5650 Plank Rd
Fredericksburg, VA 22407
Walgreens | Rare 10% Increases Every 5 Years · Retail Property For Sale

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the fee simple interest in this Walgreen’s (NYSE:WBA) located in Fredericksburg, Virginia, an affluent, rapidly growing Washington, D.C. suburb. There are more than 15 years remaining on the initial 20-year lease, which has very rare rental increases in the option years. The Tenant reports strong sales of $2 million, or $135-per-square-foot after exclusions are deducted. It is noteworthy that there is a Rite Aid location 0.8 mile east that is being purchased by Walgreens; however it is likely that the older, dated Rite Aid store will close at the expiration of its lease. This will certainly enhance the store sales at the subject location. The lease is guaranteed by Walgreen Corporation, now a subsidiary of Walgreens Boots Alliance Inc. after the company’s merger in 2014. Walgreens Boots Alliance, Inc. is investment grade, rated “BBB” by Standard & Poor’s. The Property is exceptionally well-located along Plank Road, a highly dense, heavily traveled retail corridor in the submarket. The Tenant is positioned at the signaled intersection of Plank Road and Harrison Road which combine to average 46,300 vehicles per day. Walgreens occupies a 14,820-square foot store with drive-through adjacent to a McDonald’s, Good Will and Bank of America. The Property has prominent visibility and two means of access, including an aligning curb cut with the neighboring McDonald’s. The Property is also positioned across Plank Road from Harrison Crossing, a 358,273-square-foot center anchored by Home Depot and Giant, and in proximity to numerous national retailers. Retailers in the shopping center include Petco, PNC Bank, GameStop, Mattress Warehouse and Starbucks, and new retail shops are under construction as well which will be leased to additional national retailers. Fredericksburg, Virginia is a dense, affluent Washington, D.C. suburb located 40 miles from the Capital Beltway. Its affordability has lured many residents to the area as it is in commuting distance to the DC Metro. As a result, the Fredericksburg area has experienced 50% population growth since the 2000 census with an additional 10% projected by 2022. The three-mile trade area is home to 41,085 people with average household income levels of $103,080. Fredericksburg is also home to Central Park, the largest retail center on the East Coast with over 200 retailers, a total of 255 businesses and 2.5 million square-feet of space with anchor tenants Wegmans, Walmart, Target and Lowe’s.