$17,500,000 CAP Rate · 2018. 10. 29. · We have more than 78,000* healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health

Walgreens Pharmacy #13690 St. Paul, Minnesota

• True NNN lease with ~17+ years guaranteed rent

• Adjacent to massive redevelopment of 135-acre former Ford Motor Co. campus into a high-density urban village

• JustfivemilesnorthofMinneapolis-SaintPaulInternationalAirport

• Densely populated neighborhood

• Provenlocationwithconsistentlyhighsalesreports

• Hightrafficthoroughfarewitheasyaccess

• FullguaranteebyWalgreenscorporation

$17,500,000

5.70%CAP Rate

DeerfieldPartnersJohn GiordaniArtGriffith(888)[email protected]

Adjacent to 135-acre Urban Village Development


DeerfieldPartnersJohn GiordaniArt GriffithCall: (888) 258-7605Email: [email protected]

ThisurbaninfillWalgreensisadjacenttothemassiveredevelopmentofthe135-acreformerFordMotorCo.campus.Thecampuswillberedevelopedintoahigh-densityurbanvillage.TheWalgreenssitehaseasyaccessandexcellentVisibilityalongFordParkway,whichseesover16,000vehiclesperday.ThesiteisfivemilesawayfromMinneapolis-SaintPaulInternationalAirport,the16thbusiestairportintheU.S.withmorethan37,000,000annualpassengers.Numerousmedicalfacilitiesarewithinathreemileradius,includingMinneapolisVAHealthCareSystem,HealthPartnersClinic,FairviewUrgentCareandothers.

InvestmentSummary

1Mile 3Mile 5Mile

Population 15,796 128,844 376,023Avg. HH Income $119,673 $96,744 $83,571

Price $17,500,000CAP Rate 5.70%

Annual Income $998,000Years Guaranteed 17+ years NNN



RedevelopmentoftheFordMotorCompanySite

RedevelopmentplansforSt.Paul’sformerFordsiteunveiled

As Ford’s former Twin Cities Assembly Plant is redeveloped in the coming years, a 21st Century Community will emerge on the 135 acres of land situated along the Mississippi River. The vision for the site is a connected, livable, mixed-use neighborhood that looks to the future with clean technologies and high quality design for energy, buildings and infrastructure. This site will be woven into the existing community, and support walking, biking and transit, and provide services, jobs and activities that every generation can enjoy. A 21st Century Community is about to unfold.

Minneapolis-based Ryan Cos. plan to redevelop the former Ford manufacturing land in St. Paul’s Highland Park into 3,800 housing units and 150,000 square feet of retail space. In all, the development will span some 40 city blocks. Architecture will be reminiscent of Highland Village, with a central water corridor that will be surrounded by four pedestrian-only and bicycle-only blocks on either side, 35 single-family homes along Mississippi River Boulevard and six-story and seven-story buildings closer to Ford Parkway.

Over the next decade, residents can also expect senior and affordable housing, a street grid that puts bicycles, pedestrians and drivers on a level playing field, more than 50 acres of public open space and 1,000 trees.

“Folks all around the country will look at this area as one of the best examples of mixed-income development,” said Mike Ryan, a principal with the Ryan Cos., pointing to renderings of a future civic plaza and water-lined promenade. “This is really going to become the gem of the area.”

The Ryan team, promised a diverse mix of housing laid out to minimize the need for car travel and maximize pedestrian access. In short — a showpiece neighborhood.

The Ryan Cos., founded in Minnesota in the 1930s, have completed projects in 38 states, including the CHS Field ballpark in downtown St. Paul and the Downtown East project in Minneapolis. Ford Land, the real estate division of Ford, selected Ryan as master developer for the 122-acre site in June.



WideAngleAerial



PropertyDetailsandLeaseSummaryAddress 2099FordParkway,SaintPaul,MN55116

Year Built 2011Building Size 21,390SquareFeet(16,890FirstFloor+4,500basement)

Lot Size 0.82acresTenant Walgreens(NASDAQ:WBA)

Lease Start Date April4,2011Lease End Date April30,2086

Termination Options Tenantmayterminateasof4/30/2036,withtwelve(12)monthswrittennotice.

