- Attractive assumable financing for a buyer to receive a 8.46% cash on cash return. Interest only financing with 4.84% currently in-place.
- Located at merge of freeways I-69 and I-2. Both interstates have a combined traffic count of over 150,000 vehicles per day.
- Surrounded by national retail tenants, ±3.2 million square feet of retail space within 1 mile radius including Valley Vista Mall (651,000 SF) and Bass Pro Shop (150,000 SF).
- Strong cross-border economy with the Free Trade Bridge 13 miles away, a full US Customs facility accommodating 75 commercial trucks simultaneously.
- Strong reported sales volumes.
Pharma Property Group is pleased to market for sale the Walgreens property located at 1810 West Tyler Avenue in Harlingen, Texas (the "Property"). Walgreens has over 8 years remaining on the initial term and 50 years in options on an absolute net lease with no landlord responsibilities whatsoever.
The Property offers a unique opportunity for an investor in a tax-free state to achieve an 8.46% cash on cash return by having the option to assume the existing interest only financing which is at a below market rate of 4.84%. There is a one percent assumption fee payable by the buyer to assume the existing debt which has a $3,250,000 loan balance and is due 7/25/2028. Annual debt service is $167,019 and annual cash flow after debt service to a buyer would be $159,480.
The Property has a history of strong sales volumes benefiting from a strong cross-border economy and is a proven location for Walgreens with an operational history dating back to 2007. The Property is 13 miles north of the Mexican border and the Free Trade Bridge, which has a full U.S. Customs inspection facility and accommodates up to 75 commercial trucks simultaneously at this border crossing. The next closest border entries are 19 miles west and 23 miles southeast.
The surrounding national box retailer presence is exceptionally inclusive and the Property is located a half mile from the Valle Vista Mall which hosts ±82 tenants in ±651,000 square feet of retail space. There are ±3.2 million square feet of retail space within a 1-mile radius of the Property including a 150,000 SF Bass Pro Shop just blocks away.
Additionally, the Property is located at the merge of Interstate 69E (±85,528 vehicles per day) and Interstate 2 (±66,675 vehicles per day). Interstate 69E connects Harlingen north to San Antonio and south to Brownville, while Interstate 2 connects Harlingen west to McAllen. There are approximately 1.3 million people within a 45 minute drive of the area.