Walgreens | Jacksonville, FL

WALGREENS

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

marketing package TABLE OF CONTENTS 03 Investment Summary 04 Lease Summary 05 Retail Aerial 07 Site Plan 08 Rent Schedule 09 About the Brand 10

VillageMD Partnership

11

Location Overview

CONTACT INFORMATION

mike james

Managing Director (424) 325-2600

ken johnson Vice President (213) 924-5997

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built

Walgreens 5340 Soutel Dr Jacksonville FL 32219 13,905 SF

$

$1,445,000 LIST PRICE

% 6.92% CAP RATE $

$99,999

NET OPERATING INCOME

1.83 AC

Price / SF

$103.92

1998

Rent / SF

$7.19

3 Years Remaining on Corporate Lease with Walgreens - Walgreens has been at this location since 1997.

Essential Business with Rent Set to Increase by 80% in 2023 - Walgreens was deemed an essential business and has a scheduled rental increase to $180,000 annually in 2023.

Signalized Hard Corner Location - Visible to 23,700+ cars per day at the intersection of Soutel Drive and Moncreif Road.

Likely Location for the VillageMD Partnership - Walgreens plans to staff 500 to 700 of its stores with primary care doctors in the next five years in a partnership with medical services provider VillageMD - See page 10 for more information.

Less than 2 Miles Off the I-295 South - The I-295 South serves as a major connector in the Jacksonville MSA.

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

LEASE SUMMARY Lease Type Type of Ownership Original Lease Term

Double-Net (NN) Fee Simple

Real Estate Taxes

Tenant Responsible

Insurance

Tenant Responsible

20 Years

Roof & Structure

Landlord Responsible

Commencement Date

03/01/1998

Lease Guarantor

Corporate

Lease Expiration

03/01/2023

Company Name

Walgreens Boots Alliance

Term Remaining

2+ Years

Increases Options

80% in First Option Seven (7), 5-Year

Ownership Years in Business Number of Locations

Public 120 9,277

Located Adjacent to a 125-Acre Regional Park - The subject property is located across the street from Lonnie C. Miller Sr. Regional Park, a 125-acre park with a brand new amphitheater added in early 2020 along with a destination playground.

Excellent Location Across from Harvey’s Supermarket - Harvey’s supermarket, the main grocery supplier for the area, is located directly across the street from the subject property.

Surrounded by National Retailers - National retailers around the subject property include Dollar General, Harvey’s Supermarket, Dollar Tree, Popeye’s Louisiana Kitchen and more.

Strong daytime Population - There are 131,508 employees in surrounding area.

Infill Jacksonville, Florida Area - The site is located in an infill Jacksonville, FL area with 126,508 Residents within a 5 miles radius.

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

RETAIL AERIAL

05

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

RETAIL AERIAL

06

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

SITE PLAN

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

RENT SCHEDULE Period

Term

Annual Rent

Monthly Rent

Increase

CAP Rate

Current - 02/28/2023

Base Term

$99,999

$8,333

-

6.92%

03/01/2023 - 02/28/2028

1st Option

$180,000

$15,000

80%

12.46%

03/01/2028 - 02/28/2033

2nd Option

$180,000

$15,000

-

12.46%

03/01/2033 - 02/28/2038

3rd Option

$180,000

$15,000

-

12.46%

03/01/2038 - 02/28/2043

4th Option

$180,000

$15,000

12.46%

03/01/2043 - 02/28/2048

5th Option

$180,000

$15,000

03/01/2048 - 02/28/2053

6th Option

$180,000

$15,000

-

03/01/2053 - 02/28/2058

7th Option

$180,000

$15,000

-

12.46%

08

12.46% 12.46%

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

ABOUT THE BRAND Walgreens Walgreens is owned by the Walgreens Boots Alliance, Inc. This parent company is currently the largest retail pharmacy in the US and Europe, with 14,327 stores in over 11 countries. Walgreens Boots Alliance was created through the combination of Walgreens and Alliance Boots in December 2014. This transaction brought together two leading companies with iconic brands, complementary geographic footprints and shared values.

