Walgreens Huntington Park Walgreens has 22 years left on its lease term.

LOS ANGELES—A private and unnamed investor has purchased a triple-net leased Walgreens in Huntington Park at a record-low cap rate of 4.22%; the lowest cap rate paid for a triple-net retail property over $10 million in Los Angeles and one of the lowest cap rates nationwide. For the past several years, the market has seen and increasing demand for trip-net product, and this lease shows that demand is continuing to climb.

“The sale of the Huntington Park Walgreens represents the lowest cap rate for a single-tenant Walgreens in Los Angeles County priced over $10 million ever,” Patrick Kent, SVP at Hanley Investment Group, tells GlobeSt.com. “There is no doubt this is a rare sale of a Walgreens in Los Angeles County. Only one other Walgreens with an initial lease term of at least 14 years remaining traded hands in Los Angeles County in 2015. This type of investment doesn’t come up for sale very often. This transaction is another great example of the high demand for well-located single-tenant investments, specifically for credit retailers like Walgreens with a corporate guaranteed lease with investment grade credit.” Kent and his colleague EVP Bill Asher represented the seller in the transaction, while Nigel Keep and Bill Kurfess of Kidder Mathews represented the Northern California-based buyer.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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