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.
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