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First-Time Texas Buyer Pay $5M for Drugstore

HOUSTON-A San Diego investor picks up the deed 26 days after signing the contract for a 13,813-sf, seven-month-old store leased for 20 years to Eckerd. The broker says the store's strong location and chain's pending sale to CVS are the deal's closers.

By Jennifer Brenner Andrade | Updated on June 24, 2004

HOUSTON-A San Diego investor has paid close to $5.2 million to dovetail off the promise of future returns from the CVS Pharmacy buyout of the Eckerd chain. The investor has laid cash on the line in a 26-day close to get a 20-year tenant that’s just seven months into the lease at a 13,813-sf store in northwest Houston.

James Bell in Marcus & Millichap’s Houston office tells GlobeSt.com that the property was on the market, but pulled in early spring until buyout rumors became fact. Gulf Coast GP, the store’s developer, returned the 12600 FM 1960 property to the market at a 7.25% cap rate. Bell says the net-leased deal was easier to sell because a contract with the Woonsocket, RI-based CVS, with its stronger financial footing, was far more attractive than the struggling Eckerd name, owned by JCPenney Co. Inc. of Plano, TX.

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