What’s Going On Here, TK?
August 28, 2010 in Uncategorized
August 28, 2010 in Uncategorized
August 16, 2010 in Uncategorized
3 ways Walgreens is using IT to improve the customer experience By Ellen Davis, VP and NRF spokesperson | Published: August 16, 2010 Be the first to comment | This entry was posted in Education, Events, Retail Companies, Technology, eCommerceRetail service providers listening to Walgreens’ SVP and CIO Tim Theriault speak during a session on IT innovation learned a valuable lesson in how not to sell their products. “We’re not here to chase technology because it’s cool,” he said. In fact, Theriault says he ignores “the herd mentality” – the concept pushed by some suppliers that he should invest in a particular program or technology because everyone else is. “Many retailers are doing great things with technology, and they’re probably right for their company,” he said. “But they’re not necessarily right for Walgreens.” Walgreens SVP and CIO Tim Theriault Instead, Theriault suggested, the best way to get his attention – and business – is to understand the company’s specific priorities and make recommendations for how technology can enhance its goals. During the session, Theriault outlined three ways Walgreens’ IT group is currently helping different facets of the $63 billion company leverage technology to create more meaningful customer relationships. Order online, deliver to your car – ie: Outback’s curbside pick-up meets over-the-counter meds and prescriptions. What’s behind the current pilot program? It’s all about convenience, Theriault said. Walgreens’ core customer is women – active women, usually with children. Instead of being required to schlep the kids and all their gear into the store to pick up a prescription or a gallon of milk, shoppers would be able to buy over the Internet or through a mobile device, then have their order delivered to their car once they pull into the parking lot. (You can almost hear a collective cheer rising up among moms in America.) Theriault admitted that the program, which is currently being tested in a handful of stores in California and Illinois, sounds easy but is quite complicated. From a technology standpoint, the company would need an embedded server in each store with real-time inventory and pricing information. Not an easy task. Providing employees with technology to help them do their jobs. The company is trying to redefine itself from a retailer to a service organization, Theriault said, and much of that starts with engaging employees to the highest degree possible. Next month, the company will begin testing touch devices for employees that act as phones, scanners, and even a point-of-sale. Why? “We have 14 phones in the store and when it rings you have to go answer it,” Theriault said. “That’s not a great way to think about how employees should be engaged. We want to give them what they need right on their belt.” The company is also planning to implement wireless for employees, which it believes will help improve customer service. Centralizing all customer information into one data warehouse. With the company’s expanded focus on health care, Theriault said, it’s increasingly important to have customers’ necessary information available at every point of sale and point of care – in any location. Once that information is centralized, Walgreens can optimize the experience by diving deeper into analytics: providing appropriate information to certain customers on diabetes management, for instance, or offering suggestions on accompanying products or foods that may help customers facing specific medical conditions. Theriault said one priority of the company is “to move from transactions to relationships” and to really understand customers, especially as it pertains to health care. “We have 6 million people coming into our stores every day. If we can understand the customers’ preferences, it will build on loyalty. And that gives us an opportunity.” An opportunity not only to provide great service, but also to increase sales.
August 15, 2010 in Uncategorized
| Property Type: | Retail | Price: | $3,449,080 |
| Vehicle Related | Price/SF: | $455.32/SF | |
| Building Size: | 7,575 SF | Cap Rate: | 7.50% |
| Year Built: | 2010 | ||
| Property Description: |
Bridgestone Corporation (OTC: “BRDCY”) is the world’s largest tire maker. It is headquartered in Japan, and is the ultimate parent company of the tenant. For fiscal year ended December 2008, Bridgestone Corporation reported sales of over $35.786 billion with net income of $115.2 million and net worth of $10.964 billion. Bridgestone is not on the lease. In 1988, Bridgestone acquired the U.S. entity Firestone Tire and became, in the USA, Bridgestone/Firestone. On the company website, it is reported that US operations had sales of $15.6 billion in 2006. Bridgestone Retail Operations, LLC, the tenant, comprises the entire U.S. retail division of Bridgestone and Bridgestone/Firestone. BFS offers retail tire sales along with automotive repair services to every major automotive system through its network of over 2,000 tire and vehicle service centers in the U.S. and Canada -the world’s largest company-owned tire and automotive service network.


