Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a Class A, core, single-tenant retail drugstore located at 259 Market Street in the historic Old City District of Philadelphia, Pennsylvania.
Constructed in 2015, the 12,485-square-foot property is the street-level retail condominium interest of the luxury 62-unit multi-family development commonly known as Shirt Corner. The property is fully leased to CVS Pharmacy under a long-term triple net lease and located mere steps from the Liberty Bell, Independence Hall, Penn’s Landing and the National Constitution Center, among countless other historical U.S. landmarks.
Brandon Duff, Austin Duff, Matt Spangenberg and Mack Wolfgram of Stan Johnson Company exclusively marketed the property on behalf of the seller, a private Chicago, Illinois-based investor. The buyer, a private 1031 exchange investor from Indiana, acquired the asset for $10.8 million, following a highly competitive bidding process that procured multiple offers from various buyer profiles.
“We received significant buyer interest in this offering due to the investment grade credit of CVS Pharmacy, contractual long-term lease and the uniquely rare opportunity to acquire investment property in one of the highest barrier-to-entry submarkets in the U.S. – Philadelphia’s Old City District,” said Brandon Duff, Managing Director and Partner in Stan Johnson Company’s Chicago, Illinois office. “Ground-up development is almost unheard of in this submarket, considering the historical status of the local market with restrictive zoning and an arduous entitlement process. The original developer completed an eight-parcel land assemblage over many years to build the project.”
“Considering the unique value drivers of this property, we received interest from a wide spectrum of buyer profiles, including high net worth family offices located across the country, private 1031 exchange buyers, as well as international investors, among others,” added Austin Duff, Associate.