Walgreens Pharmacy
Fort Pierce, Florida
$5,990,000
•Florida has no state income tax
•Great High Growth Location
•38,360 cars per day on Okeechobee Rd. (SR 70)
7.6%
CAP Rate
•Neighbors include Wal-Mart & Home Depot
•Corporate guarantee from Walgreens
•New construction, 25 year NNN lease
•Zero management responsibilities
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Investment Summary
Price
CAP
Annual Income
Debt
$5,990,000
7.60%
$455,000
Buyer to obtain new debt.
Property Details
Location
City
State
NEC Okeechobee Rd (SR 70) & Jenkins Rd.
Fort Pierce
Florida
Year Built
Bldg Size
Lot Size
2008
14,820
1.72 acres
About the Site
Conveniently located at a signalized intersection within one mile of both the Florida Turnpike
and I-95 interchanges, Okeechobee Crossing serves as the gateway to the Fort Pierce market.
Development will eventually include 21,084 square feet of retail space. At this time, the only
property being offered for sale is a 14,820 square foot Walgreens store. There are separate
but contiguous pad sites entitled for use as a 3,264 square foot banking facility and a 3,000
square foot fast food restaurant. Those pads are NOT included in this offering.
Lease Summary
Tenant
Rent Start Date
Lease Term
Options
Landlord
Responsibilities
Walgreens
March 1, 2009
75 years
Lessee may terminate Lease every 5 years after initial 25-year Primary Term,
with 180 days written notice
None
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Demographics
Population
Growth
Avg. HH Income
3 Mile
4 Mile
5 Mile
21,835
22%
$55,043
53,562
22%
$48,075
71,666
22%
$49,212
Neighboring centers include Wal-Mart and Home
Depot, which naturally attract customers to this intersection. The location currently enjoys a healthy traffic
count of 38,000 cars per day.
About Fort Pierce, Florida
As one of the oldest communities on the east coast of
Florida, Fort Pierce enjoys the mellow Florida lifestyle
while still being just a short distance from the hustle
and bustle of both West Palm Beach and Orlando.
Modern educational and research facilities, like topranked Indian River Community College, the $6 million
Smithsonian Institution Research Center, the Manatee
Observation and Education Center and Harbor Branch
Oceanographic Institute, live in harmony with the completely renovated 1925 City Hall and the current restoration of the historic, 1,200 seat Sunrise Theatre, which
will serve as a regional performing arts center.
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Aerial Views
Aerial Photo of Completed Store
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Drugstore Competition for Fort Pierce Walgreens
This new Walgreens store is well positioned to thrive. Prospective buyers should have confidence in the longevity of this site Fort Pierce Drug Store Competition
as the next closest store is 2.1 miles to the east.
National Drug Stores in 5 Mile Radius
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Walgreens
2.1 Miles East
Walgreens
2.9 Miles Northeast
Walgreens
3.7 Miles East
CVS
4.5 Miles Southeast
CVS
4.7 Miles Northeast
CVS
3.8 Miles Southeast
rt Pierce Drug Store CompetitionJohn Giordani
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Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
About Walgreens
Walgreens is the #1 pharmacy in America by any measure. Founded in 1909, and traded on
the New York Stock Exchange (NYSE:WAG), Walgreens operates 6,443 stores in 49 states.
Walgreens is widely regarded as the safest, most secure single-tenant NNN leased investment property because of its strong balance sheet and market capitalization. For the fiscal
year ended August 31, 2008:
• Sales were over $59.03 billion
• Profit was over $2.15 billion
• Net worth was over $12.86 billion
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
About Walgreens
Founded in 1901, Walgreens provides the most convenient access to consumer goods and services, and pharmacy, health and wellness services, in America. The company has recorded 34 consecutive years of record sales
and earnings, a track record matched by only one other Fortune 500 company.
Walgreens is taking steps to ensure the company’s continued success in the face of a weakening economy. They
are transforming into a more efficient and customer-focused company, both for drugstore customers and for
patients and payors seeking quality pharmacy, health and wellness services that are accessible and affordable.
Managing through difficult economic times
They are currently conducting a company-wide initiative to align their costs, culture and capabilities to our
strategy and to the realities of the current economic environment. They are targeting approximately $1 billion in
annual cost reductions by 2011 through more efficient processes, strategic sourcing and plans to reduce corporate overhead and work throughout our stores.
