Walgreens NNN Properties for Sale
Pharma Property Group has exclusively listed three NNN Walgreens for sale on the West Coast and Mountain West totaling $22,611,892 in value with an average lease term of 12 years and all have 10 (five-year) options.
Walgreens NNN property for sale has been around since the 1990ās. Third party build-to-suit developers began working with Walgreens to build out their national footprint and sell the underlying real estate to outside real estate investors.Ā Typically, Walgreens for sale in the ā90ās were 20-year terms and then eventually moved to 25-year lease terms.Ā The landlords of Walgreens properties vary from institutional REITs to private investors throughout the country.
There are several ways to evaluate Walgreens NNN properties for sale which include lease length, lease option structure, rental increases, tenant credit, and underlying real estate quality.Ā
What Is an NNN Investment?
NNN investments haveĀ many different lease types and are in many industries.Ā Some NNN leases that are true absolute net leases have the landlord responsible for nothing whatsoever, and all expenses are paid directly by the tenant.Ā Because the term āNNN leasesā is used loosely, some brokers and investors may refer to a lease as NNN, even though the landlord may be responsible for roof, structure, parking lot, and may have to be reimbursed by the tenant for taxes or insurance.Ā Walgreens NNN property for sale is typically absolute net, or the landlord is responsible for the roof, structure, capital improvements to the parking lot, and other minimal property repairs.Ā
Having a real estate broker that has sold numerous Walgreens properties is essential when purchasing a Walgreens investment.Ā Brokers that have experience in selling drugstores — including Walgreens, CVS, and Rite Aid — are able to underwrite these assets properly, allowing an investor to weigh their risk versus return.Ā
Individual drugstore performance, real estate fundamentals, lease renewal likelihood, demographics, and traffic counts are a few considerations, in addition to the lease structures, that real estate brokers familiar with Walgreens properties will be able to analyze correctly for potential investors.
Real estate brokers who specialize in NNN properties typically will also have access to both their own listings and also off-market NNN properties for select investors they work with.Ā It is prudent for any drugstore investor working with an NNN real estate broker for the first time to ask for a list of their personal drugstore transactions and exclusive listings that they have full control over.Ā Ā
A real estate broker who has personally sold and consistently has a number of Walgreens properties exclusively listed will be the most qualified for an investor to work with. Such a broker can also ensure for the investorĀ that any Walgreens NNN property for sale is underwritten correctly and that all risks to the assets are known upfront.Ā Ā
What to Know Before Buying a Walgreens NNN Property
The positives to Walgreens property ownership include a strong corporate lease guarantee; healthy firm lease term before options; minimal landlord responsibilities; and typically good retail corner locations.Ā Walgreensā thousands of locations across the country demonstrate that they are a safe investment for property owners who want little management work and a secure income.Ā
The barriers to entry to the drugstore sector are much greater in comparison to other retail chains. However, because of Walgreensā stores unique positioning,Ā they have the ability in the future to continue to make strategic partnerships within the healthcare sector.Ā
With such a large North American footprint, many Walgreens stores are on the market,Ā and investors must treat each location differently when considering a purchase.Ā Not all Walgreens leases are the same and all stores have different sales volumes.Ā As with any real estate investment, owners must also consider when purchasing Walgreens NNN property any prior environmental history, building and roof age, easements, property restrictions, future possible development, and other underwriting factors.Ā
Another benefit to purchasing a Walgreens property is that prior to the development of a Walgreens, the developer or Walgreens typically reviews the parcel for the above considerations. As a result, there may be prior third-party reports on the site, allowing for a more transparent purchase.Ā Additionally, Walgreens has approved and reviewed each store prior to construction for long-term positioning and profitability in the area.Ā Ā
Most Walgreens are located on signalized corners with high traffic counts and good access.Ā Many are also located in surrounding retail corridors that have complementary retail or healthcare tenants that will drive traffic to the Walgreens location.Ā A tenant like Walgreens allows investors many options when financing their investment.Ā Lenders know that Walgreens leases are safe, and rents are predictable because of the chainās strong financial position.Ā For this reason, investors can achieve some of the best financing available with Walgreens in the NNN property market.Ā
What Are the Differences Among Walgreens Properties?