Attractive,AboveStandardBrickArchitecture



AboutSt.Paul,Minnesota

Facts&Figures

Life in Saint Paul flows deep with tradition, wide with talent and diversity, and strong with economic and cultural vitality. Our character is in our people. You can feel it in the firmness of our handshake and the warmth of our welcome. The sights, sounds and aromas are the breath of our unique, charming old neighborhoods.

Saint Paul, the head of navigation of the great Mississippi River, is a City of neighborhoods. Like a network of urban villages, our neighborhoods are strong and stable, each with its own fascinating texture of historic interest, cultural landmarks, ethnic heritage and time-honored traditions. This is why people lucky enough to live here feel a remarkable sense of belonging, a sense of place.

Our commitment to not only preserving, but growing this sense of the urban village is exemplified by our continuing development of Downtown. Now one of our most desirable neighborhoods, the City’s core is thriving, not just as a place to work, but as a place to live, learn and spend leisure time. We have reclaimed our riverfront, which now pulses with the energy of both concerts and commerce.

Saint Paul is a thriving commercial center in our own right—home to Fortune 500 company headquarters, large regional enterprises and countless small businesses and professional firms. We are playing an ever-more-vital role in both powering and piloting the fortunes of the dynamic Minneapolis/Saint Paul Metro region. As large-scale, visionary developments like the Central Corridor (at last linking the east metro with the metro core in a way that will integrate, rather than alienate, neighborhood interests) continue to unfold, we are committed to seeing that role continue to broaden.

• Second most populous city in Minnesota.• Estimated population size is more than 300,000.• Average high temperature in September in Minneapolis-Saint Paul is 71 degrees.• Saint Paul has more city shoreline on the Mississippi River than any other city.• Capital of Minnesota• Home to many commercial, manufacturing, transportation, educational institutions, and non-profit organizations.• More than 80 languages are spoken in Saint Paul public schools.• Saint Paul’s population is 64.3% White non-Hispanic, 13.4% Asian, 12.6 % African American and Pan African, 8.5% Hispanic

and 1.2% American Indian.• Home to elegant Summit Avenue, the longest preserved Victorian avenue in the country. In addition to being the site of the

Governor’s Residence, authors F. Scott Fitzgerald and Sinclair Lewis both lived on Summit Avenue at one time.



RegionalMap





AboutWalgreensBootsAllianceWalgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise. The Company’s heritage of trusted healthcare services through community pharmacy care and pharmaceutical wholesaling dates back more than 100 years.

Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 25* countries and employ more than 385,000* people. The Company is a global leader in pharmacy-led, health and wellbeing retail and, together with the companies in which it has equity method investments, has more than 13,200* stores in 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with more than 390* distribution centers delivering to more than 230,000** pharmacies, doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s size, scale, and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the U.S. and worldwide.

Walgreens Boots Alliance is included in Fortune magazine’s 2018 list of the World’s Most Admired Companies. This is the 25th consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen Co., has been named to the list.

* As of 31 August 2017, using publicly available information for AmerisourceBergen.**For 12 months ending 31 August 2017, using publicly available information for AmerisourceBergen.



WalgreensIncomeStatementsTrailing5Years



WalgreensBootsAlliance--SegmentStructure

8

Walgreens Boots Alliance – Segment Structure

The largest retail pharmacy chain in Europe

A leading global pharmaceutical wholesaler

and distributor

A leading drugstore chain in the USA

The first global pharmacy-led, health and wellbeing enterprise in the world



WalgreensBootsAlliance--RetailPharmacyUSADivisionOur Retail Pharmacy USA Division’s principal retail pharmacy brands are Walgreens and Duane Reade. Together, they form one of the largest drugstore chains in the U.S., operating 8,100* drugstores in 50* states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. As of August 2017, approximately 76 percent of the population of the U.S. lives within five miles of a Walgreens or Duane Reade.

