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Walgreens For Sale - 8.7% Cap Rate NNN Investment

By Yossi 011-972-52-7700588

Services for Real Estate Pros with 011-972-52-7700588

July 17, 2010 11:53 AM

WALGREENS NNN Investment Cap rate 8.70%

located in Conway, SC

25-Year Absolute Net Lease with 18 Years Remaining and Five Five-Year Options
Standard & Poor's A+ Rated Credit Tenant
Property is Across from Belk, Kmart and Dollar General Anchored Shopping Center
Main Intersection with Traffic Counts of 55,000 Vehicles Per Day

Price/Cap Rate: $3,000,000/8.70%

This investment offering consists of the leasehold interest in a 14,490-square foot Walgreens location on a large 1.79- acre parcel in Conway, South Carolina MSA. Conway is the county seat of Horry County in Coastal Carolina and part of the Grand Strand. It is estimated that the daily population in the area averages more than three times that of permanent residents with the number climbing much higher during peak tourist season.

Walgreens has a 25-year absolute net lease which commenced in April 2003 and has 18 years remaining on the base term and five five-year options. Walgreens is a Standard & Poor's A+ rated credit tenant and number 36 on the Fortune 500 list. The property is subject to a ground lease with terms that coincide with those of the Walgreens lease.

The property is located on a major commercial intersection with traffic counts of 55,000 vehicles per day. It is adjacent to Applebee's and Chic-Fil-A and across from a Belk, Kmart and Dollar General anchored shopping center. It is an outparcel to a proposed shopping center.

Walgreens is located on Church Street (Highway 501) one of the main arteries running through the area.

Deal Summary
Property Location	Conway South Carolina
Price	$3,000,000
Nol	$261,000
Year Built	2003
Rentable SF	14,490
Land size	1.79 Acres
Lease Commencement Date	13-Apr-03
Rent Commencement Date	13-Apr-03
Lease Expiration Date	18 Years
Lease guarantor	Corporate Guarantee
Lease Type	Absolute Net
Lease Term	25 Years
Option	Five 5-Year Options
Current Cap Rate	8.70%

Highlight Investment

25-Year Absolute Net Lease with 18 Years Remaining and Five Five-Year Options
Standard & Poor's A+ Rated Credit Tenant
Property is Across from Belk, Kmart and Dollar General Anchored Shopping Center
Additional Area Retailers Include Rite Aid, Applebee's, Chic-Fil-A, UPS, Arby's and Rent-a-Center
Main Intersection with Traffic Counts of 55,000 Vehicles Per Day
Large 1.79-Acre Parcel