27951 Base Line Street

Highlights:

• NN Lease Structure with Major Capital Recently Completed — The lease is structured as NN (Landlord responsible for roof and structure only). Importantly, recent roof repairs totaling over $70,000 have already been completed, materially reducing near-term capital exposure and protecting investor cash flow. Full roof documentation is available for review.
• Signalized Hard Corner Directly Off the I-210 Freeway — The subject property is positioned on the signalized hard corner of Baseline Street and Boulder Avenue, regarded as the primary retail intersection in Highland. The site sits directly off the I-210 freeway exit at Baseline, providing exceptional access and visibility. Immediate retail co-tenancy includes McDonald’s, Dutch Bros Coffee, and the Albertsons-anchored Highland Village Plaza — daily-needs traffic drivers that reinforce the location’s long-term real estate relevance.
• Sycamore Partners Acquisition — Newly Capitalized Ownership - Walgreens is now a private standalone company backed by Sycamore Partners, a leading private equity firm with a proven track record of investing in and repositioning national retail brands.
• 1.64-Acre Parcel — Long-Term Real Estate Value - The property sits on a large 71,512 SF (1.64-acre) parcel with 65 exclusive parking spaces and a double-lane drive-through pharmacy. The site plan also identifies a future building area of approximately 33,275 SF on the southern portion of the parcel, offering potential for additional development or a pad sale. The combination of a signalized freeway-adjacent hard corner and a large land position provides residual real estate value independent of the current tenancy.
• Inland Empire Growth Market — Highland sits within the Inland Empire, a region characterized by ongoing population growth, limited infill retail availability, and strong demand for service-oriented retail uses. With a median household income of approximately $78,000 and a median age of just 33.5 years, the trade area reflects a young, family-oriented consumer base that supports long-term pharmacy demand.

Description:

7.50% Cap Rate — High-Yield Net Lease Investment - The subject property is offered at $4,725,000, reflecting a 7.50% cap rate on in-place NOI of $354,275. For yield-focused investors and 1031 exchange buyers, this pricing delivers a compelling current return relative to other net lease alternatives. The ownership structure also allows for real estate depreciation benefits, providing meaningful tax shelter that enhances after-tax returns — a key advantage over passive corporate bond alternatives.

73% Rent Recapture — Built-In Downside Protection - Over the remaining 9.7 years of firm lease term, Walgreens is scheduled to pay approximately $3,436,000 in total base rent — roughly 73% of the total purchase price recovered through rent alone. This rent recapture dynamic provides meaningful principal protection before giving any credit to renewal options, residual land value, or redevelopment upside on a 1.64-acre signalized hard corner.

Only Walgreens in Highland — Essential Pharmacy Location - This is the only Walgreens in the entire City of Highland, serving a community of approximately 73,628 residents. The nearest competing Walgreens locations are over four (4) miles away in San Bernardino and Redlands. As Walgreens continues to rationalize its store footprint under Sycamore Partners’ ownership, locations that serve as the sole pharmacy in their trade area carry significantly lower closure risk.

25-Year Operating History with Renewal Options Through 2070 — Walgreens has operated at this location continuously since 2001, demonstrating long-term commitment to the site. The lease provides approximately over (nine) 9 years of firm term remaining plus seven (7) consecutive five (5)-year renewal options extending through November 2070, offering the potential for decades of additional cash flow beyond the current base term.

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