JLL Capital Markets closed the sale of the net-leased retail property that set a record cap rate
News release
07 April 2022
Record-setting sale of Austin Walgreens building closes
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MIAMI, April 7, 2022 – JLL Capital Markets announced today it has closed the record-setting sale of a 13,833-square-foot single-tenant retail store triple net leased to a high-performing Walgreens in Austin, Texas, one of the fastest-growing cities in the country.
JLL marketed the property on behalf of the seller, Swanson Development Company. Sikka Investments acquired the asset in a sale with a 3.69% capitalization rate, a record for Walgreens stores in the country.
A global leader in the pharmacy, health and beauty sector, Walgreens is a subsidiary of Walgreens Boots Alliance, Inc., which has a BBB (S&P) credit rating. The tenant is a top performer by annual sales and, after operating at the property for more than two decades, recently demonstrated its commitment to the location with a new, 15-year lease.
The building is positioned on 1.86 acres at 6200 W. William Cannon Dr. in a dense southwest Austin retail and medical corridor surrounded by several private medical practices and popular daily needs tenants. The property is in a highly visible location along West William Cannon Drive just off U.S. 290 and seen by 90,000 vehicles per day. This high-growth location has already seen its population within three miles balloon by 18.43 percent, and, due to Austin attracting corporate relocations, is expected to add even more residents.
The JLL Net Lease Capital Markets team representing the seller was led by Senior Managing Director Alex Sharrin and Director Alex Geanakos, along with Director John Indelli.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.