CALIFORNIA AND OKLAHOMA — Hanley Investment Group has arranged the sale of five freestanding Walgreens locations for a total of more than $34 million. Four of the properties are located in Southern California, with the remaining property being located in Oklahoma. The properties traded in five separate deals.
“Buyer demand remains consistent for triple-net, single-tenant investments, with Walgreens being the most attractive, primarily due to their strong credit,” said Edward Hanley, president of Hanley Investment Group, in a statement. “We expect the demand for triple-net, single-tenant investments to continue as investors find this type of asset easy to manage while offering protection from rising inflation.”
The first Walgreens is a 13,961-square-foot building located at 670 N. Lake Ave. in Pasadena. The property was constructed in 1980. The buyer, a private investor, purchased the property all-cash as part of a 1031 exchange. The seller was also an undisclosed private investor. According to McChesney, the property traded at the lowest cap rate of any single-tenant Walgreens in Southern California since 2008.
In the second transaction, Kent partnered with Hanley's Eric Wohl to broker the sale of a Walgreens located in Orange County. The buyer and the seller were undisclosed private investors. Additional details about the deal could not be disclosed.
Kent and Wohl partnered again to broker the sale of a Walgreens in Pomona. The 13,680-square-foot building was constructed in 2003 at 495 E. Holt Ave. Hanley represented the buyer, a family partnership that acquired the property all cash. NAI Capital NYC represented the seller, Evergreen/Holt.
Wohl and McChesney partnered to represent Newport Beach, Calif.-based RW WG Riverside LLC in the purchase of a Walgreens located in Riverside. The 14,991-square-foot building was constructed last year and is located at 6444 Van Buren Blvd. Hanley's William Asher represented the seller, Chicago-based Arlington-Van Buren Investment. The property traded at a 6.64 percent cap rate.
Finally, Wohl represented the same buyer in the Riverside deal in its 1031-exchange purchase of a Walgreens in Oklahoma City. The 14,490-square-foot building is located at 5901 NW 122nd St. Gary Gregory and Cathy Jo See of Sperry Van Ness' Oklahoma City office partnered with Tony Alanis of Encinitas, Calif.-based Net Leased Real Properties to represented the seller, locally based MAC-122 LLC. The buyer secured CMBS financing to fund the acquisition.
— Coleman Wood