CoStar News had learned that Inland Real Estate Acquisitions, Inc. has purchased the portfolio of nine Walgreens stores on behalf of Inland Diversified Real Estate Trust, Inc. Each property is leased to a subsidiary of Walgreens Co. under a triple-net lease with a remaining term of more than 20 years. Walgreen Co. has provided a guaranty on each lease.
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A portfolio of nine single-tenant, net-leased Walgreens retail properties located in the northeast have sold for $68.7 million, for an average per-square-foot price of approximately $602.
The portfolio totals 114,148 square feet, spanning Connecticut, Massachusetts, New Hampshire and New Jersey, including the Philadelphia and New York MSAs. The nine properties include:
- 980 Farmington Avenue in Berlin, CT
- 1036 West Main Street in Branford, CT
- 880 North Montello Street in Brockton, MA
- 1 Glenwood Avenue in Dover, NH
- 17 Crystal Avenue in Derry, NH
- 897 Main Street in Melrose, MA
- 20 West Kings Highway in Mount Ephraim, NJ
- 1131 US Highway 46 in Ledgewood, NJ
- 500 Egg Harbor Road in Sewell, NJ
Randy Blankstein, president and Jimmy Goodman, partner with The Boulder Group represented the seller, a private investment company. The buyer, a Midwest-based institutional investment firm, was represented in-house.
The listing brokers were able to generate multiple offers on this portfolio, which provided a unique opportunity to purchase a highly-concentrated group of retail investment properties
in a single region.
"This portfolio represented a rare opportunity for an investor to acquire a large portfolio of long term triple net leased Walgreens properties and we were able to achieve a sale price within one percent of the asking price." said Blankstein. Goodman added, "Walgreens properties with over 20 years of lease term are one of the most sought after assets in the single tenant net lease market, and we had strong demand for this portfolio."
Please see CoStar COMPS #2491593 for additional information on this transaction.
Editor's Note: The article was updated to reflect a more accurate aggregate building size of the properties that traded. The nine Walgreens total 114,148 square feet, making the price per square foot $601.85. This is a change from the originally reported 100,000-square-foot portfolio size with a price of $699 per square foot.