Coastal Triple-Net-Lease Investor Market Stays Hot

An 11,838-square-foot single-tenant retail building in Huntington Beach recently sold for $11.29 million. A private 1031 exchange investor acquired the asset triple-net leased to Walgreens on a long-term basis.

The JLL team representing the buyer was led by Daniel Tyner and Gleb Lvovich.

“The investor market for coastal triple-net-lease assets in Southern California is abundant and pricing continues to stay very aggressive for these type of assets with long-term leases in place,” Tyner said.

Walgreens has occupied the property since it was constructed in 2007 on 1.26 acres at 19001 Brookhurst St. The property is visible to more than 53,000 vehicles per day at the intersection of Brookhurst Street and Garfield Avenue near numerous healthcare facilities. There are 192,900 residents earning an average annual household income of $118,977 within a three-mile radius of the property.

“We continue to see strong demand for all credits, with especial interest in necessity-based retail such as drugstores,” Lvovich adds. “The closing of Walgreens in Huntington Beach demonstrates that strong credit with a core location drives significant pricing spread over commodity locations.”