LAS VEGAS, NV, May 11, 2012 – Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has closed a record-breaking sale on the Las Vegas Strip for a 16,016-square foot Walgreens drugstore (top left photo).
The sales price of $27.8 million represents $1,736 per square foot, making this the most valuable single-tenant drugstore ever to trade in the United States.
“This transaction exemplifies our ability to move capital across markets and investor profiles on a consistent basis,” says Bill Rose (middle right photo), national director of Marcus & Millichap’s National Retail Group (NRG).
Ray Germain (middle left photo), a net-leased property investment specialist in Marcus & Millichap’s Las Vegas office, represented the seller, a local real estate investment partnership.
Sean Shahar Ziv (lower right photo) an associate in the firm’s San Diego office, represented the buyer, a foreign fund.
“This record-breaking sales price and competitive bidding from institutional, foreign and private investors speaks not only to the strength of our brokerage platform, but to the strength of the single-tenant net-leased property sector,” Germain adds.
“As the stock market continues to underperform, investors will flee to the safety of net-leased real estate assets.”
Similar pricing hasn’t been achieved since January 2005, the height of the commercial real estate “boom,” when a $19.5 million drugstore traded in Miami.
The only comparable transaction closed approximately nine months ago in August 2011 when a drugstore in Fort Myers, Fla., commanded $1,466 per square foot, according to CoStar.
“Investors will continue to pay premiums for exceptionally located net-leased properties given the scarcity of quality assets on the market,” says Germain. “We received multiple qualified offers from all types of investors around the world for this property,” he notes.
Built in 2001 on 1.61 acres, this Walgreens is open 24 hours per day.
The Las Vegas metropolitan area attracts nearly 40 million visitors per year, most of whom spend time on the Strip.
