Walgreens – Washington D.C. MSA

  • Walgreens Largo 1
  • Walgreens Largo 2
  • Walgreens Largo 3
  • Walgreens Largo 4
  • Walgreens Largo 5

Available $7,775,000 - Retail - Single Tenant
Cap Rate:  5.75%Size:  14,564 SFTerm:  10 Years Remaining Print

 Investment Offering & Highlights

  • ONE BLOCK FROM THE UNIVERSITY OF MARYLAND CAPITAL REGION MEDICAL CENTER: 600,000 SF with an estimated cost of $543M – currently under construction and slated for completion in March 2021
  • ADJACENT TO BOULEVARD AT THE CAPITAL CENTER: 50-Acre redevelopment that will include up to 3M square feet of retail, office, medical office and apartments
  • LIMITED COMPETITION: No free-standing drug store within 5 miles
  • LOCATED AT THE SIGNALIZED & HIGH TRAFFIC INTERSECTION OF HIGHWAY 202 AND ARENA DRIVE: Combined daily traffic counts in excess of 58,000 vehicles per day
  • DIRECTLY SOUTH OF THE LARGEST KAISER MEDICAL CENTER IN THE MID-ATLANTIC: Kaiser plans to expand their campus to their recently acquired parcel immediately adjacent to the subject property
  • 12 MILES EAST OF WASHINGTON D.C IN AN AFFLUENT NEIGHBORHOOD: 239,369 residents within a five-mile radius, with an average household income of $98,046 within a three-mile radius
  • CLOSE PROXIMITY TO FEDEX FIELD: Located one mile from the home of the NFL’s Washington Redskins

Property Description

THE SUBJECT PROPERTY IS A 14,564 SQUARE FOOT WALGREENS (FORMERLY A RITE AID AND IN PROCESS OF BEING REBRANDED) LOCATED IN THE EXTREMELY DENSE AND POPULOUS CITY OF LARGO, WHICH IS PART OF THE WASHINGTON DC MSA.

Walgreens leases the property on a 20-year NN lease, which commenced in March of 2008, leaving approximately 10 years remaining on the initial lease term. The lease includes five, 5-year renewal options, with rent increases between each option period.

Walgreens, which is publicly traded on the New York Stock Exchange under the ticker symbol “WBA”, has a current BBB credit rating by Standard & Poor’s and boasted annual revenues in excess of $118 billion in 2017. Walgreens is also ranked #17 on the Fortune 500 list.

Located about 12 miles east of Washington D.C., the subject property is situated in one of the most dynamic and transformative areas in Prince George County. The property is ideally positioned one block from the University of Maryland Medical Center, a 600,000 square foot regional hospital that broke ground in November of 2017 and is scheduled for completion in March of 2021. The total project cost is estimated at $543M, and will be comprised of multiple buildings, including an 11-story main patient care building.

Immediately adjacent to the new Medical Center, Retail Properties of America has started planning for the redevelopment of the 50-acre Boulevard at the Capital Center retail complex. The mixed-use redevelopment will include an AMC movie theater, grocery store, retail, apartments, condos and medical office. The project will consist of 14 stories, with a total buildout estimated at 3 million square feet. Phase 1 of the development is scheduled to break ground in September of 2018, with an estimated completion date of March of 2021, the same month the Medical Center is slated to open.

Kaiser Permanente operates their largest medical center in the Mid-Atlantic directly north of the property and recently acquired the adjacent parcel to the Walgreens in the summer of 2017. Kaiser plans to expand their medical campus into the adjacent parcel.

Additionally, the subject property is directly across from The Largo Town Center, with the Largo Plaza shopping center located just southeast of the subject property, with a national retail tenant mix including Ross, Marshalls, Target, McDonald’s, Applebee’s, Wells Fargo, Taco Bell and many others.

Walgreens is surrounded by a dense, affluent population, with approximately 239,000 residents within a 5-mile radius and an average household income of $98,046 within a 3-mile radius. Additionally, the property is located between two major retail corridors with combined daily traffic counts in excess of 58,000 vehicles and is positioned just outside the Capital Beltway (I-95/495).

Additional Details

  • Price: $7,775,000
  • Cap Rate: 5.75%
  • Lease Term: 10 Years Remaining
  • Building Size: 14,564 SF
  • Year Built: 2008
  • Status: Available
Property Location