A Walgreens in Riverside, CA sold for $9.5 million, setting a record $741-per-square-foot price for a drug store in Riverside County. SRS Real Estate Partners’ National Net Lease Group handled the deal involving an asset with a corporate-guaranteed lease with 10 years remaining on the initial term, and 10 five-year extension options.
The property closed in an all cash deal at a 5.20% cap rate and was purchased by an undisclosed high-net-worth foreign investor. Located at the rare five-point intersection of Central, Brockton, and Magnolia avenues, the property is near Riverside Plaza, Regal Cinemas, Trader Joe’s and Nordstrom Rack.
The buyer was represented by Treelane Realty Group’s Wendy Wong. SRS’ Ara Rostamian, Patrick Luther and Matthew Mousavi advised the seller.
SRS’ Rostamian says, “While location always plays an integral role, Walgreens credit continues to be an attractive option for foreign investors, especially because of their long-term absolute triple net lease structure.”