Pharma Property Spending $25M on Build-To-Suit Pharmacies

Pharma Property Group, based in San Diego, is reportedly spending $25 million on build-to-suit pharmacy properties on behalf of 1,031 investors, and the transaction is expected to close by the end of the first quarter.

Jason Stuart Pongsrikul, managing director of Pharma Property, said that capitalization rates are very low right now for these types of assets. Pharma brokers the ground leases on the largest drug-store chains in the country, including CVS, Rite Aid and Walgreens.

Pharma’s client in the deal put down a six-figure deposit for the assets, and the closing of the buildings reportedly happened within just 14 days of due diligence.