Jacksonville STNL Asset Trades for More Than $5M
- Feb 06, 2017
Jacksonville, Fla.—Net leased investment brokerage firm The Boulder Group has completed the sale of a strategically located Walgreens property in Jacksonville, Fla. The buyer, an unnamed international investment company, acquired the asset for $5.2 million, or approximately $370 per square foot. That clocks in at well over twice the $158 per square foot median asking price for investment grade big box properties, according to The Boulder Group’s Q4 2016 Net Lease Big Box Report.
The Boulder Group’s Randy Blankstein and Jimmy Goodman represented the seller, a South-based limited partnership.
Located at 3505 University Blvd. W, the single-tenant net leased (STNL) asset is strategically situated on the trade area’s main east-west artery. With Walgreens as a committed tenant, the 13,905 square-foot property was an attractive option for buyers. “The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long term leases” said Randy Blankstein, president of The Boulder Group.
Walgreens, a Standard & Poor’s BBB-rated investment grade company, recently extended its lease on the property through August 2026. The 10-year lease extension also includes eight five-year renewal options. “Properties in “income tax free states” continue to be in the great demand among private investors,” added Jimmy Goodman.
According to Colliers International, Jacksonville’s single-tenant net-leased market saw about $110 million in sales in 2016, with close to $80 million of that trading in the second half of the year. While significantly lower than 2015’s $256 million in single-tenant net-leased sales, investor interest in Jacksonville is expected to continue across all assets classes in 2017.
Photo courtesy of The Boulder Group