HENDERSONVILLE, NC-A Florida-based private investor has scooped up three drug store chain locations across the Southeast. The investor acquired Walgreen's properties in Hendersonville, NC, and Morristown and Greeneville, TN.
The Hendersonville Walgreen's sold for $5,033 million. Allen Smith, vice president investments in Marcus & Millichap’s Charlotte Uptown office, and Larry Curry, investment specialist in the firm’s Tampa office, represented the buyer. CB Richard Ellis represented the seller.
"When Lehman went under, the markets froze up and the cap rates jumped up," Curry tells GlobeSt.com. "About a year ago you could by a new Walgreen's for just under an 8% return and now we are seeing cap rates drop pretty quickly and a lot of competition on deals."
Located at 1148 Asheville Highway, the 15,371-square-foot Walgreen's is in the epicenter of Hendersonville and just 20 miles southeast of Asheville. Walgreen's inked a 25-year lease there on February 16, 2009 with 50 one-year options, according to CB Richard Ellis' listing. Brokers at CB Richard Ellis could not be reached for comment.
The same private investor acquired a 14,550-square-foot Walgreen's in Morristown for $5,121,622 million at a 7.4% cap rate, along with a 14,560-square-foot Walgreen's in Greeneville for $4,048,297 at a 7.4% cap rate. Peter Wenzler, vice president of Investments at Marcus & Millichap in Detroit, represented the unidentified seller. Curry represented the buyer.
Wenzler could not immediately be reached for comment. A credit tenant specialist, Wenzler has three additional active Walgreen's listings: one in Mebane, NC for $4.75 million, one in Englewood, OH for $4.933,333 million and one in High Point, NC for $5.801,324 million. But Walgreen's listings in Florida are fewer and further between.
"Walgreen's is not building as many stories each year as it used to," Curry says. "Therefore, the demand is higher. My buyer wanted deals in Florida, but they were hard to find. So we did a nationwide search to find solid deals in the Southeast for this 1031 exchange."
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