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E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G
1815 9TH AVENUE NORTH | BESSEMER, AL 35020
BIRMINGHAM MSA INVESTMENT OPPORTUNITY
Pharma Property Group | 5328 Banks Street, Suite B | San Diego, CA 92110 | 619.297.0055 | www.pharmapropertygroup.com
JASON STUART PONGSRIKULManaging Principal
Direct: 619.297.0055 [email protected]
CA DRE Lic. #01918332
CHRIS BARRYAssociate
Direct: 619.297.0055 [email protected]
CA DRE Lic. #02018350
JOSH BURMEISTERPresident, BUR Commercial
Direct: [email protected] QBLN 000061104-1
Exclusively Listed By: In Association with:
page 2Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Property Overview
Investment Highlights
Year Built: 2001Lot Size: 104,108 Square FeetBuilding Size: 15,120 Square Feet
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
STABLE INCOMERental income is guaranteed by Walgreens parent corporate (S&P BBB) investment grade, Fortune 500 Company, with over 8,000 locations.
LEASE TERM REMAINING3.75 years of guaranteed income before the eight (5 year) options that go out to March of 2021.
24-HOUR STORE WITH SOLID SALESThe subject property is the only 24-hour Walgreens pharmacy and 24-hour Walgreens store in Bessemer and has a history of strong sales benefiting from its 24 hour presence. This location is the only Walgreens or CVS within a nine mile radius that is open 24 hours.
HIGHLY TRAFFICKED AREASubject property is located at the signalized northeast corner of 9th Avenue, also known as the Bessemer Super Highway (22,197 cars per day) and 18th Street (10,469 cars per day). This corner is highly traveled as it is the main thoroughfare leading into and out of downtown Bessemer and within a mile of Interstate 59/20 (±120,000 cars per day).
STRONG EMPLOYMENT MARKETWithin 4 miles of the subject property are several large employers including: Piggly Wiggly Alabama's 450,000 square foot distribution facility. Dollar General's 106 acre distribution center. US Pipe & Foundry plant employing approximately 500 personnel. Medical West Hospital with acute care and 301 beds. Pediatrics West Children’s Hospital.
RETAIL AREAThe subject property is located in the heart of Bessemer and is surrounded by numerous national and local retail tenants.
Walmart
Supercenter Lowe's Home
Improvement Dollar Tree Tractor
Supply Co. Big Lots Dollar General Aldi Wells Fargo
Family Dollar McDonald's CVS Pizza Hut Church's
Chicken KFC Sherwin
Williams Papa Johns Advanced
Auto Parts Napa Auto Rally's Applebee's Ruby Tuesday Sonic Pep Boys Shell Food Giant PNC Bank T-Mobile
page 3Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Lease OverviewTenant:WALGREENS (NYSE: WAG)
Landlord Income: CORPORATE GUARANTEE
Credit Rating: INVESTMENT GRADE, BBB (S&P)
Lease Type: DOUBLE NET Landlord responsible for roof and structure.
Lease Term: 3.75 YEARS REMAINING WITH EIGHT (5 YEAR) OPTIONS TO FOLLOW
Rent Commencement Date: MARCH 29, 2001
Next Option Begins: MARCH 30, 2021
Pricing
Building
Price: $4,000,000
CAP: 8.00% CAP
Price/Square Foot: $264.55
Monthly Income: $26,666
Annual Income: $320,000
Building Square Footage: 15,120
Land Square Footage: 104,108
Rent/Square Foot: $21.16
Year Built: 2001
Location Overview
B essemer is in southwestern Jefferson
County, and is a suburb of Birmingham
located just 18 miles to its southwest.
The Birmingham-Hoover metropolitan area
is the largest in the state and is home to over
1.1 million people. Bessemer sits strategically
along Interstate 59/20 and is centrally located to
the economic centers of Birmingham, Hoover,
Tuscaloosa and the Mercedes Plant in Vance.
Bessemer includes a mix of shopping, world-
class restaurants, churches and recreational
and entertainment attractions, such as the
Alabama Splash Adventure.
