ATLANTA-A two-store Walgreen’s portfolio in the Atlanta area hassold for $11 million. The sale of the retail buildings in Lilburnand Douglasville marks an ongoing trend: investors parking cash indeals that commercial real estate industry watchers compare toowning corporate bonds.

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A private institutional commercial real estate investment groupin New York City paid $395-per-square-foot in cash for theproperties. The seller is an Atlanta-based preferred Walgreen’sdeveloper.

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Sean Attaway Molloy, senior director of Franklin Street RealEstate Services, represented the seller in both transactions.Molloy tells GlobeSt.com he fielded about 25 offers on theWalgreen’s portfolio. The buyer put the property under contract andclosed on the deal in 40 days at a blended cap rate of about7.65%.

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“There were about 225 Walgreen’s on the market at any given timelast year,” Molloy says. “Now, there are probably 100 or so. As theproduct dries up and demand for the security of these assetsincrease, cap rates are compressing. From the time we put thisunder contract, cap rates dropped in some locations almost 50 basispoints.”

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Located at 4235 Lawrenceville Highway, the Lilburn store openedin 2007. The Douglasville store is located at 3851 Chapel Hill Roadand opened in 2008. The Douglasville location strayed from theprototypical Walgreen’s design and size to conform to DouglasCounty architectural standards. It has a mezzanine design, withblack lettering and traditional lighting scapes on the fa

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