Lowest cap rate over past 24 months
12 mo avg with 5+ yr lease term
|Average Sale Price||$3,000,000 - $8,000,000|
|Average NOI||$175,000 - $450,000|
|Building SF||13,000 - 15,000|
|Lease Term||25 Years|
|Escalations||Flat Initial Term and Options|
In 2014, the partnership of Walgreen’s and Alliance Boots formed into Walgreens Boots Alliance, Inc. As a result, they are now the biggest retail pharmacy operation in America and Europe. Their alliance is likely to secure future expansion with aging populations, as they currently have over thirteen thousand store locations in eleven countries globally.
The idea to merge was mutually beneficial, seeing that they could provide their services to the public more effectively. This was by way of lowering costs through wholesaling pharmacological products, and providing better health services on location. These types of interactions were intrinsically part of Walgreen’s company fabric, going back well over one hundred years.
Out of nearly 8200 Walgreen’s locations prior to the merger, Duane Reade stores are also factored into the total. Approximately 85% of this total are leased, and expect in coming years to ‘trim the fat’ by way of closing lesser performing stores. In the same breath, they will take those lost numbers and construct new buildings in different locations.
|Number of Locations||9,021|
|Key Principal||Rosalind Brewer|