Marcus & Millichap Real Estate Investment Services negotiated the sale of a 16,016-sq.-ft. Walgreens store on the Las Vegas Strip to a foreign fund for $27.8 million. The price works out to $1,736 per sq. ft., the highest price ever paid for a single-tenant drugstore in the U.S., according to Marcus & Millichap.
The property was completed in 2001. Walgreens, which operates 24 hours a day on the site, has a 20-year triple-net lease for the property, which has recently been extended by 10 years. The lease structure provides for a 10 percent rent increase every 10 years, in addition to a percentage rent clause.
Ray Germain, of Marcus & Millichap’s Las Vegas office, represented the seller in the transaction. Sean Shahar Ziv, of the firm’s San Diego office, represented the buyer.
“This record-breaking sales price and competitive bidding from institutional, foreign and private investors speaks not only to the strength of our brokerage platform, but to the strength of the single-tenant net-leased property sector,” said Germain in a statement. “As the stock market continues to underperform, investor will flee to the safety of net-leased real estate assets.”
Phillips Edison—ARC Joint Venture Acquires Two Assets for $14.1M
Phillips Edison—ARC Shopping Center REIT Inc., through its PECO-ARC Institutional Joint Venture I LP, acquired two grocery-anchored shopping centers for approximately $14.1 million.
The properties include Meadowthorpe Shopping Center, an 87,384-sq.-ft. center in Lexington, Ky., and New Windsor Marketplace, a 95,877-sq.-ft. center in Denver, Colo. Meadowthorpe Shopping Center is anchored by Kroger. The asset is 95.6 percent occupied, with other tenants including Papa John’s Family Dollar and H&R Block. New Windsor is anchored by King Soopers, a subsidiary of Kroger. It is 85.9 percent occupied, with tenants including Quiznos, Cost Cutters and Papa Murphy’s.
Other Notable Deals
NorthMarq arranged a $2.75 million first mortgage for Southwind Plaza, an 86,559-sq.-ft. retail center in Tempe, Ariz. A life insurance company provided the loan, which featured a 10-year term and a 25-year amortization schedule. James DuMars, of NorthMarq, negotiated this transaction.
A Midwest-based developer sold a 9,100-sq.-ft. triple net leased Dollar General store in Kansas City, Kan. to a Chicago-based private investor for $1.174 million. The property was completed in 2012 and comes with a 15-year lease to Dollar General. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the buyer in the transaction.