossomed as a bedroom community to Atlanta and hub for industrial and logistics on the south side of the MSA. The community has grown by more than 87 % over the last 10 years.

The strong school system has attracted residential developers and in turn has been followed by national retailers wanting to locate in this market. The market has three interchanges along the I-75 interstate; Jonesboro Road is one of them.

TOP TEn CORPORATE EMPLOYERS: METRO ATLANTA

Company EmploymentDelta Airlines 22,257

AT&T 21,915

Emory University and Emory Healthcare 21,000

Cox Enterprises 13,583

United Parcel Service (UPS) 10,745

WellStar Health System 10,112

SunTrust Banks 7,700

Lockheed Martin Aeronautics 7,531

IBM Corporation 7,500

Georgia Institute of Technology 7,342

Company EmploymEnt loCation

Henry Medical Center 1,561 Henry County

Federal Aviation Administration 612 Henry County

Briggs & Stratton Corporation 567 City of McDonough

Georgia Power Customer Care 563 Henry County

Southern States, LLC 350 City of McDonough

Luxottica Retail Group 302 City of McDonough

Toys “R” Us 300 City of McDonough

Georgia Crown Distributing Co. 280 City of McDonough

Carter’s Inc 216 City of McDonough

Home Depot Distribution Center 200 City of McDonough

TOP TEn EMPLOYERS:

CITY OF MCDONOUGH & HENRY COUNTY


MCDOnOUGH, GA DEMOGRAPHICS

Sources: Claritas, Market + Main, Inc., U.S. Census Bureau

DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2013 Population 7,165 38,464 71,7672018 Projected Population 7,606 41,170 77,2632010 Census Population 6,934 36,761 68,3602000 Census Population 4,307 21,430 36,452Growth 2000 - 2013 64.32% 76.06% 92.51%Growth 2013 - 2018 6.15% 7.15% 7.66%2013 Median Age 31.4 33.7 35.32013 Households 2,646 13,674 24,9612018 Projected Households 2,792 14,680 26,8142010 Census Households 2,568 13,028 23,7882000 Census Households 1,561 7,513 12,683Growth 2000 - 2010 64.53% 73.40% 87.56%Growth 2010 - 2013 3.03% 4.96% 4.93%Growth 2013 - 2018 5.55% 7.36% 7.43%2013 Average Household Size 2.71 2.75 2.842013 Housing Units 2,646 13,674 24,9612013 Owner Occupied Units 48.49% 62.43% 71.02%2013 Renter Occupied Units 51.47% 37.57% 28.97%

75

75

155

155

20

20

81

23

23

C

onyers Rd

Jonesboro Rd

204 JoNsboro roadmcdoNough, ga 30253

riTe aid961 georgia 20mcdoNough, ga 30253

2.6 miles

WalMarT pharMacy135 WiLLoW LNmcdoNough, ga 30253

2.9 miles

Walgreens896 hWy 81 emcdoNough, ga 30252

3.2 milessaM’s club pharMacy1765 JoNesboro rdmcdoNough, ga 30253

3.5 miles

cvs pharMacy 2 N Zack hiNtoN PkWymcdoNough, ga 30253

2.1 miles

publix pharMacy920 hWy 81 emcdoNough, ga 30252

3.3 miles

Moye’s pharMacy62 keys ferry stmcdoNough, ga 30253

1.7 milesKroger pharMacy301 JoNesboro rdmcdoNough, ga 302530.4 miles

TargeT pharMacy1850 JoNesboro rdmcdoNough, ga 30235

3.5 miles


COMPETInG PROPERTIES wITHIn 3 MILES

3.5-

MILE

RAD

IUS

1 2

3

2 31

1762 Mars Hill RdAcworth, GA

total sf 15,120

sales Price $5,020,000 ($332 Psf)

built 2002

sold 1.28.13

Parking 70surface spaces

Land 2.34 acres

1556 Lawrenceville HwyLawrenceville, GA

total sf 15,387

sales Price $4,700,000 ($305.45 Psf)

built 2001

sold 6.28.13

Parking 60surface spaces

Land 1.74 acres

5811 Prosperity Church RdCharlotte, nC

total sf 13,824

sales Price $3,988,500 ($288.52 Psf)

built 2004

sold 1.10.14

Parking 54 surface spaces

Land 1.45 acres


SOLD COMPARAbLES

finanCiaL oVerView Summary

Cash flow model

04


04 Financial Overview 21Net-Leased Walgreens

Sales Price $5,235,000

Square Feet 15,120

Price Per SF $346

Cap Rate 6.60%

FinancingProperty is offered free and

clear of existing debt

fInAnCIAL OVERVIEw

Address 204 Jonesboro Road,

McDonough, GA

Propety Type Single-Tenant Retail

Year Built 2001

Parcel Size 1.92 Acres

Type of Ownership Fee Simple

bUILDInG InfORMATIOn

Commencement Date 1/1/2002

End Date 12/31/2062

Initial Lease Term 20 Years

Annual Rent $347,760

Rent Escalations (Current Term) None

Rent Per Month $28,980

Lease Type NN

Options Eight (8) x Five (5) Year

Option Rental Increases None

Landlord Responsibilities Roof & Structure

LEASE DETAILS

04 Financial Overview 22Net-Leased Walgreens

CASH fLOw MODEL – Year beginning 1.1.2015

CASH fLOw PROJECTIOnS YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

Gross Rental Income $347,760 $347,760 $347,760 $347,760 $347,760 $347,760 $347,760

Expenses ($0.15/sf) $2,268 $2,268 $2,268 $2,268 $2,268 $2,268 $2,268

net Operating Income $345,492 $345,492 $345,492 $345,492 $345,492 $345,492 $345,492

Offering Price (6.60% cap) $5,235,000

offering memorandum - ackerman & co. in atlanta, ga€¦ · 8,650 locations. the company had...

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