April 2, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $3.035 million sale of a 10,000-square-foot, single-tenant retail building leased to CVS Pharmacy in Allentown, Pennsylvania.
The HFF team marketed the property for an undisclosed seller. Grove City Property, LLC purchased the asset.
Situated on 1.02 acres at 1802 Lehigh Street, the CVS is at a signalized intersection at Lehigh and Vultee Streets, which has traffic counts of more than 15,000 vehicles per day and is less than one mile from Interstate 78. The property is in Allentown, which is in Pennsylvania’s Lehigh Valley, and is about 75 miles west of New York City and 50 miles northwest of Philadelphia. More than 128,300 residents earning an average annual household income of $61,091 live within a three-mile radius of the CVS. The building, which was completed in 1996 and received upgrades over the years, features a drive-through and is leased to CVS Pharmacy through December 2037. HFF is currently marketing two similar long- term single-tenant CVS Pharmacies in the Lehigh Valley.
The HFF investment advisory team representing the seller included managing director Marc Mandel and director Steve Schrenk.
“We were pleased to achieve such an aggressive cap rate for this transaction given the recent rise in interest rates,” Mandel said. “In this current environment, cap rates have trended upward slightly and properties have been on the market longer than anticipated. This transaction was successfully completed in just under three months from initial marketing to closing.”
“The buyer satisfied their 1031 exchange requirement through the purchase of this asset,” Schrenk added. “There is continued demand for single-tenant pharmacies with long-term leases, and we expect the market to remain robust especially for properties with credit tenants such as CVS Pharmacy.”