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Net Leased Walgreens Property Changes Hands

SANTA FE SPRINGS, CA-Developer sells the 2008 project to a private investor seeking a 'rock-solid' asset. The lease is valued at $385,000 per year runs through 2083.

By John McCloud | Updated on May 01, 2009

SANTA FE SPRINGS, CA-In a private investment deal, a partner in Los Angeles-based Conquest Student Housing LLC paid $5.5 million for a property triple-net leased to Walgreens for 75 years. The seller was Glenn Riley Land Associates LLC, a San Francisco-based developer that completed the project last year.

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.”

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