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Grocery Store

163-30 Cross Bay Blvd

163-30 Cross Bay Blvd, Queens, NY 11414

Listing Price: $16,300,000

Cap Rate
6.01%
Tenant Name
Walgreens
Years Remaining On Lease
7.7
Gross SF
9,767
Guarantor
Corporate Guarantee
Rentable SF
9,767
Price/Gross SF
$1,668.89
Lease Type
Absolute Net
Rent Per Square Feet
$100.22

Investment Overview

Marcus & Millichap has been retained exclusively by ownership to arrange the sale of 163-30 Cross Bay Boulevard, in the Howard Beach neighborhood of Queens, New York. The subject property is a is a 9,767 square foot retail building built upon a combined five tax lots totaling 33,342 square feet (zoned R3-1, R2, C2-2). The subject property is currently occupied by Key Food, subleasing from Walgreens, who is the corporate guarantor of the master lease. The sublease commenced July 2013. The triple-net master lease, signed in April 2009, expires in April 2029 and has eight (8) years remaining as of 2021. The current net operating income is $978,880 and will increase 12% per five (5) years, with the next scheduled increase occurring on April 2024. Upon expiration of the master lease’s 20-year base term in April 2029, Walgreen’s may exercise two (2) renewal options, each for ten (10) years. The subject property’s location benefits from its high-visibility frontage on Cross Bay Boulevard, which is a retail-dense traffic corridor serving Howard Beach neighborhood, East New York, Ozone and South Ozone Park, and Far Rockaway to the south. Its location directly off the Belt Parkway also ensures sustained high traffic counts (up to 75,000 cars daily) and easy freight access to the location. Key Food Stores Co-op, Inc. is a cooperative of independently owned supermarkets located in Connecticut, Massachusetts, New Jersey, New York, Pennsylvania, and Florida, with the corporate office located in Matawan, New Jersey. Walgreen Co. is the second largest pharmacy chain in the US, operating 8,175 retail stores which includes Duane Reade. Walgreens net-leased properties are consistently regarded as among the most sought-after investment real estate assets, given its strong credit ratings (BBB S&P, Baa2 Moody’s), and the low risks in what has recently been shown to be a business model that is protected from recession and/or economic uncertainty.

Investment Highlights

  • Triple-Net Master Lease with Walgreens Corporate Guarantee, Subleased to Key Food
  • Eight Years Remaining on Base Term (Exp. 4/2029) with Two Renewal Options of 10 Years Each
  • 12% Rental Increases per Five Years (Next Scheduled 4/2024)
  • 9,767 Square Foot Building Built Upon 33,342 Square Feet of Lot Space
  • High-Visibility Location Along a Major Retail Traffic Corridor
  • Location Benefits from High Traffic Counts and Co-Tenancy

Exclusively Listed By

Listing Price: $16,300,000

Cap Rate
6.01%
Tenant Name
Walgreens
Years Remaining On Lease
7.7
Gross SF
9,767
Guarantor
Corporate Guarantee
Rentable SF
9,767
Price/Gross SF
$1,668.89
Lease Type
Absolute Net
Rent Per Square Feet
$100.22

Investment Highlights

  • Triple-Net Master Lease with Walgreens Corporate Guarantee, Subleased to Key Food
  • Eight Years Remaining on Base Term (Exp. 4/2029) with Two Renewal Options of 10 Years Each
  • 12% Rental Increases per Five Years (Next Scheduled 4/2024)
  • 9,767 Square Foot Building Built Upon 33,342 Square Feet of Lot Space
  • High-Visibility Location Along a Major Retail Traffic Corridor
  • Location Benefits from High Traffic Counts and Co-Tenancy

Investment Overview

Marcus & Millichap has been retained exclusively by ownership to arrange the sale of 163-30 Cross Bay Boulevard, in the Howard Beach neighborhood of Queens, New York. The subject property is a is a 9,767 square foot retail building built upon a combined five tax lots totaling 33,342 square feet (zoned R3-1, R2, C2-2). The subject property is currently occupied by Key Food, subleasing from Walgreens, who is the corporate guarantor of the master lease. The sublease commenced July 2013. The triple-net master lease, signed in April 2009, expires in April 2029 and has eight (8) years remaining as of 2021. The current net operating income is $978,880 and will increase 12% per five (5) years, with the next scheduled increase occurring on April 2024. Upon expiration of the master lease’s 20-year base term in April 2029, Walgreen’s may exercise two (2) renewal options, each for ten (10) years. The subject property’s location benefits from its high-visibility frontage on Cross Bay Boulevard, which is a retail-dense traffic corridor serving Howard Beach neighborhood, East New York, Ozone and South Ozone Park, and Far Rockaway to the south. Its location directly off the Belt Parkway also ensures sustained high traffic counts (up to 75,000 cars daily) and easy freight access to the location. Key Food Stores Co-op, Inc. is a cooperative of independently owned supermarkets located in Connecticut, Massachusetts, New Jersey, New York, Pennsylvania, and Florida, with the corporate office located in Matawan, New Jersey. Walgreen Co. is the second largest pharmacy chain in the US, operating 8,175 retail stores which includes Duane Reade. Walgreens net-leased properties are consistently regarded as among the most sought-after investment real estate assets, given its strong credit ratings (BBB S&P, Baa2 Moody’s), and the low risks in what has recently been shown to be a business model that is protected from recession and/or economic uncertainty.

Exclusively Listed By

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