WALGREENS (Ground Lease Harley-Davidson Sublease) 1973 Forest Avenue Staten Island, NY (New York City MSA) NET LEASE INVESTMENT OFFERING

Transcription

1 WALGREENS (Ground Lease Harley-Davidson Sublease) 1973 Forest Avenue Staten Island, NY (New York City MSA)

2 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile Executive Summary Investment Highlights Property Overview II. Location Overview Photographs Aerial Site Plan Maps III. Market & Tenant Overview Demographic Report Market Overview Brand Overview Tenant Overview

3 DISCLAIMER STATEMENT DISCLAIMER STATEMENT: 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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder 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.

4 EXECUTIVE SUMMARY EXECUTIVE SUMMARY: The Boulder Group is pleased to exclusively market for sale a single tenant net leased Walgreens property, subleased to Harley-Davidson, located in Staten Island, New York. The property is positioned at a signalized intersection along the areas primary thoroughfare. Walgreens executed a sublease with Harley-Davidson that runs through April The Harley-Davidson is a relocation of an existing high performing store showing their commitment to the trade area. The 8,299 square foot property is strategically positioned on the northwest corner of Forest Avenue and Van Name Avenue. The intersection experiences traffic counts of 20,794 vehicles per day. The property is benefited by its location within a densely populated area and strong regional trade area that features a number of national retailers including The Home Depot, Lowe s Home Improvement, Kohl s, TJ Maxx, LA Fitness, Regal Cinemas, HomeGoods, Michaels and a number of quick service restaurants, auto part stores and banks. There are 208,475 people living within a three mile radius of the property earning an average household income of more than $90,000 per year. The Walgreens ground lease runs through July 31, 2032 and features five 5-year renewal option periods. The Walgreens sublease with Harley-Davidson runs through April 30, 2039 which suggests Walgreens has full intentions of execute their first two renewal option periods through July 31, Walgreens is publicly traded on the Nasdaq Stock Market (Symbol: WBA) and investment grade rated with a Standard & Poor s rating of BBB.

5 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS: Located within the New York City MSA Investment grade rated tenant (S&P: BBB) Long term lease with 14 years remaining No landlord responsibilities Five 5-year renewal options Excellent visibility and curb appeal Relocation of an existing Harley-Davidson store showing their commitment to the area Positioned at the corner of a signalized intersection (20,794 VPD) Retailers in the immediate area include The Home Depot, Lowe s Home Improvement, Kohl s, TJ Maxx, LA Fitness, Regal Cinemas, HomeGoods and Michaels There are 208,475 people living within a three mile radius of the property earning an average household income of more than $90,000 per year

6 PROPERTY OVERVIEW PROPERTY OVERVIEW: Price: $6,413,000 Cap Rate: 5.00% Net Operating Income: $320,650 Renewal Options: Five 5-Year* Lease Commencement Date: April 1, 2006 Lease Expiration Date: July 31, 2032 Tenant: Walgreens Standard & Poor s Rating: BBB (Investment Grade) Sub-Tenant: Harley-Davidson of Staten Island, Inc. Sublease Expiration Date: April 30, 2039 Year Built: 2008 Lease Type: Ground Lease No Landlord Responsibilities Building Size: 8,299 SF Land Size: 0.66 Acres Address: 1973 Forest Avenue, Staten Island, NY * Walgreens is expected to execute the first two 5-Year renewal option periods based on Harley-Davidson sublease term which runs through April 2039.

7 PHOTOGRAPHS

8 AERIAL

9 SITE PLAN DRIVE THRU V A N N A M E A V E N U E SUBJECT OFFERING F O R E S T A V E N U E ( 2 0, V P D )

10 MAP

11 MAP

12 DEMOGRAPHIC REPORT DEMOGRAPHIC REPORT: Population 1-Mile 3-Mile 5-Mile Total Population 43, , ,460 Total Households 13,900 70, ,262 Income 1-Mile 3-Mile 5-Mile Median Household Income $68,785 $70,262 $61,774 Average Household Income $83,686 $90,090 $84,238

13 MARKET OVERVIEW MARKET OVERVIEW: Staten Island, New York Staten Island is one of the five boroughs of New York City. Located in the southwest portion of the city, Staten Island is the southernmost part of both the city and state of New York, with Conference House Park located at the southern tip of the island. The borough is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay. Staten Island is renowned for its museums, historic landmarks, beaches and parkland including the City s largest forest preserve in the Staten Island Greenbelt. Motor traffic can reach the borough from Brooklyn via the Verrazano-Narrows Bridge and from New Jersey via the Outerbridge Crossing, Goethals Bridge, and Bayonne Bridge. Staten Island has Metropolitan Transportation Authority (MTA) bus lines and an MTA rapid transit line, the Staten Island Railway, which runs from the ferry terminal at St. George to Tottenville. Staten Island is the only borough that is not connected to the New York City Subway system. The free Staten Island Ferry connects the borough to Manhattan and is a popular tourist attraction, providing views of the Statue of Liberty, Ellis Island, and Lower Manhattan.

