Walgreens

Highlights:

• Walgreens has operated here since 1970, extended lease to 2057, 288K annual visits/ open 24 HR - showcasing strong profitability and stability
• 4.56% fixed-rate assumable loan at 67% LTV, maturing in 2032, offers investors long-term favorable cash flow.
• Lease includes 15% rent increase in 2032 and 10% every 5 years thereafter, ensuring strong income growth and an inflation hedge.
• Prime hard-corner location with 62K+ VPD, co-anchored by national retailers and across from Yuba Sutter Marketplace (4.1M annual visitors).
• Single-tenant NNN lease with full expense reimbursement, offering hassle-free management and ideal for 1031 or passive investors.

Description:

Faris Lee Investments is pleased to offer a STNL Walgreens with a drive-thru on a triple net lease (fee simple interest) in Yuba City, California. Walgreens is open 24 hours which typically shows their commitment to the site with strong store profitability. Walgreens extended their original lease in 2022 for 35 years with an option to terminate in 15 years in 2037. Walgreens has a 15% rental increase in 2032 which offers an investor strong income growth and an excellent hedge against inflation. Walgreens has been operating at this location since 1970 (55 years), proving the company’s continued commitment to the site.
The subject property sits at the signalized hard corner intersection of Colusa Highway & Gray Avenue which boasts traffic counts north of 62,000 VPD. The site is co-anchored by PetSmart & O’Reillys and sits across from the highly successful regional center – Yuba Sutter Marketplace (with over 4.1 Million annual visitors) as well as a Bank of America branch with over $300M in deposits. The property’s prime location and strong tenant fundamentals make it an exceptional investment opportunity.

Yuba City, situated in the heart of Northern California’s Sacramento Valley, is a vital agricultural hub known for its rich history and community-oriented atmosphere. As the county seat of Sutter County with a population of over 70,000, the city is defined by its location near the confluence of the Feather and Yuba Rivers and its proximity to the Sutter Buttes, often called the “world’s smallest mountain range.” The economy is deeply rooted in agriculture, making the region one of the leading producers of peaches, prunes, and walnuts in the world. Key industries supporting the city also include government, healthcare, food processing, and retail trade, which serve the surrounding rural communities and benefit from the nearby presence of Beale Air Force Base.
Beyond its agricultural foundation, Yuba City provides a range of amenities and a lifestyle that blends small-town charm with suburban convenience. Residents enjoy numerous outdoor recreational opportunities, including boating and fishing on local rivers and exploring the unique landscape of the nearby Buttes. The city features a variety of parks, a historic downtown area with local shops and restaurants, and larger retail centers that serve the regional population. While offering a more relaxed pace of life, its strategic location along State Routes 99 and 20 provides straightforward access to the greater Sacramento metropolitan area, located just 40 miles south. This combination of economic stability, affordable living, and access to both natural recreation and urban centers makes Yuba City a key residential and commercial center in the upper Sacramento Valley.