9,277

BBB

$136 Billion

19

NUMBER OF LOCATIONS

$

CREDIT RATING

2019 SALES

FORTUNE 500 RANKING

Walgreens to Add 9,500 Jobs in Response to Coronavirus Demand Walgreens is looking to add more than 9,500 full- and part-time and temporary roles in stores across the U.S., including customer service associates, pharmacy technicians and shift leads, as part of its coronavirus response. The pharmacy chain also announced it would give bonuses – $300 for full-time and $150 for parttime hourly employees in stores and distribution centers beginning in April.

Walgreens Reports Full-Year 2019 Results • • • • • •

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Sales increased 4.1 percent to $136.9 billion, up 5.8 percent on a constant currency basis.

Operating income decreased 20.5 percent to $5.0 billion.

Adjusted operating income decreased 9.6 percent to $6.9 billion, down 8.6 percent on a constant currency basis.

EPS decreased 14.6 percent to $4.31.

Adjusted EPS decreased 0.5 percent to $5.99, up 0.5 percent on a constant currency basis.

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

VILLAGEMD PARTNERSHIP Walgreens and VillageMD Collaborate to Offer Primary Care Services Walgreens Boots Alliance, Inc. (Nasdaq: WBA) and VillageMD announced that Walgreens will be the first national pharmacy chain to offer full-service doctor offices co-located at its stores at a large scale, following a highly successful trial begun last year. This expanded partnership will open 500 to 700 “Village Medical at Walgreens” physician-led primary care clinics in more than 30 U.S. markets in the next five years, with the intent to build hundreds more thereafter.

The clinics will uniquely integrate the pharmacist as a critical member of VillageMD’s multi-disciplinary team to deliver the very best healthcare to patients, and will be staffed by more than 3,600 primary care providers, who will be recruited by VillageMD. Most of the clinics will be approximately 3,330 square feet each, with some as large as 9,000 square feet. They will optimize existing space in the store, which will also still provide a vast range of retail products to customers.

About VillageMD VillageMD, through its subsidiary Village Medical, is a leading, national provider of value-based primary care services. We partner with physicians to provide the tools, technology, operations, staffing support and industry relationships to deliver high-quality clinical care and better patient outcomes, while reducing the total cost of care. The Village Medical brand provides primary care for patients at traditional free-standing clinics, Village Medical at Walgreens clinics, at home and via virtual visits. VillageMD has a strong track record nationally of improving outcomes and reducing the cost of healthcare through their transformative primary care model.

VillageMD and Village Medical have grown to include more than 2,800 physicians across nine markets, are responsible for approximately 600,000 lives and manage $4 billion in total medical spend in value-based contracts.

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

LOCATION OVERVIEW Jacksonville, FL Jacksonville is the most populous city in Florida, and the largest city by area in the contiguous United States. It is the seat of Duval County As of 2019, Jacksonville’s population was estimated to be 911,507, making it the 12th most populous city in the U.S., the most populous city in the Southeast, and the most populous city in the South outside of the state of Texas. The Jacksonville metropolitan area has a population of 1,523,615 and is the fourth largest metropolitan area in Florida.

Jacksonville is an important deepwater port of entry and functions as the state’s foremost transportation and commercial center. Due to its convenient location, mild climate, reasonable cost of living, high quality of life and a business-friendly government, Jacksonville is a popular location for corporate expansions and relocations. Its status as an intermodal transportation hub is another incentive, and the city is also a leading distribution center, with a transportation network embracing port and air cargo facilities, rail and trucking routes. Millions of tons of raw materials and manufactured goods move through the city annually.

Top Performing Industrial Market - Jacksonville has been one of the best-performing industrial markets in the U.S. in terms of rent growth over the past two years. While growth was beginning to slow at the national level, annual gains picked up in Jacksonville, nearing 10% at their highest in 2018.

