Dealmaker: Marcus & Millichap Brokers $33M in Retail Property Sales

Marcus & Millichap, Calabasas, Calif., sold six Walgreens drugstores and a Publix grocery store in six states.

The firm sold six triple-net-leased Walgreens stores in Texas, Oklahoma, Illinois, New Mexico and Arizona for $24 million.

“Walgreens properties have been in high demand from net-leased investors since the pandemic started,” said Marcus & Millichap Senior Managing Director Gabriel Britti.

Britti and Ronnie Issenberg, also a Senior Managing Director, represented the seller. “This portfolio consisted of an essential rent-paying retailer with diversification in six different markets across the United States. It’s what everyone wants right now, ” said Issenberg.

The firm also sold a Publix grocery store in Glen Allen, Va., for $8.5 million. Regional Manager Brian Hosey said the property sold for a 5.72 percent cap rate.

The ground-leased Publix abuts a 135,000-square-foot Target in a four-million-square-foot regionally dominant shopping hub. The grocery store is along the Brook Road corridor in the affluent suburban Richmond community of Glen Allen, where Publix is the dominant grocer.

Executive Managing Director Dean Zang and Director David Crotts from Marcus & Millichap’s Washington, D.C. office executed the transaction and secured the buyer, a Florida-based family office.

“We have been seeing a significant increase in customer traffic to grocery stores during the current pandemic, and as a result have identified single-tenant grocery stores as one of the most highly sought-after asset types by investors,” said Zang.