The Small Space Marketplace

List Your Space

Find Space

Home About Us Executive Subscriber Membership RENTV Conferences Newsletter Contact Us Advertise
May 27, 2024
 Search RENTV
 The REview
News Home Page
Southern California
Northern California
Pacific Northwest
Prop. Management
Press Releases
 R. E. Marketplace
Service Providers
Property Spotlight
 RENTV  Conferences
Subscriber Login:
Forgot Password?

Printer-friendly Version   Email an Associate
Single-Tenant Walgreens in Tehachapi Sells for $438/sf


A 14.6k sf, single-tenant net-leased investment occupied by Walgreens in Tehachapi traded for $6.4 mil, or $438/sf. Built in 2003, the Walgreens building features a drive-thru.

The property is located on 1.66 acres at 1091 W. Tehachapi Blvd, roughly 35 miles southeast of Bakersfield and 34 miles northwest of Lancaster. It is at the signalized intersection of Tehachapi Blvd and Tucker Rd/State Route 202 with over 23,000 cars per day.

Walgreens is situated at the apex between Historic Downtown Tehachapi and the Tucker Road retail corridor, just 1.5 miles from State Route 58, a major highway that connects Tehachapi to the cities of Bakersfield (west) and Mojave (east). Nearby tenants include Walmart Supercenter, Albertsons, Save Mart, Big 5 Sporting Goods, Del Taco, Dollar Tree, Family Dollar, Jack in the Box, O’Reilly Auto Parts, Panda Express, Sonic, Starbucks, Subway and Taco Bell.

Bill Asher and Jeff Lefko with Hanley Investment Group Real Estate Advisors represented the seller, a private investor based in Los Angeles. The buyer, also a Los Angeles-based private investor, was repped by Chris Spirito of Stafford Commercial Real Estate in Los Angeles.

“We procured an all-cash, 1031 exchange buyer in the final weeks of their identification period and negotiated a short due-diligence period and closing to meet the buyer and seller’s objectives,” said Asher. “The sale represented a record-low cap rate for a Walgreens sale in the Central Valley with a shorter-term lease. Walgreens had approximately 6.5 years remaining on the initial absolute triple-net lease term and an 18-year operating history at the location.”

The area has experienced a 7.8% increase in population and nearly an 11% increase in the number of households since 2020, according to Asher. A center for renewable wind energy, Tehachapi has 4,531 turbines that produce 3,200 megawatts of electricity as of 2019; Amazon announced in 2019 that it would begin sourcing wind energy from Tehachapi as part of its goal to become carbon-neutral by 2040.

“Single-tenant retail investments with an established successful operating history and an initial lease term remaining between five to eight years are challenging to find in a supply-constrained environment,” said Asher. “When investors can locate them, they are willing to take on the risk of a shorter-term lease to achieve a better than average market return compared to the compressed cap rates for newer longer-term leased assets.”

Return to the Archive page


Home | About Us | Newsletter | Contact Us | Executive Subscriber Membership | Executive Subscriber Home | Advertise
Southern California | Northern California | Pacific Northwest | Southwest | Retail | Multifamily | Financing | Property Management
Archives | Press Releases | Service Providers | JobWorks | Property Listings

Copyright © 2024 by RENTV, All Rights Reserved
Website designed by Regency Web Services, Inc. and powered by Lightning Media