A&G Real Estate Partners is seeking offers for 78 Walgreens properties nationwide, including store leases, fee-owned buildings and undeveloped land parcels. The properties are available for direct lease, sublease or sale.
The offering for the nation’s second-largest pharmacy chain includes 60 current leaseholds for freestanding, central business district, end cap and inline locations across 22 states; eight fee-owned former Walgreens stores in Arizona, Kentucky, Louisiana, Ohio, Pennsylvania, Virginia and West Virginia; eight undeveloped fee-owned parcels in Arkansas, Arizona, Illinois, Louisiana and Puerto Rico; and two fee-owned properties in Connecticut.
“Operators in the drugstore sector are in the process of right-sizing their portfolios in response to a shift in business model fundamentals and consumer trends,” said Emilio Amendola, A&G co-president. “As a result, these available locations create strong opportunities for expanding retail chains.”
Prior Rite Aid Experience
A&G pointed to its earlier marketing campaign on behalf of Rite Aid as an indicator of the demand it expects. That effort drew more than 1,700 interested parties and resulted in lease sales to Dollar Tree, Five Below, Burlington, Ross, Ace Hardware and multiple grocery chains, according to the firm. A&G also sold 50 fee-owned Rite Aid properties to investors.
“We expect a similar level of demand for these desirable Walgreens assets,” said Joe McKeska, A&G principal.
The buildings range from 2,070 to 23,509 square feet, while the undeveloped parcels range from 0.12 to 20.86 acres. States with the largest concentrations of leased locations include California (11), West Virginia (8), Missouri (6) and Ohio (6).
A&G Real Estate Partners is a New York-based real estate advisory firm.