The Royston Group Facilitates Walgreens Portfolio Sale of $ 12.1 Million
Los Angeles, CA (PRWEB) December 1, 2010
The Royston Group has closed a $ 12.1 million portfolio sale comprising of two Walgreens properties located in Anoka, Minnesota and Monument, Colorado. The Anoka site was built in 2008 on 1.6 acres of land with a building size of 14,957 square feet. The Monument site was built in 2010 on 2.69 acres of land with a total building size of 14,490 square feet. Both sites are leased to Walgreens on a triple net basis for 25 years plus option periods. Greg Cortese and Rob Sutton of the Royston Group represented both the buyer and seller in this transaction.
“In the last 6 months I have seen quite a bit of cap rate compression with regards to investment grade credit. Investors want name brand tenants backing their leases such as Walgreens, CVS or Kohl’s. The scarcity of good net lease properties due to lack of new development has pushed cap rates down 30-50 basis points in most markets. This has made life a little tougher for the average 1031 exchange buyer ” said Vice President Rob Sutton.
Both Walgreens are situated on excellent corner locations with large daily traffic counts . Anoka is located outside of the Minneapolis/ St. Paul MSA while Monument is located outside of the Colorado Springs MSA.
The buyer is a private 1031 investor based out Southern California while the seller was a preferred Walgreens developer based out of Minnesota. The buyer elected to purchase the properties subject to a new loan which was easily achieved due to the buyer’s strong financial record and the corporately guaranteed leases backed by Walgreens. The buyer was attracted to the long term net leases, the solid locations and the strong financials supporting Walgreens credit.
“Currently the most important factor in the net lease real estate world is educating both buyers and sellers about the current market conditions. The scarcity of product has swung property prices well away from their 2009 lows and in a very short period of time. 1031 buyers must come to terms with the new pricing in the market or risk paying taxes if they can’t negotiate a fair price with the owners” commented Sutton.
Rob Sutton specializes in the sale of single tenant net lease properties. The Royston Group is a privately held commercial real estate investment firm, founded in 1992. The company provides services for a multitude of net lease commercial property types including office, industrial, retail and medical. The firm has completed over $ 1 billion in real estate sales since its inception.
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