14 MARKET OVERVIEW MARKET OVERVIEW: New York City, New York New York City is the most populous city in the United States. With an estimated population of over 8,537,000 people distributed over a land area of about square miles, New York City is also the most densely populated major city in the United States. Located at the southern tip of the state of New York, the city is the center of the New York metropolitan area, one of the most populous urban agglomerations in the world with an estimated 23.7 million residents. A global power city, New York City has been described as the cultural, financial, and media capital of the world, and exerts a significant impact upon commerce, entertainment, research, technology, education, politics, and sports. Home to the headquarters of the United Nations, New York is an important center for international diplomacy. Situated on one of the world s largest natural harbors, New York City consists of five boroughs, each of which is a separate county of New York State. The five boroughs Brooklyn, Queens, Manhattan, The Bronx, and Staten Island were consolidated into a single city in The city and its metropolitan area constitute the premier gateway for legal immigration to the United States. As many as 800 languages are spoken in New York, making it the most linguistically diverse city in the world. New York City is home to more than 3.2 million residents born outside the United States, the largest foreign-born population of any city in the world. In 2013, the tri-state New York Metropolitan Statistical Area (MSA) produced a gross metropolitan product (GMP) of nearly US$1.4 trillion. If greater New York City were a country, it would have the 12th highest GDP in the world. Many districts and landmarks in New York City are well known, and the city received a record 61 million tourists in 2016, hosting three of the world s ten most visited tourist attractions in Several sources have ranked New York the most photographed city in the world. Times Square, iconic as the world s heart and its Crossroads, is the brightly illuminated hub of the Broadway Theater District, one of the world s busiest pedestrian intersections, and a major center of the world s entertainment industry. The names of many of the city s bridges, skyscrapers, and parks are known around the world. Anchored by Wall Street in the Financial District of Lower Manhattan, New York City has been called both the most economically powerful city and the leading financial center of the world, and the city is home to the world s two largest stock exchanges by total market capitalization, the New York Stock Exchange and NASDAQ. Manhattan s real estate market is among the most expensive in the world. Manhattan s Chinatown incorporates the highest concentration of Chinese people in the Western Hemisphere, with multiple signature Chinatowns developing across the city. Providing continuous 24/7 service, the New York City Subway is one of the most extensive metro systems worldwide, with 472 stations in operation. Over 120 colleges and universities are located in New York City, including Columbia University, New York University, and Rockefeller University, which have been ranked among the top universities in the world. www1.nyc.gov

15 BRAND OVERVIEW BRAND OVERVIEW: Harley-Davidson Harley-Davidson is an American motorcycle manufacturer, founded in Milwaukee, Wisconsin in One of two major American motorcycle manufacturers to survive the Great Depression, Harley-Davidson has survived numerous ownership arrangements, subsidiary arrangements, periods of poor economic health and product quality, as well as intense global competition, to become one of the world s largest motorcycle manufacturers and an iconic brand widely known for its loyal following. There are owner clubs and events worldwide as well as a company-sponsored brand-focused museum. The tenant of the property is Harley-Davidson of Staten Island. Harley-Davidson of Staten Island provides superior customer service and has an entire team that consists of professional sales members, finance experts, service technicians and a knowledgeable parts and accessories staff to support customers. Harley-Davidson of Staten Island offers the newest models. The location is complete with service, parts and sales departments. Website: Founded: 1903 Stock Symbol: HOG (New York Stock Exchange) Standard & Poor s Rating: A- Market Capitalization: $9 Billion

16 TENANT OVERVIEW TENANT OVERVIEW: Walgreens Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As of January 31, 2017, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacy locations, as well as managed approximately 400 Healthcare Clinics. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois. The Walgreen Company is the largest drug retailing chain in the United States. The company is publicly traded on the NASDAQ (Symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor s rating of BBB. In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN s Sustainable Development Goals. Website: Number of Locations: 8,175 Stock Symbol: WBA (NASDAQ) Standard & Poor s Rating: BBB Market Capitalization: $88 Billion

17 Randy Blankstein President Jimmy Goodman Partner Lake Avenue, Suite 203 Wilmette, IL