Walgreens - New 40 Years NNN Lease, Cap rate 8.5%

New 40 Year NNN Corporate Guaranteed Walgreens Lease (NYSE: WAG; S&P Rated: A+). 8.5% Capitalization Rate, $191.96 Per Square Foot. Brand New Construction; Walgreens Opened in October 2008.
18.5% Cash Flow After Taxes; 10.2% Cash on Cash Return.

Leasehold Interest Offering; Buyer is Purchasing the Leasehold Interest in the Property; Walgreen's pays Ground Lease Rent Direct to Ground Lessor.
Full Depreciation on 100% of the Investment. Full Recovery of $2,793,000 Investment in Less than 12 Years with an All Cash Purchase. Situated in Cottonwood Heights, a suburb of Salt Lake City; Average Household Income within a 1-Mile

Outstanding Exposure, Identity, and Visibility Along Fort Union Boulevard, the Premier Retail Corridor in

Strong Retail Synergy in the Immediate Area Created by Surrounding Notable Tenants: Wild Oats Market, Ream’s Food Stores, 7-Eleven, Big-O Tires, McDonald, Subway and Taco Bell. Easily Accessible with Close Proximity to Interstate 215. Ease of Management, NNN Investment.

Walgreen's has the option to terminate after the 25th year.

 

Deal Summary

Property Location

Cottonwood Heights, UT

Price

$2,793,000

Nol

$237,447

Year Built

2008

Rentable SF

14,550

Land size

1.10 Acres

Expiration Year

1-Aug-48

Lease guarantor

Corporate A+ Rating

Lease Type

Triple Net (NNN)

Lease Term

40 Years

Current Cap Rate

8.50%

 

 

 

Investment Highlight

• New 40 Year NNN Corporate Guaranteed Walgreens Lease (NYSE: WAG; S&P Rated: A+).
• 8.5% Capitalization Rate, $191.96 Per Square Foot.
• Brand New Construction; Walgreens Opened in October 2008. 18.5% Cash Flow After Taxes; 10.2% Cash on Cash Return. Leasehold Interest Offering; Buyer is Purchasing the Leasehold Interest in the Property; Walgreens pays Ground Lease Rent Direct to Ground Lessor. Full Depreciation on 100% of the Investment.
• Full Recovery of $2,793,000 Investment in Less than 12 Years with an All Cash Purchase.
• Situated in Cottonwood Heights, a suburb of Salt Lake City; Average Household Income within a 1-Mile Radius in Excess of $96,000.
• Outstanding Exposure, Identity, and Visibility Along Fort Union Boulevard, the Premier Retail Corridor in Cottonwood Heights.
• Strong Retail Synergy in the Immediate Area Created by Surrounding Notable Tenants: Wild Oats Market,
• Ream’s Food Stores, 7-Eleven, Big-O Tires, McDonalds, Subway and Taco Bell.
• Easily Accessible with Close Proximity to Interstate 215.
• Ease of Management, NNN Investment.