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Drug Store

Walgreens | Rare Rental Increase | Shadow-Anchored by New Rural King

1302 W State Rd 2, La Porte, IN 46350

Listing Price: $3,231,000

Cap Rate
6.50%
Tenant Name
Walgreens
Years Remaining On Lease
4.2
Guarantor
Corporate Guarantee
Rentable SF
15,120
Lease Type
Double Net
Rent Per Square Feet
$13.89

Investment Overview

Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a 4+ year, Walgreens located in La Porte, Indiana which is near Chicago. The offering is an ideal investment for an investor looking for a well-located drug store in a market with limited market competition and experiencing new commercial development growth. Walgreens has previously exercised an early renewal at this location demonstrating the strength of the site and their commitment to this market. The offering additionally features a rare rental increase of nearly 10% which is uncommon within Walgreens’ leases. The Subject Property is located along La Porte’s main thoroughfare; W State Road 2 (Lincoln Way) and experiences approximately 13,400 vehicles-per-day. Walgreens is out-parcel the Maple Lane Mall, a 221,000-square foot retail shopping center. The Maple Lane Mall was originally anchored by Kmart; since Kmart’s exit of the property, Maple Lane Mall was purchased by Rural King corporate; who has since taken over Kmart’s former space and recently spent over $1M to renovate and revitalize the entire shopping center in order to appeal to a new tenant base. Walgreens (NASDAQ:WBA) is one of the largest pharmacy companies in the world and has an investment-grade corporate credit rating through the major credit rating agencies.

Investment Highlights

  • Prime Location: Walgreens sits on the signalized, hard-corner intersection directly along La Porte's main thoroughfare W State Road 2 (Lincoln Way).
  •   Very Rare Rental Increase: The lease calls for a 9.53% rental rate increase beginning in 2026 through the remainder of the lease term
  • Commitment to Site | Historical Occupancy:  Walgreens has previously exercised an early renewal at this location, demonstrating strong site performance and commitment to this location.
  • Walgreens has been operating at this location since 1999.  The current lease term has just over 4 years remaining of firm term and features the more market favorable 10,5-year renewal options.
  • Growing Submarket:  The Subject Property is shadow-anchored by a new Rural King. Additionally, La Porte has experienced new retail and multi-family developments including a 4-acre, mixed-use apartment and retail building called "The Banks" located just 1.5 miles away; which is being completed in 2 phases and when completed will consist of 400 rental units and ground-floor retail.
  • Minimal Landlord Responsibilities | Double-Net Lease: Tenant is responsible for all expenses related to the building including common area maintenance, insurance and real estate taxes.  Landlord is responsible for roof & structure and parking lot; which recently had major capital expenditures (contact agent for details)

Exclusively Listed By

Drug Store

Walgreens | Rare Rental Increase | Shadow-Anchored by New Rural King

Listing Price: $3,231,000

Cap Rate
6.50%
Tenant Name
Walgreens
Years Remaining On Lease
4.2
Guarantor
Corporate Guarantee
Rentable SF
15,120
Lease Type
Double Net
Rent Per Square Feet
$13.89

Investment Highlights

  • Prime Location: Walgreens sits on the signalized, hard-corner intersection directly along La Porte's main thoroughfare W State Road 2 (Lincoln Way).
  •   Very Rare Rental Increase: The lease calls for a 9.53% rental rate increase beginning in 2026 through the remainder of the lease term
  • Commitment to Site | Historical Occupancy:  Walgreens has previously exercised an early renewal at this location, demonstrating strong site performance and commitment to this location.
  • Walgreens has been operating at this location since 1999.  The current lease term has just over 4 years remaining of firm term and features the more market favorable 10,5-year renewal options.
  • Growing Submarket:  The Subject Property is shadow-anchored by a new Rural King. Additionally, La Porte has experienced new retail and multi-family developments including a 4-acre, mixed-use apartment and retail building called "The Banks" located just 1.5 miles away; which is being completed in 2 phases and when completed will consist of 400 rental units and ground-floor retail.
  • Minimal Landlord Responsibilities | Double-Net Lease: Tenant is responsible for all expenses related to the building including common area maintenance, insurance and real estate taxes.  Landlord is responsible for roof & structure and parking lot; which recently had major capital expenditures (contact agent for details)

Investment Overview

Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a 4+ year, Walgreens located in La Porte, Indiana which is near Chicago. The offering is an ideal investment for an investor looking for a well-located drug store in a market with limited market competition and experiencing new commercial development growth. Walgreens has previously exercised an early renewal at this location demonstrating the strength of the site and their commitment to this market. The offering additionally features a rare rental increase of nearly 10% which is uncommon within Walgreens’ leases. The Subject Property is located along La Porte’s main thoroughfare; W State Road 2 (Lincoln Way) and experiences approximately 13,400 vehicles-per-day. Walgreens is out-parcel the Maple Lane Mall, a 221,000-square foot retail shopping center. The Maple Lane Mall was originally anchored by Kmart; since Kmart’s exit of the property, Maple Lane Mall was purchased by Rural King corporate; who has since taken over Kmart’s former space and recently spent over $1M to renovate and revitalize the entire shopping center in order to appeal to a new tenant base. Walgreens (NASDAQ:WBA) is one of the largest pharmacy companies in the world and has an investment-grade corporate credit rating through the major credit rating agencies.

Exclusively Listed By

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