December 19, 2018 – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of a single-tenant Walgreens property located in Houma, the largest city in Terrebonne Parish, Louisiana, and 40 miles southwest from New Orleans. The purchase price was $5,840,000.
Hanley Investment Group’s Executive Vice President Eric Wohl, Senior Associate Austin Blodgett and Associate Andrew Cunningham represented the seller, a private investor from Los Angeles. The buyer, a private 1031 exchange investor from Long Island, New York, was self-represented.
The 14,490-square-foot freestanding building with a drive-thru is located on a 1.40-acre pad at 1435 West Tunnel Boulevard in Houma. The property is ideally positioned at the signalized intersection of Hollywood Road and West Tunnel Blvd (71,800 cars per day) providing excellent access and visibility, according to Wohl. Built in 2003, the building was remodeled in 2015 to the current prototype store format, which includes a large monument signage with digital display.
“There are approximately 10 years remaining on Walgreens’ initial lease term with 10 five-year renewal option periods (60 years total term),” said Blodgett. “Walgreens has an absolute, triple-net lease, with little to no management required, and a long-term lease, which is highly desired by private capital investors looking for passive income.”
Cunningham notes that this Walgreens is the only 24-hour drive-thru drug store in the city of Houma. The property is also less than three miles away from Terrebonne General Medical Center, a 321-bed, award-winning facility with over 1,400 employees. Additionally, Walgreens is surrounded by numerous national credit retail tenants within one mile including Target, Home Depot, Walmart, Lowe’s, Best Buy, Petco, PetSmart, Michaels, Ross Dress for Less, Kohl’s, Hobby Lobby, Ulta Beauty, and Academy Sports + Outdoors.
“We were pleased to be able to achieve strong pricing after this property had previously been listed for sale by another national brokerage firm,” said Wohl. “We had multiple qualified offers and closed escrow within two-percent of the list price.”
Wohl adds, “Investor interest in long-term, single-tenant, retail assets with strong real estate fundamentals is still very steady. The oversized parcel on a high-traffic signalized intersection located on the major retail thoroughfare was instrumental in getting the buyer comfortable with the asset.
“The drug store sector has experienced its share of challenges as of late, but excellent real estate fundamentals and above average store sales provided the buyer comfort that Walgreens will be operating at this site for many years to come,” said Wohl.