Newbury Park Walgreens Sells for $15.7 Million

A Newbury Park Walgreens location has changed hands for $15.7 million, brokerage Colliers International announced Monday. The roughly 13,400-square-foot building is on a 1.17-acre lot in the Thousand Oaks Marketplace at 550 N. Ventu Park Road. The buyer was M. David Family Holdings Ventu of Santa Monica, according to real estate data firm CoStar Group Inc. The seller was the Woodland Hills real estate management and development firm NewMark Merrill Cos. The deal closed Dec. 21, according to CoStar. The sale price represents $1,171 a square foot. Deerfield, Ill.-based Walgreen Co. has been the only tenant since the building was built in 2009, according to CoStar. Currently, it has 18 years left on its 25-year lease. Colliers’ Senior Vice President Eric Carlton brokered the deal on behalf of NewMark with Executive Vice President Jereme Snyder. The retailer’s rent on the building is scheduled to increase 10 percent every 10 years with options to extend the lease, according to the brokers. Carlton said the low, 4 percent market capitalization rate, which means investors will see a return of their money in about 25 years, was the lowest known cap rate in the country for a comparable Walgreens deal, and called it a breakthrough. “In addition to the record cap rate, this transaction was made all the more valuable because this was a fee simple lease (land and building) in place with scheduled rent escalations, something rarely seen in the sales of single-tenant Walgreens retail locations,” Snyder said.