Herrick Co. Buys 29 Walgreens

The Herrick Co. has bought a 394,236-square-foot portfolio of Walgreens stores located in 16 states and Washington, D.C.

The Herrick Company Inc. has acquired a portfolio of 29 Walgreens pharmacy/retail properties, totaling 394,236 square feet for approximately $100 million.

The seller was not disclosed.

The properties are located in Alabama, Arizona, California, Colorado, Connecticut, Washington, DC, Florida, Georgia, Idaho, Indiana, Ohio, Louisiana, Mississippi, New York, Tennessee, Texas and Virginia. They are all under long-term triple net leases and each have 25 years remaining on the term.

“Walgreen’s is an outstanding company, well managed and the properties are on spectacular locations,” Norton Herrick, the Herrick Company’s chairman, told Commercial Property Executive. “The timing was perfect for us as interest rates are where we wanted them to be and with the increase in capital gains and the new medical tax it made this a viable portfolio for us to buy.”

According to Herrick, the deal is a continuation of the company’s strategy to invest in single-tenant, long-term net leased assets that are occupied by credit tenants.

“We have been doing investment grade, sale-leaseback and triple net leases since the late 1970’s and this transaction absolutely fits in with what we have been doing for the last four decades,” he said. “The properties are mostly new and in great condition and no renovations are necessary.”

In April, Herrick acquired a portfolio of 63 pharmacy/retail properties for $190 million, with each property occupied under long-term triple net leases with CVS Caremark.

Herrick’s other absolute net lease holdings include 77 Accor/Motel 6 properties and a number of properties leased to retail locations for Wal-Mart, Kmart, Kohl’s and Home Depot.

Affiliates of The Herrick Company purchased the Walgreens portfolio with financing provided by Prudential Insurance.

The Herrick Company has completed more than $5 billion in transactions throughout its history. The company focuses on high quality, single tenant, net lease office, industrial and retail properties in key markets throughout the U.S., as well as prime undeveloped oceanfront and intercoastal land sites in Southeast Florida.