Exclusively Listed Walgreens For Sale
Walgreens for sale today varies greatly from those for sale in the late 1990s and during the 2000s. From the late 1990s to around 2010 most Walgreens for sale were recent built-to-suit developments and the sale was from developer to investor.
The Walgreens for sale were either 20 year or 25 year leases with 50 years in options. These developers typically were preferred developers who built with the intention of putting their store for sale within a year or two time-frame from completion. Some developers would have their property for sale towards the end of the development process with the intention of closing upon rent commencement.
Walgreens properties for sale today is typically between owners that are not developers and can vary in lease term and lease type. Some have absolute triple net leases and some have landlord responsibilities such as roof, structure and parking lot. These lease types and the lease remaining before the options periods directly impact the value of the property. Besides lease structure and lease term remaining, the value of the drugstore for sale is also highly dependent on overall real estate quality, tenant sales and overall likelihood of Walgreens renewing the next lease option.
All Walgreens that are listed for sale have corporate guarantees with CAP rates generally ranging from 5.5 CAP to 10 CAP. Walgreens listed for sale in the 8 CAP to 10 CAP ranges typically have under 5 years of lease term remaining before the next lease option and have landlord responsibilities. Those listed in the 6 CAP to 8 CAP range are typically mid-term leases ranging from 5 years to 15 years before the next option to terminate and can either have landlord responsibilities or have no landlord responsibilities whatsoever. Walgreens for sale in the 5.5 CAP to 6 CAP range typically have over 15 years of lease term remaining and have no landlord responsibilities whatsoever.
CAP rates are a function of risk but also investor supply and demand.
Many investors will not consider purchasing a Walgreens if there are landlord responsibilities. Other investors prefer the higher return of properties that have landlord responsibilities of roof, structure and parking lot. With the drugstore investment property market changing daily, current market knowledge of Walgreens properties for sale makes a critical difference for owners that are active in the drugstore market.
Investors should engage a real estate broker that has not only a strong record of Walgreens property closings but also a broker who is active in the current market and knows the current landscape.
Investors that regularly consider purchasing these properties will usually have some established relationships with real estate brokers that specialize in net lease properties. Many of these net leased brokers sell two or three Walgreens properties each year and have a general focus and knowledge on this type of sale.
Exclusive Focus on Walgreens
Pharma Property Group is the only national commercial real estate brokerage company with an exclusive focus on CVS, Rite Aid and Walgreens for sale. Due to this unique specialization, Pharma Property Group has a superior understanding of the industry which gives their clients an advantage over other drugstore buyers and sellers.
Some owners that have drug stores for sale do not wish to market to the open public and some owners will hire a broker. Since Pharma Property Group is so specialized they are able to deliver both exclusively listed Walgreens and also off-market Walgreens for sale. This access to off-market Walgreens property for sale that Pharma Property Group possesses comes through years of drugstore deal making and relationship building with Walgreens property owners.
Large Inventory of Walgreens Stores for Sale
Pharma Property Group also carries a large inventory of Walgreens for sale and any listings that they advertise to the open public are exclusively listed with only Pharma Property Group having the rights to sell that asset.
Pharma Property Group also has established a large network within the brokerage community to get complete coverage and provide its buyers with full access to all inventory on the market. Pharma Property Group relies heavily on its outside broker relationships to sell its exclusive inventory and to find their buyers additional opportunities to purchase.
How much does it cost to build a Walgreens?
The cost to build a Walgreens building varies depending on if the property is self-developed by Walgreens or if a 3rd party developer builds the Walgreens. Projected future sales of the location is also taken into account to set the rental amount which dictates the value based on current CAP rate levels. Other variables include land cost and construction cost.
Does Walgreens own their buildings?
Walgreens owns some of their locations that they developed internally or have purchased on the secondary market by exercising a right of first refusal pursuant to their existing lease. The majority of Walgreens buildings are owned by private investors, developers and institutions such as REIT’s.rchase.
- Absolute net lease with ±14 years remaining and strong reported sales.
- Attractive 3.79% below market assumable financing or available free and clear.
- Part of the St. Cloud MSA with over 200,000 residents.
- Just over a mile south of 486-bed St. Cloud Hospital and near St. Cloud State University with 10,000 students.
- New 15 year absolute net lease term.
- Salt Lake City has a population of ±1,200,000 and is the most populous city in UT.
- Near busy signalized corner with ±36,000 vehicles per day.
- No other drugstore within a 3-mile radius of subject property
- Walgreens extended lease to a firm 15-yrs in August 2022 showing commitment to this location.
- Walgreens is reporting strong sales at this store that has a 15-year operating history.
- Virginia Beach has a population of ±1,500,000 and is the most populous city in VA.
- Near ±23.6M SF of retail space and adjacent to 128K SF center anchored by Lion Food who renewed for 10 yrs.