In the pharmacy, they are working to fill prescriptions more efficiently. They’re in the early stages of rolling out a
new initiative to transform – and advance – the practice of community pharmacy. Currently, they’ve focused on
their Florida stores where they’ve moved tasks such as phone calls, prescription data entry and insurance verification from individual stores to more efficient central processing facilities.
Adjusting our organic store growth
Walgreens remains among the fastest growing retailers in the country, even with their planned slowdown of
organic growth from the current 9 percent rate to a rate of between 2.5 and 3 percent by 2011. Slower growth
offers two big positives: first, more time to develop their management ranks and focus on improving the customer experience; and second, greater flexibility to invest in opportunities that will strengthen their core retail
base and deliver attractive returns to their shareholders.
Growing our health clinics and specialty pharmacy business
They’re growing their health clinics and specialty pharmacy business to complement their drugstores. They now
operate more than 680 health and wellness clinics in their stores and on employer worksites. Since acquiring
two worksite health center companies last spring, they’ve integrated these services into their new Health and
Wellness division, which plans to expand to 800 sites by the end of fiscal 2009. Their health centers on or near
employer campuses offer diverse services including primary and acute care; wellness, pharmacy and disease
management services; and health and fitness programming. Employers recognize the significant value and cost
savings these centers can provide.
Both their retail health clinics and worksite facilities will position them as one of the nation’s foremost providers
of health and wellness services. They are highly complementary to their retail pharmacies and increase awareness of their Walgreens brand.
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Rankings & Ratings
Fortune magazine America’s Most Admired Companies
published March 17, 2008
Walgreens ranked fifth among food and drugstores and is listed for the 15th consecutive year.
Fortune magazine Global Most Admired Companies
published March 17, 2008
Walgreens ranked seventh among food and drugstores and No. 36 among the 50 most admired companies.
Fortune magazine 500 Largest U.S.-Based Companies
published May 5, 2008
Walgreens ranked 40th overall in revenue, third among food and drugstores.
Fortune magazine 40 Best Stocks To Retire On
published June 23, 2008
Walgreens made the list of recommended Bargain Growth stocks.
Fortune magazine Global 500 Largest Companies
published July 21, 2008
Walgreens ranked 125th overall in revenue.
Forbes Platinum 400 List
published January 12, 2009
Walgreens again made this list of the best performing big companies in the United States
Forbes Global 2000
published April 21, 2008
Walgreens ranked 250th on this list of the 2000 largest public companies worldwide.
Moody’s
Walgreens current rating is A2.
Standard and Poor’s
Walgreens current rating is A+.
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Stores Nationwide
Total Drugstores - 6,630
Total Locations - 7,123*
Through Nov. 30, 2008
Includes 49 states, the District of Columbia and Puerto Rico
Alabama
90
Maine
7
Oklahoma
95
Arizona
234
Maryland
45
Oregon
59
Arkansas
53
Massachusetts
140
Pennsylvania
100
California
515
Michigan
211
Rhode Island
24
Colorado
144
Minnesota
121
South Carolina
88
Connecticut
76
Mississippi
63
South Dakota
14
Delaware
63
Missouri
179
Tennessee
233
Florida
771
Montana
10
Texas
619
Georgia
167
Nebraska
52
Utah
37
Hawaii
2
Nevada
69
Vermont
2
Idaho
28
New Hampshire
27
Virginia
91
Illinois
541
New Jersey
112
Washington
110
Indiana
191
New Mexico
55
West Virginia
7
Iowa
63
New York
463
Wisconsin
213
Kansas
58
North Carolina
135
Wyoming
8
Kentucky
83
North Dakota
1
Puerto Rico
95
Louisiana
130
Ohio
235
Washington D.C.
1
* Store Base (as of Dec. 31, 2008) Total locations: 7,131
Total drugstores: 6,636 in 49 states, the District of Columbia and Puerto Rico
Drugstores with drive-thru pharmacies: 5,749
Locations with one-hour photofinishing: 6,449
Locations open 24 hours: 1,604
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Fort Pierce, Florida
Sales & Earnings
Walgreens has recorded 34 consecutive years of record sales and earnings.
