Search
 

Buyer's 1031 Exchange Funds Retail Sale

HOUSTON-The California buyer swaps a US Postal Service-leased building in Florida for the 15,120-sf Walgreen store at 398 Edgebrook Dr. The exchange capital is teamed with a $3.6-million loan to acquire a two-year-old building tied to a 20-year lease.

By Jennifer Brenner Andrade | Updated on October 07, 2003

HOUSTON-A private investor from San Juan Capistrano, CA has purchased a 15,120-sf, two-year-old building as the down leg to a 1031 Exchange, swapping out a US Postal Service-leased property in Florida for a Walgreen store in South Houston.

Michael Derk of the Long Beach, CA office of Marcus & Millichap Capital Corp. tells GlobeSt.com that the buyer was looking for a single-tenant property with a credit tenant. What he got was a 1.7-acre asset at 398 Edgebrook Dr., leased for the next 18 years to Deerfield, IL-based Walgreen Co. The property traded with a 7.7% cap rate, the broker says.

Derk arranged $3.6 million in acquisition financing, with a 76% loan-to-value ratio, through LaSalle Bank of Chicago. The loan, which amortizes over 30 years, has a 5.88% fixed rate for the first 10 years of the 15-year term.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.