Arizona 1031 Property

Walgreens – Phoenix, AZ

$100,000 Minimum Investment

 Current Yield: 5.50%

Newly Renewed NN Lease – 10 years

Property Info

Tenant: Walgreens
Address: 3431 W Union Hills Dr Phoenix, AZ 85027
Year Build: 1998
Total Sq Ft.: 13,968
Property Type: Single Tenant, Freestanding
Ownership Type: TIC
Minimum Investment: $100,000

Arizona TIC Property

This location has 20-year operating history and tenant recently exercised a 10-year extension of the lease. At $11.53/SF, this property had the lowest rent per square foot of the fifty comparable Walgreens properties that we researched and thus has a high likelihood of renewal. In the event that Walgreens does not renew, the rent is well below current market rents. A new roof was installed in June 2018 and includes a 10-year roof warranty. The property is visible to 51,500+ cars per day along N 35th Avenue and W Union Hills Drive, and has easy freeway access as it is one mile off off I-17 and Loop 101. The property is also minutes from Arizona State University’s West Campus. Overall, this property has a strong daytime population. The NN lease covers almost all conceivable expenses to property owners and a cash reserve is continually being built in the event any roof/structure issues should arise. As such, the property is a perfect 1031 investment for those exchangors seeking a headache-free investment property with a solid tenant. These tenant-in-common TIC properties allow any investor to enjoy the benefits to investment-grade commercial real estate.

Tenant Info

Tenant: Walgreens
S&P Credit Rating: BBB
Revenues: $131.53 billion
Revenue Growth: 11.27% from 2017
No. of Locations: 8,100+

Lease Info

Type: NN
Term: 10 years
Corp. Guaranteed Lease: Yes
Rent Commencement: October 2018
Lease Expiration: October 2028
Owner Responsibility: Roof, Structure
Tenant Responsibility: Taxes, Insurance, Utilities, Maintenance
Current Annual Rent: $161,000
Rent Per Square Foot: $11.53
Renewal Options: (6) 5-year renewal options

Location Info

Location: Phoenix, AZ
Population: 1.626 million
Traffic Count: 51,500+ per day
1-Mile Population: 18,000+
3-Mile Population: 123,200+
5-Mile Population: 314,400+