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  • Writer's pictureMAREJ

Horvath & Tremblay sells two Walgreens and Fresenius Medical Center for $23 million


West Milford, NJ — Horvath & Tremblay has delivered impressive results with the sale of three properties eclipsing $23 million in total sales. Recent transactions include the sale of Walgreens in West Milford, NJ, Walgreens in Cherry Hill, NJ and Fresenius Medical Center in Farmville, NC. Bob Horvath, Todd Tremblay, and Brian Ahrens of Horvath & Tremblay have successfully completed the sale of the Walgreens in West Milford, NJ. Horvath & Tremblay represented the 1031 exchange buyer to close the property at a sale price of $10,655,238, a 5.25% cap rate. Walgreens is located in the affluent community of West Milford along Union Valley Rd.. Operating under an absolute triple net lease, Walgreens has 17.5 years remaining on the base term of the lease with four, 5-year renewal options with 10% rental escalations every 10 years. Union Valley Rd. is the main retail corridor traveling throughout the township of West Milford. The property is surrounded by many national tenants including ShopRite, McDonalds, Dunkin’ Donuts, TJ Maxx and H&R Block. It is also located near many national and regional banks including Wells Fargo, M&T Bank, Bank of America, Lakeland Bank, and Columbia Bank. Walgreens in Cherry Hill, NJ closed at a sale price of 8.9 million, a 5.49% cap rate. Blake Barbarisi and Adam Mancinone represented the seller buyer in the transaction. Walgreens signed a 25-year absolute triple net (NNN) lease in 2010, which includes options periods through 2085. This has been a proven location for Walgreens since they opened six years ago. The property is located three miles from the New Jersey Tpke.(I-95) and I-295. The asset benefits from excellent visibility and close proximity to local shopping and all major thoroughfares within Cherry Hill. The property is located at the northwest corner of North Kings Highway and Chapel Avenue with traffic counts in excess of 24,000 vehicles per day. Along the Kings Highway and Chapel Avenue corridors lies over two million square feet of office space comprised of mostly medical users. With an affluent population, and average household income exceeding $95,000, this site will only appreciate over time and would be considered a trophy in any investor’s portfolio. Barbarisi and Mancinone also procured the buyer of Fresenius Medical Center in Farmville, NC to close the property at a sale price of $3.55 million. The 7,186 s/f, newly constructed property is fully occupied by Fresenius Medical Care and operates under a double net lease with over 14 years remaining on the initial lease term with three, 5- year renewal options and scheduled rental escalations every five years. The Lease is guaranteed by Fresenius’ corporate parent, Fresenius Medical Care Holdings, Inc., (“FMCH”). With a current net worth of over $22.5 billion, FMCH is the largest provider of renal care, both internationally, and throughout the nation. This is a unique property as it is located in a “Certificate of Need” state which places limitations on the development of new facilities, preventing health care competition with the subject property while creating a high barrier of entry for competition.

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