| Property Type: | Retail | Price: | $9,240,888 |
| Free Standing Bldg | Price/SF: | $745.23/SF | |
| Building Size: | 12,400 SF | Cap Rate: | 6.85% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Store recently delivered to Walgreens and is opening soon ! AFFLUENT COMMUNITY W/PRIDE OF OWNERSHIP. Avg. HH income $92k w/in 5 miles. The Property is located on the SWC of River and Main and just blocks from Briarcliffe College and Brookhaven Memorial Hospital. The hospital has a strong presence and features a facility that houses dialysis treatment, home care, hospice care (and administrative functions located in the Village). This property has frontage on both Main and River and gets feeder traffic directly from Waverly Ave. Walgreens has announced that it will be cutting production of new Walgreens stores by 2/3rds. The Walgreens that we are marketing in NYC are among the last that are expected to be built in NYC for some time. With Walgreens acquisition of Duane Reade, consolidation in NY is expected in the near future with new Walgreens stores benefiting the most. Please click the links above to review the articles.


| Property Type: | Retail | Price: | $7,500,000 |
| Free Standing Bldg | Price/SF: | $646.72/SF | |
| Building Size: | 11,597 SF | Cap Rate: | 7.00% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
There is existing debt in place, the required down payment is $1,650,000. The property is leased to Walgreens under a new Absolute NNN lease. The initial lease term is 25 years, Walgreens has Fifty (1) year renewal options. This offering is for the 100% fee simple interest in the land and building. Walgreens maintains S&P Rated A+ Credit and operates 6,237 locations (as of February 29, 2008)in 49 states, Washington D.C and Puerto Rico. Walgreens has a net worth in excess of $12.8 billion and enjoys annual sales in excess of $61 billion annually.
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| Property Type: | Retail | Price: | $5,138,888 |
| Retail (Other) | Price/SF: | $346.75/SF | |
| Building Size: | 14,820 SF | Cap Rate: | 7.20% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this newly-constructed Walgreens located in Bridgeville, Delaware. This Walgreens is a relocation of an inline store, bannered as a Happy Harry’s, across the street as part of the Bridgeville Park Center anchored by Food Lion. Happy Harry’ s was a highly successful drugstore chain of about 75 locations throughout Delaware before it was acquired by Walgreens. As such, it has very high name recognition throughout the state. Rent commenced in February 2010 on the subject property, subject to a new 25-year, absolute-net lease with 50 one-year options. This new Walgreens is located at the prime commercial intersection of Delaware State Route 404 (Seashore Highway) and
U.S. Route 13 (Dupont Highway). This location records approximately an average of 33,000 cars per day (approximately 12,000,000 cars per year). Route 404 is a major thoroughfare for east-west travelers from Washington/Baltimore to the Maryland and Delaware beaches. Route 13 is one of the major north-south business highways facilitating commercial traffic in the state.
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| Property Type: | Retail | Price: | $1,714,500 |
| Retail (Other) | Price/SF: | $119.15/SF | |
| Building Size: | 14,390 SF | Cap Rate: | 7.00% |
| Year Built: | 2009 | ||
| Property Description: |
fresh & easy Neighborhood Market Absolute NNN Ground Lease with Almost 19 Years Remaining PLease contact for a complete offering package
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| Property Type: | Retail | Price: | $1,208,000 |
| Restaurant | Price/SF: | $506.92/SF | |
| Building Size: | 2,383 SF | Cap Rate: | 6.50% |
| Year Built: | 2009 | ||
| Property Description: |
Jack in the Box Absolute NNN Ground Lease Almost 19 Years Remaining on a 20 Year Lease Please contact for a complete offering package
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| Property Type: | Retail | Price: | $1,483,400 |
| Vehicle Related | Price/SF: | $217.63/SF | |
| Building Size: | 6,816 SF | Cap Rate: | 6.00% |
| Year Built: | 2011 | ||
| Property Description: |
This is a ground lease and only the land is for sale. The improvements are built and owned by the tenant. To be completed approximately January 2011, a 6,816+/-square foot freestanding AUTOZONE retail store. Ground leased to AUTOZONE, INC. for 20 years from February 1, 2011 until February 1, 2031. The net annual rent of $89,004 increases to $95,676 in Year 11. The lease is absolute net, with the tenant responsible for taxes, insurance and all maintenance, including roof and structure. There are four 5-year options to renew with 10% rent increases each option period.


