WEST ORANGE, N.J. – Paul V. Profeta and Associates,a leading real estate investment firm with assets across the country, today announced that the company has completed the sale of 12 properties in nine states to Inland Real Estate Acquisitions, Inc. The properties, all of which are occupied under long-term leases with the Walgreens pharmacy chain, were sold for approximately $60 million, or more than $330 per square foot.
The Walgreens leases are 75 years in duration with Walgreens maintaining the right to cancel after 25 years. Starting at the 26th year, Walgreens has different option arrangements depending on the individual lease agreement. The properties are located in Illinois, Kentucky, Michigan, Minnesota, Missouri, Montana, North Carolina, Ohio and Texas.
“Single tenant leases that are triple net and leased by a credit worthy tenant such as Walgreens are extremely appealing and very fungible, much more so than typical commercial real estate,” said Paul V. Profeta, Principal of Paul V. Profeta and Associates.“There is a very large, vibrant market for these types of assets, which are the least management-intensive commercial properties to own. Real estate investment trusts and large funds (such as private equity or pension funds) in particular are among the most active investors in single tenant net lease properties, which are also attractive to 1031 Exchange buyers.”
Added Profeta: “We saw the current market climate as being an advantageous time to capitalize on the demand for high-quality, long-term leased assets in solid locations, and are extremely pleased to have been able to complete this transaction with Inland.”
Inland Real Estate Acquisitions, Inc. is a large fund headquartered in Oak Brook, Ill., which facilitates acquisitions for various entities that are a part of The Inland Real Estate Group of Companies, Inc. (“Inland”). With $20.8 billion of managed assets in 48 states as of March 31, 2013, Inland-sponsored companies own and manage, in total, more than 88.2 million square feet of commercial real estate in various portfolios.
CBRE Executive Vice President Sterling Champ, one of the leaders of CBRE’s Net Leased Property Group, brokered the transaction on behalf of Profeta.
Stated Champ: “We were pleased to assist Paul V. Profeta and Associates on this important transaction. The quality of the properties attracted a strong buyer pool, and we were fortunate to be able to work with Inland Real Estate Acquisitions as the ultimate buyer of the portfolio.”
About Paul V. Profeta and Associates, Inc. (PVP)
Based in West Orange, N.J., Paul V. Profeta and Associates is involved in real estate investment, management and leasing throughout the country. The company’s portfolio comprises office, industrial, retail and multi-family properties in key markets. For more information, please call 973-325-1300.