The property at 13331 Telegraph Rd. includes a 14,076-square-foot building on 1.46 acres. The lease is valued at $385,000 per year. The deal had a reported cap rate of 7%.
No brokers were involved in the transaction, but Dan Lem, owner of LEM Real Estate in San Francisco, served as adviser to both parties. Lem, who specializes in selling Walgreens properties, says the sale typifies the kind of property many smaller investors are eager to acquire. "It's an absolute triple net deal, national credit, no headache, bulletproof lease, bulletproof tenant," he tells GlobeSt.com. "It's a peace of mind investment. That the big thing. People with some kind of money want a place to park it that's safe."
Lem calls Walgreens probably the most sought after tenant for a net-lease deal, at least in the drugstore category. "Everybody wants to buy Walgreens Drugs," he says. "Even though leases are flat, it's solid credit. It's as boring and as desirable as it gets. It's so boring that a lot of people want it."
Recommended For You
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 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.
