NET LEASED INVESTMENT OFFERING

Walgreens (Zero Cash Flow)

6101 West Greenfield Avenue
West Allis, WI 53214 (Milwaukee MSA)

CONFIDENTIAL OFFERING MEMORANDUM

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 TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING

TABLE OF CONTENTS

1) Confidentiality & Disclaimer

2) Executive Summary

3) Property Overview

4) Assumable Financing

5) Aerial

6) Maps

7) Tenant Profile

8) Demographic Comparison Report

9) Location Overview

10) Contact Information

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 CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be
reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity
without the written consent of The Boulder Group. This Marketing Brochure has been prepared to provide summary,
unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property.
The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not
made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject
property, the future projected financial performance of the property, the size and square footage of the property and
improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and
Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of
any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in
this Marketing Brochure has been obtained from sources we believe to be reliable; however, The Boulder Group has not
verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation
regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the
information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

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 EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a recently constructed Walgreens located in the Milwaukee MSA.
This 14,490 square foot Walgreens was built in 2008 in a dense area of West Allis. West Allis is Milwaukee's largest suburb
and the seventh largest city in the state. West Allis is home to the Wisconsin State Fair and is located adjacent to Miller Park
(home of the Milwaukee Brewers). Furthermore, 1.25 miles east of the property is the Clement J. Zablocki VA Medical Center.
This center is located on 125 acres and receives 500,000 visits annually through an extensive outpatient program.
The property is located just east of the intersection of two of West Allis’s major roadways, Greenfield Avenue and West
National Avenue. Each of these roadways provides a steady flow of traffic near the Walgreens property. The property is
surrounded by single family homes and other commercial users with multiple barriers to entry. Major employers in the area
include Quad Graphics, Siemens Power and a variety of other industrial and service companies. The property is further
benefited by its close proximity to three major interstates: I-894, I-43 and I-94. Major retail attractions in the area include a
Target, Big Kmart, and a Pick ‘n Save grocery. Additionally, four blocks to the west of the property is the Six Points Famers
Market Neighborhood project. The first phase of this $60 million dollar project is now under construction and will feature new
condominiums, apartments, fresh market building and a community facility. (click http://bit.ly/htE2iz for more information)
The rental commencement date for the Walgreens was August 1, 2008 with a 25 year lease and fifty 1-year renewal options.
Walgreens’s annual rental payment is $380,000 and there are no landlord obligations in the lease. Walgreens is a publicly
traded company on the New York Stock Exchange (WAG), with a market capitalization of $35 Billion. Walgreens is an
investment grade company with a Standard & Poor’s rating of A+.

Investment Highlights
Zero cash flow debt with no phantom income until 2024
Attractive assumable debt with only 11.5% equity requirement
Investment grade tenant with a long term lease
Property is located within the Milwaukee MSA
Recently constructed property with high barriers to entry
Located near Miller Park and three interstates
West Allis is the largest city within Milwaukee

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 PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING

PROPERTY OVERVIEW

Price: $5,111,800
Cap Rate: 7.43%
Net Operating Income: $380,000
Rental Escalations: None
Renewal Options: Fifty 1-Year
Lease Commencement Date: August 1, 2008
Lease Expiration Date: July 31, 2033
Tenant: Walgreens
Credit Rating: A+
Year Built 2008
Lease Type: NNN
Rentable Square Feet: 14,490
Land Size: 1.54 acres
Financing: The existing debt must be assumed: See next
page

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 ASSUMABLE FINANCING
NET LEASED INVESTMENT OFFERING

ASSUMABLE FINANCING

The property has existing financing in place that must be assumed.

