WALGREENS 2310 WEST PATAPSCO AVENUE, BALTIMORE, MD 21230 - BRANDON MICHAELS - LoopNet
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BRANDON
WALGREENS MICHAELS
GROUP
2310 WEST PATAPSCO AVENUE, BALTIMORE, MD 21230
INVESTMENT ADVISORS:
BRANDON MICHAELS
First Vice President Investments
Director, National Retail Group
Tel: (818) 212-2794
bmichaels@marcusmillichap.com
License: CA #01434685
Table of Contents
1 Executive Summary
2 Tenant Overview
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
3 Financial Analysis
BRANDON
MICHAELS
GROUP 4 Sales Comparables
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 or age are approximate. Buyer must verify the in-
formation and bears all risk for any inaccuracies. Any projections,
opinions, assumptions or estimates used herein are for example
purposes only and do not represent the current or future perfor-
mance of the property. Marcus & Millichap Real Estate Investment
Services is a service mark of Marcus & Millichap Real Estate Invest-
ment Services, Inc. © 2016 Marcus & Millichap
2 3
Executive Summary Investment Highlights
PROPERTY INFORMATION INVESTMENT GRADE WALGREENS TENANT
2310 West Patapsco Avenue, 99 Walgreens Boots Alliance is the largest retail pharmacy, health and daily
Property Address
Baltimore, MD 21230 living destination across the USA and Europe.
Price $3,370,000 99 Investment Grade Tenant - BBB rating by Standard & Poor’s
Current NOI $373,000 99 Corporate Gurantee | Nasdaq: WBA
Cap Rate 10.00% 99 Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry
Marcus & Millichap has been selected to exclusively market for sale of Fortune magazine’s 2017 list of the World’s Most Admired Companies.
Building SF 15,120 SF
the Walgreens located at 2310 West Patapsco Avenue in Baltimore,
Maryland. This is an opportunity to purchase an existing prototype Total Land Size 94,089 SF (2.16 AC) 99 Large prototype location with a drive-thru pharmacy
store in a densely populated area. Walgreens was built in 2002 with Year Built 2002 99 Large parcel - 2.16 acres
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
PROPERTY OVERVIEW
an initial 20-year lease that expires on January 31, 2022, with eight,
five year options. The store is a 15,120 square foot prototype, which Property Type Single-Tenant Retail
is the large format for Walgreens. The property is located just West
DENSE BALTIMORE LOCATION ADJACENT TO NATIONAL RETAILERS
of the busy signalized intersection of Patapsco Avenue and Hollins
LEASE INFORMATION
Ferry Road. The parcel is 2.16 acres. The lease structure is Double Net 99 Walgreens is located adjacent to major national retailers including Subway,
with the landlord being responsible for roof and structure. Tenant Walgreens, Inc. Dollar Tree, Sonic Drive-In, Advance Auto Parks, Popeyes Louisiana Kitchen,
Dollar General, and LA Mart
Lease Start Date 2/1/2002
The property is located in the Southwest area of Baltimore known as 99 Located just west of the northwest signalized corner of W. Patapsco Avenue
Lakeland, Maryland. It is an infill, high density market with a population Lease Expiration Date 1/31/2022 and Hollins Ferry Road
of over 134,000 in the three-mile ring. The area is surrounded by major
Original Lease Term 20 years 99 Dense location with a population of 134,000 in a three-mile radius
highways and has great access to Interstate-95, Interstate-695, and
Interstate-295. There is a lack of pharmacies in the immediate market Remaining Lease Term 5 years 99 Traffic counts in excess of 40,000 vehicles per day at intersection
as the next closest national drugstore is a CVS/Pharmacy that is 1.2
Rent Increases Fixed
miles away. Walgreens is located next to the Hollinswood Shopping 99 Close to the Baltimore-Washington Parkway (295) which travels directly
Centr which includes major national retailers like Subway, LA Mart, Options Eight, five year options into Downtown Baltimore
Dollar Tree, Dollar General, Sonic Drive-In, and Advance Auto Parts. Lease Type NN 99 The next closest pharmacy and drugstore is CVS, which is 1.2 miles away
Roof and Structure Landlord Responsible 99 Store Sales Available Upon Request
4 5
Tenant Overview
WALGREENS BOOTS ALLIANCE
Through Walgreen’s strategic partnership with Alliance Boots, Walgreens Boots Alliance is
WALGREENS TENANT OVERVIEW now a global leader in pharmacy-led, health and well-being retail, and together have over
Walgreens is one of the largest drugstore chains in the U.S., with more 13,200 stores in 11 countries as well as one of the largest global pharmaceutical wholesale
Tenant Trade Name Walgreens
than 8,000 stores in all 50 states, the District of Columbia, Puerto Rico, and and distribution networks, with over 390 distribution centers delivering to more than 230,000
the U.S. Virgin Islands. Ownership Public 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
Tenant Corporate Store drugs and many other health and well-being products.
