Walgreens 244 N Lake Dr

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, newly built, drive-thru equipped Walgreens investment property located in Prestonsburg, KY. The tenant, Walgreen Co., has 9 years of firm term remaining with an additional 4 (5-year) option periods left to extend. The lease features rare 5% rental increases throughout the initial term and 7.50% increases throughout the options, growing NOI and hedging against inflation. The lease is signed by the corporate entity (S&P: BBB-) and is absolute NNN with zero landlord responsibilities, making it an ideal, low-management investment opportunity for a passive investor. The offering presents the opportunity to purchase one of Walgreens’ brand new “Cooper” prototype pharmacies, a store that will have a health and wellness focus on the location’s front end.
Walgreens is strategically located near the signalized, hard corner intersection of Lake Drive and State Highway 114, averaging a combined 22,600 vehicles passing by daily. Lake Drive serves as the community’s primary retail corridor, placing the asset in an excellent location. The surrounding tenants consist of U.S. Bank, Yamato Steak House of Japan, ACE Hardware, KFC, Mr. Tire Auto, AutoZone, Wendy’s, and others. The national and regional tenant presence drives a steady stream of loyal, local consumers to the trade area and promotes significant crossover store exposure. Furthermore, the asset is near numerous single-family communities and multi-family complexes including Highland Terrace (80 units), Cliffside Apartments (94 units), and others, providing a direct residential consumer base for the site. The 5-mile trade area is supported by over 10,600 residents and 6,700 daytime employees, with an average annual household income of $65,488.