NEWPORT BEACH, Calif., Oct. 5, 2021 – JLL Capital Markets announced today that it has closed the $11.29 million sale of an 11,838-square-foot, single-tenant retail building triple net leased to Walgreens on a long-term basis in the coastal Orange County market of Huntington Beach, California.
JLL marketed the property on behalf of the seller, Stanford Hotels Group. A private 1031 exchange investor acquired the asset.
Walgreens is a leader in the pharmacy, health and beauty sector and is a subsidiary of Walgreens Boots Alliance, Inc., which has a BBB (S&P) credit rating. Walgreens has occupied the property since it was constructed in 2007 and sits on 1.26 acres at 19001 Brookhurst St. The property is visible to more than 53,000 vehicles per day at the intersection of Brookhurst Street and Garfield Avenue and is proximate to numerous healthcare facilities, including MemorialCare Orange Coast Medical Center and Fountain Valley Regional Hospital.
Huntington Beach has some of the best demographics in Southern California, providing a dense and affluent customer base for the tenant. There are nearly 192,900 residents earning an average annual household income of $118,977 within a three-mile radius of the property, and the population is expected to grow over the next few years, as Orange County is known for its high quality of living, beautiful beaches, premier housing, thriving economy and direct access to California’s infrastructure and transportation networks.
The JLL Retail Capital Markets team representing the buyer was led by Director Daniel Tyner and Managing Director Gleb Lvovich.
“The investor market for coastal triple-net-lease assets in Southern California is abundant, and pricing continues to stay very aggressive for these type of assets with long-term leases in place,” Tyner said.
“We continue to see strong demand for all credits, with especial interest in necessity-based retail such as drugstores,” Lvovich added. “The closing of Walgreens in Huntington Beach demonstrates that strong credit with a core location drives significant pricing spread over commodity locations.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.