The subject property is a new freestanding Walgreens Drugstore located in the “golden triangle” east of Houston in Groves, Texas. The golden triangle is named for the many energy and petrochemical companies operating in the region. Walgreens chose this site along the main retail corridor, across from Walmart Supercenter and near Big Lots, Sherwin Williams, Family Dollar, McDonald’s, Wendy’s, Taco Bell, Sonic, Waffle House and Valero. Adjacent to the site is a 166,000 sf logistics facility for Motiva. Located in southeast Texas, Groves is part of the Beaumont-Port Arthur MSA and is home to some of the largest and most important oil producers in the nation (Valero, Dupont, Exxon/Mobile, US Steel). There is approximately $2 billion of new construction tied to the oil industry.

Tenant: Walgreens Company
Walgreens is our nation’s leading drug retailer operating 6,849 stores in 49 states, with revenues exceeding $54 Billion. Walgreens sets the pace for all drugstores in the United States maintaining an A+ Credit Rating with Standard & Poors and Aa3 with Moody’s. Walgreens leads the industry in new store development, capital investment and industry innovations. Walgreens boasts 33 consecutive years of record sales and earnings. The Company increased its market share in 58 of its top 60 product categories compared to food, drug and mass merchandise competitors. Prescription sales accounted for 64% of total sales in 2007. Comparable store sales increased 8.1% and Net Earnings per share increased by 18% for fiscal 2007. Walgreens filled 583 million perscriptions in 2007.