Faris Lee Investments Completes $5.21 Million Sale of Property Occupied by Walgreens in Stockton, California
Spaulding Thompson & AssociatesMar 14, 2011 12:01 EDT
IRVINE, Calif., March 14, 2011 – Faris Lee Investments, the nation’s largest retail-specialized investment sales and advisory firm, has completed the sale of a 14,820-square-foot retail property occupied by Walgreens for $5.21 million. Built in 2008 and situated on just under 1.5 acres, the property is located at 7850 West Lane in Stockton, Calif. Walgreens has a long-term, absolute triple-net lease with 72 years remaining on the lease term.
Jeff Conover, senior managing director of Faris Lee Investments, represented the seller, West Hammer Properties from San Juan Capistrano, Calif. The all-cash buyer, a family trust from Gilroy who was in a 1033 exchange, was represented by Kevin Cunningham with Cornish & Carey. The property closed at a 6.5 percent cap rate.
“The cap rate of 6.5 percent on this transaction is the lowest for a single-tenant Walgreens in the state of California over the past 18 months,” said Conover. “Faris Lee garnered multiple, all-cash offers, identified a buyer through mass exposure from Faris Lee investor database that includes a 1031/1033 exchange network for Northern California and closed escrow in just two weeks.”
The Walgreens property includes a drive-thru pharmacy and is part of a neighborhood shopping center near Costco. It sees 68,000 cars per day and is situated at a signalized intersection. Additionally, the property has unobstructed street visibility and monument signage. There are more than 123,000 people within a three-mile radius.
“Single tenant properties in strong retail markets/locations such as this one are highly sought after and provide better returns than bank CDs and less risky income than stock market investments,” said Rich Walter, president of Faris Lee Investments. “The buyer has a tenant with an extremely long-term commitment and no maintenance or landlord responsibilities.”
Walgreen Co. is the number one drug store in the nation in sales. Walgreens builds rather than buys stores, so it can pick prime locations. The company operates approximately 6,934 stores.