Walgreens (Dollar Deals Sublease)

Tenant

Walgreens

Location

Brooklyn, New York

Price

$8,000,000

CAP Rate

6.81%

NOI

$544,500

Lease Term

7.2 Years Remaining

Occupancy

100%

Building Size

8,095 SF

Property Type

Single Tenant

Year Built

1991 / 2008

Lot Size

8,015 SF

Status

Available

Property Contacts:

Karly Iacono

First Vice President Investments

(201) 742-6119 | Email

Absolute NNN Lease

Walgreens Corporate Guarantee | Investment Grade BBB Rating (S&P)

10% Rent Increase in March 2023 Brings the Cap Rate to 7.49%

Located Directly Across from Canarsie-Rockaway Pkwy Subway Station

Core Urban Location | Over 2.1 Million People in Five Miles

75 Feet of Retail Frontage on Rockaway Parkway

FAR 2 – 16,030 Total Buildable Square Footage

Secure Income Stream with Long Term Redevelopment Potential

The Iacono Team and the Plasky Retail Group of Marcus and Millichap are pleased to exclusively present a Walgreens with a Dollar Deals sublease in Brooklyn, NY. The investment is corporately guaranteed by Walgreens and has approximately 7.2 years remaining on the base term. The property is subject to a NNN lease with a 10% rent increase going into effect in March of 2023. Dollar Deals subleased the property from Walgreens in July of 2020. The property has 75 feet of retail frontage on Rockaway Parkway, and it rests on an 8,015 square foot lot zoned C1-3/R5D.  The zoning allows for a FAR of two, and a total buildable square footage of 16,030 square feet (8,095 square feet of additional air rights).  There is a 15-year ICAP Tax Abatement in-place that runs through 2025.

Walgreens is an investment grade tenant and operates over 9,277 stores in all 50 states, DC, Puerto Rico and the United States Virgin Islands. In 2019, Walgreens sales exceeded $136 billion dollars. More than 400 of its stores offer medical services through its Healthcare Clinics. Additionally, the company operates digital businesses that include Walgreens.com, drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com.

The subject property is ideally located across the street from the Canarsie-Rockaway Pkwy subway station along with numerous bus stops. This main retail thoroughfare is home to many national tenants including Popeyes, McDonald’s, GameStop, Dollar General, Capitol One Bank, Dunkin Donuts and more. Additionally, there are many local retailers including bakeries, delis, pizza shops, beauty supply stores, and clothing boutiques. Other traffic drivers in the immediate area include the Canarsie Ascend Lower School, which has more than 600 students. This core urban location is densely populated with more than 2.1 million people residing within five miles.

Brooklyn is an international brand, cultural hub, culinary capital, and real estate juggernaut. Its streets are full of diversity, interesting people, and things to do. For more New York City arrivals than ever, for long-time New Yorkers looking for an easier life, for first-time homeowners, and long-term renters, Brooklyn has become the first choice of where to live and where to lay down roots. The median age of a Brooklyn resident is 34.7 years. 38 percent of Brooklyn’s population are foreign born. Families make up 64 percent of Brooklyn households. Brooklyn, co-extensive with Kings County, is the most populous county in the state, the second most densely populated county in the United States, and New York City’s most populous borough, with an estimated 2,648,403 residents in 2020.