OCALA, FL-Agree Realty Corporation, a Farmington Hills, Mich.-based real estate investment trust, sold a 14,820-square-foot Walgreen’s for $4.12 million to a private investor. Agree owns 30 additional Walgreen’s stories in various cities.
“We had the opportunity to get a strong price on this Walgreen’s, and we felt it was a good opportunity to recycle our capital,” Ken Howe, CFO for Agree Realty Corporation, tells GlobeSt.com. “This Walgreen’s just didn’t seem to fit into our geographic portfolio anymore.”
Agree Realty has two new Florida Walgreen’s stores under construction, one in St. Augustine and the other in Atlantic Beach. Both of those properties are in the northern region of the state. Altogether Agree Realty owns and operates a portfolio of 75 properties in 15 states spanning about 3.5 million square feet of leasable space.
Anthony Blanco, co-managing partner at Miami-based Plaza Advisors, recently sold a different Walgreen’s location in Ocala. He tells GlobeSt.com that Ocala is a strong market for Walgreen’s because of the older demographics, but Walgreen’s are treading heavy across the board—and across the nation.
“In the single tenant arena for retail properties, there is a resurgence of investors coming back to the market,” Blanco tells GlobeSt.com. “That's made possible by the increased availability of financing for these asset types and an appetite for alternative investments. Returns on a Walgreen’s investment are double or even triple what you can get at the local bank.”
Along with Publix-anchored shopping centers, investors have targeted Walgreen’s properties across the Southeast, with Florida remaining a hot spot. Marcus & Millichap sold a Walgreen’s in Daytona for $2.39 million earlier this month. A Walgreen’s building traded in Holden Beach, N.C. for $4.4 million last month, along with two Walgreen’s trading in the Atlanta suburbs for $11 million.
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