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.
24 Hour Location with Drive Thru – Strong Store Sales – Above National Average for Walgreens – Walgreens is reporting strong unit level sales at this location (see broker for details) that are above the national average for a Walgreens store. The strong store sales at this location are due to a combination of this being a 24-Hour location with high visibility and proximity to Lehigh Valley Hospital. This location also benefits from the surrounding retail, residential and commercial developments.
Over 14 Years Remaining on Firm Lease Term – Absolute NNN Lease – LL Has Zero Maintenance Responsibilities – There are over 14 years of firm lease term remaining on the lease with eight (8) Five-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. Finally, the lease is absolute triple-net (NNN), where the tenant pays for taxes, insurance, and 100% of the maintenance of the land & building. The landlord has zero maintenance responsibilities on this asset, providing an investor with a passive income stream from a strong investment grade credit tenant.
Signalized Intersection – Excellent Visibility (22,000+ CPD) – Multiple Entrances – Strong Demographics – The Walgreens is located at the signalized intersection of Tilghman Street & W 17th Street, offering excellent visibility to over 22,000 cars per day combined. Additionally, the site benefits from multiple entrances off of Tilghman St and W. 17th St, allowing for quick customer access. The subject property offers desirable demographics, with nearly 227,000 people with an average household income of over $75,000 within a 5-mile radius.
Strategic Location Within 4 Miles of Three Major Health Facilities – Lends to Tenant’s Success – The subject property is strategically located just a few blocks from the Lehigh Valley Hospital-17th Street, a community neighborhood hospital, and 4 miles east of Lehigh Valley Hospital Tilghman & St Luke’s West End Medical Center. Lehigh Valley Hospital in Allentown is the flagship hospital of the Lehigh Valley Health Network (LVHN), which has been recognized as one of America’s best hospitals by U.S. News & World Report for 22 consecutive years.
Located in Allentown: 3rd Most Populous City in Pennsylvania – Largest City in the Lehigh Valley MSA – The subject property is located in Allentown, a city located in Lehigh County, Pennsylvania. It is Pennsylvania’s third most populous city with a total estimated population of 121,433 residents (2018), making it the fastest growing major city in Pennsylvania. It is the largest city in the metropolitan area known as the Lehigh Valley, which had a population of 821,623 residents as of 2010. Allentown constitutes a portion of the New York City Combined Statistical Area and is the county seat of Lehigh County.
Located one hour north of Philadelphia and 90 minutes west of New York City, Lehigh Valley is the 64th largest metropolitan region in the United States. In addition to consistent overall growth, the Lehigh Valley’s GDP grew in nearly every measurable sub-category from 2017 to 2018. With a GDP of $41.2 billion, larger than that of the entire states of Wyoming and Vermont, the Lehigh Valley is home to more than 15,000 businesses, including Fortune 500 companies and many nationally-recognized brands.