San Bernardino MSA
Apple Valley, CA

Price: $ 4,350,000
CAP Rate: 7.45%
NOI: $ 324,000
Lease Term Remaining Before Options: 5.5
Investment Highlights
  • Store is dark but will produce over $2,000,000 of income over the remaining 5.5 years of lease term. Lease buyout is available from Walgreens. Landlord is also open to sublease the building.
  • Property can be purchased free and clear of debt or by a debt assumption.
  • Highly visible Hwy- 18 and just 5 miles E of I-15. Highway 18 is the main thoroughfare through Apple Valley, part of San Bernardino County.
  • One block from Apple Valley Town Hall, Civic Center Park, Apple Valley Police Department, the Apple Valley Conference Center and the San Bernardino County Library
Offering Summary

We are pleased to present the opportunity to purchase a dark Walgreens in Apple Valley, California. The store is dark and no longer in operation but will produce over $2,000,000 of income over the remaining 5.5 years of lease term. Rental income is guaranteed by Walgreens corporate (S&P BBB-) investment grade Fortune 500 Company with over 9,200 locations. Walgreens is subject to an absolute net lease that has approximately 5.5 years and 10 (5-year) options remaining with no landlord responsibilities. Lease buyout is available from Walgreens.  Landlord is also
open to sublease the building.

 

Property can be purchased free and clear of debt or by a debt assumption. The current loan has an interest rate of 4.53% and a monthly payment of $16,273 giving a buyer $10,727 cash flow per month not including principal paydown. The loan comes due 7/28/2029 and will have a balance of $2,587,920 at maturity.

 

In 2004 the subject building of ±15,035 square feet was built to Walgreens specifications. There is a drive through and ±63 parking spaces on ±61,855 square feet of land. There is access points to the property from both the west along Highway 18 (Happy Trails Highway) and the south along Bass Hill Road.
The Walgreens is a freestanding building highly visible along State Highway 18 (31,672 vehicles per day) and just 5 miles east of Interstate 15 (69,000 vehicles per day). Highway 18 is the main thoroughfare through Apple Valley. National retail tenants in the adjacent and across the street from this store include Target, Walmart, Albertsons, Starbucks, Chase Bank, Ross Dress for Less, and more.

 

This is a unique opportunity to purchase a free standing retail building on a main thoroughfare in San Bernardino County, the largest county in the contiguous United States by area. San Bernardino is part of the Inland Empire of southern California and has over 2.1 million residents. Subject property is located approximately 3 miles southeast of Providence St. Mary Medical Center, a 213-bed full service hospital served by 300 physicians. Just one block from the subject property is located Apple Valley Town Hall which includes the Civic Center Park, Apple Valley Police Department, the Apple Valley Conference Center and the San Bernardino County Library.

Price: $ 4,350,000
CAP Rate: 7.45%
NOI: $ 324,000
Lease Term Remaining Before Options: 5.5