1 | W a l g r e e n s - H o l l y S p r i n g s , N C

walgreens301 N Main St | Holly Springs, NC

OFFERING MEMORANDUM

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exclusively listed byJohnny DunnASSOCIATE

Johnny.Dunn@matthews.comDIR (214) 692-2114MOB (817) 372-1742LIC # 677506 (TX)

Kyler beanASSOCIATE

Kyler.Bean@matthews.comDIR (214) 692-2192MOB (325) 227-0893LIC # 646910 (TX)

Chad KurzSVP & NATIONAL DIRECTOR

Chad.Kurz@matthews.comDIR (214) 692-2927MOB (562) 480-2937LIC # 01911198 (CA)

Kyle MatthewsBROKER OF RECORD

LIC # C27092 (NC)

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table of contents

04 | executive summary

06 | financial overview

08 | tenant overview

14 | area overview

4 | O f f e r i n g M e m o r a n d u m

• Nationally Recognized Tenant, Investment Grade Credit Lease is fully guaranteed by Walgreens Co. (S&P’s Rated BBB). Walgreens ranked #17 on the 2017 Fortune 500 list

• Absolute NNN Zero Landlord Responsibilities

• Long-Term Lease 10 full years of lease term remaining

• Increasing Reported Sales Site has been experiencing sales growth year-over-year

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• Strong Demographics Fantastic demographics in the area with over 80,000 people in a 5-mile radius, median household income over $90,000 and population growth estimates over 10% for 2018 to 2023

• Prototype Store Format Most recent prototype store format with drive-thru

• Drug Store Competition Rite Aid and CVS are both nearby. Walgreens will not want to give up market share in this high growth area

• Prime Location This store is on a hard, signalized corner of Main St. and Holly Springs Rd. in the wealthy Holly Springs suburb of Raleigh, North Carolina

INVESTMENT HIGHLIGHTS

10YEARS

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Walgreens301 N Main StHolly Springs, NC 27540List Price .................................................................................................................................$4,956,522

CAP Rate - Current ....................................................................................................................... 5.75%Gross Leasable Area .............................................................................................................± 14,560 SF Lot Size .................................................................................................................................. ± 1.39 Acres Year Built/Renovated ........................................................................................................................2003

TENANT SUMMARY

Tenant Trade Name Walgreens

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 25 Years

Rent Commencement Date 9/28/2003

Lease Expiration Date 9/30/2028

Term Remaining on Lease ± 10 Years

Options Ten, 5-Year Options

ANNUALIZED OPERATING DATA

financial overview

Walgreens Monthly Rent Annual Rent Rent/SF Cap RateCurrent - 9/30/2028 $23,750.00 $285,000.00 $19.57 5.75%

Options $23,750.00 $285,000.00 $19.57 5.75%

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tenant overview

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Company Name Walgreen Co.

Parent Company Trade Name Walgreens Boots Alliance, Inc. (NASDAQ: WBA)

Ownership Public

Revenue $76.39B

Net Income $1.93B

No. of Locations ± 8,300

No. of Employees ± 253,400

Headquartered Deerfield, Illinois

Website www.walgreens.com

Year Founded 1901

The nation’s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from the competition.

Walgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and reducing customers’ shopping time, Walgreens has achieved placement in a league of its own as the competition aims their focus on things such as convenience, design, or low prices.

Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money.

TENANT OVERVIEW WALGREENS HEALTH FOCUS MARKETING STRATEGY

WALGREENS OVERVIEW

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the offeringPROPERTY NAME WALGREENS

Property Address 301 N Main StHolly Springs, NC 27540

Assessor’s Parcel Number 0649.16-83-9487 0319313

SITE DESCRIPTION

Number of Stories One

Year Built/Renovated 2004

Gross Leasable Area (GLA) ± 14,560 SF

Lot Size ± 1.39 Acres (60,548 SF)

Type of Ownership NNN

Parking Spaces ± 59 Surface Spaces

Landscaping Professional

Topography Generally Level

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W Holly Springs Rd ±13,000 ADT

N Main St ±

14,000 ADT

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Subject Property

Los TresMagueyes

Burn Boot Camp

Holly SpringsUnited Church

Los TresMagueyes

SecuritySelf Storage

W Holly Springs Rd ±13,000 ADT

N Main St ±14,000 ADT

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Subject Property

Holly Springs Elementary School

W H

olly Springs Rd ±13,000 AD

T

N Main St ±14,000 ADT

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demographicsPOPULATION 1 Mile 3 Mile 5 Mile

2023 Projection 9,616 45,513 94,650

2018 Estimate 8,676 41,359 85,874

2010 Census 6,931 30,268 64,736

POPULATION GROWTH 1 Mile 3 Mile 5 Mile

Growth 2018 - 2022 10.83% 10.04% 10.22%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile2023 Projection 3,233 2,413 32,327

2018 Estimate 2,937 13,907 29,374

2010 Census 2,413 10,240 22,236

HOUSEHOLD GROWTH 1 Mile 3 Mile 5 Mile

Growth 2018 - 2022 10.08% 10.01% 10.05%

INCOME 1 Mile 3 Mile 5 Mile2018 Est. Average Household Income $114,546 $121,380 $119,081

Holly Springs, NCLocated 30 minutes outside of Raleigh, Holly Springs is a town that is rapidly growing in Wake County. The community is looking at new developments throughout the area. The newest town growth has been commercial developments throughout Holly Springs. One of the popular hot spots in the area is downtown Holly Springs. The stylish Town Hall is the center of attention and has constant activity. There is also a great outdoor plaza down

Main Street that has a variety of mom and pop shops that give back to the community. Between the dedication of local buisnesses and the growth of corporate companies, Holly Springs has developed into the perfect small town.

area overview

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R a l e i g h , N C Raleigh, NC is the state capital of North Carolina and the County seat of Wake County. Walking through the city the streets are lined with oak trees, giving the city its name of “City of Oaks.” The city is a cultural, historical and educational center with Performing arts centers, symphony’s, museums of art, science, and history, and several major universities.

