walgreens - portland msa nw burnside road se 182nd avenue nw birdsdale avenue se division street nw...
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Walgreens - Portland MSA
Single Tenant NNN Opportunity 4285 West Powell Blvd, Gresham, OR 97030
Gresham, or
[ www.CapitalPacific.com ]
RENTABLE SF . . . . . . 13,950 SF
RENT PER SF . . . . . . . $17.63
RENT INCREASE. . . . April 2017
LAND AREA . . . . . . . . 67,953 SF
LEASE TYPE. . . . . . . . NNN
PRICE PER SF . . . . . . $250
YEAR BUILT . . . . . . . . 1997
DRIVE-THRU . . . . . . . Yes
PARKING* . . . . . . . . . 69 (4.9/1,000 SF)
ANCHOR . . . . . . . . . . Walgreens
*Parking is approximate and based on a manual count
WALGREENS IS A FREE STANDING NNN LEASED INVESTMENT PROPERTY LOCATED IN GREShAM, OR.
4285 West Powell Blvd, Gresham, OR 97030ADDRESS:
This offering is the opportunity to acquire a free standing Walgreens with a drive-thru pharmacy located at a busy intersection in Gresham, OR.
Walgreens is a seasoned operator with investment grade credit, rated by Standard & Poor’s BBB. Walgreens is paying rent of $17.63/SF which is
significantly below newer comparable Walgreens locations paying rents in excess of $30/SF.
The Property has great access and roadside visibility from the signalized intersection of W Powell Blvd. and SE 182nd Ave. in Gresham, OR which achieves traffic counts in excess of 37,000 vehicles per day.
PRICE: $3,490,000
CAP: 7.00%
Investment highlights
Walgreens gresham | 2
high traffic counts37,000 vehicles
per day
STRONG RETAIL
LOcATION
INVESTmENT GRADE TENANT
Walgreens is a publicly traded company (NYSE: WAG) with investment grade credit, rated by Standard & Poor’s BBB.
BELOW mARKET RENT WITH RENT INCREASE
Walgreens is currently paying $17.63/SF which is below market when compared to new Walgreens locations paying rents in excess of $30/SF.
Walgreens has a rare rental increase in April 2017, giving an investor an additional $24,600 of annual income and approximately 70 basis points of lift.
STRONG RETAIL LOCATION AT A HARD CORNER
Walgreens is located at the hard signalized intersection of W Powell Blvd. and SE 182nd Ave. in Gresham, OR.
The strength of this location is evidenced by traffic counts in excess of 37,000 vehicles per day and more than 285,000 residents within a 5 mile radius.
NNN LEASE WITH mINImAL mANAGEmENT
Tenant is responsible for all maintenance and repairs (including parking) with the exception of roof and structure.
Investment highlights
Walgreens gresham | 3
26
26Lynch Wood
Elementary SchoolCentennial
High School
Centennial middle SchoolLynch meadows middle School
Instructional Technologies Center
GRESHAM TOWN FAIR SHOPPING CENTER
GRESHAM STATION
®
PORTLAND 16 mILES
Aerial
SW HIGHLAND DRIVE
22,13
4 DAILY
WALGREENS
NW BURNSIDE ROAD
NW
BIR
DS
DA
LE A
VEN
UE
SE
182N
D A
VEN
UE
SE DIVISION STREET NW DIVISION STREET
W POWELL BOULEVARD
15,0
22 D
AIL
Y
Walgreens gresham | 4
Site
W POWELL BOULEVARD
GREAT viSiBiLiTY ANd AccESS OFF SE 182Nd AvENuE ANd
W POWELL BLvd.
WALGREENS
22,134 DAILYSE
182
ND
AVE
NU
E
15,0
22 D
AILY
Walgreens gresham | 5
Walgreens is located at a hard
signalized intersection with traffic
counts of 37,000 VPD.
SITE PLAN KEY
PARcEL OuTLiNE:
LANd AREA: 1.56 AcRES
BuiLdiNG AREA: 13,950 SF
Site Plan
Site Plan not to Scale
W POWELL BOULEVARD
SE 1
82N
D AV
ENUE
22,134 VPD
15,0
22 V
PD
Walgreens gresham | 6
Walgreens - Gresham (Powell)Income & Expense
PRICE $3,490,000Capitalization Rate 7.00%Price Per Foot $250
NET OPERATING INCOME SUMMARYPlus: STABILIZED INCOME Per SFScheduled Rent: 10/1/2013 $17.63 $246,000Plus: Rent Increases thru: 10/1/2014 - - Equals: Effective Gross Income $17.63 $246,000
Less: OPERATING EXPENSES Per SFReserves $0.10 $1,395Total Operating Expenses ($0.10) ($1,395)
Equals: NET OPERATING INCOME $244,605
Target Price
9/23/2013 [ <www.CapitalPacific.com>]
Financial Summary
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. Buyer must verify the information and bears all risk for any inaccuracies.
Rent Roll
Walgreens - Gresham (Powell)Rent Roll
TENANT INFO LEASE
Tenant Name Size OccupancyDate
LeaseExpiration
Monthly Base Rent Rent/SF/YR Date Monthly
Walgreens 13,950 4/10/97 4/9/57 $20,500 $17.63 4/10/17 $22,550 NNN
Totals: 13,950 $20,500 $17.63
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. Buyer must verify the information and bears all risk for any inaccuracies.
