Walgreens

Highlights:

• 20% RENTAL INCREASE -a large 20% rental increase at the next tenant option. Tenant has reached out to Landlord multiple times about extending the lease for up to 10-years.
• STRONG STORE SALES - Walgreens reported $2,421,000 in store sales for the 2023 fiscal year.
• LOW PRICE POINT WALGREENS INVESTMENT - Rare opportunity to acquire a Walgreens at a low basis.
• EXCELLENT AREA - Walgreens is located directly next to national tenant, Ace Hardware and is near several other major national tenants including Advance Auto Parts, Lowe's, Kroger, Aldi, Burger King, KFC, McDonald's, Krystal, Dairy Queen, and many more.
• CORPORATE CREDIT RATED TENANT - Corporately Guaranteed Lease by Walgreens Boots Alliance (WBA), a publicly traded company with a BBB- Credit Rating.
• SITE COMMITMENT - The tenant signed a 10 year lease extension in 2017, showing their long term commitment to this location.
• LARGE FUTURE RENTAL INCREASE - There is a 20% rental increase available in 2027, affording a potential investor significant upside and potential appreciation in value should the tenant exercise their option to renew.
• MINIMAL LANDLORD RESPONSIBILITY - NN Lease with Landlord responsible for roof and structure only. The Landlord replaced the roof in 2017 which shall provide the future landlord with limited ongoing maintenance.
• ATLANTA, GA MSA - Griffin is part of the Atlanta Georgia MSA, home to the #1 Busiest Airport in the World and the 9th largest Economy in the United States.

Description:

Prime Net Lease is please to exclusively market a single-tenant Walgreens located in Griffin, GA. The property was originally build in 1996 as a build-to-suit for Rite Aid. After Walgreens' acquisition of part of a Rite Aid portfolio, this location was converted to Walgreens. The conversion took place in 2017 and included an interior and exterior remodel, showing Walgreens commitment to the site. The building spans 11,220 SF and sits on a parcel of just under 1 acre. This location is centrally located within the city and has no immediate competition aside from a CVS that is located over 1 mile away, making this a primary go-to pharmacy for the entire Griffin population for the past 25 years. Walgreens is located directly next to national tenant, Ace Hardware and is near several other major national tenants including Advance Auto Parts, Lowe's, Kroger, Aldi, Burger King, KFC, McDonald's, Krystal, Dairy Queen, and many more. Wellstar Spalding Regional Medical Center is nearby with 160 total beds and over 6,000 discharges as of 11/23 along with Southern Crescent Technical College with over 5,000 students enrolled.

The current NN lease was executed after the remodel in 2017 for 10 years and expires in October 2027 giving the investor close to 2.5 years of term remaining. The first 5-year option has a 20% rental increase, which is significant increase from current rent, but still significantly below comparable Walgreens rental rates. The remaining Six, 5-year options each feature 7% rental increases. This investment allows a new investor a opportunity to acquire a well established, centrally located Walgreens at a price point that significantly below other Walgreens investment. This Walgreens reports strong store sales and concluded the 2023 fiscal year with $2,421,000 in sales. For the entire fiscal year 2023, Walgreens Boot Alliance reported sales of $139.1 billion, marking a 4.8% increase from the previous year or a 5.6% increase on a constant currency basis.

Walgreens Boots Alliance (Nasdaq: WBA) is the first global pharmacy-led, health and wellbeing enterprise. 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.

Atlanta is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, although a portion of the city extends into neighboring DeKalb County. With a population of 498,715 living within the city limits, it is the eighth most populous city in the Southeast and 38th most populous city in the United States according to the 2020 U.S. census. It is the core of the much larger Atlanta metropolitan area, which is home to nearly 7 million people, making it the eighth-largest metropolitan area in the United States.

With a GDP of $385 billion, the Atlanta metropolitan area's economy is the 11th-largest in the country and the 22nd-largest in the world. Corporate operations play a major role in Atlanta's economy, as the city claims the nation's third-largest concentration of Fortune 500 companies (tied for third with Chicago). It also hosts the global headquarters of several corporations such as The Coca-Cola Company, The Home Depot, Delta Air Lines, Arby's, AT&T Mobility, Georgia-Pacific, Chick-fil-A, Church's Chicken, Dunkin Donuts, Norfolk Southern Railway, Mercedes-Benz USA, NAPA Auto Parts, Papa Johns, Porsche AG, Newell Brands, Marble Slab Creamery, and UPS. Over 75% of Fortune 1000 companies conduct business operations in the city's metro area, and the region hosts offices of over 1,250 multinational corporations.

Atlanta started as a railroad town, and logistics has been a major component of the city's economy to this day. Atlanta serves as an important rail junction and contains major classification yards for Norfolk Southern and CSX. Since its construction in the 1950s, Hartsfield–Jackson Atlanta International Airport (ATL) has served as a key engine of the city's economic growth. Delta Air Lines, the city's largest employer and the metro area's third-largest, operates the world's largest airline hub at Hartsfield-Jackson, and it has helped make it the world's busiest airport, in terms of both passenger traffic and aircraft operations. Partly due to the airport, Atlanta has been also a hub for diplomatic missions; as of 2017, the city contains 26 consulates general, the seventh-highest concentration of diplomatic missions in the US.

Broadcasting is also an important aspect of Atlanta's economy. Notable sports networks headquartered in Atlanta include Warner Bros. Discovery Sports, NBA TV, Bally Sports South, and Bally Sports Southeast. The Weather Channel is also based just outside of the city in suburban Cobb County.

Information technology (IT) has become an increasingly important part of Atlanta's economic output, earning the city the nickname the "Silicon peach". As of 2013, Atlanta contains the fourth-largest concentration of IT jobs in the US, numbering 85,000+. The city is also ranked as the sixth fastest-growing for IT jobs, with an employment growth of 4.8% in 2012 and a three-year growth near 9%, or 16,000 jobs. Companies are drawn to Atlanta's lower costs and educated workforce.

Recently, Atlanta has been the center for film and television production, largely because of the Georgia Entertainment Industry Investment Act, which awards qualified productions a transferable income tax credit of 20% of all in-state costs for film and television investments of $500,000 or more. Film and television production facilities based in Atlanta include Turner Studios, Pinewood Atlanta Studios, Tyler Perry Studios, Williams Street Productions, and the EUE/Screen Gems soundstages. Film and television production injected $9.5 billion into Georgia's economy in 2017, with Atlanta garnering most of the projects. Atlanta has emerged as the all-time most popular destination for film production in the United States and one of the 10 most popular destinations globally.

Documents: