15650 San Pablo Ave
San Pablo, CA 94806
Walgreens · Retail Property For Sale

Marcus & Millichap is pleased to offer a NN-leased, corporately guaranteed Walgreens in San Pablo, California. Built to suit for Walgreens in 1999, the 13,855 square feet property is currently leased to Walgreen Co. under a NN lease with landlord responsible for roof and structure. There are approximately six years of remaining term on the lease, as the tenant just recently exercised its first option. Adding to the security of the investment, rent is temporarily reduced from February of 2019 to February 2024 to a rate of $1.42/SF, which is below the projected market rent for such space of $1.50-$2.00/SF. The blended cap rate over the remaining term of the lease not including the option period is 5.81 percent. The tenant has 35 years of options remaining with the right to terminate the lease every five years. Rare for a Walgreens, the lease has scheduled rent increases in 2024, 2029 and every 10 years during the remaining option term thereafter. The property benefits from being situated on the hard corner of San Pablo Avenue and Richmond Parkway with approximately 30,000 cars of daily traffic at the intersection. Immediately surrounding the property are several large apartment complexes, schools, retail and medical offices. It is also in close proximity to the Shops at Hilltop, a regional mall, and Richmond Parkway is a direct exit off Highway 80 with 190,000 cars of daily traffic. Located in one of the most desirable metro areas of the country, the property benefits from excellent demographics, with average household incomes in a 5-mile radius exceeding $86,000. The Walgreens in San Pablo, California is an asset in a prime Bay Area retail location, which offers investors stable and secure income stream at low landlord responsibilities.