Trophy Tucson Walgreens Sells for $9+ Million

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Perhaps the highest priced Walgreens sale in Arizona, aka store #298 for builder / seller, Evergreen-First & Grant, LLC, an affiliate of Evergreen Devco, Inc. of Phoenix; the Walgreens at 730 E Grant Road in Tucson sold for[mepr-show rules=”58038″]$9.055 million ($689 PSF). This 13,140-square-foot store (built 2013) with a drive-thru is located at the southeast corner of First and Grant on 1.16 acres.

“The property is a trophy asset due to its location, design and access,” Ken Gatt of Evergreen Commercial Realty told us. “It is also one of the first stores in Arizona with the new ‘Wellness Experience’ Prototype, which is an improved prototype focused on the Pharmacy experience and building sustainability internally and externally.”

Property sold as an absolute Triple-Net (NNN) Corporate Lease where the landlord has zero responsibilities and the Lease is guaranteed by Walgreen. DPBI Tucson, LLC, a family owned group from Rhode Island purchased the property at a higher than average cap rate, due to the higher price.

The Walgreens was a relocation of a former store at Grant and Campbell, one of the highest Arizona volume stores, originally opened in 1960, which had no drive-thru; the new core in-fill location at a major arterial intersection has traffic counts exceeding 68,000 cars per day; located at a major retail intersection with Fry’s Grocery, McDonald’s, O’Reilly Auto and others.

Ken Gatt with Evergreen Commercial Realty in Phoenix represented the seller and Chris Kostanecki with Capital Pacific of San Francisco, CA represented the investor.

Gatt should be reached at (602) 808-8600 and Kostanecki is at (415) 274-2701.

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[mepr-show rules=”58038″]Sale date: 12/13/13. Transaction was a double escrow. In first transaction Evergreen purchased property from Walgreen Arizona Drug Company of Deerfield, IL for $6,338,590. The subsequent transaction was the upleg for DPBI Tucson in a 1031 exchange. Property sold with an NOI of $507,087 or a 5.6% cap rate. Walgreen cap rates are selling at 5.3%-5.4% cap rates, the higher cap was given due to higher price for property. Market time was Sept.- Dec. and escrow was a 30 days look and 30 day close. Seller also told us the Walgreens at 7115 E Tanque Verde, Tucson is being sold for 5.5% cap rate. APN: 123-13-091 & 123-13-129[/mepr-show]