GENESEO, IL—Single tenant net lease properties have gotten quite popular with investors, especially brand-name drug stores, even ones far outside core markets. STREAM Capital Partners, for example, recently completed the sale of a Walgreens property located in Geneseo, IL, about 20 miles east of the Quad Cities. Walgreens has the property under a long-term lease, another draw for investors, with about 19 years of term remaining.
The sale price was just over $5 million. Jonathan Wolfe and Jordan Shtulman, managing principals and co-founders of STREAM, advised the seller on the transaction. Since forming STREAM in early 2012, the group has helped complete over $250 million of Walgreens dispositions.
"The sale of this Walgreens property and the multiple offers that we received underpins the strong demand that we see from private investors for properties under long-term leases to high credit quality tenants," says Shtulman.
"Even though the location is considered tertiary, there are simply not enough Walgreens properties on the market to satisfy investor demand," Wolfe adds. "As a consequence, investors are more focused on the underlying credit and lease term rather than location."
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