“The demand for triple net lease, single-tenant properties is still extremely high: The smart money needs a place to go.”
A 13,833-square-foot single-tenant retail store triple net leased to a Walgreens in Austin, Texas, has traded at a 3.69% cap rate—a record for Walgreens stores in the country, according to JLL.
This transaction follows on the heels of a deal in February in which a 15,206-square-foot single-tenant retail store triple net leased to Walgreens in the Miami-area community of Miami Shores, FL, also traded at 3.69%.
JLL brokered both transactions. In the Austin deal, the JLL Net Lease Capital Markets team representing the seller, Swanson Development Company, was led by Alex Sharrin, Alex Geanakos and John Indelli. Sikka Investments acquired the asset.
For the Miami Shores transaction, the JLL Retail Capital Markets team representing the private, unidentified seller was led by Sharrin, Geanakos, Jeffrey Cicurel, Danny Finkle and Eric Williams. The buyer was also unidentified.
These two transactions illustrate the low cap rates that have become characteristic of net lease transactions in general.
Perfect Timing by the Seller
Richard J. Brunelli, chairman and principal, R.J. Brunelli & Co., tells GlobeSt that the seller could not have timed the Austin sale more perfectly.