| Property Type: | Retail | Price: | $1,500,000 |
| Free Standing Bldg | Price/SF: | $506.59/SF | |
| Building Size: | 2,961 SF | Cap Rate: | 6.00% |
| Year Built: | 2009 | ||
| Property Description: |
The subject property is a Sonic Drive-In Ground Lease located in Bonney Lake, Washington. Sonic has signed a 20-year NNN ground lease with 10 percent rent increases every five year throughout both the initial term and two, five-year options. Located along South Prairie Road, the property is positioned as an out-parcel to Lowe’ s Home Improvement in the area’ s main retail hub. National retailers surrounding the property include Wal-Mart, Target, Marshalls, Petco, Albertsons, Home Depot, Safeway, Fred Meyer and many more. This densely populated area is home to over 81,000 residents within a five-mile radius and boasts an average household income in excess of $83,000. Situated at the intersection of State Route 410 and South Prairie Road, Sonic experiences combined daily traffic counts of more than 43,000 vehicles.


| Property Type: | Retail | Price: | $3,400,000 |
| Retail Pad | Price/SF: | $400.00/SF | |
| Building Size: | 8,500 SF | Cap Rate: | 7.50% |
| Year Built: | 2010 | ||
| Property Description: |
The subject property is a BJ’s Restaurant Ground Lease located in Fort Worth, Texas. BJ’s Restaurant has signed a 20-year NNN ground lease with 10 percentrent increases every five years in both the initial term and two, five-year options. Positioned at the intersection of Interstate 35 and Heritage Trace Parkway, BJ’s Restaurant is an out-parcel to Alliance Town Center, a projected two million square-foot mixed use center anchored by Belk, Best Buy, PetSmart, JCPenney, Hobby Lobby, Rooms To Go, Kroger, Barnes and Noble, Dick’s Sporting Goods, Cinemark Theatre, Toys R Us and many more. Other tenants at Alliance Town Center include Ulta, Kirklands, Jos. A Bank, Freebirds, Massage Envy and numerous others.
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| Property Type: | Retail | Price: | $3,482,400 |
| Free Standing Bldg | Price/SF: | $459.72/SF | |
| Building Size: | 7,575 SF | Cap Rate: | 7.50% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap exclusively presents the opportunity to acquire a new freestanding building tenanted by Bridgestone-Firestone under a new 15-year, double-net lease located in Northfield, Atlantic County, New Jersey. Offered at a purchase price of $3,482,400 or a 7.50 percent cap rate, an investor will have the opportunity to have a secure tenant backed by the world’s largest chain of company owned auto care centers. Bridgestone Corporation, the parent company of the subsidiary and Bridgestone Retail Operations, LLC are rated BBB+ (investment grade) by Standard and Poor’s. BRO, LLC operates over 2,220 stores under four different brands within the United States and had total operations of $15.6 billion in revenue in the past fiscal year. Bridgestone Firestone will have a new 7,575-square foot building on over 1.30 acres, with a scheduled turnover September 1, 2010 and a rent commencement of October 1, 2010.
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| Property Type: | Retail | Price: | $1,447,350 |
| Free Standing Bldg | Price/SF: | $115.97/SF | |
| Building Size: | 12,480 SF | Cap Rate: | 8.00% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap Is pleased to offer for sale a new absolutely net (NNN) leased Dollar General. The lease provides for a 3% rent increase for years 11-15 and 10% increases in each option period. This is a relocation. This lease is guaranteed by Dollar General Corporation. Dollar General is a $11.8 billion dollar company that operates more than 8,887 neighborhood stores in 35 states.
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| Property Type: | Retail | Price: | $1,014,000 |
| Free Standing Bldg | Price/SF: | $110.46/SF | |
| Building Size: | 9,180 SF | Cap Rate: | 8.00% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
This property is part of a portfolio of seven (7) Family Dollar Stores. This property can be purchased individually or with any combination of the remaining 6 properties. The subject property is a newly constructed (May, 2009), 9,180 sf building situated on appx. 1 acre of land. The parking lot is concrete. The building is brick on 3 sides with a block front. Family Dollar (NYSE: FDO) has appx. 9.5 years remaining (expires 12/30/2019) on an original 10.5 year lease with (4) 5 year renewal options. The landlord is responsible for roof and structure. Tenant is responsible for CAM, Taxes, Insurance, HVAC, Parking lot maintenance and utilities. This store has experienced exceptional year one sales.
