Gustine's new holding is located at the northwest corner ofWarner and McQueen roads in Chandler. Construction is expected tostart immediately on a 12,987-sf CVS pharmacy, which is scheduledto open in mid-2002.

CVS' 4,100 locations make it the largest pharmacy chain thecountry, dispensing more retail prescriptions in more states thanany other pharmacy in the United States. The chain has been rumoredto be heading into town for some time, but this is the first clearsignal that company is ready to battle the two other major chainsin the Valley--Osco Drugs and Walgreens--for control ofprescription and over-the-counter drug business. The emergence of athird major drug store is expected to further escalate the price ofintersection parcels that they are all competing to get, say somereal estate experts.

The Phoenix office of CB Richard Ellis, with brokers DaveCheatham and Darren Pitts, represented Gustine Properties. SteveBunch of the Scottsdale office of Bunch Real Estate Developmentacted for the seller, LauraScott Interests, LLC, also ofScottsdale.