Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sales of two single-tenant net lease drugstores, both leased to CVS Pharmacy. The properties are located at 322 Cane Island Parkway in Katy, Texas and 1802 West Mount Houston Road in Houston, Texas. The drugstores total 14,698 and 9,656 square feet, respectively. Zach Harris of Stan Johnson Company represented the sellers, WA Mount Houston LLC and WA Cane Island LLC, on both transactions. The properties were purchased by separate, non-1031 exchange-driven private investors, each for an approximate 4.50 percent cap rate.
“Both of these assets traded at record-low cap rates for CVS sales in Texas based upon our research,” said Harris, Director in Stan Johnson Company’s Tulsa, Oklahoma headquarters. “There is an extremely high current demand for strong-credit, long-term net lease retail assets, especially in Texas and other income tax-free states. We were able to secure a qualified, private buyer for each property via a competitive bidding process in which multiple offers were received. The fact that both traded significantly above asking price is a true indication of the desirability of these assets within the context of heightened overall demand from the buyer marketplace.”
Both properties were constructed in 2019 on approximately 2.50-acre lots. Each location features a drive-thru with ample parking, and CVS Pharmacy operates on long-term absolute triple net leases.