Press Release | $63,000,000 in Drugstore Transactions | April 2016
Pharma Property Group has announced it has closed or placed under contract $63,000,000 in drugstore transactions during the first quarter of 2016
SAN DIEGO – April 18, 2016 – PRLog — “The drugstore market experienced a lull during the fourth quarter of 2015 primarily due to the news in October regarding a possible Walgreens buyout of Rite Aid and the Federal Treasury hiking the rates for the first time in nearly a decade,” said Jason Stuart Pongsrikul, Managing Broker at Pharma Property Group.
Mr. Pongsrikul continued to explain, “Should the Walgreens buyout of Rite Aid come to fruition, Walgreens has announced that they are prepared to shed up to 1,000 stores. The buyout of Rite Aid would not only provide an increased store footprint but also provide increased revenues for Walgreens in the business of managing drug benefits for insurers and employers, an area where CVS has been a leader.”
“During the first quarter of 2016 compared to the first quart of 2015, there has been a 35% drop in Walgreens drugstore property trades and a 45% drop in Rite Aid trades. Investors have shown caution in acquiring Walgreens or Rite Aid drugstore properties that are in close proximity of each other. However, the general sense of the market is that the built up inventory has now cleared and the drugstore marketing has seemed to stabilize with CAP rates expected to gradually rise or remain steady throughout most of 2016,” concluded Mr. Pongsrikul.
Pharma Property Group is a specialized national commercial real estate brokerage firm providing investment services for drugstore landlords who own Walgreens, CVS and Rite Aid properties throughout the nation.
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Pharma Property Group is a specialized national commercial real estate brokerage firm providing investment services for drugstore landlords who own Walgreens, CVS and Rite Aid properties throughout the nation.
Pharma Property Group
5328 Banks Street Suite B
San Diego, CA 92110
Office: (619) 297-0055
