Herndon, VA – Andrew Fallon and Rick Fernandez of Calkain Companies completed the sale of a NNN Walgreens in Garner, North Carolina on behalf of one of DC’s top area developers. Calkain previously worked with the client in the acquisition of this asset, having been provided investment criteria of obtaining a liquid NNN property. More recently, Calkain listed the property and was able to procure a 1031 exchange buyer, quickly re-selling the Walgreens for just over $5 million with a 5.51% cap rate.
Fallon, Executive Managing Director, commented,
We were confident in our ability to generate a good deal for our client, upholding our promise of providing a liquid net lease asset when they first looked at this deal. The Walgreens had about 15 years remaining on the NNN lease. Based on the lease terms and the quality corner location in a densely populated area, we strongly believed we would be able to facilitate an attractive deal, and we did with the 5.51% cap rate, which is still lower than the 2016 average for Walgreens sales.”
According to Calkain research, the average pharmacy cap rate dropped Q4 2016 when compared to Q4 2015 by about 25 bps, landing at a Q4 average of 5.95%.
Fernandez, Senior Managing Director at Calkain, added, “Despite the on-going discussions for the Walgreens – Rite Aid merger, the net lease pharmacy sector, and Walgreens in particular, remains a solid investment. We looked at the Garner trade area and found that the existing Rite Aid stores were older and were in-line locations without drive-thru, so we felt good about this as a long term Walgreens corner. ” Fernandez, continued, “Calkain’s national reputation in net lease investment drew a wide variety of potential buyers and we were able to secure a solid price with favorable closing conditions for our client.”
The transaction closed within the last thirty days and is recorded in the public record.
Calkain Companies is a commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant net leased properties through all aspects of the transaction including advisory, brokerage, debt placement, equity placement, asset management and research. Calkain has a national platform with multiple office locations throughout the entire East Coast. Additional information about the firm and listings may be found at calkain.com.