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| Property Type: | Retail | Price: | $8,375,000 |
| Free Standing Bldg | Price/SF: | $209.38/SF | |
| Building Size: | 40,000 SF | Cap Rate: | 8.00% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
*Sports Authority is a nationally recognized S&P rated credit tenant, currently operating approximately 460 stores in the U.S., and posted 2008 sales of $2.98 billion *Single tenant, NNN leased property; limited landlord obligations The subject property is a Tower Bank located in Fort Wayne, Indiana. Tower Bank will sign a 15-year absolute net lease which will commence at the close of escrow. There will be 10 percent scheduled rent increases every five years in both the initial term and two, five-year options. Tower Bank is positioned directly across from a Walmart Supercenter and Lima Marketplace, a 180,000-square-foot power center anchored by Aldi, Office Depot, PetSmart, Dollar Tree and numerous others. Other retailers in the immediate area include McDonald’ s, Starbucks, Sonic, Taco Bell and numerous others. Located at the intersection of Lima Road and West Dupont Road, Tower Bank features excellent exposure along two of the area’ s dominant traffic corridors. Combined daily traffic counts exceed 52,000 vehicles. This area boasts an average household income of over $82,000.


| Property Type: | Retail | Price: | $1,893,000 |
| Free Standing Bldg | Price/SF: | $561.39/SF | |
| Building Size: | 3,372 SF | Cap Rate: | 8.00% |
| Year Built: | 2010 | ||
| Property Description: |
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| Property Type: | Retail | Price: | $4,933,333 |
| Free Standing Bldg | Price/SF: | $339.06/SF | |
| Building Size: | 14,550 SF | Cap Rate: | 7.50% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus and Millichap is pleased to present this single tenant net leased drug store in the City of Englewood, County of Montgomery, Ohio. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy is newly constructed and rental payment commenced on September 4, 2009. The property is Absolute Triple Net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,550 square feet with a land area of approximately 1.52 acres.
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| Property Type: | Retail | Price: | $7,364,864 |
| Free Standing Bldg | Price/SF: | $506.18/SF | |
| Building Size: | 14,550 SF | Cap Rate: | 7.40% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this single tenant net-leased drug store in the City of Burlington, Alamance County, North Carolina. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy was recently constructed and rental payment commenced on January 5, 2009. The property is absolute triple net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,550 square feet with a land area of approximately 1.752 acres. The price of this property is $7,364,864 at a 7.40 percent cap on annual rent of $544,999.92.
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| Property Type: | Retail | Price: | $6,067,567 |
| Free Standing Bldg | Price/SF: | $409.42/SF | |
| Building Size: | 14,820 SF | Cap Rate: | 7.40% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this single tenant net-leased drug store in the City of Charleston, Kanawha County, West Virgina. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy was recently constructed and rental payment commenced on May 26, 2009. The property is absolute triple net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,820 square feet with a land area of 1.80 acres. The price of this property is $6,067,567.00 at a 7.40 percent cap on annual rent of $449,000.
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| Property Type: | Retail | Price: | $4,581,081 |
| Free Standing Bldg | Price/SF: | $335.61/SF | |
| Building Size: | 13,650 SF | Cap Rate: | 7.40% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this single tenant net-leased drug store in the City of Hurricane, Putnam County, West Virgina. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy was recently constructed and rental payment commenced on February 10, 2010. The property is absolute triple net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 13,650 square feet with a land area of 3.125 acres. The price of this property is $4,581,081.00 at a 7.40 percent cap on annual rent of $339,000.


| Property Type: | Retail | Price: | $5,801,324 |
| Free Standing Bldg | Price/SF: | $400.37/SF | |
| Building Size: | 14,490 SF | Cap Rate: | 7.55% |
| Year Built: | 2011 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this single-tenant net-leased drug store in the City of High Point, Guilford County, North Carolina. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. Construction of this community pharmacy scheduled to commence September 2010 with rental payment commencing by August 1, 2011. The property is absolute triple net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,490 square feet with a land area of approximately 1.309 acres. The price of this property is $5,801,324 at a 7.55 percent cap on annual rent of $438,000.
