NEWPORT BEACH, California, October 5, 2021 –JLL Capital Markets today announced that it has completed the sale for $ 11.29 million of an 11,838 square foot long-term single-tenant retail building to Walgreens in the Orange County Coastal Market in Huntington Beach, California.
JLL marketed the property on behalf of the vendor, Stanford Hotels Group. A private 1031 exchange investor acquired the asset.
Walgreens is a leader in the pharmacy, health and beauty industry and is a subsidiary of Walgreens Boots Alliance, Inc., which has a BBB (S&P) credit rating. Walgreens has occupied the property since its construction in 2007 and spans 1.26 acres at 19001 Brookhurst Street. The property is visible to over 53,000 vehicles per day at the intersection of Brookhurst Street and Garfield Avenue and is close to many health facilities including MemorialCare Orange Coast Medical Center and Fountain Valley Regional Hospital .
Huntington Beach has some of the best demographics in Southern California, providing a dense and affluent clientele to the tenant. There are nearly 192,900 residents earning an average annual family income of $ 118,977 within a three mile radius of the property, and the population is expected to grow over the next several years as Orange County is known for its high quality of life, beautiful beaches, top-notch housing, a thriving economy, and direct access to California’s infrastructure and transportation networks.
The JLL Retail Capital Markets team representing the buyer was led by Managing Director Daniel Tyner and Managing Director Gleb Lvovich.
“The investor market for coastal triple net lease assets in Southern California is abundant, and prices continue to remain very aggressive for this type of asset with long-term leases in place,” Tyner said.
“We continue to see strong demand for all credits, with a particular focus on essential retail like pharmacies,” Lvovich added. “The closure of Walgreens in Huntington Beach demonstrates that strong credit with a central location results in a significant price split across commodity locations.”
JLL Capital Markets is a global full service provider of capital solutions for real estate investors and occupiers. The company’s in-depth knowledge of the local market and global investors provides the best solutions for clients – whether it is investment sales and advice, debt advice, equity advice or recapitalization. The company has more than 3,000 capital markets specialists around the world with offices in nearly 50 countries.
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