Annual Rent $380,000

First Mortgage Debt Service ($373,763)
Trustee Fee ($2,700)
Cash Flow $3,537

There is an underlying first mortgage of $4,523,683 at a 6.64% interest rate, with annual debt service of $373,763 payable
in monthly installments starting April 2009 and fully amortized as of October 2033 (balance $4,374,115 as of February
2011). This loan is wrapped by an interest only loan of $4,523,683 at an 8.405563% interest rate, with annual debt service
of $373,763 payable in monthly in interest only installments on a monthly basis due April 2024 and open to pre-payment
after April 2019 until April 2024 when it balloons. The wrap loan has no pre-payment penalty, except underlying yield
maintenance if owner elects to prepay the underlying loan. Loan may be assigned three times with a 1% loan assumption fee
paid to underlying lender plus legal review of purchaser entity.
For instance as of May 2019, underlying loan balance will be $3,591,000. Owner may elect to either (i) pay off entire
$4,523,683 loan including yield maintenance on the $3,591,000 underlying, (ii) pay off wrap loan balance of $932,683
($4,523,683 less $3,591,000) and leave existing underlying loan in place or (iii) leave wrap debt in place for up to five more
years.
Walgreens directly deposits monthly rent into Trustee account with excess balance remitted to Owner. Underlying lender's
annual trustee account fee is $2,700. Throughout term of wrap loan, Owner’s assumption of the wrap mortgage confirms
that all Owner’s debt payments are interest only. This allows for no phantom income until 2024. The underlying lender remits
a year end statement to wrap lender with wrap lender's tax ID. Wrap lender issues a statement to Owner's tax ID confirming
that Owner has paid $373,763 of interest (no principal).

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 AERIAL
NET LEASED INVESTMENT OFFERING

AERIAL

163,000 VPD

Wood
National
Cemetery

120,000 VPD
VA Medical Center

PD
14,700 V
13,800 VPD
12,400 VPD

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 MAPS
NET LEASED INVESTMENT OFFERING

MAPS

SITE

SITE

SITE

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 TENANT PROFILE
NET LEASED INVESTMENT OFFERING

TENANT PROFILE

Walgreens is engaged in retail drugstore business. As of November 2010, the Company operated 8,131
locations in all 50 states, the District of Columbia, Puerto Rico and Guam. That includes 7,650 drugstores, 503
more than a year ago, including 291 stores acquired over the last 12 months. The company also operates
worksite health centers, home care facilities, and specialty and mail service pharmacies. Its Take Care Health
Systems subsidiary manages more than 700 in-store convenient care clinics and worksite health and wellness
centers. The Company’s drugstores are engaged in the retail sale of prescription and non-prescription drugs
and general merchandise. General merchandise includes, among other things, household items, personal
care, convenience foods, beauty care, photofinishing, candy, and seasonal items. Walgreens offers customers
the choice to have prescriptions filled at the drugstore counter, as well as through the mail, by telephone, and
through the Internet. In January 2010, the Company announced that it has completed the acquisition of the
assets of 12 Eaton Apothecary pharmacies.

Website: www.walgreens.com
Number of Locations: 8,131
Stock Symbol: WAG : NYSE
Standard & Poors Rating: A+
Market Capitalization: $35 Billion

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 DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING

DEMOGRAPHIC COMPARISON REPORT

Population 1-mile 3-mile 5-mile

Total Population 22,923 188,275 470,410

Total Households 10,372 79,777 191,082

Income

Median Household Income $43,018 $42,629 $42,272

Average Household Income $53,595 $56,803 $57,846

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 LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING

LOCATION OVERVIEW

West Allis is the second largest city in Milwaukee County

and the seventh largest city in the state. West Allis is a
city within a city, located in the virtual center of the
Milwaukee Metropolitan Area. It is bounded on the north
by the city of Wauwatosa; on the west by New Berlin; on
the south by Greenfield and on the east by Milwaukee.

West Allis is served by the Milwaukee County Expressway/Freeway System and several local bus routes, making area
travel fast and convenient. West Allis is served centrally by the Chicago and Northwestern Railroad and Soo Line
Railroad along its northern border for easy access to downtown Milwaukee and Lake Michigan.

In June, West Allis sponsors Western Days at the Wisconsin State Fair Grounds. The four-day celebration, the second
largest event held at the fairgrounds, attracts 150,000 people and starts with a parade of 500 horses plus antique
carriages and marching bands. State Fair Park is also the home of the West Allis Expo, sponsored by the West Allis
Chamber of Commerce. The event gives local businesses the opportunity to show their goods and services and for the
city to attract new businesses.

West Allis is thriving economically with service-oriented businesses such as; Siemens Power Corporation,
Quad/Graphics, First Data Processing, Sullivan Dental, Poblocki and Sons Inc., C&H Distributors, Inc. Each represents
successful, dynamic and growing industries that have established a corporate residence in West Allis.

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 CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING

CONTACT INFORMATION

666 Dundee Road | Suite 1801

Northbrook, IL 60062

Randy Blankstein Jimmy Goodman

President Partner
847.562.0003 847.562.8500
rblank@bouldergroup.com jimmy@bouldergroup.com

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