Fiscal Year
Sales
Ended Aug. 31
in Billions
2008
2007
2006
2005
2004
$59.0
$53.8
$47.4
$42.2
$37.5
Fiscal Year
Ended Aug. 31
2008
2007
2006
2005
2004
Percent Increase
Earnings
Percent Increase
in Billions
9.8%
13.4%
12.3%
12.5%
14.3%
Earnings Per Share
$2.17
$2.03
$1.72
$1.52
$1.31
$2.16
$2.04
$1.75
$1.56
$1.35
5.7%
16.6%
12.3%
15.5%
15.7%
Percent Increase
6.9%
18.0%
13.2%
16.0%
15.8%
Fiscal Year
2008
2007
2006
2005
2004
New Stores
Acquisitions
Closings
Net Store Openings
Total Stores
629
32
10
561
6,443
501
120
85
536
5,997
475
95
94
476
5,461
436
4
68
372
4,985
429
14
82
361
4,613
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
Walgreens Pharmacy
Executive Summary
Fort Pierce, Florida
Site Type: Radius
Prepared By: STDBonline.com
Okeechobee Rd and Jenkins
Rd
Fort Pierce, FL 34947
Radius: 3.0 mile
2008 Population
Total Population
Male Population
Female Population
Median Age
Demographic
Okeechobee Rd and Report
Jenkins
Okeechobee Rd and Jenkins
Rd
Fort Pierce, FL 34947
Radius: 4.0 mile
Rd
Fort Pierce, FL 34947
Radius: 5.0 mile
21,835
50.3%
49.7%
35.2
53,562
49.7%
50.3%
35.1
71,666
49.2%
50.8%
37.5
$39,094
$19,738
$55,043
$33,345
$17,560
$48,075
$34,521
$18,576
$49,212
2008 Households
Total Households
Average Household Size
1990-2000 Annual Rate
7,377
2.84
0.34%
18,817
2.77
0.1%
26,235
2.66
0.34%
2008 Housing
Owner Occupied Housing Units
Renter Occupied Housing Units
Vacant Housing Units
57.9%
33.6%
8.6%
51.8%
35.3%
12.9%
54.5%
31.0%
14.4%
Population
1990 Population
2000 Population
2008 Population
2013 Population
1990-2000 Annual Rate
2000-2008 Annual Rate
2008-2013 Annual Rate
16,674
18,052
21,835
26,746
0.8%
2.33%
4.14%
44,301
45,102
53,562
64,790
0.18%
2.11%
3.88%
55,640
56,954
71,666
87,945
0.23%
2.82%
4.18%
2008 Income
Median HH Income
Per Capita Income
Average HH Income
In the identified market area, the current year population is 71,666. In 2000, the Census count in the market area was 56,954. The rate of
change since 2000 was 2.82 percent annually. The five-year projection for the population in the market area is 87,945, representing a change
of 4.18 percent annually from 2008 to 2013. Currently, the population is 49.2 percent male and 50.8 percent female.
Households
1990 Households
2000 Households
2008 Households
2013 Households
1990-2000 Annual Rate
2000-2008 Annual Rate
2008-2013 Annual Rate
5,838
6,039
7,377
9,114
0.34%
2.46%
4.32%
15,652
15,807
18,817
22,897
0.1%
2.14%
4%
The household count in this market area has changed from 20,589 in 2000 to 26,235 in the current year, a change of 2.98 percent annually.
The five-year projection of households is 32,468, a change of 4.36 percent annually from the current year total. Average household size is
currently 2.66, compared to 2.68 in the year 2000. The number of families in the current year is 16,917 in the market area.
Housing
Currently, 54.5 percent of the 30,657 housing units in the market area are owner occupied; 31.0 percent, renter occupied; and 14.4 percent
are vacant. In 2000, there were 23,689 housing units— 52.4 percent owner occupied, 34.4 percent renter occupied and 13.1 percent vacant.
The rate of change in housing units since 2000 is 3.17 percent. Median home value in the market area is $123,754, compared to a median
home value of $192,285 for the U.S. In five years, median home value is projected to change by 0.71 percent annually to $128,216. From
2000 to the current year, median home value changed by 9.6 percent annually.
Source: U.S. Bureau of the Census, 2000 Census of Population and Housing. ESRI forecasts for 2008 and 2013. ESRI converted 1990 Census data into 2000 geography.
