Investment Grade Credit - The lease is fully guaranteed by Walgreens Boots Alliance Inc. (NASDAQ: WBA), a $19 billion market cap company with an investment-grade credit rating of BBB via S&P.
Early Lease Extension -In 2014, Walgreens waived their options to terminate the lease in 2020 and 2025, effectively extending the primary term 10 years. This demonstrates their commitment to the location and desire to continue operations. Lease now expires in 2030.
CenterWell Primary Care- In 2019, the property was fitted with roughly 2,500sf of medical office space through a partnership with CenterWell Senior Primary Care Office. This office increases traffic to the site, and creates more stability for Walgreens.
Hard Corner Site within Primary Corridor - The property is located at a signalized intersection experiencing total traffic of over 47,000 VPD. The site is in the heart of the Blue Parkway retail corridor and is within a half-mile proximity of a Hy-Vee, ALDI, Sutherlands and Walmart Supercenter.
Dense Demographics - The property is located within a dense submarket with a 5-mile radius population of approximately 125,085 per ESRI demographics.
Favorable Option Structure - The lease features an 8, 5-year option structure which is more favorable by investors than the 50, 1-year structure, as the 1-year options tend to give Walgreens more leverage to seek a reduced rent as an owner may have difficulty selling the property or obtaining financing.