Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has announced the sale of a freestanding, single-tenant drugstore located at 2801 North Ponce De Leon Boulevard in Saint Augustine, Florida. The 14,669-square-foot property is fully leased to Walgreens on an absolute triple net basis. Stan Johnson Company’s Pat Weibel and BJ Feller represented the institutional California-based seller. The asset was purchased in a 1031 exchange by Castro Properties, a private investor from New York. The sale, which closed for $7.6 million, reflects a 4.84 percent cap rate and is less than 20 basis points from a 12-month low for single-tenant Walgreens investment sales.
“This was a great transaction for our client and illustrates the demand and durability of net lease drugstores in the current environment,” said Weibel, Director in Stan Johnson Company’s Solana Beach, California office. “Additionally, the on-going desire of net lease investors to deploy capital in the state of Florida shows no signs of slowing down, allowing us to achieve a fantastic sub-5.0 percent cap rate.”
Walgreens has occupied the site since it was originally constructed in 2009 and recently restructured their lease, demonstrating their long-term commitment to the high-performing location. The property is situated on 1.48 acres at a heavily trafficked signalized intersection less than 2.0 miles from downtown Saint Augustine.
