OAK BROOK, IL-A New Jersey firm has sold a dozen Walgreens properties located in nine states to Inland Real Estate Acquisitions, Inc. for $60 million.
That amounts to more than $330 per square foot paid for the triple-net-leased properties, in a deal brokered by CBRE.
The Walgreens leases are for 75 years, with an option to cancel after 25 years – plus individual leases offer various options in the 26th year, The properties, located in Illinois, Kentucky, Michigan, Minnesota, Missouri, Montana, North Carolina, Ohio and Texas, were sold by Paul V. Profeta and Assoc. of West Orange, NJ..
“Single-tenant leases that are triple-net and leased by a credit worthy tenant such as Walgreens are extremely appealing and very fungible, much more so than typical commercial real estate,” said Paul V. Profeta, whose real estate company carries his name. .
He noted that triple-net leases, which are the least management-intensive commercial properties to own, are currently being snapped up by REITS and large funds – and are also attractive to buyers seeking 1031 Exchange tax –deferral arrangements.
“We saw the current market climate as being an advantageous time to capitalize on the demand for high-quality, long-term leased assets in solid locations, and are extremely pleased to have been able to complete this transaction with Inland,” Profeta said.
Oak Brook-based Inland operates through various entities that are part of The Inland Real Estate Group of Companies. Inland-sponsored companies own and manage more than 88.2 million square feet of commercial real estate in various portfolios.
CBRE 's Sterling Champ, one of the leaders of CBRE's Net-Leased Property Group, brokered the transaction on behalf of Profeta.
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© 2024 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.