We sell prescription and non-prescription drugs, as well as general merchandise, including household items, convenience and fresh foods, personal care, beauty care, photofinishing and candy. We offer our products and services through drugstores, as well as through mail, telephone and online. We also provide specialty pharmacy and respiratory services, and operate retail clinics.

Our services help improve health outcomes for patients and manage costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. Our stores sell branded and own brand general merchandise. In addition, Walgreens has approximately 400 in-store clinic locations throughout the U.S., some of which are operated by the Company and some of which are operated by health system partners.

Prescription drugs account for 69 percent† of sales, while retail products are 31 percent.

Overall, we filled approximately 764 million† prescriptions in fiscal 2017. Adjusted to 30-day equivalents, we filled approximately 990 million† prescriptions in fiscal 2017. Third party sales, where reimbursement is received from managed care organizations, government and private insurance, were approximately 98 percent† of prescription sales.

We utilize our extensive retail network as a channel to provide affordable quality health and wellness services to our customers and patients, as illustrated by our ability to play a significant role in providing flu vaccines and other immunizations.

We have more than 78,000* healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health related professionals. Through them we expect to continue to play a growing role in government and employer efforts to control escalating healthcare costs.

Our loyalty program, Balance® Rewards, is designed to reward our most valuable customers and encourage shopping in stores and online and allows customers the opportunity to earn points for purchasing select merchandise in addition to receiving special pricing on select products when shopping with a rewards card. Customers have the ability to instantly redeem rewards at our stores or through Walgreens.com. We had 88 million Balance® Rewards active members as of August 2017.

The Division’s strategy is designed to further transform our traditional drugstore by offering ultimate convenience, driving the best customer loyalty and delivering extraordinary customer and patient care. We seek to expand our product and service offerings across new channels and markets where, in addition to our stores, customers and patients can utilize our health system pharmacies, Walgreens.com, mobile applications and social media sites.



WalgreensDrugstoresNationwidebyState



Demographics-1MileRadius

Demographic and Income Profile2099 Ford Pkwy, Saint Paul, Minnesota, 55116 Prepared by EsriRing: 1 mile radius Latitude: 44.91805

Longitude: -93.18905

AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent) 2.5

2

1.5

1

0.5

0Population Households Families Owner HHs Median HH Income

20182023

Population by AgePopulation by Age

Perc

ent

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+

2018 Household Income 2018 Household Income

<$15K6.1%

$15K - $24K6.8%

$25K - $34K5.4%

$35K - $49K10.6%

$50K - $74K15.6%

$75K - $99K13.5%

$100K - $149K17.5% $150K - $199K

10.4%

$200K+14.1%

2018 Population by Race2018 Population by Race

Perc

ent

80

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+

2018 Percent Hispanic Origin: 3.3%

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2018 and 2023.

October 20, 2018

©2018 Esri Page 2 of 6






Summary Census 2010 2018 2023Population 14,837 15,796 16,451Households 6,291 6,621 6,877Families 3,378 3,528 3,657Average Household Size 2.15 2.19 2.20Owner Occupied Housing Units 4,244 4,541 4,848Renter Occupied Housing Units 2,047 2,080 2,030Median Age 39.2 40.9 41.9

Trends: 2018 - 2023 Annual Rate Area State NationalPopulation 0.82% 0.84% 0.83%Households 0.76% 0.80% 0.79%Families 0.72% 0.71% 0.71%Owner HHs 1.32% 1.20% 1.16%Median Household Income 2.37% 2.83% 2.50%

2018 2023 Households by Income Number Percent Number Percent

<$15,000 405 6.1% 330 4.8%$15,000 - $24,999 451 6.8% 383 5.6%$25,000 - $34,999 356 5.4% 312 4.5%$35,000 - $49,999 701 10.6% 658 9.6%$50,000 - $74,999 1,030 15.6% 1,002 14.6%$75,000 - $99,999 897 13.5% 937 13.6%$100,000 - $149,999 1,159 17.5% 1,345 19.6%$150,000 - $199,999 687 10.4% 797 11.6%$200,000+ 934 14.1% 1,114 16.2%