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
PROPERTY OVERVIEW
In December 2014, Walgreens completed its strategic combination
with Alliance Boots to establish Walgreens Boots Alliance, Inc., forging Number of Locations 8,126
The company’s size, scale, and expertise help to expand the supply and address the rising cost
the first global pharmacy-led, health and wellbeing enterprise. The Sales Volume $116,081,000 of prescription drugs in the USA and worldwide.
combination brought together two leading companies with iconic brands,
complementary geographic footprints, shared values and a heritage Lease Guarantor Walgreens Boots Alliance
of trusted health care services through community pharmacy care and Credit Rating A-2 WALGREENS BOOTS ALLIANCE AT A GLANCE
pharmaceutical wholesaling. Both companies have more than a century’s
worth of experience in customer and patient care. Walgreens is today Rating Agency Standard & Poor’s 99 Walgreens Boots Alliance ranks No. 1 in the Food and Drug Stores industry of
Fortune magazine’s 2017 list of the World’s Most Admired Companies. This is the 24th
part of the Retail Pharmacy USA division of Walgreens Boots Alliance. In Stock Symbol WBA consecutive year that Walgreens Boots Alliance or its predecessor company, Walgreen
addition, Walgreens is one of the world’s largest purchasers of prescription Co., have been named to the list.
drugs and many other health and wellbeing products. Its portfolio now Board Nasdaq
includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well 99 Unmatched supply chain and procurement expertise, offering customers innovative
Headquartered Deerfield, IL
solutions and optimal efficiencies
as global health and beauty products brands such as No7, Botanics, Liz
Website www.walgreens.com
Earle and Soap & Glory. 99 A portfolio of retail and business brands, including Walgreens, Duane Reade, Boots and
Alliance Healthcare, as well as global health and beauty product brands, such as No7,
Botanics, Liz Earle, and Soap & Glory
99 A unique platform for growth in developed and emerging markets
6 7
Walgreens
LEASE INFORMATION
2310 West Patapsco Avenue,
Property Address
Baltimore, MD 21230
Building SF 15,120 SF
Total Land Size 94,089 SF
Year Built 2002
Property Type Single-Tenant Retail FINANCIAL ANALYSIS
EU
Annualized Operating Data
EN
AV
Tenant Walgreens 2/1/2002-1/31/2022 (Monthly Income) $31,083
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
CO
Lease Start Date 2/1/2002 Net Operating Income $373,000
PS
Lease Expiration Date 1/31/2022
TA
PA
Rent Increases Fixed
Pricing
W
Options Eight, five year options
Price $3,730,000
Lease Type NN Price/SF (Bldg) $222.88
Roof and Structure Landlord Responsible Current NOI $373,000
Lease Term 20 years CAP Rate 10.00%
Options to Renew Eight, five year options
Options to Terminate Yes
Options to Purchase No
First Right of Refusal Yes
HOLLIN
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ELEMENTARY CHERRY HILL
2310 West Patapsco MIDDLE SCHOOL
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LANSDOWNE RO
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
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APSCO AV
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10 11
Area Overview Area Overview
LAKELAND
BALTIMORE, MARYLAND Lakeland is a neighborhood in South Baltimore, Maryland.
Baltimore is the largest city in the U.S. state of Maryland, and the 29th- Population: 4,551
most populous city in the country. It was established by the Constitution Area: 0.555 square miles
of Maryland and is not part of any county; thus, it is the largest
independent city in the United States, with a population of 621,849 as MEDIAN HOUSEHOLD INCOME IN 2015
of 2015. As of 2016, the population of the Baltimore metropolitan area
was estimated to be just under 2.8 million making it the 21st largest
Lakeland: $46,233
metropolitan area in the country.