The main difference between lease types for Walgreens NNN property for sale is that they are not all absolute net.Ā Some leases have the landlord responsible for the roof and structure, while others may have certain expenses such as tax, insurance, landscaping, or other maintenance items paid for by the landlord.Ā
These expenses are sometimes reimbursed by Walgreens but may not be reimbursed, giving landlords additional out-of-pocket expenses that must be considered in their pricing.Ā Walgreens with more management or out-of-pocket expenses will trade at higher CAP rates because there is a smaller buyer pool willing to deal with certain management items.Ā Ā
Walgreens leases will also vary in firm lease term length before the option periods and may have different lease option structures.Ā The longer the guaranteed rent in the firm lease term before the lease renewal options, then the lower the return for an investor.Ā In addition, shorter initial lease terms have fewer financing options available during the purchase and at a possible refinance event once an investorās loan comes to maturity.Ā Ā
Walgreens locations need to be viewed differently even if they have similar lease terms remaining before the options and similar lease types.Ā Analyzing the lease renewal probability is the most important analysis an investor can do during a purchase of a drugstore.Ā The likelihood of lease renewal of a Walgreens NNN property thatās for sale hinges on many factors.Ā When an investorās loan comes due, performance of the Walgreens location, surrounding competition, local population, and employment growth are just a few issues that come into play when analyzing if Walgreens plans to renew their lease.
- Adjacent to Sierra View Medical Center with 167 beds and 600 employees. The next nearest hospital is 25+ miles away.
- Limited Walgreens competition with no other Walgreens for 20+ miles and serves over 30,000 households in the surrounding area.
- Buyer has the opportunity to assume debt in place, the existing 5.65% loan is assumable for 1% fee and is due August 2026.
- Medical corridor location with Ā±600,000 square feet of medical space in a 1-mile radius.
- Absolute net lease with no landlord responsibilities whatsoever.
- Two blocks north of the West Campus of Maine's State Capitol Buildings.
- Two Government campuses totaling 1.59 million square feet within a 1-mile radius.
- Maine General Health's Augusta Hospital is the largest private employer serving 88 cities in the region.
- Augusta and its downtown area are Designated Opportunity Zones.
- Infill Houston MSA demographics with Ā±500,000 people in Ā±189,000 residences with an average HH income of $80,0134 in a 5-mile radius.
- Directly across the corner from an emergency room connected to the HCA Houston Hospital System.
- Highly visible and trafficked signalized corner with a combined traffic count of Ā±74,416 vehicles per day.
- There are Ā±37 multi-housing complexes with over 11,500 units and 15 hotels with over 1,200 rooms all within a 1-mile radius.
- The lease operates on an absolute net leased basis and there are no landlord responsibilities whatsoever.
- Located within Westchase Business District which is home to large corporations such as Honeywell, Chevron, Dow Chemical and Phillips 66 with Ā±16M square feet of office space within a 4-mile radius.
- Walgreens is reporting above average annual sales.
- Less than 1.5 miles from Research Triangle Park (7,000 Ac.) with over 375 companies including Alexandria, Bayer, Cisco and IBM. There are more than 60,000 employees with combined annual salaries of Ā±$2.7 Billion.
- Major developments within 3 miles include a $2 Billion mixed-use project (1 Million SF) with office, life-sciences, multi-family residential, hotel at HUB RTP and the conversion of Southpoint Mall to multi-family residential, office space, hotel and retail space.
- Affluent and dense demographic region with population of Ā±127,000 people with an average household income of Ā±$108,000 in a 5-mile radius.
- Over 685,000 SF of retail space in the immediate 1-mile radius with national tenants such as Starbucks, Food Lion, Big Lots, Dollar Tree, McDonald's and Chick-fil-A.
- Located on the corner of East NC Highway 54 and NC Highway 55 (combined 53,500 VPD) with direct access to Interstate 40 (131,000 VPD).
- Within a 3-mile radius, the average household income is $107,055 and the population is 203,469 residents in a 5-mile radius.
- Just 8 miles southwest of Downtown Pittsburgh, a metropolitan area with a population of over 2.5 million residents.
- Property sits adjacent to Raceway Plaza South anchored by Walmart and Lowe's and within 4.9 million square feet of retail space in a 3-mile radius.
