Walgreens - Joplin, MO

JOPLIN, MO

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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

NOTE: *Based on Annual Rent effective 1/1/2016 of $289,275, less RE Taxes that Landlord pays

Offering Summary

Price $4,850,000

Cap Rate 5.75%

Rental Income $289,275

Net Operating Income $278,937*

Year Built 1976

Gross Leasable Area 27,610 SF

Lot Size 1.70 Acres

LeaSe Summary

Lease Term 12 Years

Lease Commencement 1/1/2015

Lease Expiration 1/31/2027

Remaining Term 11+ Years

Lease Type Modified NNN

Roof & Structure Tenant

Increases Annually

Options None

Options to Purchase None

AnnuAlized OperAting dAtA

Year(s) Commencement Annual Increase

1 1/1/2015 $285,000 -

2 2/1/2016 $289,275 1.50%

3 2/1/2017 $293,608 1.50%

4 2/1/2018 $298,012 1.50%

5 2/1/2019 $302,482 1.50%

6 2/1/2020 $307,020 1.50%

7 2/1/2021 $311,625 1.50%

8 2/1/2022 $316,299 1.50%

9 2/1/2023 $321,044 1.50%

10 2/1/2024 $325,859 1.50%

11 2/1/2025 $330,747 1.50%

12 2/1/2026 $335,709 1.50%

net Operating incOme $278,937

Walgreens3222 S Main Street Joplin, MO 64801

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TENANT INFORMATION

cOmpany Summary

Company Walgreens Boots Alliance, Inc.

Ownership Public

Rating BBB

Agency Standard & Poor’s

Ticker Symbol WBA

Exchange NASDAQ

Market Cap $89.49 Billion

Revenue $112.92 Billion

Years In Business 113 Years

Number of Locations 8,173

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.

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INVESTMENT HIGHLIGHTS

• Rare Annual Rent Escalations - Annual Rent Escalations of 1.5%

• Recent Lease Extension - Tenant Extended Lease for Additional 10 Years in February 2015

• Twice as Large as Standard Walgreens at 27,610 SF With Drive-Thru Pharmacy

• Location Sells Beer, Wine and Liquor

• Close Proximity to Region’s Two Major Hospitals - Freeman West Emergency Room (346 Beds) and Mercy Hospital (200 Beds)

• More than $1 Billion in Massive Reconstruction Projects Underway in the Immediate Area

• Highly Accessible Location - 1.5 Miles from Interstate 44

• Superior Visibility - Traffic Counts Exceed 19,000

• Traffic Counts Along West 32nd Street Exceed 19,000 Vehicles Per Day and Along S Main Street Traffic Counts Exceed 15,000 Vehicles Per Day

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AERIAL MAP

JoplinHigh

School

NormanElementary

School

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LOCAL MAP

FreemanWest

EmergencyRoom Mercy

Children’sHospitalJoplin

FreemanOrthopaedics

& Sports Medicine

MercyHospitalJoplin

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REGIONAL MAP

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MARKET SUMMARY

JOPLIN, MO

Joplin is a city in southern Jasper County and northern Newton County in the southwestern corner of the US state of Missouri. Joplin is the largest city in Jasper County, though it is not the county seat. Joplin is the main hub of the three county Joplin-Miami, Oklahoma Metropolitan area.

Numerous trucking lines such as CFI (now Con-Way Truckload) are headquartered in town, as the city is situated near the geographic and population centers of the nation. Eagle-Picher Industries, TAMKO Building Products, AT&T Communications and FAG Bearings are noted employers in Joplin, and Leggett & Platt (Fortune 500) is located in nearby Carthage. The city is served by the Joplin Regional Airport located in the north of town near Webb City.

On May 22, 2011, an EF5 tornado touched down near the western edge of the city among large, newer homes, at

about 5:21 pm CDT (22:34 UTC) and tracked eastward across the city and across Interstate 44 into rural portions of Newton and Lawrence counties. Its track was reported to have been about 0.75 miles (1.21 km) in width and 22.1 miles (35.6 km) long.

