Walgreens
4900 Mills Civic Pkwy West Des Moines, IA
Price: $5,700,000
Status: Sold
Cap Rate: 5.75%
Year Built: 2001
NOI: $342,000
Lot Size: 2.75 acres
Price Per Foot: $331
Lease Type: Absolute NNN
Remaining Term: 11+ Years (Recent 10-Year Early Extension)
GLA: 2.75 acres
Property Intro
Lee & Associates is pleased to exclusively offer for sale, the fee simple interest (land & building) in a trophy Walgreens property located in West Des Moines, IA (the “Property”). Built in 2001, the Property consists of a 17,969-square-foot retail building with a drive-thru that sits on an approximately 2.75-acre parcel.
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.
investment highlights
- WALGREENS (NYSE: WBA) • INVESTMENT GRADE CREDIT TENANT (S&P: BBB) • LARGEST RETAIL PHARMACY IN THE U.S. & EUROPE • 13,200 LOCATIONS IN 11 COUNTRIES • $50B+ MARKET CAP
- The building is leased to Walgreens who is owned by parent company Walgreens Boots Alliance, Inc. (NYSE: WBA). This parent company 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.
- STRONG STORE SALES • ABOVE NATIONAL AVERAGE FOR WALGREENS • 11% RENT TO SALES RATIO • LOW RENT
- 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 ration of 11% which is a true indicator of this store’s strong profitability.
- RARE WALGREENS EARLY 10-YEAR LEASE EXTENSION • ABSOLUTE NNN LEASE • NO LANDLORD RESPONSIBILITIES
- Walgreens just exercised a rare 10-year lease extension early, demonstrating the tenant’s obvious commitment to this site. The early lease renewal leaves 11+ years of firm lease term remaining and ten (10) 5-year renewal options. In addition, the absolute triple-net (NNN) lease requires the tenant pay for taxes, insurance, and 100% of the maintenance of the land & building. The landlord has zero maintenance responsibilities on the asset, providing an investor with a passive income stream from a strong investment grade credit tenant.
- A+ REAL ESTATE • HARD CORNER SIGNALIZED INTERSECTION (30,400+ CPD) • MAJOR RETAIL CORRIDOR • HALF MILE FROM INTERSTATE 35 (40,600 CPD)
- The subject property is located on the hard corner signalized intersection of Mills Civic Pkwy & S. 50th St, providing excellent visibility to combined traffic counts over 30,400 cars per day. This location offers multiple entrances to the site for easy in/out access to the property. Mills Civic Pkwy is a major retail corridor and home to Mills Crossing, Jordan Creek Town Center, and Premiere Shoppes shopping center, with national tenants including Target, REI, Walmart, Aldi, Kohl’s, Dollar Tree, TJ Maxx, Trader Joe’s, Maurices, OfficeMax, and many more.
- The property is strategically located less than a half mile from Interstate 35, a major north-south travel artery carrying 41,000 commuters/travelers per day to/from Downtown Des Moines via I-80.
- $146,000 AVG HH INCOME WITHIN 1-MILE RADIUS & 106,000 PEOPLE WITHIN 5-MILE RADIUS
- The subject property offers highly desirable demographics with an average household income of over $146,000 within a 1-mile radius and $112,747 within a 3-mile radius. The property’s location is also dense with 106,000 people within a 5-mile radius.
- ACROSS FROM A HY-VEE GROCERY ANCHORED CENTER • NATIONAL CO-TENANTS OFFER STRONG DRAW TO THE TRADE AREA
- The subject property is located across from a Hy-vee Grocery anchored center, with national co-tenants such as IHOP, USPS, Wells Fargo, and Starbucks, providing outstanding retail synergy and a strong draw to the trade area.
- PROXIMITY TO NEW 1 MILLION SF WELLS FARGO WEST DES MOINES CORPORATE CAMPUS • HOUSES 7,000 WORKERS • AREA’S LARGEST EMPLOYER
- The property is located just 2 miles from Wells Fargo’s recently completed corporate campus. The 160-acre campus, which sits south of the Jordan Creek Town Center in a booming part of West Des Moines, includes more than 1 million square feet of office space and houses about 7,000 workers. Wells Fargo is the metro area’s largest employer, with roughly 14,000 workers in central Iowa and maintains its residential lending headquarters, Wells Fargo Home Mortgage, in West Des Moines.
- LOCATED IN WEST DES MOINES • SECOND-LARGEST CITY IN THE DES MOINES METROPOLITAN AREA • HEADQUARTERS OF HY-VEE, INC. • HIGHLY EDUCATED WORKFORCE
- The property is located in West Des Moines, Iowa, which is located at the crossroads of interstates 35 and 80 and is part of Polk, Dallas, Warren, and Madison counties. It is one of the fastest growing communities in Iowa, with a population of more than 68,000 people and a business-friendly home to more than 3,000 businesses.
- West Des Moines is the national corporate headquarters for Hy-Vee, Inc. and Home Services of Iowa. Additionally, leading developers with established corporate headquarters and regional offices in West Des Moines include Hubbell Realty, Hurd Real Estate, Knapp Properties, Inc., Iowa Commercial. Other large employers include ADP, Goodrich and Wells Fargo’s Card Services and Home Mortgage divisions. With a premier location, a cost of doing business that is nearly 10 percent lower than the U.S. average, a highly educated workforce with 57% of the population holding Bachelor degrees or higher and 67% holding Associates degrees or higher, West Des Moines offers competitive advantages to relocating and expanding businesses.
- The West Des Moines area is defined by a diverse economy, low costs of living and doing business, a creative culture and a well-educated population. Cultural diversity, well-established neighborhoods and mixed-use areas, a variety of industries, walkability and a thriving retail community are reasons why Money Magazine recognizes West Des Moines as the #1 City to Live in Iowa and the #37 Best Place Live in America, regardless of population.
- SUBURB OF DES MOINES • MOST POPULATED CITY IN IOWA • MAJOR CENTER OF U.S. INSURANCE INDUSTRY
- West Des Moines is located just 11 miles west of Des Moines, the capital and most populous city in Iowa. With a population of nearly 217,000 residents (2018), the City of Des Moines is the core of one of the fastest growing metro areas (DSM USA) in the Midwest and is a financially strong city with exceptional city services, fostering an involved community in a customer friendly atmosphere.
- Des Moines is a major center of the U.S. insurance industry, and has a sizable financial services and publishing business base. The city was credited as the “number one spot for U.S. insurance companies” in a Business Wire article and named the third-largest “insurance capital” of the world. The city is the headquarters for the Principal Financial Group, the Meredith Corporation, Ruan Transportation, EMC Insurance Companies, and Wellmark Blue Cross Blue Shield.
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