Drug Store

Walgreens Pharmacy

124 Lancaster Dr SE, Salem, OR 97317

Listing Price: $6,210,286

Cap Rate
5.25%
Tenant Name
Walgreens Co.
Years Remaining On Lease
14.60
Gross SF
14,704
Guarantor
Corporate Guarantee
Rentable SF
14,704
Price/Gross SF
$422.35
Lease Type
Absolute Net
Rent Per Square Feet
$22.17

Investment Overview

The subject property is a Walgreens with a new 15-year Absolute NNN lease. This rare Walgreens lease provides fixed 5% rent increases every five years during the primary term and the 12, five-year option periods. 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. Walgreens is part of the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the first global, pharmacy-led health and wellbeing enterprise. As the largest retail pharmacy, health and daily living destination across the United States and Europe, Walgreens Boots Alliance has a presence in more than 25 countries and employs more than 415,000 people. The Company has over 18,500 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. The Retail Pharmacy USA division has pharmacy-led health and beauty retail offerings in 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The Company operated 9,277 retail stores in the division as of August 31, 2019. The principal retail pharmacy brands in the division are Walgreens and Duane Reade. The Company is a market leader in the United States and, as of August 31, 2019, approximately 78% of the population of the United States lived within five miles of a Walgreens, Duane Reade or acquired Rite Aid retail pharmacy. The Company is focused on creating a neighborhood health destination and a more modern pharmacy aligned to a wider range of healthcare services.

Investment Highlights

  • Rare Walgreens Lease with Rent Increases
  • New 15-Year Absolute NNN Lease
  • Investment Grade Tenant (Walgreens Co.)
  • Well-Established Location
  • Essential Retailer Operating and Assisting U.S. Authorities During the COVID-19 Pandemic

Exclusively Listed By

Listing Price: $6,210,286

Cap Rate
5.25%
Tenant Name
Walgreens Co.
Years Remaining On Lease
14.60
Gross SF
14,704
Guarantor
Corporate Guarantee
Rentable SF
14,704
Price/Gross SF
$422.35
Lease Type
Absolute Net
Rent Per Square Feet
$22.17

Investment Highlights

  • Rare Walgreens Lease with Rent Increases
  • New 15-Year Absolute NNN Lease
  • Investment Grade Tenant (Walgreens Co.)
  • Well-Established Location
  • Essential Retailer Operating and Assisting U.S. Authorities During the COVID-19 Pandemic

Investment Overview

The subject property is a Walgreens with a new 15-year Absolute NNN lease. This rare Walgreens lease provides fixed 5% rent increases every five years during the primary term and the 12, five-year option periods. 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. Walgreens is part of the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (NASDAQ: WBA), the first global, pharmacy-led health and wellbeing enterprise. As the largest retail pharmacy, health and daily living destination across the United States and Europe, Walgreens Boots Alliance has a presence in more than 25 countries and employs more than 415,000 people. The Company has over 18,500 stores in 11 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390 distribution centers delivering to more than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 20 countries. The Retail Pharmacy USA division has pharmacy-led health and beauty retail offerings in 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. The Company operated 9,277 retail stores in the division as of August 31, 2019. The principal retail pharmacy brands in the division are Walgreens and Duane Reade. The Company is a market leader in the United States and, as of August 31, 2019, approximately 78% of the population of the United States lived within five miles of a Walgreens, Duane Reade or acquired Rite Aid retail pharmacy. The Company is focused on creating a neighborhood health destination and a more modern pharmacy aligned to a wider range of healthcare services.

Exclusively Listed By

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