BESSEMER, ALABAMA
SUBJECT PROPERTY
page 4Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Area Description
BIRMINGHAM
BESSEMER
BIRMINGHAM-SHUTTLESWORTH INTERNATIONAL AIRPORT
ALABAMA SPLASH ADVENTURE PEDIATRICS WEST
BESSEMERUAB
MEDICAL WEST
±18 MILES
RENAISSANCE BIRMINGHAMROSS BRIDGE GOLF CLUB
DISTRIBUTION CENTERON 106 ACRES
INTERSTATEINDUSTRIAL PARK
108 ACRES
PIGGLY WIGGLYALABAMA DISTRIBUTION
450,000 SF FACILITY
SUBJECT PROPERTY
US PIPE & FOUNDRY500 EMPLOYEES
AREA OVERVIEWThe subject property is centrally located just west of Interstate 20/59 approximately 18 miles southwest from downtown Birmingham, Alabama. Other interstates in the area include Interstate 459 and Interstate 65 offering easy access to surrounding states and metropolitan areas. Bessemer has a strong employment market with employers such as:
PIGGLY WIGGLY ALABAMA DISTRIBUTING HEADQUARTERS ( 3.1 miles north) - This 450,000 square foot distribution facility is one of the main distributing facilities in the south for the Piggly Wiggly chain and serves more than 270 stores across seven states. This site serves as the corporate headquarters for Piggly Wiggly Alabama Distributing which was founded by 27 Piggly Wiggly operators and serves as a critical distribution hub. U.S. PIPE & FOUNDRY (500 employees, 1.1 miles northwest) - U.S. Pipe employs approximately 500 people. In 2008, this plant received $6.3 million in tax breaks and other incentives from state, county and municipal governments during recent renovations.
DOLLAR GENERAL DISTRIBUTION CENTER (650 employees, 3.8 miles southeast) - A $100 million campus on 106 acres that includes six buildings and is the largest distribution center in Bessemer.
TWO HOSPITALS - Within two and a half miles of the property are two medical facilities. Medical West is a 310-bed acute care hospital and Pediatrics West Children’s Hospital serving patients ranging from newborns to 18 years.
page 5Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
9TH AVENUE NORTH ± 22,197 CARS PER DAY
± 120,000 CARS PER DAY
NEW BETHLEHEMBAPTIST CHURCJ
JS ABRAMSELEMENTARY SCHOOL
US PIPE & FOUNDRY500 EMOPLOYEES
RESIDENTIAL AREAS
RESIDENTIAL AREAS
Property Photos
± 120,000 CARS PER DAY
9TH AVENUE NORTH ± 22,197 CARS PER DAY
INTERSTATE INDUSTRIAL PARK108 ACRES WITH RAIL ACCESS
BESSEMERPUBLIC LIBRARY
RESIDENTIAL AREAS
RESIDENTIAL AREAS
page 6Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Property Photos
SOUTH AND WEST PARKING AREAS
NORTH AND EAST SIDE WITH DRIVE-THRU
± 120,000 CARS PER DAY
9TH AVENUE NORTH ± 22,197 CARS PER DAY
9TH AVENUE NORTH ± 22,197 CARS PER DAY
RESIDENTIAL AREAS
RESIDENTIAL AREAS
RESIDENTIAL AREAS
US PIPE & FOUNDRY500 EMOPLOYEES
RESIDENTIAL AREAS
page 7Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Company Summary*
Tenant HistoryWalgreens, headquarted in Deerfield, IL, is the largest drug retailing chain in the United States with more than 8,175 stores in all 50 states, the Disctrct of Columbia, Puerto Rico, and the U.S. Virgin Islands. Walgreens built out its national platform through its corporate real estate department heavily during the 1990’s continuing through the mid 2000’s. By 2012, Walgreens had opened its 8,000th store and later that year the company made a bold move by purchasing a 45% interest in Alliance Boots, a leading international pharmacy-led health and beauty group. Two years later, Walgreens exercised its option to purchase the remaining 55% of the Switzerland based Alliance Boots to merge and create a new holding company named Walgreens Boots Alliance(NASDAQ: WBA). This transaction brought together two leading companies with iconic brands, complementary geographic footprints, shared values and a heritage of trusted healthcare services through pharmaceutical wholesaling and community pharmacy care, dating back more than 100 years. Today, Walgreens is part of the Retail Pharmacy USA division of Walgreens Boots Alliance. The company sells prescription and non-prescription drugs and general merchandise including household products, convenience and fresh foods, personal care, beauty care, photo finishing, as well as home medical equipment, contact lenses, vitamins, supplements and other health and wellness solutions. Walgreens also provides specialty pharmacy services for managing complex and chronic health conditions. In addition to these in-store offerings, the company operates digital businesses that include Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com, and VisionDirect.com.*Walgreens company information received from Walgreens investor relations.
