A single-tenant Walgreens in Long Beach recently traded hands at a price of $6.45 mil, representing a cap rate of 5.41%. The buyer was a private investor from West Covina.
Built in 2001, the 15.2k sf ($424/sf), freestanding building (including a 24-hour drive-thru) is situated on a 1.86-acre parcel of land at 2627 Pacific Ave in Long Beach. Walgreens has less than 10 years remaining on the initial term. Located at Pacific Ave and Willow St, two miles from Downtown Long Beach, this is the closest Walgreens to Long Beach Memorial Medical Center.
The seller, which was represented by Edward B. Hanley, Kevin T. Fryman and Eric P. Wohl of Hanley Investment Group Real Estate Advisors, was a private investor from Huntington Beach. The buyer was repped by Nick Peukpiboon and Lara Rudolph of Daum Commercial Real Estate Services of City of Industry, and Adam Friedlander of Marcus & Millichap of Long Beach.
According to Fryman, “Walgreens in Long Beach sold above list price for a double net lease with less than 10 years remaining on the initial term. The buyer was in a 1031 exchange and did an all-cash close without financing.”
“This transaction is another great example of the high demand for well-located single-tenant investments, specifically for credit retailers like Walgreens with investment grade ranking of BBB from Standards & Poor’s,” said Wohl.