- Absolute net lease with 7 years of term remaining, 10 (5-year) options and no landlord responsibilities. Walgreens is reporting a history of solid store sales at this location.
- Existing CMBS non-recourse financing is assumable, debt matures 10/6/26, current balance is $4,200,000 at 4.53% rate.
- CVS is located directly across the street making this a strategic corner for both Walgreens and CVS. No Other Walgreens for 22 Miles.
- Located in the heart of Crawfordsville at the main intersecting roads in the city, North Washington St. and W. Market St. Subject property is approximately two miles south of two medical facilities.
- Absolute net lease with no landlord responsibilities.
- Midnight store with history of strong sales.
- Directly across from a 304-bed full-service hospital a combined traffic ct. of ±48,500 VPD.
- Less than one mile from Shorter University, a private university with 1,800 students and 380 faculty.
- Absolute net lease with ±8.5 years remaining and 10 (5-year) options.
- Only freestanding national brand drugstore within a two-mile radius with limited competition.
- The average household is $90,721 in a 5-mile radius.
- Located on Route 202, the main thoroughfare through Torrington.
- This store reports strong sales and recently added clinic services in 2021.
- Located near Memorial Hermann hospital with 400 licensed beds.
- On the signalized corner with a combined traffic count of ±68,692 vehicles per day.
- Thirteen miles SE of Downtown Houston, infill location with ±142,000 residents within a 3-mile radius.
- Top 10 Atlanta MSA location just 25 miles north of downtown Atlanta.
- Affluent demographic area with household income of over $170,000 in a 3-mile radius.
- Absolute net lease with no landlord responsibilities whatsoever.
- Located on retail corridor across from Walmart Supercenter.
- The store is dark and no longer in operation but will produce $2,592,000 of income over the remaining 8 years of lease term with rental income guaranteed by Walgreens with an absolute net lease and no landlord responsibilities.
- This is a freestanding building made to Walgreens specifications along highly visible Hwy- 18 and just 5 miles E of I-15. Highway 18 is the main thoroughfare through Apple Valley, part of San Bernardino County, the largest county in the contiguous United States by area.
- Just one block from Apple Valley Town Hall which includes the Civic Center Park, Apple Valley Police Department, the Apple Valley Conference Center and the San Bernardino County Library
- In operation for 25 years, term is currently extended to September 30, 2026.
- Larger drugstore building footprint at modest $14 per square foot in rent.
- Roof was replaced in 2021 and carries a transferrable 15-year warranty.
- Near South City Hospital, a 178-bed hospital in the center of S St. Louis.
- The absolute net lease will provide $24,014 a month until expiration in January 2023.
- In the heart of Woodruff on Hwy 221/Main Street across from city hall, library and fire department.
- Within 1 mile of Woodruff High, Woodruff Middle and Woodruff Elementary with total of 2,152 students.
- Near Michelin’s largest North America distribution center and only BMW assembly facility in the US.
- New 15 year absolute net lease term.
- 5% rental increases every 5 years in the options.
- Strategic drugstore location across from Walgreens.
- One block from Ellis rehabilitation center and one mile from Ellis Hospital.
- CVS has agreed to new 15-year lease with 10 (5-year) options with 5% increases in the options.
- Near 44-bed Central Harnett Hospital and only national brand drugstore in Lillington.
- Centrally located between Fayetteville and Raleigh along Highway 210.
- Lillington is the county seat of Harnett County who employ almost 54,000 employees.
Recently Sold Drugstores
- Located less than 0.2 of a mile from Russell Medical, a not-for-profit acute care hospital.
- Only national chain drugstore in Alexander City, next nearest Walgreens or CVS over 13 miles away.
- 14+ years of term remaining on an absolute net lease with eleven 5-year options to extend.
- Approx. 13 yrs. of term remaining before 10 (5-year) options, double net lease, landlord responsible for parking only.
- The lease allows for five percent (5%) rental increases in each of the ten (five-year) options.
- The lease structure for this asset does not include a rent holiday.
- Subject property is located in a two-mile radius of three different hospitals.
- Located in a retail hub with approximately 1.8 million square feet of retail space.
- 50 miles north of Tampa along at the central coast Gulf of Mexico.
- Five mile radius population is 82,480 and household income is $60.598.
- One of only ±400 Walgreens locations with an in-store healthcare clinic.
- Directly across the street from CVS making this a strategic location for both Walgreens and CVS.
- Surrounded by residential neighborhoods and located at Exit 246 of Interstate 10 ±12 miles northwest of downtown Tucson. Average household income is $90,069 in a three-mile radius and $83,659 in a five-mile radius and 281,588 in a ten-mile radius.
- High traffic count of 63,111 cars per day and located 3 miles from Highway 99 with approximately 137,000 cars per day.
- Wells Fargo subleases a portion of the space on an absolute net lease basis for an opportunity of supplemental income.