Median Household Income $83,568 $93,970Average Household Income $119,673 $136,435Per Capita Income $51,214 $57,989

Census 2010 2018 2023 Population by Age Number Percent Number Percent Number Percent

0 - 4 808 5.4% 761 4.8% 789 4.8%5 - 9 850 5.7% 848 5.4% 860 5.2%10 - 14 777 5.2% 905 5.7% 910 5.5%15 - 19 1,121 7.6% 1,207 7.6% 1,242 7.5%20 - 24 1,122 7.6% 1,068 6.8% 1,113 6.8%25 - 34 1,986 13.4% 1,929 12.2% 1,865 11.3%35 - 44 1,970 13.3% 1,962 12.4% 2,148 13.1%45 - 54 2,148 14.5% 2,091 13.2% 2,021 12.3%55 - 64 1,939 13.1% 2,187 13.8% 2,154 13.1%65 - 74 872 5.9% 1,512 9.6% 1,802 11.0%75 - 84 723 4.9% 762 4.8% 987 6.0%

85+ 522 3.5% 564 3.6% 561 3.4%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 13,100 88.3% 13,341 84.5% 13,356 81.2%Black Alone 719 4.8% 945 6.0% 1,149 7.0%American Indian Alone 56 0.4% 59 0.4% 61 0.4%Asian Alone 500 3.4% 839 5.3% 1,154 7.0%Pacific Islander Alone 2 0.0% 3 0.0% 3 0.0%Some Other Race Alone 118 0.8% 146 0.9% 168 1.0%Two or More Races 342 2.3% 464 2.9% 560 3.4%

Hispanic Origin (Any Race) 422 2.8% 529 3.3% 625 3.8%Data Note: Income is expressed in current dollars.


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AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent) 2.5

2

1.5

1

0.5


20182023


Perc

ent

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K7.6%

$15K - $24K7.5%

$25K - $34K8.4%

$35K - $49K13.1%

$50K - $74K17.6%

$75K - $99K12.9%

$100K - $149K16.5%

$150K - $199K7.6%

$200K+8.7%


Perc

ent

70

60

50

40

30

20

10

0White Black Am. Ind. Asian Pacific Other Two+



October 20, 2018










<$15,000 4,214 7.6% 3,554 6.2%$15,000 - $24,999 4,163 7.5% 3,635 6.3%$25,000 - $34,999 4,645 8.4% 4,223 7.3%$35,000 - $49,999 7,277 13.1% 6,951 12.1%$50,000 - $74,999 9,767 17.6% 9,707 16.9%$75,000 - $99,999 7,120 12.9% 7,515 13.1%$100,000 - $149,999 9,118 16.5% 10,996 19.1%$150,000 - $199,999 4,219 7.6% 5,054 8.8%$200,000+ 4,823 8.7% 5,879 10.2%



0 - 4 7,204 6.0% 6,725 5.2% 7,011 5.2%5 - 9 6,234 5.2% 6,609 5.1% 6,488 4.8%10 - 14 5,674 4.7% 6,376 4.9% 6,396 4.8%15 - 19 8,044 6.7% 8,432 6.5% 8,567 6.4%20 - 24 11,324 9.4% 10,760 8.4% 10,892 8.1%25 - 34 20,362 16.9% 20,171 15.7% 21,290 15.9%35 - 44 16,446 13.6% 17,429 13.5% 18,050 13.5%45 - 54 17,092 14.1% 16,249 12.6% 16,037 12.0%55 - 64 14,926 12.4% 16,983 13.2% 16,388 12.2%65 - 74 6,623 5.5% 11,244 8.7% 13,531 10.1%75 - 84 4,308 3.6% 4,972 3.9% 6,556 4.9%

