Stan Johnson Company (SJC) closed the sale of a zero cash flow portfolio fully leased to CVS Pharmacy. The four-building, four-state portfolio of retail drugstores sold to a private 1031 exchange investor for approximately $19.2 million. SJC’s Josh Pardue and Zach Pool represented the seller, a leading New York City developer.
The properties were built between 2011 and 2013 with absolute triple net leases in place. They included: 12751 Nicollet Ave., Burnsville, MN; 400 S. Truman Blvd., Crystal City, MO; 101 E. Hall of Fame Ave., Stillwater, OK; and 2115 Union Ave. in Memphis.
“With zero cash flow transactions, the motivations are different than the drivers of traditional net lease transactions,” said Pardue. “In these transactions, the buyer’s investment focus is typically on wealth preservation and tax strategy, while the seller is traditionally focused on high-yield development, seeking to roll the equity into income-producing real estate.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism.
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