tenant profileGuarantor: Walgreens Boots Alliance, Inc.Ownership: PublicStock Symbol (NASDAQ): WBACredit Rating (S&P): BBBBusiness: Retail PharmacyLocations: 8,175Annual Revenue: $117.35 BillionNet Worth: $29.88 BillionHeadquartrs: Deerfield, ILWebsite: www.walgreens.com
On Oct 27, 2015, Walgreens Boots Alliance entered into a merger agreement with Rite Aid Corporation (NYSE: RAD). The transaction is expected to close sometime in mid-2017, but is subject to Rite Aid stockholder approval, regulatory approvals and other customary closing conditions.
page 8Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Locations by State
Alabama 113 Idaho 39 Mississippi 76 Oklahoma 114 West Virginia 16
Alaska 12 Illinois 598 Missouri 212 Oregon 76 Wisconsin 225
Arizona 244 Indiana 190 Montana 13 Pennsylvania 123 Wyoming 10
Arkansas 81 Iowa 70 Nebraska 57 Rhode Island 25 Puerto Rico 120
California 633 Kansas 69 Nevada 82 South Carolina 114 US Virgin Islands 1
Colorado 159 Kentucky 95 New Hampshire 31 South Dakota 14
Connecticut 92 Louisiana 158 New Jersey 197 Tennessee 252
Delaware 64 Maine 14 New Mexico 72 Texas 713
Washington DC 8 Maryland 85 New York 469 Utah 48
Florida 831 Massachusetts 163 North Carolina 268 Vermont 3
Georgia 203 Michigan 228 North Dakota 1 Virginia 140
Hawaii 20 Minnesota 152 Ohio 247 Washington 135
*Nationwide locations as of August 31, 2016Note: Walgreens also operates specialty and institutional pharmacies. Walgreens Take Care Health Systems subsidiary manages more than 400 Healthcare Clinics at select Walgreens drugstores.
Total 8,175*
page 9Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Demographic Snapshot | 2016
Disclaimer: 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, age, distances, lot size, store opening dates, demographic information, aerial information, tenant information & store operating information are approximate.
Buyer and their representatives understands that Walgreens tenant information was gathered by sources deemed to be reliable including Walgreens public quarterly and annual reports. Demographic information was provided by Nielsen Information Systems.
By accepting this package, buyer and their representatives must verify the information and bears all risk for any inaccuracies. © 2017 Pharma Property Group.
39.70
38.60
39.40
3 Mile
s
1 Mile
5 Mile
s
Average Age6,1
52
34,28
6
70,11
55 M
iles
3 Mile
s
1 Mile
Total Population
2,307
13,27
0
27,55
15 M
iles
3 Mile
s
1 Mile
Total Households
$37,3
50
$38,6
77
$48,6
98
3 Mile
s
1 Mile
5 Mile
s
Average Household Inc
page 10Jason Stuart PongsrikulManaging Principal, Pharma Property Group
Direct: [email protected]
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Investment Property Recap
Lease Overview
PricingPrice: $4,000,000
Total Monthly Income: $26,666
Total Annual Income: $320,000
Tenant:Walgreens (NYSE: WAG)
Landlord Income: Corporate Guarantee
Credit Rating: Investment Grade, BBB (S&P)
Lease Type: Double NET LeaseLandlord responsible for roof and structure.
Lease Term: 3.75 years remaining with eight (five year) options to follow
Next Option Begins: February 9, 2020
Year Built: 2001Total Lot Size: 104,108 Square FeetTotal Building Size: 15,120 Square Feet
1815 9TH AVENUE NORTHBESSEMER (BIRMINGHAM MSA), AL 35020
Cap Rate: 8.00%
5328 Banks Street, Suite BSan Diego, CA 92110P 619.297.0055F 619.839.0828
www.pharmapropertygroup.com
E X C L U S I V E L Y L I S T E D I N V E S T M E N T O F F E R I N G
1815 9TH AVENUE NORTH | BESSEMER (BIRMINGHAM MSA), AL 35020
JASON STUART PONGSRIKULManaging Principal
Direct: 619.297.0055 [email protected]
CA DRE Lic. #01918332
CHRIS BARRYAssociate
Direct: 619.297.0055 [email protected]
CA DRE Lic. #02018350
JOSH BURMEISTERPresident, BUR Commercial
Direct: [email protected]
AL QBLN 000061104-1