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| Property Type: | Retail | Price: | $5,423,537 |
| Street Retail | Price/SF: | $372.75/SF | |
| Building Size: | 14,550 SF | Cap Rate: | 7.35% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus and Millichap is pleased to present this single tenant net leased drug store in the City of Xenia, Greene County, Ohio. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy was recently constructed and rental payment commenced on March 1, 2009. The property is Absolute Triple Net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,550 square feet with a land area of approximately 1.612 acres. The price of this property is $5,423,537 at a 7.35% CAP on annual rent of $398,630.04.
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| Property Type: | Retail | Price: | $5,121,621 |
| Free Standing Bldg | Price/SF: | $352.00/SF | |
| Building Size: | 14,550 SF | Cap Rate: | 7.40% |
| Year Built: | 2009 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap is pleased to present this single tenant net-leased drug store in the City of Morristown, Hamblen County, Tennessee. The tenant is Walgreen Company (NYSE: WAG), one of the fastest growing retailers in the United States and a leader in the chain drugstore industry in sales and profits. This community pharmacy was recently constructed and rental payment commenced on September 26, 2009. The property is absolute triple net (NNN) leased to Walgreen Company for 75 years with no management responsibilities. The building is approximately 14,550 square feet with a land area of approximately 1.767 acres. The price of this property is $5,121,621.00 at a 7.40 percent cap on annual rent of $379,000.
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| Property Type: | Retail | Price: | $6,792,000 |
| Retail Pad | Price/SF: | $486.36/SF | |
| Building Size: | 13,965 SF | Cap Rate: | 7.20% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Marcus & Millichap exclusively offer for sale a newly constructed Walgreens located in prestigious Cherry Hill, New Jersey. Offered at a $6,792,000 or a 7.20 percent cap rate, an investor will be able to take advantage of a new 25-year absolute-net lease that will commence in August 2010. This property is currently under construction with a slated opening in the month of September. Walgreens is currently rated A+ with a stable outlook by Standard & Poor’s. They have 7,200 stores in the country with $63 billion in sales revenues. Four attractive financing programs exist for Walgreens to qualified individuals, with interest rates ranging between 6.00 percent and 6.60 percent.


| Property Type: | Retail | Price: | Not Disclosed |
| Free Standing Bldg | Cap Rate: | 8.00% | |
| Building Size: | 26,600 SF | Occupancy: | 100% |
| Year Built: | 2009 | ||
| Property Description: |
Farmington Pointe is a brand new ‘Class A’ retail center in the heart of an upscale suburb of Detroit. The community center boasts strong national and regional tenants including a long term ground lease with CVS. The CVS is a relocation of a an existing store. It has a double drive-thru


| Property Type: | Retail | Price: | $6,620,689 |
| Free Standing Bldg | Price/SF: | $446.74/SF | |
| Building Size: | 14,820 SF | Cap Rate: | 7.25% |
| Year Built: | 2010 | ||
| Property Description: |
The subject property is a Walgreens located in Edinburg, Texas. Walgreens has signed a 75-year absolute net lease which is scheduled to commence in October of 2010. Located at the intersection of Highway 281 and East University Drive, Walgreens features excellent exposure along two on the area’ s main traffic corridors. Combined daily traffic counts exceed 75,000 vehicles. This densely populated area is home to over 112,000 residents within a 5 mile radius of the subject property. Additionally, Walgreens is located just east of the University of Texas Pan American along one of the area’ s dominant retail corridors. Nearly 90% of the surrounding residents are of Hispanic origin. Walgreens has openly expressed that locations with high Hispanic density are highly sought after as Hispanics are the chain’ s most loyal customer base.


| Property Type: | Retail | Price: | $3,600,000 |
| Free Standing Bldg | Price/SF: | $247.42/SF | |
| Building Size: | 14,550 SF | Cap Rate: | 6.25% |
| Year Built: | 2010 | Occupancy: | 100% |
| Property Description: |
Walgreens is located at 4470 Royal Pine Drive in Colorado Springs, CO. The subject is an approximate 14,550-square foot, single-tenant retail building on approximately 1.77 acres of land. The existing lease is a brand new, long term, absolute triple-net (NNN) ground lease with Walgreen Co. that requires no landlord responsibilities. Recognized as not only the nation’s largest retail pharmacy chain, Walgreens is considered to be the leader in innovative drugstore retailing. Walgreens (NYSE: WAG) currently operates over 7,540 stores in all 50 states and is a Standard & Poors A+ rated company.
