Patrick Nutt Brokers Sale of Three Pharmacy Sector Sales So Far This Month

Calkain Companies LLC, a boutique STNL brokerage firm, has recently closed on three net leased pharmacy assets. Patrick Nutt, Calkain’s Managing Partner, represented the seller in each of the transactions and achieved cap rates at a significant premium to the national average for pharmacy sector deals in the past 12 months. 

According to Calkain research, the Q2 average cap rate for pharmacy sector transactions was at 6.63%, with an average lease term of 10.5 years remaining. Although other factors come into play, the 15+ year terms on these deals facilitated a roughly 100 bps premium for the two CVS deals. Nutt’s most recent deal, the Walgreens located in Orlando, Florida, achieved an even stronger cap rate, another 70 bps lower, which he attributes to the selective new construction starts Walgreens has deployed. “Walgreens is a mature concept, and thus they are very selective in opening new stores. The Orlando sale was one of only a handful of new construction Walgreens locations to open in 2018, which speaks to the quality of the physical real estate for this property, ultimately compressing the cap rate,” Nutt continued.

All three pharmacy deals were transacted earlier this month and achieved cap rates ranging from 5.05% up to 5.75%. 

Calkain Companies LLC is a commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant net leased properties through all aspects of the transaction including advisory, brokerage, capital markets, asset management and research. Calkain has a national platform with multiple office locations throughout the entire East Coast. Additional information about the firm and listings may be found at calkain.com.