CHICAGO—As reported in GlobeSt.com, investors have come to see drug stores as one of the most attractive net lease investments. The cap rates for the top brands have hit historic lows, and no brand has more appeal than Walgreens.

Colliers International, for example, has just completed the $6.68 million sale of the 14,660-square-foot Walgreens property located at 3153 W. Irving Park Rd. in Chicago. Justin Kaufmann, senior associate with Colliers' Chicago-based Investment Services Group, along with Brad Teitelbaum, formerly of Colliers and currently with Baum Realty Group, handled the transaction. Kaufmann and Teitelbaum represented both the seller, a local partnership, and the buyer, a California-based equity fund.

Cap rates for CVS and Rite Aid properties recently sank to 5.75% and 7.4%, respectively, according to a recent study by the Boulder Group, a commercial real estate services firm located in suburban Northbrook, IL. And the rate for Walgreens properties now stands at 5.6%.

“Investors are attracted to these properties partly because they are one of the few opportunities with tenants that sign leases of 20 years or more,” Randy Blankstein, president of Boulder, told GlobeSt.com.

In this case, “the seller was motivated by a great capitalization rate, while the buyer was interested in the positive real estate fundamentals that include high store sales, plans for near-term renovation, and its urban-infill location,” says Kaufmann. “The property is located at the signalized hard corner of a primary transportation corridor that has high barriers to entry and is currently seeing positive growth and redevelopment trends.”