- Located 2 miles southeast is St. Clair Hospital with 329 beds and 3,100 medical staff and employees and part of Mayo Clinic Care network.
- Concordia of the South Hills is an assisted living facility with 126 independent living units, 104 assisted living beds and 12 memory care beds located about 2 miles southwest of the property.
- Absolute net lease with no landlord responsibilities whatsoever.
- One mile west of Interstate 4 with 130,000 vehicles per day.
- Medical corridor location just a half mile from Debary Health & Rehabilitation Center (120 Beds).
- Just north of Orlando near Disney World and Daytona Speedway.
- Amazon fulfillment center nearby with 1 million square foot facility 7 miles northeast and 130-acre Portland Industrial Park coming in 2024.
- Walgreens has exceptional annual reported salesĀ and a 14+ years of operating history.
- No immediate national drugstore chain competition with the next closest national chain drugstore being a CVS 91 miles west and the closest Walgreens is 98 miles east.
- District 177, a $75 Million redevelopment project located across the street including 96 apartments and Ā±480K SF of street-level retail space.
- Great Plains Health Hospital is located 1 mile southwest with 116 beds, 1,100 employees and 183K patients per month.
- Sustainable Beef's $325 Million facility is located 2.5 miles southeast and is opening Summer 2025 with 500K SF and projected to add 875 new jobs.
- Dense retail corridor with 1.6 million square feet of retail space in a 1-mile radius.
- Near Union Pacific's Bailey Yard, the largest railroad yard in the world with 14K rail cars per day.
- Within a 3-mile radius, the average household income is $125,775 and the population is 112,336 residents in a 5-mile radius.
- Just 11 miles northwest of Downtown Pittsburgh, a metropolitan area with a population of over 2.5 million residents.
- Subject property sits adjacent to Pine Creek Shopping center anchored by Target and 4.3 million square feet of retail space in a 3-mile radius.
- UPMC Passavant-McCandles Hospital with Ā±400 beds and Ā±400 physicians is 2 miles southeast.
- Directly across from a 182-bed senior rehabilitation facility and within 3 miles of 13 other senior housing/nursing facilities.
- Lease allows for 5% rental increases every five years through 2049.
- Beaumont Hospital is located just one block south of subject property with 148 beds and 1,094 employees.
- Over 16 million square feet of industrial space within a 3-mile radius and 2.3 million square feet of retail space within a 2-mile radius.
- Infill Detroit Metro demographics with Over 244,000 residents within 97,686 households in a 5-mile radius with an average household income of $71,255.
- Located just south of I-94 (155,000 VPD) on the corner of Telegraph Road and Wick Road with a combined traffic count of 66,422 vehicles per day.
- Approximately 4 miles east of Detroit Metropolitan Airport with 36.7 million annual passengers and over 1,100 flights daily.
- Just 8 miles southwest of Ford's 16M square foot world headquarter campus.
- Within a 10-mile radius there is Ā±61.8M square feet of industrial space including distribution and manufacturing for companies such as Amazon, Starbucks, DHL, FedEx, and Post.
- Property is located across the corner from CVS making this a strategic location for both Walgreens and CVS.
- Interstate 83 is blocks from the Property with a traffic count of Ā±79,000 vehicles per day.
- Within a 3-mile radius, the average household income is $81,069 and the population is 153,292 residents in a 5-mile radius.
- Located 2 miles northwest is WellSpan York Hospital, a teaching hospital with 593 beds and over 5,000 medical staff and employees.
- Two blocks south is York County School of Technology with Ā±1,700 students and Ā±120 staff.
- Within a 2-mile radius there are 8 senior housing facilities totaling approximately Ā±388,898 square feet.
- New developments within 2 miles include Evolve at Waterford, Exchange at Westgate, Brunswick Forest and Inspire at Brunswick Forest totaling 1,178 units.
- 1 million square feet of retail space in the immediate 1-mile radius anchored by Aldi, Harris Teeter and Walmart Supercenter.
- Located on a signalized corner with frontage on Ocean Highway E (56,000 VPD) and with direct access to Andrew Jackson Highway NE (71,000 VPD).