August 10, 2010 in Uncategorized
The Boulder Group Completes Sale of Net Lease Walgreen’s Building for $9.2 Million
By: Randy Blankstein
About the Author
About The Boulder GroupThe Boulder Group is a boutique investment real estate service firm specializing in net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has participated in the acquisition and disposition of more than $1.2 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago.
(ArticlesBase SC #2998829)
Article Source: http://www.articlesbase.com/ – The Boulder Group Completes Sale of Net Lease Walgreen’s Building for $9.2 Million
(Northbrook, IL -August 9, 2010)- The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreen’s property located at 189 Northwest Highway in Barrington, IL for $9.275 million. The 14,490 square foot building is 100% leased on a long term basis to Walgreen’s.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private Chicago developer. Walgreen’s Barrington 1 LLC, a California based real estate investor, was the purchaser.
“This was one of the highest priced Walgreen’s sold in 2010 and demonstrates the desirability of core single tenant properties in the present market environment” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group added, “Walgreen’s properties in tier one metropolitan areas are in high demand and we remain active with Walgreen’s developers and owners.”
Walgreen Co. (Walgreens) is engaged in retail drugstore business. As of August 31, 2009, the Company operated 7,496 locations in 50 states, the District of Columbia, Puerto Rico and Guam. During the fiscal year ended August 30, 2009 (fiscal 2009), the Company opened or acquired 691 locations. Total locations do not include 337 convenient care clinics operated by Take Care Health Systems, Inc. within the Company’s drugstores. 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.
Retrieved from “http://www.articlesbase.com/real-estate-articles/the-boulder-group-completes-sale-of-net-lease-walgreens-building-for-92-million-2998829.html”
(ArticlesBase SC #2998829)
Randy Blankstein – About the Author:
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has participated in the acquisition and disposition of more than $1.2 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago.
August 10, 2010 in Uncategorized
more in Commercial »
SEA ISLAND, Ga.—Sea Island Co., a genteel resort for wealthy vacationers that has fallen on hard times, is selling its assets to two investment funds in a deal that is causing creditors to walk away from $340 million in debt.
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Bloomberg News
Sea Island Co.’s Cloister Hotel on Sea Island, Ga., is being sold for a spectacularly low price to financiers.

As part of a pact expected to be announced Wednesday, funds managed by Oaktree Capital Management LP of Los Angeles and Avenue Capital Group in New York have agreed to pay $197.5 million in cash for Sea Island. Under the deal, Sea Island also is expected to seek bankruptcy-court protection Wednesday.
The 84-year-old resort is famed for its Cloister hotel, four golf courses, exclusive clubs, a private development called Ocean Forest Golf Club, and hosting a Group of Eight summit in 2004. Sea Island hit a financial wall when it couldn’t repay debt taken on by Bill Jones III, the company’s chief executive and the fourth generation of his family to lead Sea Island, as part of a $395 million renovation and expansion of the resort in 2006 and 2007.
The deal shows how some banks are increasingly willing to get rid of distressed assets at a steep loss as they slog through their commercial real-estate problems. Many financial institutions have been reluctant to sell troubled loans and foreclosed property to preserve capital while values have plunged.
Sea Island’s sale and bankruptcy will cause a group of creditors that includes Bank of America Corp., the Bank of Scotland PLC unit of U.K. bank Lloyds Banking Group PLC and Synovus Financial Corp., a regional bank based in Columbus, Ga., to relinquish $340 million in loans. The lenders approved the sale Friday, and a federal bankruptcy-court judge in Brunswick, Ga., is expected to decide how they will divide the $197.5 million in cash proceeds from the sale.
It is possible that the bankruptcy case will trigger an auction of Sea Island, but the odds that the sale to Oaktree and Avenue will be torpedoed are seen as slim. Spokespersons at Bank of America, Lloyds and Synovus declined to comment.
![[SEAISLANDmap]](http://sg.wsj.net/public/resources/images/MI-BF177_SEAISL_NS_20100810185102.gif)
Oaktree and Avenue are part of a wave of distressed real-estate buyers, which includes veteran investors like Starwood Capital Group’s Barry Sternlicht and newcomers who have amassed billions of dollars to buy battered assets.
