Buyer Pays Premium for Walgreens Triple-Net
SACRAMENTO-GlobeSt.com has learned exclusively that a private seller has sold a 17,272-square-foot, freestanding Walgreens building here to a buyer whose name could not be disclosed for $9.238 million. The property, which sits on an approximately 1.91-acre parcel of land, is located at 1420 Meadowview Rd., across the street from a Home Depot-anchored shopping center.
Ryan Barr and Ryan Bennett of Lee & Associates’ North San Diego County office represented the seller in the off-market transaction. The property was sold to on an all-cash basis at a market-low cap rate of 5.25%. “This sale pushed the market to levels we haven’t seen since 2005,” said Barr in a prepared statement. “Our seller was very pleased.”
Barr tells GlobeSt.com that a rise in employment and an uptick in residential construction are boosting the retail sector in Sacramento. “Net lease investors are combing the market for corporate-backed single-tenant assets, which are changing hands at cap rates in the low- to mid-6% range for a drugstore or near 7% for a fast-food restaurant. In this instance, we had a local high-net-worth exchange buyer that paid a premium for a long term triple-net lease and Walgreens investment-grade credit.”
As GlobeSt.com previously reported, in August Lee & Associates arranged two lease deals at 4811 Airport Plaza in Long Beach, CA, completely leasing up floors 3-5 in the 126,270-square-foot building, along with additional ground-floor space for one of the tenants. General Services Administration—Federal Bureau of Investigation fully leased the 21,264-square-foot 5th floor, with an additional 1,000 square feet on the ground floor. The 15-year lease term was negotiated for $9.6 million. Also, Verizon California Inc., a Verizon operating company, fully leased the building’s 4th floor consisting of 21,264 square feet and exercised its option by additionally leasing the 3rd floor for a total of 45,528 square feet. The six-year lease term for Verizon began in August. Also at that time, the firm hired three key industrial and office brokers to its West Los Angeles offices.
Is networking important to you? Join RealShare Conferences to hear from prominent speakers and meet the commercial real estate elite. Check out the schedule of events!
You can now be notified via email if this story is updated by clicking on the "Follow this Story" link. You must be a registered member to take advantage of this "members only" benefit.