Private equity firm sells Walgreens in Delray Beach for $8M

The property was last purchased for $6.5M in October

Miami /
Jun.June 23, 2020 01:30 PM
3200 South Federal Drive Delray Beach, Oak Street Real Estate Capital’s Jim Hennessy (Credit: Google Maps and LinkedIn)

3200 South Federal Drive Delray Beach, Oak Street Real Estate Capital’s Jim Hennessy (Credit: Google Maps and LinkedIn)

A Chicago private equity firm sold a Walgreens-leased store in Delray Beach for $8.1 million, less than a year after buying it.

Oak Street Real Estate Capital sold the 14,362-square-foot property at 3200 South Federal Drive for $563 per square foot, records show. Montrose Lexington Associates of Fort Lee, New Jersey purchased the property.

Oak Street Real Estate Capital had purchased the store in October for $6.53 million, records show. The building was built in 2001 and is fully leased to Walgreens. It sits on a 1.62 acre lot, records show.

With stable, recurring cash flow and a single tenant, Walgreens-leased properties are often seen as a safe bet for investors, experts say. But Walgreen Co. announced in August that it planned to close 200 stores in the U.S. following “a review of the real estate footprint in the United States.”

In recent months, a few Walgreens stores have sold in South Florida. In May, Walgreen Co. sold one of its locations in North Palm Beach for $6.9 million.

In April, Walgreen Co. sold one of its stores in Lauderdale Lakes for $7 million. Also in April, a Walgreens-leased property in Weston hit the market for $11 million.

Oak Street Real Estate Capital is led by Marc Zahr and co-founder Jim Hennessy. Crain’s reported that the company is planning to buy about $3 billion worth of distressed properties. The firm recently struck a $725 million deal in Ohio with Big Lots. The deal allows the retailer to pay down debt, and Oak Street gains control over four distribution centers, which will be leased by Big Lots, according to Crain’s.


Related Articles

arrow_forward_ios
Healthpeak Properties CEO Thomas Herzog. (Healthpeak, Sonata)
Fortress buys three Palm Beach County assisted living facilities for $30M
Fortress buys three Palm Beach County assisted living facilities for $30M
Alliance Residential Company CEO Bruce Ward and 6595 Morikami Park Road (Google Maps)
Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
Alliance Residential buys site, scores $46M construction loan for senior apartments in Delray Beach
325 East Atlantic Avenue in Delray Beach (Google Maps)
Downtown Delray Beach retail building sells for $12M
Downtown Delray Beach retail building sells for $12M
Rey Grabato and 707 North Ocean Boulevard, Delray Beach (Linkedin, 707 Delray)
NRIA CEO sells oceanfront Delray Beach spec home for $16M
NRIA CEO sells oceanfront Delray Beach spec home for $16M
189 Northeast Second Avenue in Delray Beach and The Oasis (Google Maps, iStock) 
The Weekly Dish: Host Restaurants inks second Delray lease, Oasis Wynwood unveils restaurant lineup & more
The Weekly Dish: Host Restaurants inks second Delray lease, Oasis Wynwood unveils restaurant lineup & more
BH3 co-founders Daniel Lebensohn and Greg Freedman (BH3, iStock)
Legal battle erupts over BH3’s public-private Delray Beach project inside Opportunity Zone
Legal battle erupts over BH3’s public-private Delray Beach project inside Opportunity Zone
North Delray Commons at 455 & 555 Northeast 5th Avenue in Delray Beach (Photos via Google Maps)
Benderson buys Publix-anchored Delray Beach shopping center for $9M
Benderson buys Publix-anchored Delray Beach shopping center for $9M
U.S. Construction CEO John Farina and a rendering of 1625 South Ocean Boulevard
U.S. Construction moves forward with boutique condo development in Delray Beach
U.S. Construction moves forward with boutique condo development in Delray Beach
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...