Friday, February 18, 2011
Los Angeles, California - We have Net Lease Properties news today on what could be the highest price paid for a net leased property with Walgreen's. Recent acquisitions of net leased properties with Walgreen's as Tenant have sold between $4 Million to $7 Million. This net leased property, single-tenant drugstore sold for $10,700,000 million which equates to approximately $1,367 per square foot. This NNN Commercial Real Estate transaction has closed before the completion of the project. NNN Commercial Real Estate analysts have reported that this is the highest price per square-foot, that was paid for a single-tenant net-leased drugstore property in the United States.
Recently, the Del Taco was situated at 6766 Santa Monica Blvd. however it was torn down for the new tenant Walgreen's. The Hollywood Del Taco on Santa Monica and Highland Avenue closed down on July 29, 2010 to make room for the net leased property with Walgreen's. This new net leased property with Walgreen’s is under construction on the site and with all things going as planned, would be finished in the early part of this year, 2011.
This new Walgreen's will have a different address than Del Taco. The high priced, net leased Walgreen's will have the address of 1050 North Highland Avenue, Los Angeles, California. The net leased property will sit in the Hollywood submarket of Los Angeles in the 90038 zip code. The Walgreen's net leased property will be on the southeast corner of Santa Monica Boulevard and Highland Avenue. This corner is a heavily trafficked area to help fuel triple net lease properties with retail foot traffic.
Some NNN Commercial Real Estate analysts felt this area was drab and needed a renovation of sorts. The Del Taco can make for a nice NNN Lease Investment however California investors wanted a bright, new Walgreen's instead of fast food. The net leased property seller was Village Properties Inc., who through our research was the wise investor to get Walgreen's to agree to this location. Village Properties Inc. is an experienced commercial real estate developer for Walgreen's.
Another point to show the value of this net lease investment is that Walgreen's does not have another drugstore near this location. This net leased property is situated in a smaller parcel of land than normal, for Walgreen's drugstores. This net lease investment is on a parcel that is approximately 18,357 square feet, therefore it will not have a drive-through. We are unaware of any Investment Property financing.
The Walgreen's net leased property site is on a prime, heavily trafficked Hollywood corner. Livermore Plaza is a San Francisco, Bay Area investor. The NNN Commercial Real Estate investor had mentioned that they are planning to hold the property for a long term investment. That could be very possible as Walgreen's has agreed to a 75-year-lease. That type of net lease agreement with a Credit Tenant helps to increase the value of the land, especially in a densely populated are like Los Angeles.
We have Investors seeking to buy your Triple Net Lease Properties, quality Class A office Buildings, multi-family apartment and Retail Shopping Centers with a quality grocery store anchor.
Also if you are a commercial real estate investor seeking a 1031 Exchange replacement property or a fundamentally sound NNN Lease investment, we can help you.
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