Two Louisiana Drug Stores Sold, Mirroring Trending Investment Type Nationwide
Last week our team at Stirling Investment Advisors sold two Walgreens stores in Louisiana; one in Denham Springs, LA and the other in Ruston, LA. The list price of these deals was in excess of $11.3M and each store has 15+ years remaining on the primary lease term. Both properties traded at a 6.25% cap rate and require zero responsibilities for the new landlords.
Deals like this are happening nationwide and are primarily focused in the net lease sector which has remained strong in spite of COVID-19. Even more specifically, activity in the net lease space is strongest for necessity-based uses, including drug stores and quick service restaurants with drive-thrus. Single-tenant net lease properties are historically more stable in turbulent times, and those that provide essential goods and services are an even safer option for investors looking for opportunities during COVID.
Here in Louisiana we have many investment opportunities that offer long-term, stable cash flow. Essential businesses, which have remained open while other nonessentials were forced to close, are paying their rent on time and are backed by national brands with recognizable names. While many tenants have had to seek relief from their landlords, the essential businesses are thriving, proving that they’re an investment-worthy asset that makes sense in this environment.
To learn about net lease investment opportunities like these, give me a call or send me an email!
Justin Langlois, CCIM is a Commercial Real Estate Investment Advisor with Stirling Properties servicing Baton Rouge, Louisiana and surrounding markets. Please reach out to Justin to discuss your real estate investment strategies.