Walgreen Co. Buys Eight-Store Portfolio for $34.78 Million

Walgreen Co. has exercised its first right of refusal to buy back eight Walgreens properties in six states from a North Miami Beach investor. Marcus & Millichap Real Estate Investment Services arranged the $34.78 million sale.

Marc E. Strauss, vice president of investments and senior director of Marcus & Millichap’s National Retail Group in the Fort Lauderdale office, and Brian Rosen, an investment specialist in the same office, represented the seller, Lifter Realty.

“The portfolio was marketed as a package due to a single loan encumbering a large portion of the portfolio,” says Strauss. “With six to 13 years remaining on the double net-leases, the properties were less attractive than many of the new 25-year, triple-net leased Walgreens stores currently on the market. Nonetheless we were able to secure an offer for seven of the stores at 99.8% of the portfolio listing price.”

Rosen says his company’s strategic marketing efforts and access to a nationwide pool of investment capital weighed in the seller’s favor in negotiating the final price. “Walgreen Co. paid a very aggressive cap rate for the stores,” he says.

The portfolio includes a 15,150 sq. ft. store in Hempstead, N.Y.; a 15,525 sq. ft. store in Sanford, Fla.; a 13,500 sq. ft. in Colorado Springs, Colo.; a 13,905 sq. ft. store in Minneapolis; a 15,525 sq. ft. store in Ocala, Fla.; a 13,905 sq. ft. store in Denver; a 13,905 sq. ft. store in Lynn Haven, Fla.; and a 13,450 sq. ft. store in Niagara Falls, N.Y.

Strauss and Rosen arranged the sale in conjunction with Adam Christofferson, first vice president and regional manager of Marcus & Millichap’s Denver office; Solomon Poretsky, regional manager of the Minneapolis office; and Edward Jordan, regional manager of the firm’s Manhattan office.


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