- Lelandās population increased 70% from 2010 to 2020 and is currently growing at a rate of 8.25% annually.
- Positioned less than 2 miles from Novant Health Brunswick Forest Medical Plaza which services the Greater Leland market.
- With a 2.5% corporate tax rate, North Carolina is continually ranked as one of the best business climates in the United States. CNBC named the state as Americaās top state for business.
- There are over 12 years of lease term remaining with 10 (5 year) options to follow.
- Only national chain drugstore for over 22 miles.
- The Property is located in a Designated Opportunity Zone.
- Ā 1 mile South of Marion General Hospital (49 beds), the main hospital for Columbia and across the street from Fast Past Health Urgent Care.
- Located in the only shopping center anchored by national retail tenants for over 20 miles and there is 715,000 square feet of retail space in a 1-mile radius.
- Situated at the intersection of Sumrall Road and US-98 (traffic counts of 38,000 VPD) which serves as the east/west connector between Hattiesburg and McComb.
- Recently constructed in 2014, Walgreens still has Ā±15 years of firm lease term remaining before the option periods.
- Only national brand drugstore in a 15-mile radius.
- Located less than 2 miles away, Scotland Memorial Hospital consists of 104 beds and serves as the area's largest private employer, with over 1,000 full-time and part-time employees.
- 1.7 million square feet of retail space in a 1-mile radius anchored by Walmart Supercenter, Loweās Home Improvement, Tractor Supply Co, Harbor Freight Tools and Big Lots.
- SO-PAK-CO, Inc., a food processor and packager, invested $85 million to build a state-of-the-art processing and packaging facility creating 440 new jobs coupled with Tesla installing a new Supercharger Station.
- Located on US Highway 401 S (15,500 VPD) and directly off the ingress/egress of US Highway 74 (22,000 VPD).
- Walgreens extended this lease by 10 years in March of 2024 showing commitment to this location.
- This is an absolute net lease with no landlord responsibilities whatsoever.
- Walgreens is reporting exceptional sales volumes at this location.
- The lease allows for 5% rental increases at each of the options.
- Within a 5-mile radius, the household income is $117,632 with a population of 128,470 residents.
- More than 1 million square feet of medical space in a 5-mile radius including WakeMed Hospital (61 beds) located 3.6 miles southwest and UNC Rex Healthcare Surgery Center (outpatient) just 1.3 miles northeast.
- Over 2,000 apartment units within a 1-mile radius including two blocks from an independent senior living complex with 121 units.
- Walgreens has a history of strong reported sales volumes at this location.
- Less than 1 mile of ThedaCare Regional Medical Center which is the region's largest employer (7,000+ employees, 172 beds).
- Dense retail and industrial trade area with 6.2 million square feet of retail space and 8.3 million square feet of industrial space in a 3-mile radius.
- Located directly across the street from Edenbrook Nursing Home (150 beds) and 0.7 miles from Rennes Health and Rehabilitation Center (88 beds).
- Appleton is the 6th largest city in Wisconsin with a population of 143,000 in a 5-mile radius.
- Located at the signalized hard corner with strong combined traffic count of 30,000 VPD and blocks from Interstate 41 with traffic count of 76,200 VPD.
- Within a 5-mile radius, the population is Ā±365,021 residents within Ā±154,024 households.
- Ohio State University is located about 3 miles from the Property and enrolls Ā±60,000 students.
- The Property sits two blocks from Northern Lights shopping center, a 360,471 square foot mall.
- CVS is located directly across the street making this a strategic location for both CVS and Walgreens. CVS has closed its retail portion of the store and only the pharmacy remains open.
- Nationwide and JP Morgan Chase employs over 35,000 employees in the Columbus market, with Intel recently announcing a $20 billion local investment in manufacturing, creating over 10,000 new jobs.
- Columbus, Ohio is the 7th largest economy in the United States, and Ohio has 0% state corporate income or profits tax.
- Only Walgreens in a 12-mile radius serving the entire Eaton market.
- Kettering Medical Center is the only 24-hour emergency medical center in Preble County, Ohio.
- In 2023, Neaton Auto Parts and Henny Penny pledged over $29 million in expansions, bringing over 330,000 square feet of R&D and warehouse space to the Eaton market.
