CORONA DEL MAR, Calif. - Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sales of three single-tenant net-leased retail properties occupied by Walgreens in three separate transactions within a 25-day period. The combined value of these sales was $22.6 million and included three different buyers and sellers.
In the first transaction, Hanley Investment Group arranged the sale of a Walgreens-occupied property in Minneapolis, Minnesota, which sold for $6,600,000. Built in 1966 and renovated in 2020, the single-tenant 14,535-square-foot Walgreens building is situated on 1.26 acres at 4323 West Chicago Avenue. Hanley Investment Group's Executive Vice President Kevin Fryman and President Ed Hanley, in association with ParaSell, Inc., represented the seller, a private investor from San Diego County, California. The buyer, a private investor based in Suffolk County, New York, was self-represented.
"We generated multiple offers and procured an all-cash 1031 investor on the East Coast," noted Fryman. "The store had strong historical sales and demonstrated its commitment to the site with its recent 15-year lease extension with multiple five-year lease extensions. The property also benefits from the affluent, dense demographics; 480,000 residents with an average household income of $105,000 live within a five-mile radius."
In the second transaction, Hanley Investment Group arranged the sale of a Walgreens-occupied property at 376 N. State Route 47 in Sugar Grove, Illinois, which sold for $6,590,000. Built in 2012, the single-tenant 14,739-square-foot Walgreens building sits on a 2.15-acre parcel and features a drive-thru and a large monument sign with digital display. Hanley Investment Group's Executive Vice Presidents Bill Asher, Jeff Lefko and Jeremy McChesney, in association with ParaSell, Inc., represented the seller, a private investor based in Orange County, California. Isaiah Harf at Northmarq in Chicago represented the all-cash, 1031 exchange buyer based in the greater Chicago area.
"We generated multiple competitive offers and procured a buyer at 100% of the asking price," said Asher. "Ten years of operating history and 15 years remaining on the initial term of an absolute triple-net lease were very attractive investment characteristics that helped ultimately secure a local buyer."
In the third transaction, Hanley Investment Group represented the buyer in the sale of a Walgreens-occupied property in the Miami, Florida metro area. The sale price was $9,378,000 for the single-tenant 17,325-square-foot Walgreens building. Hanley Investment Group's Vice President Brad Dessy and Executive Vice President Matt Burnett, in association with ParaSell, Inc., represented the buyer, a private investor from Los Angeles County.
According to Dessy, "Hanley Investment Group exclusively represented a Southern California-based 1031 exchange buyer in both the downleg and upleg transactions for the 1031 exchange. The Walgreens store was a high-performing location with a new 15-year, absolute triple-net lease for the existing Walgreens, which were very appealing to the buyer."
In mid-January 2023, Hanley Investment Group's Vice Presidents Sean Cox and Alexander Moore, in association with ParaSell, Inc., represented a Los Angeles-based 1031 exchange buyer in the sales of two Walgreens, one in Orlando, Florida and the other in Denver, Colorado, in two separate transactions. Both properties had a new 15-year, absolute triple-net sale-leaseback with a corporate Walgreens guarantee. The 15,120-square-foot Walgreens-occupied property in Orlando sold for $10,375,000. The 12,398-square-foot Walgreens-occupied property in Denver sold for $8,100,000.
Walgreens Boots Alliance (Nasdaq: WBA) is an integrated healthcare, pharmacy and retail leader serving millions of customers and patients every day, with a 170-year heritage of caring for communities. WBA has a presence in nine countries through its portfolio of consumer brands: Walgreens, Boots, Duane Reade, the No7 Beauty Company, Benavides in Mexico and Ahumada in Chile. Additionally, WBA has a portfolio of healthcare-focused investments located in several countries, including China and the U.S.
The U.S. pharmacy market was valued at $527 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 3.67% from 2023 to 2030, according to Grand View Research. The growth is attributed to the rising prevalence of chronic diseases, the high utilization of prescription drugs, and the increasing elderly population in the country.
According to the U.S. Census Bureau, more than 56 million adults ages 65 and older live in the United States, accounting for about 16.9% of the nation's population. By 2030, when the last of the baby boomer generation ages into older adulthood, it is projected that there will be more than 73.1 million older adults. Currently, 10,000 people a day in the U.S. turn 65.
"Although a majority of Walgreens leases nationally are flat or have minimal rental increases throughout the initial term and option periods, private investors continue to be attracted to the security a Walgreens investment provides with a corporate guarantee, an absolute triple-net, hands-off-lease structure, and a traditional hard-corner location with a drive-thru," Asher remarked. "Many sites have long-term intrinsic value because their locations are considered fundamentally good real estate, mitigating any potential downside and providing a high probability of replacement with another tenant if Walgreens ever vacated. Buyers of this type of asset see them as a 'flight-to-quality' retail investment, and we expect a single-tenant net-leased Walgreens to continue to trade at a steady pace, even with more challenging market conditions related to higher borrowing costs."
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with a $10 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients' needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
Media Contact
Company Name: Hanley Investment Group Real Estate Advisors
Contact Person: Kevin Fryman, Executive Vice President
Email: Send Email
Phone: 949.585.7674
Address:3500 East Coast Highway, Suite 100
City: Corona del Mar
State: California
Country: United States
Website: https://hanleyinvestmentgroup.com/