Baltimore: $44,165
Founded in 1729, Baltimore is the second-largest seaport in the Mid-
Atlantic Baltimore's Inner Harbor was once the second leading port of
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
entry for immigrants to the United States and a major manufacturing POPULATION DENSITY
center. After a decline in major manufacturing, industrialization and DEMOGRAPHICS
8,195 people per
rail transportation, Baltimore shifted to a service-oriented economy, Lakeland:
square mile
1 MILE 3 MILES 5 MILES
with the Johns Hopkins Hospital (founded 1889), and Johns Hopkins 7,696 people per
Baltimore:
University (founded 1876), now the city's top two employers. 2014 Population 19,197 137,230 403,419 square mile
2014 Households 6,961 54,296 162,665
With hundreds of identified districts, Baltimore has been dubbed "a city
of neighborhoods". Famous residents have included the writers Edgar
2014 Average Household Size 2.75 2.49 2.37 PERCENTAGE OF FAMILY HOUSEHOLDS
Allan Poe, Edith Hamilton, Frederick Douglass, and H.L. Mencken; jazz 2014 Daytime Population 4,435 76,455 264,792
Lakeland: 59.8%
musician James "Eubie" Blake; singer Billie Holiday; actor and filmmaker
John Waters; and baseball player Babe Ruth. In the War of 1812, Francis 2014 Owner Occupied Housing Units 42.15% 46.48% 43.73% Baltimore: 40.1%
Scott Key wrote The Star-Spangled Banner, later the American national 2014 Renter Occupied Housing Units 57.85% 53.52% 56.27%
anthem, in Baltimore. Baltimore has more public monuments per capita
2014 Vacant 7.07% 14.81% 15.91%
than any other city in the country and is home to some of the earliest MEDIAN RENT IN 2015
National Register historic districts in the nation, including Fell's Point 2014 Median Household Income $38,840 $41,098 $39,922
(1969), Federal Hill (1970) and Mount Vernon Place (1971). More than
2014 Per Capita Income $17,562 $23,481 $24,689 Lakeland: $925
65,000 properties, or roughly one in three buildings in the city, are listed
on the National Register, more than any other city in the nation. 2014 Average Household Income $48,431 $58,867 $59,381 Baltimore: $808
12 13
Sales Comparables Sales Comparables
1 Walgreens 9621 Belair Road, Nottingham, MD 21236 3 Walgreens 5657 Baltimore National Pike, Catonsville, MD 21228
Close of Escrow: 1/25/2017 Close of Escrow: 2/19/2016
Year Built: 2001 Year Built: 2005
Gross Leasable Area (GLA): 14,712 Gross Leasable Area (GLA): 14,820
Sale Price: $5,440,560.00 Sale Price: $8,650,000.00
CAP Rate: 7.00% CAP Rate: 6.00%
Price / SF (GLA): $369.80 Price / SF (GLA): $583.67
Lot Size: 74,052 Lot Size: 98,881
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
2 Walgreens 939 York Road, Towson, MD 21204 4 Walgreens 25 High Street, Waldorf MD 20602
Close of Escrow: 6/21/2016 Close of Escrow: 12/2/2015
Year Built: 2012 Year Built: 2005
Gross Leasable Area (GLA): 12,360 Gross Leasable Area (GLA): 14,490
Sale Price: $12,100,000.00 Sale Price: $6,225,000.00
CAP Rate: 5.66% Price / SF (GLA): $429.61
Price / SF (GLA): $978.96 Lot Size: 57,194
Lot Size: 32,117
14 15
Sales Comparables Sales Comparables
9.00%
8.00%
8.00%
7.00%
2 1 7.00%
6.22%
3 6.00%
6.00% 5.66%
5.00%
WALGREENS | 2310 W. PATAPSCO AVENUE, BALTIMORE, MD
4.00%
3.00%
2.00%
4
1.00%
Legend
1 9621 Belair Road, Nottingham 0.00%
2 939 York Road, Towson 9621 Belair Road, 939 York Road, Towson, 5657 Baltimore National Average Subject Property
3 5657 Baltimore National Pike, Catonsville Nottingham, MD 21236 MD 21204 Pike, Catonsville, MD
4 25 High Street, Waldorf 21228
Subject Property
16 17
BRANDON
MICHAELS
GROUP
BRANDON MICHAELS
First Vice President Investments
Director, National Retail Group
Tel: (818) 212-2794
bmichaels@marcusmillichap.com
License: CA #01434685
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