Drug Store
Walgreens Relocation Store | Fresh 5YR Extension
15940 Kedzie Ave, Markham, IL 60428
Listing Price: $943,000
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a single tenant net-leased Walgreens Drive-Thru located on Kedzie Avenue in Markham, Illinois. The asset is located just off the signalized intersection of Kedzie and West 159th Street, an intersection with traffic counts exceeding 38,000 vehicles per day. Having relocated from a larger footprint location 0.1 miles away, Walgreens has demonstrated their commitment to the more efficient business model such a drive-thru focused location affords by recently exercising a 5YR renewal option, agreeing to pay the increased option rent outlined in the original lease, without negotiating with ownership.
The building is a former quick service restaurant, and most of Walgreens’ business at this location is driven by pharmacy sales via the drive-thru. While many investors looking at Walgreens opportunities have to worry about replacing an over-market rent on a 15,000 square foot drug store, the non-traditional nature of this location offers investors ease of mind that—should the need ever arise—replacing a tenant in a 2,800 square foot drive-thru building is not the herculean effort that it often takes to replace Walgreens or CVS in a traditional footprint store.
There are currently three five year renewal options remaining, each of which contains an 8 percent rent increase, a rare amenity in a Walgreens lease. The only landlord responsibilities relate to repairs and replacements of the roof and structure of the building. Walgreens is responsible for the maintenance, repair and replacement of the parking lot at this location, as well as real estate taxes and insurance.
The property has multiple points of ingress and egress onto Kedzie Avenue, and is surrounded by a number of national retailers, including Taco Bell, Popeyes, McDonalds, Dollar Tree, AutoZone, dd’s Discounts and more. Additionally, Advocate South Suburban Hospital is located about two miles to the South on Kedzie, with no competing Walgreens between here and the 289-bed hospital.
This bite sized Walgreens can be purchased for $943,000, at a 7.5% CAP rate, with over five years of lease term remaining.
Walgreens Relocation Store | Fresh 5YR Extension
Investment Highlights
- Recently Extended, Long-Term Net Leased Walgreens Drive-Thru with a Corporate Guarantee and Minimal Landlord Responsibilities
- Walgreens Relocated to this Location in 2019 and just Exercised their First Renewal Option at the Option Rent Agreed to in the Original Lease
- Versatile Building, unlike Traditional Large Footprint Drug Stores; this Location had Previously been a QSR Before Walgreens Relocated to the Site
- Exceptional Visibility – the Property Features Illuminated Pylon Signage that is Visible from Every Direction on Kedzie
- High Yield Walgreens Opportunity, Particularly Compared to Competing Walgreens' on the Market
- Itsy-Bitsy Price Point with an Attractive going in Cap Rate of 7.5%
Exclusively Listed By
Listing Price: $943,000
Investment Highlights
- Recently Extended, Long-Term Net Leased Walgreens Drive-Thru with a Corporate Guarantee and Minimal Landlord Responsibilities
- Walgreens Relocated to this Location in 2019 and just Exercised their First Renewal Option at the Option Rent Agreed to in the Original Lease
- Versatile Building, unlike Traditional Large Footprint Drug Stores; this Location had Previously been a QSR Before Walgreens Relocated to the Site
- Exceptional Visibility – the Property Features Illuminated Pylon Signage that is Visible from Every Direction on Kedzie
- High Yield Walgreens Opportunity, Particularly Compared to Competing Walgreens' on the Market
- Itsy-Bitsy Price Point with an Attractive going in Cap Rate of 7.5%
Investment Overview
Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a single tenant net-leased Walgreens Drive-Thru located on Kedzie Avenue in Markham, Illinois. The asset is located just off the signalized intersection of Kedzie and West 159th Street, an intersection with traffic counts exceeding 38,000 vehicles per day. Having relocated from a larger footprint location 0.1 miles away, Walgreens has demonstrated their commitment to the more efficient business model such a drive-thru focused location affords by recently exercising a 5YR renewal option, agreeing to pay the increased option rent outlined in the original lease, without negotiating with ownership. The building is a former quick service restaurant, and most of Walgreens’ business at this location is driven by pharmacy sales via the drive-thru. While many investors looking at Walgreens opportunities have to worry about replacing an over-market rent on a 15,000 square foot drug store, the non-traditional nature of this location offers investors ease of mind that—should the need ever arise—replacing a tenant in a 2,800 square foot drive-thru building is not the herculean effort that it often takes to replace Walgreens or CVS in a traditional footprint store. There are currently three five year renewal options remaining, each of which contains an 8 percent rent increase, a rare amenity in a Walgreens lease. The only landlord responsibilities relate to repairs and replacements of the roof and structure of the building. Walgreens is responsible for the maintenance, repair and replacement of the parking lot at this location, as well as real estate taxes and insurance. The property has multiple points of ingress and egress onto Kedzie Avenue, and is surrounded by a number of national retailers, including Taco Bell, Popeyes, McDonalds, Dollar Tree, AutoZone, dd’s Discounts and more. Additionally, Advocate South Suburban Hospital is located about two miles to the South on Kedzie, with no competing Walgreens between here and the 289-bed hospital. This bite sized Walgreens can be purchased for $943,000, at a 7.5% CAP rate, with over five years of lease term remaining.
Exclusively Listed By