John Giordani
Arthur Griffith
(888) 733-4779
[email protected]
19,905
20,589
26,235
32,468
0.34%
2.98%
4.36%
Walgreens Pharmacy
Executive Summary
Fort Pierce, Florida
Site Type: Radius
Prepared By: STDBonline.com
Okeechobee Rd and Jenkins
Rd
Fort Pierce, FL 34947
Radius: 3.0 mile
Demographic
Okeechobee Rd and Report
Jenkins
Okeechobee Rd and Jenkins
Rd
Fort Pierce, FL 34947
Radius: 4.0 mile
Rd
Fort Pierce, FL 34947
Radius: 5.0 mile
Median Household Income
1990 Median HH Income
2000 Median HH Income
2008 Median HH Income
2013 Median HH Income
1990-2000 Annual Rate
2000-2008 Annual Rate
2008-2013 Annual Rate
$27,537
$32,990
$39,094
$45,877
1.82%
2.08%
3.25%
$20,757
$27,502
$33,345
$39,853
2.85%
2.36%
3.63%
$20,661
$27,415
$34,521
$41,085
2.87%
2.83%
3.54%
Per Capita Income
1990 Per Capita Income
2000 Per Capita Income
2008 Per Capita Income
2013 Per Capita Income
1990-2000 Annual Rate
2000-2008 Annual Rate
2008-2013 Annual Rate
$12,022
$15,646
$19,738
$22,037
2.67%
2.86%
2.23%
$9,747
$13,778
$17,560
$19,715
3.52%
2.98%
2.34%
$9,878
$14,086
$18,576
$21,104
3.61%
3.41%
2.58%
Average Household Income
1990 Average Household Income
2000 Average Household Income
2008 Average HH Income
2013 Average HH Income
1990-2000 Annual Rate
2000-2008 Annual Rate
2008-2013 Annual Rate
$33,268
$43,488
$55,043
$61,277
2.71%
2.9%
2.17%
$27,065
$38,022
$48,075
$53,786
3.46%
2.88%
2.27%
$27,030
$37,821
$49,212
$55,604
3.42%
3.24%
2.47%
Households by Income
Current median household income is $34,521 in the market area, compared to $53,154 for all U.S. households. Median household income is
projected to be $41,085 in five years. In 2000, median household income was $27,415, compared to $20,661 in 1990.
Current average household income is $49,212 in this market area, compared to $73,126 for all U.S. households. Average household income
is projected to be $55,604 in five years. In 2000, average household income was $37,821, compared to $27,030 in 1990.
Current per capita income is $18,576 in the market area, compared to the U.S. per capita income of $27,916. The per capita income is
projected to be $21,104 in five years. In 2000, the per capita income was $14,086, compared to $9,878 in 1990.
Population by Employment
Total Businesses
Total Employees
1,418
14,919
3,140
27,479
Currently, 86.2 percent of the civilian labor force in the identified market area is employed and 13.8 percent are unemployed. In comparison,
93.4 percent of the U.S. civilian labor force is employed, and 6.6 percent are unemployed. In five years the rate of employment in the market
area will be 87.9 percent of the civilian labor force, and unemployment will be 12.1 percent. The percentage of the U.S. civilian labor force that
will be employed in five years is 93.9 percent, and 6.1 percent will be unemployed. In 2000, 55.0 percent of the population aged 16 years or
older in the market area participated in the labor force, and 0.1 percent were in the Armed Forces.
In the current year, the occupational distribution of the employed population is:
• 44.0 percent in white collar jobs (compared to 60.2 percent of U.S. employment)
• 21.2 percent in service jobs (compared to 16.5 percent of U.S. employment)
• 34.8 percent in blue collar jobs (compared to 23.3 percent of U.S. employment)
In 2000, 71.6 percent of the market area population drove alone to work, and 1.7 percent worked at home. The average travel time to work in
2000 was 23.6 minutes in the market area, compared to the U.S. average of 25.5 minutes.
Population by Education
John Giordani
Griffith
In 2008, the educational attainment of the Arthur
population aged
25 years or older in the market area was distributed as follows:
(888) 733-4779
• 31.8 percent had not earned a high school diploma (16.4 percent in the U.S.)
[email protected]
• 30.9 percent were high school graduates only (29.6 percent in the U.S.)
• 6.5 percent had completed an Associate degree (7.2 percent in the U.S.)
4,335
35,915