The Second Half (2H) of 2018 saw a total of 26 Walgreens properties trade hands on the East Coast, with a total dollar amount traded of $172,403,611. The average closing price for the 2H of 2018 was $6,630,908 or $453.05/SF, with the largest sales price achieved in Short HIlls, NJ. for a whooping $12,000,000 or $801.98/SF. The average cap rate for Walgreens properties was 6.20%, and the lowest cap was achieved was in Florida’s Orlando market at 5.00% cap rate.

Florida State saw the highest number of Walreens properties sold at 10, with New York State in the 2nd place with 3. Georgia, North Carolina and Virginia split the 3rd place with 2 sales each.

When evaluating Walgreens properties, it is important to consider several metrics that drive the value of a particular property, and one of the most important numbers is the Rent. In the 2H of 2018, average annual rent was $421,514, with the lowest rent being $202,882 and highest $633,600. It is not unusual for Walgreens to pay rents over $400,000 annually, since they demand strategically located, hard corner-highly visible locations. However, most of those location will be urban retail locations with extremely high Density and very high Household incomes.

AGM NET Lease Properties is a specialized retail net leased advisory group providing expertise and value-creating services for net lease property investors nationwide. If you are interested in learning more about investing in NNN leased Walgreens properties, please contact us at niko@agmnetlease.com or bosko@agmnetlease.com

Did You Know?

• Walgreens won the right to purchase 63 of 120 Shopko pharmacies that were auctioned off in bankruptcy action last week
• CVS picked up 13 stores, Albertson 7, Hy-Vee and Lewis Drug 6, while Rite Aid settled with 5. None of the Rite Aid store acquisitions were on the West Coast
• That brings Walgreens to a total of 9,623 pharmacies across 50 states.
• In addition to Prescription Drugs services, Walgreens also offer Healthcare Clinics in most of their locations
• Dental – in December 2018, Walgreens opened its first Dental clinic in its store, take a look at the video to see the insights of the first site