Walgreens holds 50-year leases for the locations. The Phoenix location has a higher cash flow, 4%, than the Scottsdale property, which factors out to 2.59%. Jamie Medress and Steve Gonzalez both with the Phoenix office of Marcus & Millichap Real Estate Investment Brokerage Co., represented Scantland in both sales. John Sabow of the Tampa, FL office of Marcus & Millichap negotiated for the seller, Robert Schmidt of Schmidt Investments.
Medress says the Phoenix holding, built in 1993, is another primo location. It is positioned on a hard corner across from the Arizona Country Club. He says the $13.55 per sf rent offers a 4% cash flow and that's better than many stock returns right now.
Scantland is acquiring the properties for his family trust. It's commonplace to acquire such properties, pass them down through the family and sell later for a profit or use them as a vehicle to harbor money or offset taxable gains in other ventures.
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