TUCSON, ARIZONA (December 21, 2022) A new foreign limited liability company formed Nov 1, 2022, for commercial real estate investors; Project Capricorn Fund V, LLC has been investing in Walgreen’s stores around the country.
The group recently paid $5,152,000 ($331 PSF) for the Walgreen’s at 3910 East 22nd Street in Tucson and $4,600,200 ($310 PSF) for Walgreen’s at 550 N Silverbell Rd in Tucson. Both were sold by the Walgreens Corporation.
Both properties in Tucson were on larger than average sites; the 15,560-square-foot Walgreen’s on 22nd Street, built in 2000, sits on 1.85 acres and the other 14,820-square-foot store on Silverbell, built in 2012, sits on 3.5 acres.
With the stability of the retail pharmacy industry going strong, Walgreen’s remains a strong, valuable net lease investment with minimal risk. They usually go with choice corner real estate and prefer parcels of over one acre. This might range up to two acres, given Walgreen’s building dimensions are often around 14,500 square feet on average.
There were no brokers involved in the sales; Michael Reiter, attorney and member of Project Capricorn Fund V handled the transactions. Both closed on December 2, 2022.
In 2014, the partnership of Walgreen’s and Alliance Boots formed into Walgreens Boots Alliance, Inc. As a result, they are now the biggest retail pharmacy operation in America and Europe. Their alliance is likely to secure future expansion with aging populations, as they currently have over thirteen thousand store locations in eleven countries globally.
The idea to merge was mutually beneficial, seeing that they could provide their services to the public more effectively. This was by way of lowering costs through wholesaling pharmacological products and providing better health services on location. These types of interactions were intrinsically part of Walgreen’s company fabric, going back well over one hundred years.
Out of nearly 8200 Walgreen’s locations prior to the merger, approximately 85% of this total are leased, and expect in coming years to ‘trim the fat’ by way of closing lesser performing stores. In the same breath, they will take those lost numbers and construct new buildings in different locations.
Photo: Walgreen's 3910 E 22nd St (left) Walgreen's 550 N Silverbell Rd (right)