Property Description
HMX Realty Advisors exclusively presents for sale a double drive-thru, absolute triple net Walgreens with 8.3 years of remaining base lease term. Walgreens has strong reported sales exceeding $3.2 million with consistent sales growth. The estimated rent to sales ratio is low at 4.5%. The property is a hard corner near Strong Medical Center and the University of Rochester, which contribute to the stores robust reported sales. Combined traffic counts are approximately 40,000 vehicles per day. 7-Eleven and Speedway are on the intersection and a Tops Supermarket anchored shopping center is located to the south. There are several medical offices in the immediate area. The store open 8am to 10pm and offers Photo, Western Union, Bitcoin ATM, FedEx Onsite, as well as a Double Drive Thru.
The lease has a 75-year base term and Walgreens has the right to terminate at year 25 and every 5 years thereafter. Rent is flat, which can create significant leasehold value over 75 years. The lease also contains a percentage rent clause which, while not currently “in the money,” could provide important inflation protection in future years.
The University of Rochester (12,039 students) and the Strong Medical Center with 886 beds, are both directly west on Elmwood Ave. SMH is currently building a 650,000 square foot addition on the medical campus taking it to a total 886,000 SF. SMC is the teaching hospital for the University of Rochester and the center of significant medical research.
Average household income is $92,366 in 1-mile. Five-mile population is 288,000 with an 80,600 average household income. Highland Hospital is located 1.7 miles to the north and is part of the University of Rochester. The facility recently completed a $70 million addition, adding 80,000 square feet. As you will see on the competition map, all the Rite Aids in the area have been closed and Walgreens has consolidated operations in its strongest locations. This property has a strategic location with little area competition and superior reported sales.
About Rochester
Rochester, NY has an economy, driven by science and technology, research and development, and advanced manufacturing. Higher education and medicine are also major contributors. The largest employers in Rochester are University of Rochester 33,143 employees, Rochester Regional Health 16,500, Wegmans Inc. 13,050, Paychex Inc. 4,900, Rochester Institute of Technology 4,400 and Eastman Kodak Company 4,200.
