Arizona 1031 Property

Walgreens – Phoenix, AZ

$100,000 Minimum Investment

Current Yield: 5.50%

Newly Renewed NN Lease – 10 years

This deal is COMPLETED. For current 1031 offerings or help with your 1031 exchange, please contact us.

Property Info

Tenant:
Walgreens
Address:
3431 W Union Hills Dr Phoenix, AZ 85027
Year Build:
1998
Total Sq Ft.:
13,968
Property Type:
Single Tenant, Freestanding
Ownership Type:
TIC
Minimum Investment:
$100,000
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Arizona TIC Property

This location has 20-year operating history and tenant recently exercised a 10-year extension of the lease. At $11.53/SF, this property had the lowest rent per square foot of the fifty comparable Walgreens properties that we researched and thus has a high likelihood of renewal. In the event that Walgreens does not renew, the rent is well below current market rents. A new roof was installed in June 2018 and includes a 10-year roof warranty. The property is visible to 51,500+ cars per day along N 35th Avenue and W Union Hills Drive, and has easy freeway access as it is one mile off off I-17 and Loop 101. The property is also minutes from Arizona State University’s West Campus. Overall, this property has a strong daytime population. The NN lease covers almost all conceivable expenses to property owners and a cash reserve is continually being built in the event any roof/structure issues should arise. As such, the property is a perfect 1031 investment for those exchangors seeking a headache-free investment property with a solid tenant. These tenant-in-common TIC properties allow any investor to enjoy the benefits to investment-grade commercial real estate.

Tenant Info

Tenant:
Walgreens
S&P Credit Rating:
BBB
Revenues:
$131.53 billion
Revenue Growth:
11.27% from 2017
No. of Locations:
8,100+

Lease Info

Type:
NN
Term:
10 years
Corp. Guaranteed Lease:
Yes
Rent Commencement:
October 2018
Lease Expiration:
October 2028
Owner Responsibility:
Roof, Structure
Tenant Responsibility:
Taxes, Insurance, Utilities, Maintenance
Current Annual Rent:
$161,000
Rent Per Square Foot:
$11.53
Renewal Options:
(6) 5-year renewal options

Location Info

Location:
Phoenix, AZ
Population:
1.626 million
Traffic Count:
51,500+ per day
1-Mile Population:
18,000+
3-Mile Population:
123,200+
5-Mile Population:
314,400+