Lease Abstract Summary

Corporate Walgreens NNN lease with approximately $502K annual rent beginning in 2027, long-term lease to 2064, and rolling 5-year tenant termination options starting August 2027.

LEASE ABSTRACT
Property: 750 N Virginia St, Reno, NV
Tenant: Walgreen Co. (corporate entity)
Lease Type: NNN leasehold (airspace structure tied to master ground lease)

BASIC TERMS
Lease Commencement: September 1, 2001
Lease Expiration: December 31, 2064
Remaining Term: Approximately 38+ years

Tenant: Walgreen Co.
Guarantor: Corporate Walgreens (no separate PG)

Structure:
– Long-term NNN lease
– Tenant responsible for taxes, insurance, maintenance, utilities
– Minimal landlord obligations

RENT
Current Rent (through Aug 31, 2027):
$38,083.33 per month

Rent Beginning Sept 1, 2027:
$41,891.67 per month
$502,700 annually

No additional scheduled rent increases after 2027 step.

TENANT TERMINATION OPTIONS
Tenant has the right to terminate the lease on the following dates:

August 31, 2027
August 31, 2032
August 31, 2037
August 31, 2042
August 31, 2047
August 31, 2052
August 31, 2057
August 31, 2062

Note: The 2022 termination option was waived in the 2022 amendment. Primary underwriting risk is the August 31, 2027 termination option.

PROPERTY DESCRIPTION
Approximate Building Size: ±15,065 SF
Freestanding Walgreens retail pharmacy
Located in downtown Reno

Ownership Structure:
Property is held as a leasehold interest tied to a long-term master airspace/ground lease with the State of Nevada.
Landlord owns leasehold interest, not fee simple.

LEASE STRUCTURE (NNN)
Tenant responsible for:
– Real estate taxes
– Insurance
– Maintenance and repairs
– Utilities
– Operations

Lease functions as a net lease with stable landlord cash flow.

USE / EXCLUSIVITY
Lease includes strong exclusivity protections restricting nearby competing pharmacy or similar uses within approximately 500 feet of the property.

This protects Walgreens operations but may impact re-tenanting flexibility if the tenant vacates.

ASSIGNMENT / SUBLETTING
Tenant may assign or sublease with landlord consent, not to be unreasonably withheld.
Typical corporate flexibility for national tenant.

CASUALTY / CONDEMNATION
Standard provisions:
– Rebuild required in most scenarios
– Insurance proceeds applied to restoration
– Termination possible in major casualty late in term

FINANCIAL SNAPSHOT
Annual Rent (2027+): $502,700
Term to first termination option: August 31, 2027
Final Lease Expiration: December 31, 2064

Air/Land Lease Overview

Building Lease Overview