Explosive Population Growth - From 2010-2018, the population within one mile of the subject property increased by 29%. The population within one mile is expected to grow by an additional 8% between 2018-2023.

Attractive Job Opportunities - The booming population growth, for which the metro ranks 12th over the past decade, has been supported by job gains, which have outpaced the nation for seven years. Overall job growth in Jacksonville in the past year has been more than four times national job growth.

Port of Jacksonville - JAXPORT is an international trade seaport on the St. Johns River. It carries 21 million tons of cargo each year and has an annual impact of over $19 billion, including 65,000 jobs.

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

LOCATION OVERvIEW 1.

Jacksonville Zoo and Gardens 370 Zoo Pkwy, Jacksonville, FL 32218 23.7 MILES FROM SUBJECT PROPERTY

2. Cummer Museum of Art & Gardens 829 Riverside Ave, Jacksonville, FL 32204 15.5 MILES FROM SUBJECT PROPERTY

3. MOSH 1025 Museum Cir, Jacksonville, FL 32207 DISTANCE FROM SUBJECT PROPERTY

4. TIAA Bank Field 1 TIAA Bank Field Dr, Jacksonville, FL 32202 15.9 MILES FROM SUBJECT PROPERTY

5. Kathryn Abbey Hanna Park 500 Wonderwood Dr, Jacksonville, FL 32233 22.6 MILES FROM SUBJECT PROPERTY

6. University of North Florida 1 UNF Dr, Jacksonville, FL 32224 8.9 MILES FROM SUBJECT PROPERTY

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

LOCATION OVERvIEW

01 JACKSONVILLE ZOO AND GARDENS

The zoo occupies approximately 117 acres and has over 2,000 animals.

02 CUMMER MUSEUM OF ART & GARDENS

The collection of the museum includes over 5,000 works of art.

04 TIAA BANK FIELD

This multi-purpose stadium has a capacity of over 82,000.

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03 MOSH

This museum specializes in science and local history exhibits.

05 KATHRYN ABBEY HANNA PARK

Kathryn Abbey Hanna Park is a 1.5mile public beach and city park.

06 UNIVERSITY OF NORTH FLORIDA

This university offers over 70 degrees & has over 2,500 students.

5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

DEMOGRAPHICS POPULATION

1-Mile

3-Mile

5-Mile

2025 Projection

8,251

48,634

134,221

2020 Estimate

7,854

46,134

126,508

2010 Census

7,479

42,956

112,928

Growth ‘20 - ‘25

5.05%

5.42%

6.1%

Growth ‘10 - ‘20

5.01%

7.4%

12.03%

1-Mile

3-Mile

5-Mile

3,289

18,433

51,256

3,134

17,503

48,344

2010 Census

3,006

16,405

43,367

Growth ‘20 - ‘25

4.95%

5.31%

6.02%

Growth ‘10 - ‘20

4.26%

6.69%

11.48%

Average Income

$50,548

$49,865

$47,109

Median Income

$37,164

$39,042

$34,923

HOUSEHOLDS 2025 Projection 2020 Estimate

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5340 SOUTEL DR, JACKSONVILLE, FL 32219

WALGREENS

DISCLAIMER The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. & Brian Brockman (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

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www.jamescapitaladvisors.com

@jamescapitaladvisors

WALGREENS

CONTACT INFORMATION CONTACT

Ken Johnson

Vice President (213) 924-5997 Bang Realty - Arizona AZ RE Lic. SA655911000

Mike James

Managing Director (424) 325-2600 CA RE Lic. 01936642 BROKER OF RECORD

Brian Brockman

Bang Realty - Naples, Inc (513) 898-1551 brian@bangrealty.com FL RE Lic. BK3327646 CORP. Lic. CQ1049201

James Capital Advisors, Inc.

www.jamescapitaladvisors.com

@jamescapitaladvisors