- Average HH income in a 1-mile radius is $79,529, in a 3-mile radius it is $83,335 and $77,942 in a 5-mile radius with a population of 251,698 in a five-mile radius.
- Located blocks from the Medical District of Memphis with four major hospitals totaling approximately 6.5 million square feet of medical space within a three mile radius.
- Located 2.5 miles outside of downtown Memphis and is part of the Memphis MSA with a population of over 1,340,000 residents.
- Across the street from a Kroger shopping center and near I-69 with traffic counts of over 124,706 VPD.
- Dense economic region with 7M square feet of retail space, 3M square feet of office space and 2,600 multi-family units within a 3-mile radius.
- Heavily trafficked intersection with traffic count of over 40,000 vehicles per day.
- Affluent neighborhood with about $140,000 household income within a 1-mile radius.
- Located in an infill area on main retail corridor leading directly into Downtown Baton Rouge.
- Located on signalized SEC of Florida Blvd. & Lobdell Blvd. with a combined traffic count of ±77,903 VPD.
- Subject property is an outparcel to a 725,000 SF office park on 5.15 acres.
- Philadelphia MSA location with over 6,100,000 residents and 20 miles SE of downtown Philadelphia.
- East of The Shoppes at Cross keys shopping mall on main thoroughfare of retail corridor.
- Walgreens signed a new lease extension showing commitment to this location.
- Walgreens reports exceptional sales volumes at this store located in the Los Angeles MSA.
- Affluent HH income in a 5-mi radius of ±$110k and located at a corner with conbined traffic of ±60k VPD.
- Four medical facilities totaling 665 beds are located within a 2.1 mile radius of the subject property.
- 24-Hr store and pharmacy reporting exceptional annual sales with ±13 yrs. remaining on an absolute net lease.
- Walgreens closed the Rite Aid across the street shifting much of that customer base to the subject property.
- Adjacent to Atrium Health Hospital (157-beds) full service hospital.
- One of the best performing Rite Aid stores in the Midwest.
- Rite Aid added 10 years to the initial lease term in June of 2015 with six (5 year) options and increases.
- Roof was replaced in 2015 with a 20-year transferable warranty. Building exterior was also renovated.
- Walgreens has 14 years remaining with ten (5-year) options to extend on an absolute net lease.
- Located directly across the street from a CVS making this a strategic corner for Walgreens.
- Atrium Health Hospital is 2.9 mi away with 101 beds and a 24/7 emergency department.
- Affluent infill location 19 mi. from downtown Chicago, avg. HH income is $112,272 and 260,961 residents in a 5-mi radius.
- Recently extended lease, total of 20 yrs. remaining before the 8 (5-year) options, NNN, 2.5% increases in the options.
- Located 1.4 mi. from Advocate Good Samaritan Hospital with 333 beds and over 3,600 doctors and staff on the signalized SEC of Roosevelt Rd. & S. Westmore Meyers Rd. with a combined traffic count of ±66,355 VPD.
- Located blocks from the Medical District of Memphis with four major hospitals totaling approximately 6.5 million square feet of medical space within a three mile radius.
- Located 2.5 miles outside of downtown Memphis and is part of the Memphis MSA with a population of over 1,340,000 residents.
- Across the street from a Kroger shopping center and near I-69 with traffic counts of over 124,706 VPD.
- High traffic count of 63,111 cars per day and located 3 miles from Highway 99 with approximately 137,000 cars per day.
- Wells Fargo subleases a portion of the space on an absolute net lease basis for an opportunity of supplemental income.
- Average HH income in a 1-mile radius is $79,529, in a 3-mile radius it is $83,335 and $77,942 in a 5-mile radius with a population of 251,698 in a five-mile radius.
- One of only ±400 Walgreens locations with an in-store healthcare clinic.
- Directly across the street from CVS making this a strategic location for both Walgreens and CVS.
- Surrounded by residential neighborhoods and located at Exit 246 of Interstate 10 ±12 miles northwest of downtown Tucson. Average household income is $90,069 in a three-mile radius and $83,659 in a five-mile radius and 281,588 in a ten-mile radius.
- Subject property is located in a two-mile radius of three different hospitals.
- Located in a retail hub with approximately 1.8 million square feet of retail space.
- 50 miles north of Tampa along at the central coast Gulf of Mexico.
- Five mile radius population is 82,480 and household income is $60.598.
- Approx. 13 yrs. of term remaining before 10 (5-year) options, double net lease, landlord responsible for parking only.
- The lease allows for five percent (5%) rental increases in each of the ten (five-year) options.
- The lease structure for this asset does not include a rent holiday.
- Located less than 0.2 of a mile from Russell Medical, a not-for-profit acute care hospital.
- Only national chain drugstore in Alexander City, next nearest Walgreens or CVS over 13 miles away.
- 14+ years of term remaining on an absolute net lease with eleven 5-year options to extend.
