GlobeSt.com - April 29, 2010
A private investor has acquired a net lease portfolio of 20 CVS/pharmacies for $62.7 million. The seller was also a Texas-based private investor.
Encompassing more than 248,000 square feet, the retail properties are located in primary and secondary markets in Alabama, California, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, New Hampshire, Pennsylvania, Texas and Virginia. The properties, which average 12,400 square feet, are 100% leased to CVS/pharmacies, according to Jeff Hughes, a senior director of investment sales for Stan Johnson Co., a Tulsa, OK-based net lease brokerage firm.
Hughes represented both the buyer and the seller, along with Brandon Duff, also of Stan Johnson Co. He says the buyer was attracted to this deal because the properties were highly leveraged and well-suited to meet its unique needs for this transaction.
"These properties have long-term, bond-style leases with investment grade tenants, providing highly leveraged assumable loans in place," Hughes says. "This transaction type is perfectly suited for owners needing to replace debt from 1031 or 1033 exchanges."
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