Chatsworth Walgreens
20901 Devonshire St. Chatsworth, CA 91311
PRICE:
$11,000,000.00
Tenants
Walgreens, Inc.
Building Size:
Price/SF
14,901 SF
$738.00
Challenge
Solution
Cap Rate
5.65%
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Tenant had 4 years remaining on 25 year term reducing market valuation to a 6.5% CAP rate and increasing perception of risk when going to market.
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Tenant rent at $620,000/year was grossly over market demanding a purchase price 40% above average drug store price points.
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Through teams experience with drug store ownership, development and tenant relations team aided sellers in negotiating an additional 6 years of term with seller contribution resulting in 10 years of term extension.
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With high volume marketing and deep insight into tenants performance and operations the team was able to procure several offers maximizing value. As a result a sale was facilitated at significant returns for seller preserving their equity appreciation by being able to command a market CAP rate.