Stan Johnson Company Brokers Two CVS Pharmacy Sales in Houston, Texas for Record-Breaking Cap Rates

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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.

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About Stan Johnson Company:

Stan Johnson Company is one of the nation’s leading commercial real estate brokerage and advisory firms that focuses on investment sales transactions involving retail, office, industrial, healthcare, and specialty properties. The firm and its affiliates provide acquisition, disposition, sale leaseback, capital markets, and advisory services for institutions, developers, investment funds, corporate occupiers, and private investors across the United States. With a historic focus in the single-tenant net lease sector, Stan Johnson Company is now in its fourth decade of operation and has expanded its service platform in order to better serve its valued clients. The firm has completed more than $40 billion in transactions nationwide and continues to be regarded as the Net Lease Authority® as it focuses on continued growth and expansion into other industry sectors and services.