Walgreens (NYSE: WBA) – Largest Retail Pharmacy in the U.S. & Europe – The building is leased to Walgreens Co. (NYSE: WBA) on a corporate lease providing an investor with an investment grade credit rating from Standard of Poor’s of “BBB”. Walgreen’s parent company Walgreens Boots Alliance, Inc. is currently the largest retail pharmacy in the US and Europe, with 13,200 stores in over 11 countries and an impressive $50B market CAP.

Trophy Asset – Strong Store Sales – Ideal 11.4% Rent to Sales Ratio  – Walgreens is reporting strong unit level sales at this location (see broker for details) that are above the national average for a Walgreens store. In fact, this location is showing a strong rent to sales ratio of 11.4% which is a true indicator of this store’s strong profitability. Our understanding is the benchmark for a healthy Walgreens store is roughly a 15% rent to sales ratio. The lower this percentage the more profitable the store.

The strong store sales at this location are due to a combination of the high visibility and high traffic volumes between Big Bend Road and Missouri Highway 141 as well as the dense surrounding housing population. This location also benefits from the surrounding retail, residential and commercial developments.

11 Years Remaining on Firm Lease Term – Absolute NNN Lease  – There are 11 years of firm lease term remaining on the Absolute NNN lease with ten (10) 5-year renewal options. In addition, the lease provides an investor with a strong corporate guaranty from Walgreens Co. who carries an investment grade credit rating of “BBB” from Standard & Poor’s.

Desirable Demographics –  The subject property offers highly desirable demographics with an average household income of over $115,000 within a 3-mile radius and $134,000 within a 5-mile radius. The property’s location is also dense with 152,000 people within a 5-mile radius.

Signalized Hard Corner Intersection – At Entrance to Schnucks Anchored Twin Oaks Crossing Center – Across from Villages at Twin Oaks, a New Mixed-Use Development – Located within 5 Miles of Two Major Health Facilities – The Walgreens is located on the hard corner signalized entrance to the Schnucks-anchored Twin Oaks Center, which includes co-tenants Regions Bank, First Bank, Dairy Queen Shop ‘n Save, and the Twin Oaks City Hall building. Additionally it is located across from Big Bend Square, an 83,205-square-foot shopping center anchored by The Village of Twin Oaks, a mixed use development with a 219-unit high-rise apartment complex with retail space on the ground floor, as well as other tenants in the center such as Hardee’s, H&R Block, Commerce Bank, Apple Dental, 1356 Public House, and Pizza Hut.

The subject property is strategically located within five miles of St. Luke’s Des Peres Hospital, a 143-bed acute care facility offering primary and emergency care, general medicine and specialty surgical services; and SSM Health St. Clare Hospital-Fenton, a Level I Time Critical Diagnosis STEMI Center and a Level I Stroke Center specializing in heart and vascular, neurosciences, cancer care, maternity and other medical services

Located in Twin Oaks – Just 30 Minutes from Downtown St Louis & St Louis-Lambert Int’l Airport – The subject property is located in Twin Oaks, a community located in the heart of prestigious West St Louis County, just 30 minutes from Downtown St. Louis and the St Louis-Lambert International Airport. Ballwin is located just 21 miles from Downtown St. Louis, the largest metropolitan area in Missouri with an estimated population of 311,400 (2016).  The economy of metropolitan St. Louis relies on service, manufacturing, trade, transportation of goods, and tourism. Its metro area is home to major corporations, including Anheuser-Busch, Boeing Defense, Emerson, Energizer, Panera, and Enterprise. Nine of the ten Fortune 500 companies based in Missouri are located within the St. Louis metropolitan area.

Ryan Barr

rbarr@lee-associates.com
O. 760.448.2446
F. 760.929.9977

Ryan Bennett

rbennett@lee-associates.com
O. 760.448.2449
F. 760.929.9977