A free-standing single tenant retail building has been listed for sale in La Jolla. According to the marketing materials from CBRE, which has the listing, the building covers an area of 11,900 square feet located on around 0.5 acres of land at 5495 La Jolla Blvd. The listed price is just over $10.1 million, or approximately $850 per square foot.
The marketing of the property is led by CBRE’s team of Arthur Flores and Kyle Kaye. The property owner is an entity affiliated with Longs Drug Stores California Inc, according to public property records.
CBRE’s listing shows the single-story Class B retail asset was originally built in 2008. The property is fully leased to CVS Pharmacy, who has been at this address for the past 17 years. The retail asset currently shows a cap rate of five percent and net operating income of around $506,000 per year. The marketing flier presents this investment as an 1031 exchange opportunity, which may suit passive investors seeking stable cash flow without any landlord maintenance responsibilities.
The retail property is located on the corner of La Jolla Boulevard and Midway Street, giving it visibility from both sides of the building as well as multiple access points from both streets. The location is within the Bird Rock community of La Jolla and a couple of blocks away from the beaches. It is the only retail property that is home to a pharmacy within a two-mile radius. Some of the corporate neighbors include the Sands of La Jolla hotel, Starbucks, Don Bravo, Chase Bank and others.
Founded in 1963, CVS has grown into the largest pharmacy chain in the United States. Offering an array of products, the company caters to needs related to healthcare and wellness. In 2000, the company introduced walk-in MinuteClinics further solidifying its commitment to accessible healthcare services, states the company website.
The CVS La Jolla retail asset listing follows some other similar listings in the area. The Registry recently reported on the offer for sale of a retail asset anchored by Walgreens in Orange County city of Aliso Viejo. The 13,386 square foot property is located at 26531 Aliso Creek Road and is marketed by the Berhow Team of SVN | Net Lease at an asking price of $15 million, or approximately $1,120 per square foot.
