Des Moines, IA –Matthews Real Estate Investment Services™, the nation’s fastest-growing commercial real estate firm, announces the sale of a three-property Walgreens portfolio in Iowa for $9.8M. The transaction was brokered by Associate, Robert Goldberg, Executive Vice President & National Director, Ben Snyder, and Market Leader, Bill Pedersen.
The three properties that make up the portfolio are located at 6200 Merle Hay Road, Johnston, IA, 3910 University Ave, Waterloo, IA, and 4600 86th Street, Urbandale, IA. The tenant, Walgreens Co., is the largest drugstore chain in the United States. The company operates over 8,200 locations in all 50 states, the District of Columbia, Puerto Rica, and Guam. Walgreens sells prescription and non-prescription drugs as well as general merchandise, including household products, personal care, beauty care, photofinishing, and other health and wellness products.
“We began working on this deal prior to COVID-19. As the pandemic hit and investors stayed on the sidelines the seller put the transaction on pause. With persistent follow-up and a motivated buyer, we were able to start the transaction back up and execute despite the volatile COVID-19 environment,” explained Market Leader Bill Pedersen. “All in all, we are proud to have executed on a deal that served both buyer and seller for a “win-win” transaction.”
The net lease sector continues to see an increase in transaction velocity for consumable “COVID-proof” product types such as drug stores. The seller, Hurd Real Estate Services, was motivated to recycle old inventory that they developed and wanted to execute on an above-market cap rate. Matthews™ agents worked in tandem to source the buyer.”
“Based on our experience in selling countless net lease drug stores we were able to procure both the seller and buyer in the transaction. With an average term of 2.3 years the portfolio traded at a 6.93% cap rate, well above market price for a “short term” Walgreens,” said Robert Goldberg. “Ultimately, our persistence and dedication to sourcing the strongest buyer in the market allowed us to successfully close the transaction.”
For more information regarding the three property Walgreens portfolio, or if you have any other questions related to retail assets, please do not hesitate to reach out to Robert Goldberg, Ben Snyder, and Bill Pedersen. To view current listings, please visit www.matthews.com.
About Matthews REIS™
Matthews Real Estate Investments Services™, the nation’s fastest-growing commercial real estate brokerage firm, holds recognition as an industry leader in investment sales and leasing. Founded in El Segundo, CA, and strategically positioned with over 300 agents and support staff in over 10 offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.
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