Marcus & Millichap Sells Walgreens in St. Petersburg, FL for $2.825M

TAMPA, FL –-The sale of Walgreens was announced today by Steven M. Ekovich, (top right photo) First Vice President and Regional Manager for the Tampa, Florida office of Marcus & Millichap Real Estate Investment Services.

Walgreens is located at 5400 Dr. Martin Luther King Jr. Street North, in St. Petersburg, Florida.

The property sold for $2,825,000 to an investor/builder based out of Illinois. The seller, Marguerite Salinas, has owned the property since the 1950s. Jonathan Kim of Marcus & Millichap’s Tampa office represented the seller in the transaction.

“This deal presented significant challenges and embodies the epitome of proactive brokerage” states Jonathan Kim. Walgreens has been occupying the building since the late 1980s at a severely under-market rate. They also possessed multiple option rights extending another 60 years, with very nominal increases.

“We strategized to take the property to market at a cap rate of 6.5 percent when market cap rates were around 6 percent-6.25 percent. Through a very precisely targeted potential buyer campaign, we generated multiple contract offers within a short period.

"We then located an out-of-state investor/builder who specialized in drug store opportunities. Through the competitive bidding environment that we were able to create, we negotiated a deal netting the seller close to half a million dollars above the asking price.

"Additional challenges that had to be overcome during the due diligence process included the eviction of a sub-tenant, deferred maintenance issues and environmental contamination concerns.

"However, the deal successfully closed at the original contract price of $2,825,000, which was at an unbelievably low cap rate of 5.4 percent, in favor of the seller” states Kim.

CONTACTS:

Steven M. Ekovich

Marcus & Millichap

813 387 4700

Sue Sampson
Brokerage Administrator/CAST
Marcus & Millichap
7650 Courtney Campbell Causeway
Suite 920
Tampa, FL. 33607
Phone: (813) 387-4700
Fax: (813) 387-4710