Walgreens Tumwater

Property Overview

702 Trosper Rd SW, Tumwater, WA is a 14,418 SF single-tenant Walgreens built in 2011. The property operates under an absolute net lease with Walgreens Boots Alliance, Inc. (NASDAQ: WBA), an investment-grade tenant rated BBB by Standard & Poor's. Tumwater sits approximately one hour south of Seattle, and this location is the only Walgreens in the city.

Challenge

Our team was engaged to sell a family-owned Walgreens ground position in Tumwater, Washington. The family had originally leased the land to Walgreens and built long-term equity in the asset. The assignment was to find a qualified buyer willing to acquire the property free and clear of debt, at a price that reflected the strength of the absolute net lease and the tenant's investment-grade credit.

Action

We represented both the seller and the buyer in this transaction. Our marketing emphasized the core strengths of the asset: over sixteen years of firm lease term remaining, zero landlord maintenance obligations, and a corporate-backed guarantee from one of the largest pharmacy retailers in the world. We highlighted the property's high-traffic location, with 108,000 vehicles per day on Interstate 5 and 27,760 vehicles per day on Trosper Road, as well as its status as the only Walgreens in Tumwater. The property was offered free and clear of debt, broadening the pool of prospective buyers who could move without financing contingencies.

Result

• Sale price of $8,100,000, or $562 per square foot
• Absolute net lease structure with no landlord maintenance obligations
• Corporate-backed lease with investment-grade tenant (S&P: BBB)
• Property sold free and clear of debt
• Our team represented both buyer and seller, facilitating a direct and efficient transaction for a family that had held the asset since its original development