Walgreens - El Paso, TX

EL PASO, TX

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

PRICING & FINANCIAL ANALYSIS

Offering Summary

Price $6,250,000

Cap Rate 5.60%

Net Operating Income $350,000

Year Built 2002

Gross Leasable Area 14,490 SF

Lot Size 1.62 Acres

LeaSe Summary

Lease Term 25 Years

Lease Commencement 06/01/2003

Lease Expiration 5/31/2028

Remaining Term 12 Years

Lease Type NNN

Roof & Structure Tenant

Increases None

Options 10 x 5 Year

Options to Purchase Yes

AnnuAlized OperAting dAtA

Year(s) Commencement Annual Increase

1-25 06/01/2003 $350,000 -

Option 1 : 26-35 06/01/2028 $350,000 0.00%

net Operating incOme $350,000

Walgreens9428 Dyer StreetEl Paso, TX 79924

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TENANT INFORMATION

cOmpany Summary

Company Walgreens

Ownership Corporate

Rating BBB

Agency Standard & Poor’s 500 Index

Ticker Symbol WBA

Exchange NASDAQ

Market Cap 85.7 Billion

Sales Volume 4.446 Million

Years In Business 113 Years

Headquarters Deerfield, IL

Website www.walgreens.com

The Walgreen Company (Walgreens) is the largest drug retailing chain in the United States. As of May 31, 2014, the company operated 8,217 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office is in the Chicago suburb of Deerfield, Illinois. As of 2009, Walgreens employed 5,200 people at its headquarters. In 1987, Walgreens employed about 1,100 people at its headquarters, which was at the time in an unincorporated area on the west side of Deerfield. As of 2000, headquarters was still in an unincorporated area in West Deerfield Township. In the summer of 2014 a corporate relocation to Switzerland was considered as part of a merger with Alliance Boots, a European drugstore chain. On August 5, 2014, Walgreens announced that they would not be relocating their headquarters.

LEASE NOTES:

Right of First Refusal:In the event that Landlord shall receive a Bona Fide Offer to purchase the Leased Premises, or a portion thereof, at any time and from time to time on or after the date hereof and during the initial Term and Term of this Lease or any extensions thereof from any person or entity, Landlord shall so notify Tenant (Attn: Law Department) together with a true and correct copy of said Bona Fide Offer. Tenant may, at Tenant’s option and within twenty-one (21) days after receipt of Landlord’s notice of said Bona Fide Offer and receipt of a copy to purchase the Leased Premises, or the applicable portion therof, at the price and upon the terms and conditions as are contained in said Bona Fide Offer, in which event. Art. 26

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IN THE NEWS

This is 'Metro 31': City Reveals Northgate SmartCode Project DetailsHunt Development Group Proposal Awaits Council Approval

The City of El Paso has unveiled details on the planned 31-acre transit-oriented mixed-use project slated for the former Northpark Mall site in Northeast El Paso at the corner of Dyer Street and Diana Drive. The proposal, submitted by Hunt Development Group, will be considered by Council on December 2, 2014.

Renderings of the project, which is called Metro 31 in several places within the development agreement, show buildings laid out in an urban fashion with little to no setbacks from streets. Structures are of varying height and scale, with some apartment buildings rising four stories.

The property’s uses can roughly be categorized into three areas, the largest being the residential section that takes up nearly the eastern half of the development. The central area and southwest corner contain mainly retail and office uses, and the northwest corner is dedicated to transit and includes a Sun Metro terminal.

According to site plan data, the project includes 135,115 square feet of retail space and approximately 100,000 square feet of office space. Included in the retail area is a 50,000 square foot grocery store.

In addition, the development will include 373 market-rate apartment units, 79 affordable units, and 43 live/work units.

Parks and plazas are sprinkled throughout including a central square with a small concert stage. Multiple “public greens” are located in different spots on the site plan.

Parking spaces are spread throughout the development, including widespread street parking, larger surface lots, and parking structures. One garage will be located within a residential block,

with apartment buildings lining each side of the structure. This parking garage will rise 4.5 levels and include space for 472 cars.

The development documents also include a phasing plan, indicating the project will go up in five phases. Phase 1 includes building streets, parks, and other infrastructure; Phase 2 will see the construction of the majority of market-rate apartment buildings as well as the transit facility; and Phase 3 involves construction of the grocery store.

Phase 4 includes construction of the retail/office structures, some of which will include loft apartments on the upper floors. And Phase 5 will see construction of the affordable housing apartments.

Source: www.elpasodevnews.com/2014/11/this-is-metro-31-city-reveals-northgate.html

Dyer Street

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INVESTMENT HIGHLIGHTS

• Very Strong Store Sales Reported - Only 24-Hour Drug Store Within 7 Miles

• Absolute Net Lease - Zero Landlord Responsibility – Truly Passive Income Investment

• 12 Years Remaining on the Lease - Guaranteed by Strong Investment Grade Tenant with Enterprise Value of $74 Billion Dollars

• Situated on Hard Corner Next to Proposed 31 Acre Transit-Oriented Mixed Use Hunt Development – The Project Includes Over 135,000 Square Feet of Retail Space, Approximately 100,000 Square Feet of Office Space and Over 450 Apartment Units

• Dense Infill Location – Located on Main Thoroughfare with Traffic Counts Exceeding 29,000 Vehicles Per Day

• Close Proximity to Fort Bliss Military Base and Public Schools

• El Paso is #1 Lowest Crime Rate in the US Over 500,000 Population 4th Year in a Row

• El Paso has Four International Ports of Entry – Strong Crossover Consumer Traffic

