Long-Term Leases Bring Buyers to Walgreens

CHICAGO—As reported in GlobeSt.com, even though many types of single tenant net leased properties have attracted interest from investors, sending cap rates on a long-term plunge, name brand drug stores, especially Walgreens, draw more attention. The Boulder Group, a net leased investment brokerage firm in suburban Chicago, for example, has completed the sale of a recently constructed single tenant triple net leased Walgreens property located at 28895 West Highway 120 in Lakemoor, IL, for $6,725,000. The seller was a Midwest based developer and the buyer was a private investor in a 1031 exchange.

“While most investors are attracted to Walgreens properties, investors in 1031 exchanges have been amongst the most successful in purchasing these properties because of the premium that they are willing to pay,” says Jimmy Goodman, a partner of Boulder.