September 1st, 2010
The Associated Press September 1, 2010, 3:58PM ET text size: TT
LaSalle Hotel Properties buys 3 hotels
Atlanta - ATLANTA (Sept. 1 2010) - Franklin Street Real Estate Services is pleased to announce the sale of a two-store Walgreens portfolio in the Atlanta area, with one store located in Lilburn, Ga., and one in Douglasville, Ga. The two properties closed for $11.2 million, which translates to $395 per square foot on the overall transaction.
The purchaser, a private institutional New York City-based commercial real estate investment group, financed both transactions internally. The seller, a preferred developer for Walgreens based in Atlanta, specializes in development throughout the Southeast.
Sean Attaway Molloy, Senior Director of Franklin Street Real Estate Services, represented the seller in both transactions.
"Investing in a Walgreen's asset is commonly regarded as one of the safest, most secure real estate investments available in today's market and has often been compared to owning a corporate bond," said Molloy. "In an uncertain market, the preferred choice for investors continues to be investment-grade, stable single-tenant deals. As we near 2011, we expect to see a compression on the cap rates for Walgreens locations as supply decreases."
The store in Douglasville ,at 3851 Chapel Hill Road, opened in 2008 after construction was finalized. The location veered from the prototypical Walgreens design and size to conform to Douglas County architectural standards. It has a mezzanine store design, with a façade with black lettering and traditional lighting scapes, and was 13,500 square feet in size, rather than the 14,820-square-foot prototypical footprint.
The Lilburn store, located at 4235 Lawrenceville Hwy., finalized construction and opened in 2007.
About Franklin Street: Franklin Street is a family of real estate companies focused on delivering value-added solutions to today's income-producing property owner. Our services span the life cycle of our clients' properties, from purchase to sale. These services include management of multi-family, office and retail property; commercial real estate brokerage; insurance; sourcing of debt and equity for commercial real estate investments, and real estate advisory services. For more information on Franklin Street, please see the company's website at www.franklinstreetfinancial.com.
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