Due to its location near two major highways and its many event and sports facilities, Joplin attracts travelers and is a destination for conferences and group events. Joplin offers nearly 2,500 hotel rooms, the majority located within a 1/4-mile area of Range Line Road and I-44. It has the 30,000-square-foot (2,800 m2) John Q. Hammons Convention and Trade Center, which serves as the primary event facility for conventions, associations, and large events.

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DEMOGRAPHIC SUMMARY

Geography: 5 Miles

Demographic data © 2015 esri

PoPulation

In the identified area, the current year population is 57,669. The rate of change since 2000 was 9.4%. The five-year projection for the population in the area is61,625 representing a change of 6.9% from 2015 to 2020. Currently, the population is 48.5% male and 51.5% female. The median age in this area is 37.7, compared to U.S. median age of 37.9.

HouseHolds There are currently 24,058 households in your selected geography. The number of households has changed by 9.1% since 2000. It is estimated that the number of households in your area will be 25,747 five years from now, which represents a change of 7.0% from the current year. The average household size in your area is 2.34 persons.

income In 2015, the median household income for your selected geography is $37,731, compare this to the Entire US average which is currently $53,217. It is estimated that the median household income in your area will be $42,193 five years from now, which represents a change of 11.8% from the current year.

The current year per capita income in your area is $21,873, compare this to the Entire US average, which is $28,597. The current year average household income in your area is $51,849, compare this to the Entire US average which is $74,699.

Race and etHnicity The current year racial makeup of your selected area is as follows: 87.6% White, 3.1% Black, 2.0% Native American and 1.8% 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 17.6% of the current year population in your selected area. Compare this to the Entire US average of 17.6%.

Housing In 2015, there were 13,962 owner occupied housing units in your area and there were 10,097 renter occupied housing units in your area. Median home value in the area is $122,500, compared to a median home value of $200,006 for the U.S.

emPloyment In 2015, there are 26,580 employees in your selected area, this is also known as the daytime population. Currently 57.2% of employees are employed in white-collar occupations in this geography, and 22.2% are employed in blue-collar occupations. In 2015, unemployment in this area is 6.5%.

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DEMOGRAPHIC STATISTICS

pOpulAtiOn 1-Mile 3-Miles 5-Miles

2000 Population 3,074 29,726 52,710

2010 Population 3,202 31,377 56,296

2015 Population 3,242 30,981 57,669

2020 Population 3,290 32,872 61,625

traffic cOuntS

HOuseHOlds 1-Mile 3-Miles 5-Miles

2000 Households 1,246 12,629 22,045

2010 Households 1,292 13,095 23,433

2015 Households 1,306 12,911 24,058

2020 Households 1,324 13,698 25,747

2015 Daytime Population 1,471 14,364 26,580

2015 Average Household Size 2.42 2.35 2.34

2010 Owner Occupied Housing Units 65.3% 52.6% 52.6%

2010 Renter Occupied Housing Units 25.6% 37.7% 37.0%

2010 Vacant 9.1% 9.7% 10.4%



2015 Vacant 9.2% 12.7% 11.9%



2020 Vacant 9.2% 12.7% 11.8%

incOMe 1-Mile 3-Miles 5-Miles

$ 0 - $14,999 8.7% 16.2% 17.4%

$ 15,000 - $24,999 16.2% 15.1% 14.3%

$ 25,000 - $34,999 18.8% 15.1% 14.1%

$ 35,000 - $49,999 14.5% 17.8% 17.1%

$ 50,000 - $74,999 13.1% 17.7% 18.7%

$ 75,000 - $99,999 9.8% 7.1% 7.8%

$100,000 - $149,999 11.0% 6.4% 6.2%

$150,000 - $199,999 4.8% 2.4% 2.5%

$200,000+ 3.1% 2.2% 1.9%

2015 Median Household Income $40,301 $37,227 $37,731

2015 Per Capita Income $26,525 $22,205 $21,873

2015 Average Household Income $63,563 $52,528 $51,849

15,109

19,010

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

Exclusively listed by:

Vice PresidentLISTING BROKERTel: (499) 844-8889 [email protected] License: TX #609364

Michael Austry

BROKER OF RECORDTel: (903) 691-0941 [email protected] License: #1999003552

Jerry Brewer

Documents

Walgreens - Joplin, MO