85+ 2,597 2.1% 2,896 2.2% 2,925 2.2%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 99,072 82.0% 101,070 78.4% 101,087 75.4%Black Alone 9,216 7.6% 11,556 9.0% 13,609 10.1%American Indian Alone 1,468 1.2% 1,482 1.2% 1,507 1.1%Asian Alone 3,472 2.9% 5,361 4.2% 7,046 5.3%Pacific Islander Alone 50 0.0% 67 0.1% 73 0.1%Some Other Race Alone 3,449 2.9% 4,041 3.1% 4,624 3.4%Two or More Races 4,108 3.4% 5,267 4.1% 6,186 4.6%

Hispanic Origin (Any Race) 7,543 6.2% 8,900 6.9% 10,257 7.6%Data Note: Income is expressed in current dollars.


October 20, 2018







AreaStateUSA

Trends 2018-2023Trends 2018-2023

Ann

ual R

ate

(in

perc

ent) 2.5

2

1.5

1

0.5


20182023


Perc

ent

16

14

12

10

8

6

4

2

00-4 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-64 65-74 75-84 85+


<$15K13.0%

$15K - $24K9.4%

$25K - $34K9.3%

$35K - $49K13.0%

$50K - $74K16.8%

$75K - $99K11.4% $100K - $149K

14.3%

$150K - $199K6.2%

$200K+6.8%


Perc

ent

605550454035302520151050

White Black Am. Ind. Asian Pacific Other Two+



October 20, 2018










<$15,000 19,481 13.0% 17,369 11.1%$15,000 - $24,999 14,174 9.4% 13,064 8.3%$25,000 - $34,999 13,910 9.3% 13,244 8.4%$35,000 - $49,999 19,510 13.0% 19,299 12.3%$50,000 - $74,999 25,180 16.8% 25,526 16.3%$75,000 - $99,999 17,094 11.4% 18,268 11.7%$100,000 - $149,999 21,415 14.3% 26,240 16.7%$150,000 - $199,999 9,267 6.2% 11,210 7.2%$200,000+ 10,179 6.8% 12,555 8.0%



0 - 4 24,023 6.8% 22,979 6.1% 24,084 6.1%5 - 9 20,447 5.8% 21,766 5.8% 21,556 5.5%10 - 14 17,848 5.1% 20,365 5.4% 20,648 5.3%15 - 19 27,347 7.8% 28,528 7.6% 29,512 7.5%20 - 24 37,653 10.7% 37,982 10.1% 39,397 10.0%25 - 34 62,340 17.8% 61,702 16.4% 63,871 16.2%35 - 44 45,809 13.1% 49,735 13.2% 52,138 13.3%45 - 54 44,984 12.8% 43,392 11.5% 43,624 11.1%55 - 64 37,546 10.7% 42,954 11.4% 42,354 10.8%65 - 74 16,963 4.8% 28,229 7.5% 33,745 8.6%75 - 84 10,373 3.0% 11,995 3.2% 15,797 4.0%

85+ 5,679 1.6% 6,399 1.7% 6,462 1.6%Census 2010 2018 2023

Race and Ethnicity Number Percent Number Percent Number PercentWhite Alone 239,380 68.2% 241,516 64.2% 239,981 61.0%Black Alone 52,248 14.9% 62,240 16.6% 70,369 17.9%American Indian Alone 6,018 1.7% 5,849 1.6% 5,749 1.5%Asian Alone 19,703 5.6% 27,172 7.2% 33,164 8.4%Pacific Islander Alone 165 0.0% 206 0.1% 220 0.1%Some Other Race Alone 19,540 5.6% 22,060 5.9% 24,462 6.2%Two or More Races 13,960 4.0% 16,980 4.5% 19,245 4.9%

Hispanic Origin (Any Race) 37,635 10.7% 42,683 11.4% 47,559 12.1%Data Note: Income is expressed in current dollars.


October 20, 2018


Documents

$17,500,000 CAP Rate · 2018. 10. 29. · We have more than 78,000* healthcare service providers, including pharmacists, pharmacy technicians, nurse practitioners and other health