PALM BEACH, FL-When it comes to office buildings, investors typically look for core properties in top tier cities. But on the retail front, investors are moving beyond the metros to do smaller deals with strong upsides.
CB Richard Ellis arranged the sale of a Walgreens in Loxahatchee. Located at 15940 Orange Boulevard, US Property Management acquired the 14,469 square foot freestanding building for $7.87 million. Walgreens has a new 25-year lease on the building.
“The market for single tenant properties is vibrant and Walgreens remains one of the most pursued single tenant investments,” says Mark Drazek, a broker at CBRE, which represented the seller, Loxahatchee Venture LLC. “This transaction is further evidence of the strong demand for these properties.”
In Destin, 98 Palms Strip Center, a 19,950-square foot shopping strip, sold for $1.4 million. Built in 2003, the Gulf Coast property is strategically located at 985 Highway 98 East in the heart of Destin’s retail market that sees more than 50,000 cars pass by each day. Nearby retail attractions include the 420,000-square foot Destin Commons and the 465,000-square foot Silver Sands Factory Outlet Center.
“This added value center should prove to be a good long term investment for the buyer, due to its location in a growing and high income market,” says Marc Strauss, first vice president investments in the Ft. Lauderdale office of Marcus & Millichap, which had the exclusive listing to market the property on behalf of the seller, a financial institution based out of Florida. The property was bought in conjunction with an adjacent Walgreens, which will help to provide an income safety net while the retail portion is leased up.
“We are seeing continued demand for high-credit triple-net deals as investors are flocking to safe and easy to manage real estate investments,” says Anthony Blanco, co-managing partner at Plaza Advisors. “Walgreens and CVS Pharmacy under long-term ground leases have long been the most sought after investments and this continues to be the case today.”
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