RENT INCREASESLEASE TERMS CURRENT RENT
comments: Option to terminate on 4/9/2017 and every 5 years thereafter with 12 months notice. See Lease Abstract on page 9.
9/23/2013 [ <www.CapitalPacific.com>]
Walgreens gresham | 7
ABOUT WALGREENS
Founded in 1901, Walgreen co. engages in the retail sale of prescription and nonprescription drugs and general merchandise, through its drugstore chain in the united States. General merchandise includes cosmetics, toiletries, household items, food, beverages, and photofinishing. in addition, the company provides pharmacy benefits management, mail service prescriptions, and other clinical services. customer prescription purchases can be made at the drugstores, as well as through the mail, by telephone, and on the internet. Walgreens is based in deerfield, illinois.
NYSE WAG
SEASONEd OPERATOR WiTH iNvESTMENT
GRAdE cREdiT
2012 REVENUE $71 .6 BILLION
NUmBER OF LOCATIONS 8,386
BBBInvestment Grade Standard & Poor
Walgreens
Walgreens gresham | 8
PREmISES/TERmTenant WalgreensSquare Feet 13,950 SFRent commencement 4/10/2017Expiration 4/9/2057
SECURITY DEPOSIT None
BASE RENT 4/10/97 – 4/9/17 $20,500/month 4/10/17 – 4/9/57 $22,550/month
RIGH TO TERmINATE 4/9/17 and every 5 years thereafter
mAINTENANCETenant is responsible for all maintenance and repair of the common areas, HvAc, and building interior. Landlord is responsible for roof and structure.
PERCENTAGE RENTTenant pays percentage rent equal to the natural breakpoint of 2% of gross sales (excluding food and prescription) and .5% of gross sales of food and prescription items. Percentage Rent and Base Rent shall not exceed $468,000 in any given year.
RIGHT OF FIRST REFUSALif landlord receives a bona fide offer to purchase, tenant has the option within forty-five (45) days after receipt to purchase the premises. ASSIGNmENT AND SUBLETTINGTenant may discontinue operations at any time and assign and sublet their lease interest to a subsidiary, person, or corporation without landlord consent. if lease is not assigned to a subsidiary, landlord has the option to terminate the lease.
LANDLORD TERmINATION RIGHTSif no business in conducted for more than six (6) months by choice of tenant, landlord has the option to terminate. Tenant may discontinue the operation of its store at any time and from time to time and must notify the Landlord within forty-five (45) days after the date the Tenant closes its store.
Walgreens: Lease Abstract
Walgreens gresham | 9
gresham
portland
Vancouver, WA
Gresham, or
13 Minutes16 Miles
GRESHAm/PORTLAND mETROPOLITAN AREA OVERVIEW
Gresham is located east of Portland in Multnomah county and is fourth largest city in Oregon. Portland’s population of 583,776 makes it the 29th most populous city in the united States. Portland is Oregon’s most populous city, and the third most populous city in the Pacific Northwest, after Seattle, Washington and vancouver, British columbia, canada. Approximately 2,260,000 people live in the Portland metropolitan area (MSA), the 23rd most populous in the united States.
Location & Demos
1-Mile 3-Mile 5-MileMedian $48,065 $45,139 $47,541Average $60,234 $54,472 $56,256
household incomes 1-Mile 3-Mile 5-Mile2010 14,152 103,853 237,029 2012 15,814 124,563 285,957 2017 16,246 127,882 292,637
PoPulation
URBAN GROWTH BOUNDARY (UGB)Portland constrains its development to a tight ring around Portland’s center. This has led to the re-development of a large portion of downtown, a number of mid and high-rise developments, and an overall increase in housing and business density. uGB’s limitation to development has also led to increased property values over the years.
HIGHLY DIVERSIFIED ECONOmYPortland shifted from agriculture and timber production as its leading economic driver to renewable energy, technology, health care, and professional services.
High tech employment is responsible for the employment of 72,100 people (7.2% of labor force).
HIGHLY SKILLED WORK FORCE30% of workers have a bachelor’s degree.
Home of intel, Nike, Adidas America, and others.
LOW COST OF DOING BUSINESScNBc ranked Oregon 19th for cost of doing business.
IN-mIGRATIONin-migration accounted for approximately 9.5% of Portland’s population gains in 2010.
Portland is ranked 13th for in-migration with an estimated 210,900 new residences expected from 2009-2014
21-34 year old population group has increased by 23% since 1990.
Portland MSA Location
Walgreens gresham | 10
SCOTT FRANK [email protected] | (503) 675-8383
mICHAEL [email protected] | (503) 675-8381
PETER [email protected] | (503) 607-0197
KEVIN ADATTO [email protected] | (503) 675-7726
BAYLOR GORDON [email protected] | (206) 457-8960
SEAN mACK [email protected] | (503) 675-8378
SEAN TUFTS [email protected] | (206) 743-8468
THE CAPITAL PACIFIC ExPERIENCE - OUR DAILY COmmITmENT TO OUR CLIENTS
[ www.CapitalPacific.com ]
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