• El Paso is Home to Fort Bliss Military Base

• Contributes Over $1.5B to the Economy

• Comprised of Over 1.12 Million Acres on the US/Mexico Border

• Currently 90,000 Soldiers and Family Members Call Fort Bliss Home

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AERIAL MAP

Irvin HighSchool

Crosby Elementary

WhitakerElementary

MoyeElementary

Biggs ArmyAirfield

StantonElementary

Fort Bliss

ProposedMixed-Use

Development

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LOCAL MAP

Fort BlissHousing

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REGIONAL MAP

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MARKET SUMMARY

EL PASO, TX

El Paso is located at the western tip of Texas, where Texas, New Mexico and Old Mexico meet. It is the largest international metroplex in the world and seamlessly blends cultures and traditions: from the historic Old West to the colors of Mexico, from the heritage of Native Americans to the beauty of our desert sun.

El Paso has long been discovered. Since the early days when Spanish Conquistadors arrived at the banks of the Rio Grande in 1598, to today, with the millions of visitors who come here on a yearly basis.

El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in 2011. There were also $92 billion worth of trade in 2012. Over the past 15 years the city has become a significant location for American-based call centers. Cotton, fruit, vegetables, and livestock are also produced in the area. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum,

metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego.

El Paso is home to one Fortune 500 company in Western Refining, which is listed on the New York Stock Exchange. More than 70 Fortune 500 companies have offices in El Paso, including AT&T, ADP, Boeing, Charles Schwab, Delphi, dish network, Eureka, Hoover, Raytheon, State Farm and USAA. Hispanic Business Magazine included 28 El Paso companies in its recently released list of the 500 largest Hispanic owned businesses in the United States. El Paso’s 28 companies are second only to Miami’s 57. The city also has a large military presence with Fort Bliss, William Beaumont Army Medical Center and Biggs Army Airfield.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2015 esri

PoPulation

In 2014, the population in your selected geography is 134,633. The population has changed by 19.00% since 2000. It is estimated that the population in your area will be 139,481 five years from now, which represents a change of 3.60% from the current year. The current population is 49.24% male and 50.75% female. The median age of the population in your area is 28.9, compare this to the Entire US average which is 37.3. The population density in your area is 1,714.75 people per square mile.

HouseHolds There are currently 43,955 households in your selected geography. The number of households has changed by 22.19% since 2000. It is estimated that the number of households in your area will be 46,018 five years from now, which represents a change of 4.69% from the current year. The average household size in your area is 2.95 persons.

income In 2014, the median household income for your selected geography is $39,216, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 25.64% since 2000. It is estimated that the median household income in your area will be $46,359 five years from now, which represents a change of 18.21% from the current year.The current year per capita income in your area is $16,642, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $49,868, compare this to the Entire US average which is $74,533.

Race and etHnicity The current year racial makeup of your selected area is as follows: 69.71% White, 10.98% Black, 0.43% Native American and 1.91% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.People of Hispanic origin are counted independently of race. People of Hispanic origin make up 61.86% of the current year population in your selected area. Compare this to the Entire US average of 17.13%.

Housing In 2000, there were 21,779 owner occupied housing units in your area and there were 14,190 renter occupied housing units in your area. The median rent at the time was $416.

emPloyment In 2014, there are 32,525 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 56.13% of employees are employed in white-collar occupations in this geography, and 43.77% are employed in blue-collar occupations. In 2014, unemployment in this area is 7.52%. In 2000, the average time traveled to work was 23.7 minutes.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 15,735 72,788 113,137

2010 Population 16,509 75,544 128,893

2015 Population 16,400 76,426 134,634

2020 Population 16,789 78,449 139,481

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 5,345 23,932 35,970

2010 Households 5,741 25,575 41,745

2014 Households 5,782 26,109 43,955

2019 Households 5,966 26,969 46,019

2014 Average Household Size 2.84 2.93 2.96

2014 Daytime Population 4,349 13,531 32,525

2000 Owner Occupied Housing Units 59.45% 57.82% 56.94%

2000 Renter Occupied Housing Units 34.55% 36.43% 37.10%

2000 Vacant 6.00% 5.74% 5.96%



2014 Vacant 4.70% 4.70% 5.10%



2019 Vacant 4.48% 4.55% 5.00%

incOMe 1-Mile 3-Miles 5-Miles

$0 - $ 14,999 22.5% 20.8% 17.7%

$15,000 - $24,999 13.2% 14.2% 13.6%

$25,000 - $34,999 11.2% 14.3% 13.7%

$35,000 - $49,999 17.8% 18.0% 17.7%

$50,000 - $74,999 18.6% 17.2% 18.7%

$75,000 - $99,999 8.9% 8.5% 9.6%

$100,000 - $124,999 3.9% 3.8% 4.8%

$125,000 - $149,999 1.4% 1.6% 2.0%

$150,000 - $200,000 1.8% 1.0% 1.4%

$200,000 to $249,999 0.4% 0.3% 0.3%

$250,000 + 0.3% 0.4% 0.6%

2014 Median HH Income $37,558 $35,538 $39,217

2014 Per Capita Income $16,461 $15,448 $16,643

2014 Average HH Income $46,342 $45,127 $49,868

29,440

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Vitorino Group has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters. The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions 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 a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Net Lease Disclaimer

Before working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker

who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER:The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER:The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY:A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

Information About Brokerage Services

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction:

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

(1) shall treat all parties honestly;(2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner;(3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and(4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

exclusively listed

469.844.8880 | VITORINOGROUP.COM

Documents

Walgreens - El Paso, TX