Walgreens Leasehold – Lemon Grove, CA

Tenant

Walgreens

Location

Lemon Grove, CA

Price

$4,376,635

CAP Rate

6.28%

NOI

$274,990

Lease Term

70 Years

Occupancy

100%

Building Size

13,253 SF

Property Type

Single Tenant

Year Built

2012

Lot Size

1.53 Acres

Status

Available

Property Contacts:

Karly Iacono

Associate Director

201-742-6119 | Email

  • Zero Cash Flow Leasehold
  • Absolute NNN Leases with Over 21 Years Until Termination Option
  • Investment-Grade Tenant/Guarantor
  • Fully Depreciable Basis Due to Leasehold Structure
  • Significant Cash Flow Potential – Rent Increases to FMV in 2049
  • Pay Down Re-Advance Feature on Debt

Marcus & Millichap is pleased to exclusively present for sale a Walgreens zero cashflow leasehold portfolio. All locations feature absolute NNN leases with a firm term of 21 years remaining. There are eight locations remaining, all in very diverse markets. The leasehold interests can be purchased as a portfolio, individually, or in smaller pools. There are no rent holidays and the debt is fully self-amortizing. The existing zero cash flow loans must be assumed and include the attractive pay down re-advance feature.

The portfolio is priced at 15.5% equity over the debt.
This is a unique opportunity for an investor to acquire competitively priced zero cash flow deals backed by a strong investment grade tenant.