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Drug Store

Walgreens

6770 Macon Rd, Memphis, TN 38134

Listing Price: $4,148,000

Cap Rate
6.75%
Tenant Name
Walgreens
Years Remaining On Lease
4.2
Gross SF
15,120
Guarantor
Corporate Guarantee
Rentable SF
15,120
Price/Gross SF
$274.34
Lease Type
Double Net
Rent Per Square Feet
$18.52

Investment Overview

The subject property has just over four years remaining in the first option period of a triple net lease, with the landlord only responsible for the property’s roof, structure and parking lot. Walgreens exercised their first option without seeking to renegotiate the rent, a key indicator of their satisfaction with the location and their intent to remain at the property for the foreseeable future. They recently requested and received, an allowance from the landlord for future tenant improvements, giving a new owner the benefit of the tenant’s long-term commitment to the location without the need to fund future improvements. There are (7) 5-year option periods remaining, which are much more favorable than the common 1-year renewal options found in many Walgreens leases. The property is situated on a hard corner at a signalized intersection. There are points of ingress and egress on both Macon and Whitten Roads, two six-lane streets with dedicated turning lanes and no traffic dividers, allowing customers traveling North, South, East, and West to easily enter to property. This is the closest pharmacy to the exit off I-40, which is traveled by more than 120,000 vehicles daily. The property is located in a dense residential area, with nearly 200,000 people living within five miles of the site. Walgreens has been at this location for more than two decades and has seen consistently strong store sales, with an estimated rent-to-sales ratio of less than 5%. Walgreens recently closed the nearest Walgreens and Rite Aid locations, actively funneling traffic to this store, which will drive further sales growth in the coming years.

Investment Highlights

  • Investment grade, national tenant
  • Consistently strong store sales, with a 21-year operating history
  • Demonstrated commitment to the location by recently exercising their first 5-year option
  • Landlord recently funded a $400,000 allowance for future tenant improvements to this site
  • Limited competition, recent consolidation of closest Walgreens & Rite Aid stores, driving sales growth in the coming years
  • Well-positioned on a hard corner just off I-40 which sees over 120,000 VPD
  • Excellent demographics with nearly 200,000 people within a 5-mile radius
  • Large format store, built-to-suit with a drive-thru pharmacy on a large parcel

Exclusively Listed By

Broker of Record

  • Jody McKibben

    Vice President / Regional Manager

    (615) 997-2860

    License(s) TN: 307629

    Tennessee

Listing Price: $4,148,000

Cap Rate
6.75%
Tenant Name
Walgreens
Years Remaining On Lease
4.2
Gross SF
15,120
Guarantor
Corporate Guarantee
Rentable SF
15,120
Price/Gross SF
$274.34
Lease Type
Double Net
Rent Per Square Feet
$18.52

Investment Highlights

  • Investment grade, national tenant
  • Consistently strong store sales, with a 21-year operating history
  • Demonstrated commitment to the location by recently exercising their first 5-year option
  • Landlord recently funded a $400,000 allowance for future tenant improvements to this site
  • Limited competition, recent consolidation of closest Walgreens & Rite Aid stores, driving sales growth in the coming years
  • Well-positioned on a hard corner just off I-40 which sees over 120,000 VPD
  • Excellent demographics with nearly 200,000 people within a 5-mile radius
  • Large format store, built-to-suit with a drive-thru pharmacy on a large parcel

Investment Overview

The subject property has just over four years remaining in the first option period of a triple net lease, with the landlord only responsible for the property’s roof, structure and parking lot. Walgreens exercised their first option without seeking to renegotiate the rent, a key indicator of their satisfaction with the location and their intent to remain at the property for the foreseeable future. They recently requested and received, an allowance from the landlord for future tenant improvements, giving a new owner the benefit of the tenant’s long-term commitment to the location without the need to fund future improvements. There are (7) 5-year option periods remaining, which are much more favorable than the common 1-year renewal options found in many Walgreens leases. The property is situated on a hard corner at a signalized intersection. There are points of ingress and egress on both Macon and Whitten Roads, two six-lane streets with dedicated turning lanes and no traffic dividers, allowing customers traveling North, South, East, and West to easily enter to property. This is the closest pharmacy to the exit off I-40, which is traveled by more than 120,000 vehicles daily. The property is located in a dense residential area, with nearly 200,000 people living within five miles of the site. Walgreens has been at this location for more than two decades and has seen consistently strong store sales, with an estimated rent-to-sales ratio of less than 5%. Walgreens recently closed the nearest Walgreens and Rite Aid locations, actively funneling traffic to this store, which will drive further sales growth in the coming years.

Exclusively Listed By

Broker of Record

  • Jody McKibben

    Vice President / Regional Manager

    (615) 997-2860

    License(s): TN: 307629

    Tennessee

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