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Drug Store

Walgreens Pharmacy (Absolute NNN Lease)

1065 Main St, Southaven, MS 38671

Listing Price: $4,564,560

Tenant Name
Walgreens
Years Remaining On Lease
12.9
Guarantor
Corporate Guarantee
Rentable SF
10,374
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$22.00

Investment Overview

NEW 13-YEAR ABSOLUTE NNN LEASE The subject property operates under a newly-signed 13-year Absolute NNN Lease with no landlord management or maintenance responsibilities whatsoever. RARE 5% RENT INCREASES EVERY 5 YEARS The lease offers 5% rent increases every 5 years during the original term and the 12, five-year renewal options (if exercised) providing exceedingly more cash flow than a traditional flat Walgreens lease. CRITICAL DRIVE-THROUGH LANE According to the Wall Street Journal, more companies look for properties that will allow them to serve customers in their cars. Interest in drive-through real estate was growing even before Covid-19, but it exploded last year when total sales volume for restaurants, pharmacy and bank properties hit a record $12 billion, according to data firm CoStar Group Inc. Finding drive-through real estate can be challenging, especially in densely built areas, because the properties need to have enough space to accommodate long lines of cars. HARD-CORNER LOCATION WITH EXCELLENT VISIBILITY The property is situated at a 4-way signalized hard corner of U.S. Highway 51/N Panola Street and Norfleet Drive with a combined traffic count in excess of 21,000 VPD. The Walgreens is across the street from a Walmart Supercenter and Northwest Mississippi Community College, Tate County’s largest employer. There are average household incomes of $68,737 within 5-miles of the subject property. INVESTMENT GRADE TENANT2 The Lease is guaranteed by Walgreen Co., a subsidiary of Walgreens Boots Alliance, Inc. and rated Baa2/ Stable by Moody’s. Walgreens Boots Alliance, Inc., the Parent Company, carries an Investment Grade Credit Rating of BBB/Stable from S&P and Baa2/Stable from Moody’s. ESSENTIAL RETAILER OPERATING AND ASSISTING U.S. AUTHORITIES DURING THE COVID-19 PANDEMIC3 As a global, pharmacy-led health care company, Walgreens Boots Alliance has been working to ensure the safety and well-being of their colleagues, patients and customers during the pandemic of COVID-19. Their retail pharmacies have worked to provide up-to-date information and public health guidelines to customers, and their emergency response teams across the business are actively working to find ways play a greater role in what has become a global emergency – including working with the United States federal government to expand access to COVID-19 testing.

Investment Highlights

  • NEW 13-YEAR ABSOLUTE NNN LEASE
  • RARE 5% RENT INCREASES EVERY 5 YEARS
  • CRITICAL DRIVE-THROUGH LANE

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s) MS: 15586

    Mississippi

Drug Store

Walgreens Pharmacy (Absolute NNN Lease)

Listing Price: $4,564,560

Tenant Name
Walgreens
Years Remaining On Lease
12.9
Guarantor
Corporate Guarantee
Rentable SF
10,374
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$22.00

Investment Highlights

  • NEW 13-YEAR ABSOLUTE NNN LEASE
  • RARE 5% RENT INCREASES EVERY 5 YEARS
  • CRITICAL DRIVE-THROUGH LANE

Investment Overview

NEW 13-YEAR ABSOLUTE NNN LEASE The subject property operates under a newly-signed 13-year Absolute NNN Lease with no landlord management or maintenance responsibilities whatsoever. RARE 5% RENT INCREASES EVERY 5 YEARS The lease offers 5% rent increases every 5 years during the original term and the 12, five-year renewal options (if exercised) providing exceedingly more cash flow than a traditional flat Walgreens lease. CRITICAL DRIVE-THROUGH LANE According to the Wall Street Journal, more companies look for properties that will allow them to serve customers in their cars. Interest in drive-through real estate was growing even before Covid-19, but it exploded last year when total sales volume for restaurants, pharmacy and bank properties hit a record $12 billion, according to data firm CoStar Group Inc. Finding drive-through real estate can be challenging, especially in densely built areas, because the properties need to have enough space to accommodate long lines of cars. HARD-CORNER LOCATION WITH EXCELLENT VISIBILITY The property is situated at a 4-way signalized hard corner of U.S. Highway 51/N Panola Street and Norfleet Drive with a combined traffic count in excess of 21,000 VPD. The Walgreens is across the street from a Walmart Supercenter and Northwest Mississippi Community College, Tate County’s largest employer. There are average household incomes of $68,737 within 5-miles of the subject property. INVESTMENT GRADE TENANT2 The Lease is guaranteed by Walgreen Co., a subsidiary of Walgreens Boots Alliance, Inc. and rated Baa2/ Stable by Moody’s. Walgreens Boots Alliance, Inc., the Parent Company, carries an Investment Grade Credit Rating of BBB/Stable from S&P and Baa2/Stable from Moody’s. ESSENTIAL RETAILER OPERATING AND ASSISTING U.S. AUTHORITIES DURING THE COVID-19 PANDEMIC3 As a global, pharmacy-led health care company, Walgreens Boots Alliance has been working to ensure the safety and well-being of their colleagues, patients and customers during the pandemic of COVID-19. Their retail pharmacies have worked to provide up-to-date information and public health guidelines to customers, and their emergency response teams across the business are actively working to find ways play a greater role in what has become a global emergency – including working with the United States federal government to expand access to COVID-19 testing.

Exclusively Listed By

Broker of Record

  • Mickey Davis

    Senior Associate

    (901) 620-3600

    License(s): MS: 15586

    Mississippi

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