Four Walgreens Sell in Less Than 2 Weeks
 Capital Pacific recently sold four Walgreens properties to three different buyers in under two weeks. “This wave of Walgreens closing is a testament to the appeal of Walgreens investments right now, because of the strength of the tenant and the anticipated relevance of their business model in the future. But it’s also indicative of a general increase in market activity. Since August, our two offices have closed 16 properties totaling over $67M. We’re observing what we hope is the start of a thaw, as buyers and sellers begin to find common ground in the current market.” said Chris Kostanecki, founding partner of Capital Pacific San Francisco.The first Walgreens to close was a newly constructed 14,820 SF property located in Murfreesboro, TN. It sold for $3.95M to a first time commercial property buyer from Southern California. The buyer sought a high quality fixed-income investment with higher rates of return and better tax advantages than other annuity alternatives such as CD’s or bonds. Next, Capital Pacific represented a well known national REIT in the sale of two Walgreens properties located in Oshkosh, WI, and Rockford, IL. The properties were acquired by a partnership Vista Capital Corporation and Forte Capital Management LLC, a New York based investment group who was attracted to the real estate and assumable, low interest rate financing. The package sale price for these two properties was $7,759,000. Finally, Capital Pacific represented the developer of a Walgreens property located in St. Charles, MO. The property was sold to a TIC group representing the interests of a private investor for $3,925,926. With a few exceptions, private investors are the most active buyer pool right in the current market. “The diversity of capital sectors that the retail market once enjoyed has faded with private buyers dominating investment this year” according to independent research firm Real Capital Analytics. “Private investors with cash are seeing this market as a real opportunity.” said Chris Peters of Capital Pacific San Francisco. |