Deal-making in the troubled commercial real-estate sector rose noticeably in the second quarter partly, according to bankers and other industry experts, because property values have rebounded from their and bank balance sheets are stabilizing. That makes it less dangerous for financial institutions to absorb the losses triggered by such deals.
“We told you back a year and a half ago, we didn’t think it was appropriate for a company as strong as BB&T to go out and dump assets in a market that was panicked,” BB&T Corp. Chairman and CEO Kelly S. King said in July. In the second quarter, the Winston-Salem, N.C., bank accelerated its asset disposition plan and sold $650 million in problem assets, including commercial and residential loans.
There now are signs of “of more buyers coming into the market,” Mr. King said. For example, Oaktree is nearing completion of its purchase from Citigroup Inc. of a $340 million portfolio of loans backed by warehouses and manufacturing facilities, according to people familiar with the situation. In the second quarter, Debt Exchange Inc., a Boston firm known as DebtX that sells big bank-loan portfolios, put up for sale more than 25 portfolios in sizes ranging from $3 million to $300 million in outstanding loan balances.
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Sea Island’s sale will end family-dominated stewardship of the resort, started in 1926 on a barrier island by industrialist Howard Coffin. “It’s the end of an era for our family, but we’ll deal with it and we’ll go on about life,” Mr. Jones said.
The sale process began in February when closely held Sea Island hired Goldman Sachs Group Inc. to review Sea Island’s financial options. Oaktree and Avenue topped bids from Starwood and KSL Recreation, a La Quinta, Calif., company that owns and manages hotels and resorts. A unit of billionaire Philip Anschutz’s Anschutz Corp. also considered buying Sea Island independently or as part of a joint venture with Starwood, according to people familiar with the matter. Officials for the bidders declined to comment.
One advantage for Oaktree and Avenue: Oaktree President Bruce Karsh and Avenue Chairman and CEO Marc Lasry have vacationed at Sea Island for years, according to people familiar with the situation. “The principals in those firms vacation here, have places here, and really know Sea Island,” Mr. Jones said.
As part of the deal, about 2,500 Sea Island members as well as some 360 members of private Ocean Forest Golf Club will be transitioned to a new membership structure that is similar to the current one. Oaktree and Avenue plan to retain Sea Island’s employees and management, including Mr. Jones.
Mr. Coffin and his younger cousin, A.W. “Bill” Jones Sr., turned Sea Island’s raw land into a popular resort. And the renovation in 2006 and 2007 led by Mr. Jones’s grandson, Bill Jones III, drew rave reviews. The project included a spa, renovated beach club and the new Cloister hotel.
Mr. Jones also served on the board of Synovus, one of Sea Island’s biggest lenders. A spokesman said Mr. Jones left the boardroom when votes were taken on Sea Island’s loans. Mr. Jones stepped down as a Synovus director in 2008.
Sea Island’s CEO was counting on revenue from the sale of two-acre lots that were supposed for more than $1.5 million on average in a new development called Frederica. But those sales fell short of what was needed to pay the bank debt. Some loyal vacationers felt alienated by the perception that Sea Island wanted to focus on higher-end guests.
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The lobby of the Sea Island Co. Cloister Hotel in 2008. The Georgia resort was founded in 1926.

“One of the mistakes we made is we overshot our market,” Mr. Jones said. “Given all the facts that we had at the time, it was not a mistake to borrow. It was our belief that slowing the construction process would have resulted in a multi-year disruption.”
The economic turndown “hit everything we had,” Mr. Jones added. “They are not buying homes, they’re not buying resort residential products that we were developing. They weren’t buying at Frederica.” In 2009, Cloister revenue was just $34.8 million, down 31% from $50.5 million in 2007.
In November, Mr. Jones had to turn over the Frederica development to Wells Fargo & Co. The San Francisco bank inherited a loan on the project when it acquired Wachovia Corp., based in Charlotte, N.C.
Mr. Jones kept a tight lid on the bidding process. Local residents buzzed about the potential sale at Starbucks and church, and some of them monitored the tail numbers of jets at an airport.
According to the Goldman pitch book and people familiar with the situation, Sea Island’s new owners could expand the resort. Sea Island’s golf lodge could be expanded to 100 guest rooms from the current 40. Sea Island also owns beach-front property that can be sold to home buyers.
—Kris Hudson contributed to this article.Write to Carrick Mollenkamp at carrick.mollenkamp@wsj.com and Lingling Wei at lingling.wei@wsj.com
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