- 1.4 million square feet of retail in the immediate 1-mile radius anchored by Walmart Supercenter.
- Kroger announced plans in August 2023 to build a 72,000-square foot store that will employ 100 workers.
- Walgreens has a 16+ year operating history at this location.
- Over 12 million square feet of industrial space in a 5-mile radius including major companies like Hyundai and FedEx.
- Opposite corner to CVS and next Walgreens 4.4 miles away making this a strategic location for both Walgreens and CVS.
- There are 844 multifamily units within the immediate 1-mile radius.
- Centrally located between three major interstates that connect Shreveport west to Dallas/Ft. Worth, TX, south to Baton Rouge/New Orleans, LA and west to Jackson, MS.
- Within two blocks of the property are located a high school, junior high and elementary school with a combined 2,481 students.
- Just 3 miles west of Shreveport Regional Airport with 560,000 annual passengers.
- The Property is located in a designated Opportunity Zone.
- Walgreens extended this lease by 10 years in March of 2024 showing commitment to this location.
- This is an absolute net lease with no landlord responsibilities whatsoever.
- The lease allows for 5% rental increases at each of the options.
- Walgreens is reporting exceptional sales volumes at this location with a rent-to-sales ratio of 2.14%.
- Only freestanding national brand drugstore within a 10-mile radius. Nearest Walgreens is 10.5 miles southwest and nearest CVS is 12.5 miles southwest.
- Walgreens is guaranteeing approximately $327,375 of income over the remainder of their lease term.
- Walgreens had been reporting strong sales volumes at this location of over $7M annually. The retailer moved to a smaller store format as an outparcel to the adjacent center showing commitment to this retail corridor.
- DRB Homes has recently constructed 350 new homes to meet growing demand.
- Directly on US Highway 1 which is the main thoroughfare connecting Franklinton to Raleigh.
- Franklin County's population grew by 13% in the last 10 years.
- Only 7,000+ square foot owner/user redevelopment opportunity within 35 mile radius.
- Two blocks north of the West Campus of Maine's State Capitol Buildings.
- Two Government campuses totaling 1.59 million square feet within a 1-mile radius.
- Maine General Health's Augusta Hospital is the largest private employer serving 88 cities in the region.
- Augusta and its downtown area are Designated Opportunity Zones.
- New developments within 2 miles include Evolve at Waterford, Exchange at Westgate, Brunswick Forest and Inspire at Brunswick Forest totaling 1,178 units.
- 1 million square feet of retail space in the immediate 1-mile radius anchored by Aldi, Harris Teeter and Walmart Supercenter.
- Located on a signalized corner with frontage on Ocean Highway E (56,000 VPD) and with direct access to Andrew Jackson Highway NE (71,000 VPD).
- Lelandās population increased 70% from 2010 to 2020 and is currently growing at a rate of 8.25% annually.
- Positioned less than 2 miles from Novant Health Brunswick Forest Medical Plaza which services the Greater Leland market.
- With a 2.5% corporate tax rate, North Carolina is continually ranked as one of the best business climates in the United States. CNBC named the state as Americaās top state for business.
- There are over 12 years of lease term remaining with 10 (5 year) options to follow.
- Only national chain drugstore for over 22 miles.
- The Property is located in a Designated Opportunity Zone.
- Ā 1 mile South of Marion General Hospital (49 beds), the main hospital for Columbia and across the street from Fast Past Health Urgent Care.
- Located in the only shopping center anchored by national retail tenants for over 20 miles and there is 715,000 square feet of retail space in a 1-mile radius.
- Situated at the intersection of Sumrall Road and US-98 (traffic counts of 38,000 VPD) which serves as the east/west connector between Hattiesburg and McComb.
- Recently constructed in 2014, Walgreens still has Ā±15 years of firm lease term remaining before the option periods.
- Only national brand drugstore in a 15-mile radius.
- Located less than 2 miles away, Scotland Memorial Hospital consists of 104 beds and serves as the area's largest private employer, with over 1,000 full-time and part-time employees.
- 1.7 million square feet of retail space in a 1-mile radius anchored by Walmart Supercenter, Loweās Home Improvement, Tractor Supply Co, Harbor Freight Tools and Big Lots.
