Investment Overview

Marcus & Millichap is pleased to exclusively present for sale this absolute net-leased Walgreens located at 10870 Overseas Highway in Marathon, Florida, in the highly sought-after Florida Keys. Positioned along the Overseas Highway (U.S. 1), the only primary transportation corridor connecting the entire Florida Keys from Miami to Key West, the Property benefits from exceptional visibility, convenient access, and serves as a critical retail destination for both residents and the millions of visitors traveling through the Keys each year. The Property consists of a 16,904-square-foot freestanding building featuring a drive-thru pharmacy and is situated on a large 1.49-acre parcel with ample dedicated parking. The Property enjoys outstanding visibility and exposure to more than 26,000 vehicles per day along the Florida Keys’ primary commercial and transportation artery. The Overseas Highway spans more than 100 miles across the island chain, traversing dozens of islands and over 40 bridges while serving as the exclusive north-south route connecting the Keys to mainland Florida. As a result, nearly all local, commuter, commercial, and tourist traffic funnels directly along this corridor, making it one of the most strategically important retail thoroughfares in the region. The immediate trade area is characterized by a healthy mix of national, regional, and local retailers including Circle K, Publix, Winn-Dixie, Bealls, Advance Auto Parts, NAPA Auto Parts, Tire Kingdom, Dunkin’, and numerous restaurants, marinas, bait and tackle shops, marine outfitters, and locally owned businesses that collectively serve both the year-round population and the area’s thriving tourism industry. The surrounding corridor also benefits from a significant concentration of hotels, resorts, vacation rentals, and Airbnb accommodations, generating consistent consumer traffic throughout the year. Stretching approximately 125 miles off the southern tip of Florida, the Florida Keys comprise an island chain of more than 800 islands renowned worldwide for their natural beauty, tropical climate, and unparalleled recreational opportunities. Attracting millions of visitors annually, the Keys are a premier destination for boating, fishing, diving, snorkeling, sailing, eco-tourism, waterfront dining, and access to the only living coral barrier reef in the continental United States. Marathon, often referred to as the “Heart of the Florida Keys,” occupies a central location within the island chain, making it a natural hub for both residents and travelers moving between Key Largo and Key West. Unlike traditional suburban markets where retail demand is spread across numerous commercial corridors, the unique geography of the Keys concentrates nearly all commercial activity along the Overseas Highway, resulting in exceptional visibility for wellpositioned retailers and creating significant barriers to new competing development. Located adjacent to the Florida Keys Marathon International Airport, the Property is strategically positioned to serve both the area’s permanent population and the millions of visitors who travel through the Keys each year. Given the limited retail inventory throughout the island chain, this Walgreens functions as far more than a traditional neighborhood pharmacy. It serves as a critical one-stop retail destination where residents, tourists, boaters, fishermen, and vacationers alike purchase prescription medications, groceries, beverages, snacks, household essentials, beach and boating supplies, personal care items, and other everyday necessities. With relatively few large-format national retailers serving the Middle Keys, the Property has established itself as an indispensable community amenity and a dominant retail destination, a role reflected in its strong historical operating performance and long-standing presence within the market. Walgreens recently entered into a brand-new 15-year absolute net lease, with the initial term extending through February 28, 2039. The lease includes twelve five-year renewal options and features 5% rental increases every five years throughout the base and option periods. The lease is structured as an absolute NNN lease with zero landlord responsibilities and is corporately guaranteed by Walgreens.