MIAMI—A 22,857-square-foot Walgreens drugstore in Miami Beach just traded for $30 million. The sale price is the second-highest paid for a drug store in the U.S.-and the highest price for a net-leased asset in Miami Beach—this year. The sale price equals a whopping $1,312 per square foot.
Sean Shahar Ziv, an associate in Marcus & Millichap’s San Diego office, represented the seller, Trans World Entertainment Corp. Ziv also procured the buyer, an international investor, who paid all cash. Kirk Felici, vice president and regional manager of M&M’s Miami office, is the firm’s broker of record in Florida.
“We are experiencing an increasing amount of activity from international investors as buyers turn from the Eurozone’s financial instability to the strength of the single-tenant net-leased property sector in the U.S.,” Ziv commented. “This Walgreens has a 60-year triple-net lease that began in July 2008, with 25 years firm.”
The lease is guaranteed by the Walgreen Co., which has a Standard & Poor’s credit rating of ‘A.’ Ziv said the overall strength of the lease, the quality of the tenant and the property’s prime location on one of Miami’s hottest retail corridors all contributed to the outstanding value of this asset.
The two-story Miami Beach Walgreens is located at 501 Collins Ave. where it intersects Fifth Avenue in the center of Miami Beach’s Art Deco District. Retailers, restaurants and hotels surround the drug store. This is Ziv’s second high-profile Walgreens transaction this year. In May, he represented the buyer of a Walgreens drugstore located on the Las Vegas Strip that sold for $27.8 million.
“Miami Beach’s combination of a substantial tourism base together with a year-round dense population creates an ideal scenario for retail investment,” Anthony Blanco, director of Investment Sales at The Shopping Center Group, tells GlobeSt.com. “Foreign investment capital is aggressively seeking to enter into retail investments in South Florida, in particular, and this property fits perfectly into their investment criteria. This asset is unique for its size, which is much larger than a typical Walgreens store, and given the trade area that it serves, I expect it to be a very solid investment into the future.”