The Real Deal Miami

Palm Beach County Walgreens trades for $12M

Property traded at a roughly $2.3 million premium

November 05, 2015 02:30PM
By Sean Stewart-Muniz

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The two commercial properties at 15940 and 15910 Orange Boulevard in Palm Beach County

The two commercial properties at 15940 and 15910 Orange Boulevard in Palm Beach County

A Walgreens in Loxahatchee, an unincorporated portion of western Palm Beach County, just sold for $11.75 million.

The sale covers two commercial buildings at 15940 and 15910 Orange Boulevard, both of which are owned by companies linked to Jack Azout, Saul Gilinski, Jack Sredni and Isaac Sredni, according to Palm Beach County property records.

Walgreens occupies the larger of the two buildings at 15940 Orange Boulevard, while the second is leased to a variety of tenants including a salon, chiropractor and a Papa John’s Pizza.

Together, the buildings total 19,904 square foot, so the price breaks down to roughly $590 a foot. A Loopnet listing for the property said Walgreens has 20 years remaining in its base lease with an annual rent of $560,000.

A company named Pacific Wag-Loxa LLC was listed as the buyer. Records show the firm is tied to the Pacific Equities Group, which is headquartered in Los Angeles, California. The transaction took place through two deeds: one for $10.2 million, which covered the Walgreens building that was built in 2010, and $1.55 million for the smaller building with multiple tenants that was built in 2012.

The buyer financed its deal with an $8.5 million loan from Wells Fargo Bank.

Azout, one of the sellers, is a managing member of Elion Partners in Aventura. The investment firm, which is working on a luxury condo tower called the Bristol, was also linked to a land purchase in Broward County earlier this week.

The group of sellers paid a total of $9.42 million, or $473 per square foot, for both properties roughly a year after each was built.