- SO-PAK-CO, Inc., a food processor and packager, invested $85 million to build a state-of-the-art processing and packaging facility creating 440 new jobs coupled with Tesla installing a new Supercharger Station.
- Located on US Highway 401 S (15,500 VPD) and directly off the ingress/egress of US Highway 74 (22,000 VPD).
- Within a 5-mile radius, the population is Ā±365,021 residents within Ā±154,024 households.
- Ohio State University is located about 3 miles from the Property and enrolls Ā±60,000 students.
- The Property sits two blocks from Northern Lights shopping center, a 360,471 square foot mall.
- CVS is located directly across the street making this a strategic location for both CVS and Walgreens. CVS has closed its retail portion of the store and only the pharmacy remains open.
- Nationwide and JP Morgan Chase employs over 35,000 employees in the Columbus market, with Intel recently announcing a $20 billion local investment in manufacturing, creating over 10,000 new jobs.
- Columbus, Ohio is the 7th largest economy in the United States, and Ohio has 0% state corporate income or profits tax.
- Only Walgreens in a 12-mile radius serving the entire Eaton market.
- Kettering Medical Center is the only 24-hour emergency medical center in Preble County, Ohio.
- In 2023, Neaton Auto Parts and Henny Penny pledged over $29 million in expansions, bringing over 330,000 square feet of R&D and warehouse space to the Eaton market.
- 1.4 million square feet of retail in the immediate 1-mile radius anchored by Walmart Supercenter.
- Kroger announced plans in August 2023 to build a 72,000-square foot store that will employ 100 workers.
- Walgreens has a 16+ year operating history at this location.
- Walgreens is guaranteeing approximately $327,375 of income over the remainder of their lease term.
- Walgreens had been reporting strong sales volumes at this location of over $7M annually. The retailer moved to a smaller store format as an outparcel to the adjacent center showing commitment to this retail corridor.
- DRB Homes has recently constructed 350 new homes to meet growing demand.
- Directly on US Highway 1 which is the main thoroughfare connecting Franklinton to Raleigh.
- Franklin County's population grew by 13% in the last 10 years.
- Only 7,000+ square foot owner/user redevelopment opportunity within 35 mile radius.
Recently Sold Drugstores
- Located less than 0.2 of a mile from Russell Medical, a not-for-profit acute care hospital.
- Only national chain drugstore in Alexander City, next nearest Walgreens or CVS over 13 miles away.
- 14+ years of term remaining on an absolute net lease with eleven 5-year options to extend.
- Approx. 13 yrs. of term remaining before 10 (5-year) options, double net lease, landlord responsible for parking only.
- The lease allows for five percent (5%) rental increases in each of the ten (five-year) options.
- The lease structure for this asset does not include a rent holiday.
- Subject property is located in a two-mile radius of three different hospitals.
- Located in a retail hub with approximately 1.8 million square feet of retail space.
- 50 miles north of Tampa along at the central coast Gulf of Mexico.
- Five mile radius population is 82,480 and household income is $60.598.
- One of only Ā±400 Walgreens locations with an in-store healthcare clinic.
- Directly across the street from CVS making this a strategic location for both Walgreens and CVS.
- Surrounded by residential neighborhoods and located at Exit 246 of Interstate 10 Ā±12 miles northwest of downtown Tucson. Average household income is $90,069 in a three-mile radius and $83,659 in a five-mile radius and 281,588 in a ten-mile radius.
- High traffic count of 63,111 cars per day and located 3 miles from Highway 99 with approximately 137,000 cars per day.
- Wells Fargo subleases a portion of the space on an absolute net lease basis for an opportunity of supplemental income.
- Average HH income in a 1-mile radius is $79,529, in a 3-mile radius it is $83,335 and $77,942 in a 5-mile radius with a population of 251,698 in a five-mile radius.
- Located blocks from the Medical District of Memphis with four major hospitals totaling approximately 6.5 million square feet of medical space within a three mile radius.
- Located 2.5 miles outside of downtown Memphis and is part of the Memphis MSA with a population of over 1,340,000 residents.
- Across the street from a Kroger shopping center and near I-69 with traffic counts of over 124,706 VPD.
