ORLANDO-Marcus & Millichap is getting busy in the net lease sector. Marcus & Millichap Real Estate Investment Services recently sold the highest-priced Walgreens in the southeastern United States and inked two other deals in a mini-flurry of activity in this competitive arena.
Located in Orlando, the 14,490-square foot Walgreens drugstore sold for $10.03 million, which equals $692 per square foot. Lori Schneider, a senior vice president of Investments and senior director of both M&Ms National Retail Group and Net Leased Properties Group, represented the seller, a local developer.
“The atypically high asking price eliminated a large section of the buyer pool, but we were able to find the right buyer for this property,” Schneider said in a statement. “There is a strong demand and limited supply for quality net-leased assets in good locations.”
The property is located at the intersection of Sand Lake Road and Orange Blossom Trail at 1835 W. Sand Lake Road. That’s across from the main entrance to The Florida Mall in a prime location with exceptional traffic counts.
Schneider has also recently brokered the sale of a $4.12 million CVS drugstore in Largo and arranged the sale of a portfolio of Florida CVS drugstores for $19.5 million. She also brokered the sale of a Walgreens in Columbia, S.C. and CVS locations in Lawrenceville, Ga., Inwood, W.Va. and Edinboro, Pa.
Patrick Nutt, managing director, Calkain in Fort Lauderdale, tells GlobeSt.com the net lease arena is highly competitive, with demand outpacing supply and a scarcity of new development in the pipeline. He reminds a new Walgreens takes 18 months to build.
“You look at Walgreens and CVS,” Nutt says. “A couple of years ago they were averaging 500 to 600 new stores a year. This year and next year you are probably looking at 150 stores a year. So they are doing a quarter of the expansion.”