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

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.


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