Raleigh is in central North Carolina, about two and half hours northeast of Charlotte, NC. Raleigh’s weather does experience seasonal changes, the hot season lasts typically 3.5 months from the end of may to the beginning of September. The average temperature during these months is in the high 80s. The winter is relatively mild with average daily temperature is in the 50s. The city gets on average 46 inches of rain per year.

E c o n o m i c D e v e l o p m e n tRaleigh is part of the Raleigh-Durham-Chapel Hill Combined Statistical Area, also known as the Research Triangle Area. These areas get their name due to the universities that reside in each of the cities, Duke University, UNC Chapel Hill, Wake Forest University and North Carolina State University. This Research Triangle is one the country’s best and most successful research parks in the country and is highly regarded in the high-tech and biotech research field.

The major industries in Raleigh are Technology, Health Care and Education. A big part of that is due to the positive impact of the Research Triangle and the universities that make it up. Raleigh is one of the fastest growing economies in the nation and is projected to lead the mid-Atlantic states in population growth in the next 25 years.

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N o r t h C a r o l i n a S ta t e U n i v e r s i t yNorth Carolina State University, home of the Wolfpack is located in Raleigh NC. The university has 33,755 students, 2,336 faculty members, and 6,733 staff. The University has more NC residents attending than any other university in the state and was rated #1 for best value among North Carolina public universities. NC State’s Industry Expansion Solutions has created $3.4 billion in economic benefit for the state’s manufacturers since 2000 and the University and its students, alumni and associated startups generate $6.5 billion of the state’s income annually.

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confidentiality disclaimer and agreement

This Offer ing Memorandum conta ins se lect informat ion perta in ing to the bus iness and af fa i rs of Walgreens located at 301 N Main St, Holly Springs, NC 27540 (“Property”) . It has been prepared by Matthews Rea l Estate Investment Serv ices . Th is Offer ing Memorandum may not be a l l- inc lus ive or conta in a l l of the informat ion a prospect ive purchaser may des i re . The informat ion conta ined in th is Offer ing Memorandum is conf ident ia l and furn ished so le ly for the purpose of a rev iew by a prospect ive purchaser of the Property. It i s not to be used for any other purpose or made ava i lab le to any other person wi thout the wr i t ten consent of Se l ler or Matthews Rea l Estate Investment Serv ices . The mater ia l i s based in part upon informat ion supp l ied by the Se l ler and in part upon f inanc ia l informat ion obta ined f rom sources i t deems re l iab le . Owner, nor the i r of f icers , employees , or agents makes any representat ion or warranty, express or impl ied , as to the accuracy or completeness of th is Offer ing Memorandum or any of i t s contents and no lega l l i ab i l i ty i s assumed or sha l l be impl ied w i th respect thereto . Prospect ive purchasers shou ld make the i r own pro ject ions and form the i r own conc lus ions w i thout re l iance upon the mater ia l conta ined here in and conduct the i r own due d i l igence.

By acknowledg ing your rece ipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l ho ld i t and t reat i t in the st r ictest of conf idence; and

3. You wi l l not , d i rect ly or ind i rect ly, d i sc lose or permit anyone e lse to d isc lose th is Offer ing Memorandum or i t s contents in any fash ion or manner detr imenta l to the interest of the Se l ler.

Owner and Matthews Rea l Estate Investment Serv ices express ly reserve the r ight , at the i r so le d i scret ion, to re ject any and a l l express ions of interest or of fers to purchase the Property and to terminate d iscuss ions w i th any person or ent i ty rev iewing th is Offer ing Memorandum or making an offer to purchase the Property un less and unt i l a wr i t ten agreement for the purchase and sa le of the Property has been fu l ly executed and de l i vered.

If you w ish not to pursue negot iat ions lead ing to the acqu is i t ion of the Property or in the future you d iscont inue such negot iat ions , then you agree to purge a l l mater ia l s re lat ing to th is Property inc lud ing th is Offer ing Memorandum.

A prospect ive purchaser ’ s so le and exc lus ive r ights w i th respect to th is prospect ive t ransact ion, the Property, or informat ion prov ided here in or in connect ion w i th the sa le of the Property sha l l be l imited to those express ly prov ided in an executed Purchase Agreement and sha l l be sub ject to the terms thereof . In no event sha l l a prospect ive purchaser have any other c la ims aga inst Se l ler or Matthews Rea l Estate Investment Serv ices or any of the i r a f f i l i a tes or any of the i r respect ive off icers , Directors , shareholders , owners , employees , or agents for any damages , l i ab i l i ty, or causes of act ion re lat ing to th is so l ic i tat ion process or the market ing or sa le of the Property.

Th is Offer ing Memorandum sha l l not be deemed to represent the state of af fa i rs of the Property or const i tute an ind icat ion that there has been no change in the state of af fa i rs of the Property s ince the date th is Offer ing Memorandum.

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exclusively listed by

™

Johnny DunnASSOCIATE

Johnny.Dunn@matthews.comDIR (214) 692-2114MOB (817) 372-1742LIC # 677506 (TX)

Kyler beanASSOCIATE

Kyler.Bean@matthews.comDIR (214) 692-2192MOB (325) 227-0893LIC # 646910 (TX)

Kyle MatthewsBROKER OF RECORD

LIC # C27092 (NC)

Chad KurzSVP & NATIONAL DIRECTOR

Chad.Kurz@matthews.comDIR (214) 692-2927MOB (562) 480-2937LIC # 01911198 (CA)