MIAMI—Walgreens are a hot commodity—and harder for investors to get their hands on—in today’s market. But Herrick Company managed to pick up 29 of them in one fell swoop.
Herrick affiliates just spent $100 million to buy 29 pharmacy-retail properties in markets across the United States. All of the properties are occupied by Walgreens under long-term triple net leases.
“We continue to be successful in identifying and executing on opportunities to strategically expand our portfolio of single-tenant, long-term net leased assets,” says Norton Herrick, chairman of the company that holds his name. “With significant competition in the market, our ability to move quickly to closing positions us strongly for these types of highly desirable investments.”
The Walgreens leases each have 25 years remaining on the term. Prudential Insurance financed the portfolio acquisition.
The $100 deal is another example of Herrick pressing forward with its strategy to invest in single-tenant, long-term net leased assets that are occupied by credit tenants. Earlier this year, the company spent $190 million on a portfolio of 63 pharmacy/retail properties, all of which are occupied under long-term triple net leases with CVS Caremark.